Kernel of Strategy

According to Richard Rumelt, the kernel of good strategy consists of three elements:

1. The diagnosis analyses the problem space of the challenge. A good diagnosis creates focus by identifying its most critical aspects.
2. The guiding policy defines principles for overcoming the obstacles identified in the diagnosis.
3. A set of coherent actions that realise the guiding policy and create solutions for the identified problems.

To develop a strategy, we can start by asking these questions:

1. What is going on?
2. How can we make it better?
3. What do we do next?