Good Strategy-Bad Strategy: Post #8 The Kernel--Guiding Policy

The Guiding Policy: This step in the process emerges directly from the diagnosis because it outlines a general approach for solving the problems posed in the diagnosis. Gerstner’s guiding approach was reallocation of IBM’s resources from main-frame technology to more customer-centric solutions. Guiding policies are less of a vision and more of a method—a way to approach the obstacle. Guiding policies are not the “what’s going on” but the “how we’ll approach it.”And, guiding policies lead to coherent action.

Good Strategy-Bad Strategy: Post #6 The Kernel

The Kernel of a Good Strategy: “Good strategy is coherent action backed by argument, an effective mixture of thought and action with a basic understanding of what I call the kernel.” For Rumelt, the kernel consists of three key elements: 1) A diagnosis—a simplified explanation of the issue or challenge being faced; 2) a guiding policy—an overall approach to face the obstacles identified; and 3) a set of coherent actions—focused actions to implement the guiding policy.