Strategy Capsules - Good Strategy & Bad Strategy Identification
When Corporates, teams or even individuals says that, we have clear objective and we identified what are we going to do about it, it is more often a bunch of aspirations and goals that are dreamy and falls down in the future of 5+ years and the main aim is to buy more time until executives could figure out what are they going to do or sometimes it is to buy more waiting time until something big happen. There is absolutely nothing wrong with aspirations, however it doesn’t equate to an actionable strategy unless they are backed by a roadmap that considers practical, achievable steps.
A clever strategist, would certainly need to have the capability & experience to identify what is a good strategy and bad strategy, in another
word identify the difference between what will work and what won’t. This caliber
in fact is missing around the world as more than 70% of strategies do not achieve
any of its goals.
In Good Strategy Bad
Strategy book by Richard Rumelt, he explains that a bad strategy generally
lacks the clarity, coherence, and focus required to address real challenges
effectively. Here’s how to identify a bad strategy based on key indicators:
1.
Fluff
Bad strategy often contains "fluff"—superficial,
vague, or meaningless language that sounds impressive but lacks substance. For
example, saying “Our strategy is to be the best” without defining what “the
best” means, or providing concrete steps on how to achieve it, is mere fluff.
If the strategy document is filled with jargon or buzzwords
but lacks clear, actionable points, it’s likely a bad strategy.
2.
Failure to Define the
Challenge
A key part of good strategy is diagnosing the critical
issues that the organization faces. A bad strategy either misdiagnoses or
avoids identifying the core challenges altogether.
Without a clear definition of the problem or challenge, the
strategy lacks direction and may focus on irrelevant or trivial issues instead
of addressing the root causes.
3.
Mistaking Goals for
Strategy
Many bad strategies are just lists of ambitious goals or
targets (like “increase revenue by 20%” or “become the market leader”) without
a clear roadmap or approach for achieving them.
Goals are outcomes; strategy is the plan to achieve those
outcomes. If a plan is just a collection of targets without any actionable or
guiding principles, it’s likely a bad strategy.
4.
Bad Strategic Objectives
Good strategy includes clear, actionable objectives that can
help overcome the identified challenges. Bad strategy, on the other hand, sets
objectives that are either too vague, unrealistic, or disconnected from the
core issues.
For example, setting overly ambitious objectives without
addressing resource constraints or the current competitive landscape can render
a strategy ineffective.
5.
Overreliance on “Vision”
without Concrete Action
Many bad strategies place excessive emphasis on vision
statements or aspirations without enough focus on practical steps. Vision is
important, but it should be grounded in actionable plans.
If a strategy relies heavily on high-level vision statements
but lacks a pathway to realize that vision, it’s probably a bad strategy.
6.
Avoidance of Hard Choices
or Trade-offs
A good strategy often requires making difficult choices and
prioritizing some initiatives over others. Bad strategies try to avoid
trade-offs, either by attempting to do everything or by not committing to
specific directions.
For instance, if a company is trying to be both a low-cost
leader and an innovation leader without clear prioritization, it’s not making
the necessary trade-offs for focus and coherence.
- ü Lacks a clear diagnosis of challenges.
- ü Confuses goals with strategy.
- ü Is filled with meaningless language or “fluff.”
- ü Sets impractical or unfocused objectives.
- ü Relies on broad vision statements without actionable steps.
- ü Avoids making hard choices and trade-offs.
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