Why Most Strategy is "Bad"

Most companies mistake "Vision" or "Aggressive Goals" for strategy. Richard Rumelt calls this Bad Strategy. Bad strategy is characterised by:

Fluff: High-level jargon that masks a lack of substance (e.g., *"We will be the leading global provider of synergy"*). It sounds strategic but says nothing actionable.

Failure to Face the Challenge: If you don't define the problem, you can't evaluate whether the strategy addresses it. Bad strategy skips the diagnosis entirely.

Mistaking Goals for Strategy: *"Increasing revenue by 20%"* is a goal, not a strategy. A strategy explains how you'll overcome the obstacles standing between you and that goal.

The Kernel: The Fixer's Secret Weapon

A "Fixer" uses a structured argument known as the Kernel to build real strategy. It consists of three elements:

### 1. The Diagnosis

A diagnosis explains the nature of the challenge. It simplifies the complex reality by identifying the "critical" aspects of the situation.

*Example: "Our growth has stalled because our onboarding is designed for power users, but our new market is non-technical."*

A good diagnosis is specific, honest, and points directly at the real obstacle — not a symptom of it.

### 2. The Guiding Policy

This is an overall approach designed to overcome the obstacles identified in the diagnosis. It directs action in a specific direction without being a detailed to-do list.

*Example: "We will simplify the initial user experience by removing 50% of the configuration options for the first 30 days."*

The guiding policy channels effort. It rules out some actions and makes others more attractive.

### 3. Coherent Actions

These are coordinated steps to implement the guiding policy. They must work in unison; if your marketing is promising "advanced features" while your product team is "simplifying for beginners," your actions are not coherent.

*"Good strategy requires leaders who are willing and able to say 'no' to a wide variety of actions and interests."*

Strategic Leverage

A Fixer looks for Pivot Points — places where a small amount of effort can create a disproportionate response. This often involves anticipating how competitors or customers will react to changes in the market.

Strategic leverage isn't about doing more. It's about finding the one move that changes everything else.

Immediate Takeaway: Identify the single biggest obstacle blocking your team's success right now. Write a one-sentence Diagnosis of that obstacle. Then, write a Guiding Policy that provides a clear "how" for dealing with it.