Goals, ambitions, visions, missions, values, wished-for end states - none of these things are a strategy.
As understanding deepens, the strategist seeks the crux - the one challenge that both is critical and appears to be solvable.
A diagnosis of the situation. Figure out what's going on here and understand the challenge you face. The challenge can be to deal with change and competition, it can be triggered by a large opportunity or it can be internal like outdated routines, bureaucracy, or lack of collaboration.
A guiding policy, i.e. what will you do and what will you not do with the challenge. It is "guiding" because it channels actions in certain directions without defining exactly what shall be done.
A set of coherent actions that will carry out the guiding policy. This part is so easy to leave out because people like to think of strategy as a high level conceptual thing. Strategy is about action. There must be enough clarity about action to bring concepts down to earth.
When deciding what you will do with the challenge, find your source of advantage. Do you know something that others don't? Do you have a skill that others don't have? Do you have a reputation, brand or existing market system that others cannot replicate? Do you have scale, technology, experience or other resources that others don't have?
A bad strategy is fluff and fails to face the challenge, it lacks the diagnosis. If you don't frame the challenge it is difficult to assess the quality of the strategy.
Another mistake is to treat goals as a strategy. Many bad strategies are just statements of desire rather than plans for overcoming obstacles. Good strategic objectives are the outcome of a strategy, not its input.
Bad strategy is the active avoidance of the hard work of crafting a good strategy. One common reason for choosing avoidance is the pain or difficulty of choice.
Good strategy requires leaders who are willing to and able to say no to a wide variety of actions and interests.
Strategy is not mysterious. It is about solving the most important problem you are facing. You need to be focused on something doable and be consistent about it.
