The Kernel Of Strategy

Good Strategy / Bad Strategy is a great read.

In essence, every good strategy has a basic structure called a kernel. The kernel consists of 3 main parts:

• Diagnosis: clearly identify the critical problem that needs to be solved
• Guiding Policy: the general direction forward (with minimal details)
• Coherent Actions: the resources, policies, and actions needed to carry out the guiding policy

Let’s imagine a simple example: you’re on offense in a football game.

• You diagnose that the defense is lined up to prevent a passing play.
• The guiding policy for the offense is to do a running play.
• The coherent actions are putting in the proper team members to execute on that play and making sure everyone is on the same page on what specific running play is going to be executed.

But the truth is, you’re not always in a good position to come up with a great strategy. Sometimes, you have to just grind it out and wait for the right play to become apparent.

In real life, strategy is actually very straightforward. You pick a general direction and you implement like hell. — Jack Welsh

But don’t get comfortable. It’s not OK to get lazy about your strategy. You need to know your customers, know your market, and think deeply about how to win.

It cannot be found by seeking, but only seekers shall find it.
— A Sufi proverb