strategy

To evaluate a business strategy, apply Rumelt's framework to identify the kernel of strategy—diagnosis, guiding policy, and coherent action—while checking for common pitfalls like fluff, vague goals, or failure to face challenges.

The kernel of strategy consists of three core elements: a diagnosis defining the challenge, a guiding policy addressing the situation, and coherent action designed to execute the policy through coordinated, reinforcing steps.

Develop a guiding policy by first diagnosing the specific challenge, then formulating a reasoned approach to overcome it, ensuring it directs coherent action and avoids mere goal-setting without actionable trade-offs.

Strategic plans fail when they substitute buzzwords for analysis, set goals without actionable steps, or avoid facing challenges, all common bad strategy pitfalls identified by Rumelt's evaluation criteria.

Yes, you can assess a strategic plan document by running it through the Rumelt Test to critically evaluate whether it makes clear trade-offs, outlines actionable steps, or relies on wishful thinking.

The best way to identify bad strategy is using structured evaluation criteria to spot fluff, failure to face challenges, and goals masquerading as strategy, ensuring your corporate planning remains actionable.