Good Strategy vs Bad Strategy Flashcards
What are the three elements of the kernel of a strategy?
Diagnosis, guiding policy, coherent action
The kernel serves as the foundation of effective strategy.
What is the role of diagnosis in a good strategy?
Clear-eyed assessment of the challenge at hand
It simplifies complex realities by identifying critical aspects.
What does a guiding policy outline in a strategy?
An overall approach to overcome obstacles
It provides a framework for addressing challenges.
What is meant by coherent action in a strategy?
Coordinated steps designed to support the guiding policy
It ensures that actions align with the overall strategy.
True or False: Effective strategies often gain advantage because rivals anticipate them.
False
The element of surprise comes from insightful diagnosis and creative problem-solving.
What are the hallmarks of bad strategy?
- Fluff
- Failure to face the challenge
- Mistaking goals for strategy
- Bad strategic objectives
These indicators reveal a lack of substance in strategy.
What is ‘fluff’ in the context of bad strategy?
Excessive use of buzzwords and jargon to hide lack of substance
It creates an illusion of strategic thinking.
What are proximate objectives in strategy?
Goals that are close enough at hand to be feasible
They provide clear direction and help coordinate problem-solving efforts.
What does strategic design involve?
Creating a cohesive configuration of resources and actions that yields advantage
It coordinates multiple elements to work together efficiently.
What is the significance of riding waves of change in strategy?
Capitalizing on broader trends and transitions in technology, markets, or regulations
It requires leaders to anticipate second-order effects.
What are inflection points in strategic planning?
Periods of significant industry change that can upset existing competitive positions
They enable the emergence of new strategies.
What is organizational inertia?
Resistance to change due to entrenched processes, cultural beliefs, or stakeholder resistance
It can impede strategic change.
What is entropy in organizations?
The tendency for order and focus to degrade over time without active maintenance
Leaders must work on reinforcing purpose and structure.
What is the importance of scientific thinking in strategy?
Developing and testing strategies like scientific hypotheses
It involves careful observation and the willingness to revise theories based on evidence.
True or False: Good strategists should ignore anomalies in outcomes.
False
Unexpected results often point to important strategic insights.
What techniques help strategists overcome cognitive limitations?
- Making lists
- Using mental models
- Cultivating a panel of experts
These techniques help structure complex problems and counteract biases.
What is the difference between inside view and outside view in strategy?
Inside view focuses on specific situations; outside view considers broader patterns and statistics
Balancing both is crucial for effective decision-making.
What does Rumelt suggest for creating focus in strategy?
- Identify pivotal objectives
- Avoid spreading resources thin
- Use proximate objectives
Concentrating on critical objectives can maximize impact.
What are coherent actions in a strategy?
Actions that align with the guiding policy and build momentum
They foster accountability and progress in the organization.
What is the Create-Destroy Method in strategic thinking?
Generating new alternatives while critically evaluating existing ones
It helps uncover better strategies.
What is the significance of committing judgments to writing in strategy?
Enhances accountability and facilitates learning
It encourages reflection and improvement in strategic thinking.
