A real strategy is a coherent mix of policy and action designed to overcome a significant challenge. So a sensible employee might indeed say that they have no idea what the organization's strategy is - because it seems to have none. Senior managers' so-called "strategies" are heavy with aspirations and goals, but light on how resources and strengths will be combined to achieve them.
Richard P. RumeltAs I worked to explain how to avoid bad strategy, I began to see that one cannot really evaluate or criticize a strategy unless there is a fairly clear statement of the problem the strategy is trying to solve.
Richard P. RumeltOne of the problems many leaders report is a gap between strategy and execution. Usually this "gap" arises because the so-called "strategy" is a set of financial performance goals, not an approach to overcoming challenges. The two key ways to narrow this gap are to avoid bad strategies that fail to explain how to proceed and to establish a proximate objective - something which can be accomplished and which will open the door to further progress.
Richard P. RumeltA real strategy is a coherent mix of policy and action designed to overcome a significant challenge. So a sensible employee might indeed say that they have no idea what the organization's strategy is - because it seems to have none. Senior managers' so-called "strategies" are heavy with aspirations and goals, but light on how resources and strengths will be combined to achieve them.
Richard P. RumeltA good strategy is not always successful, but even an "inappropriate" strategy may be an actual strategy. A "bad strategy" is one that doesn't even try to address an important challenge. Instead, it speaks of aspirations, visions of the future, lays out performance goals, or simply lists a bunch of unconnected actions.
Richard P. RumeltThe single most damaging misconception about strategy is that it is a set of financial performance goals. The so-called "strategies" created by many managements are nothing more than three-to-five year financial performance forecasts. They are then labeled "strategy" and shipped off to the board of directors which goes through the motions of discussing how big the numbers are. Strategy is not your aspirations. Strategy is concerned with how you will arrange your actions and resources to punch through the challenges you face.
Richard P. RumeltI agree with O'Toole that custom and comfort are impediments to change. However, it is important to recognize that resistance to change is logical as well. The new "change masters" literature seems to take change as the norm. It isn't. Humans naturally see change as risky because it is risky, just as mutations in genes are mostly destructive. You would not want to go to work were everything changed every week! The phone system, the office assignments, who reports to who, and the whole set of job expectations.
Richard P. Rumelt