The 5 Fatal Flaws of Strategy Creation

How to Recognize a Bad Strategy and Craft a Good One

I've had the privilege of reviewing countless business plans and strategies over the years. However, more often than not, I've found myself left with a sense of confusion and frustration after reading them. These plans often lack the concrete details and coherence that is necessary to make them truly effective.

In my experience, there are five fatal flaws that are present in most of the poorly formulated strategies that I've encountered. If your company's latest strategy is plagued by any of these flaws, then it's time to take a step back and reassess.

Fatal Flaw 1: The strategy is not concrete

One of the biggest misconceptions about strategy is that it must be high-level and abstract. Some even argue that as soon as a strategy becomes concrete, it is no longer a strategy. This is far from the truth. In fact, a strategy that is not concrete cannot be understood by those who are supposed to implement it. A strategy must provide clear and detailed instructions to be effective.

To avoid:

• Clearly define your company's goals and objectives
• Develop specific, measurable, achievable, relevant, and time-bound (SMART) objectives
• Make sure that all aspects of the strategy are concrete, including the timeline, budget, and responsible parties

To do it correctly:

• Ensure that the strategy is well-defined and easy to understand
• Include detailed plans, processes, and procedures that support the strategy
• Use clear and concise language, avoiding vague and abstract concepts

Fatal Flaw 2: The strategy is not contrasted

Strategy is all about how things will change in the future compared to the present. The problem with many companies is that they fail to explain these differences. Without this explanation, half of your employees will think "we are already doing that" while the other half thinks "there is no way we can do that."

To avoid:

• Not comparing current operations to desired outcomes
• Failing to identify key differences between the current state and desired state

To do it correctly:

• Clearly define what changes the strategy will bring about
• Compare current operations to desired outcomes to highlight the differences
• Clearly communicate the benefits of these changes to all stakeholders

Fatal Flaw 3: The strategy is not coherent

People are naturally drawn to stories, and for good reason. A well-structured story is coherent and makes one or more clear points. The same principle applies to strategy. Strategy is not just a collection of objectives, it is a story about what the future of the company should look like (and how it will differ from the present, as discussed in the previous point).

To avoid:

• Lack of coherence in the overall strategy narrative
• Disjointed objectives that don't align with the company's overall mission

To do it correctly:

• Make sure all objectives and initiatives support the overall strategy
• Ensure the strategy is easy to follow, with a clear and consistent narrative
• Use visual aids and storytelling techniques to help illustrate the strategy

Fatal Flaw 4: The strategy is not convincing

A good story not only has coherence, it is also convincing. It uses the right reasoning, logic, and evidence to make its point. The same principle applies to strategy. Good strategy is not just a set of figures and numbers that "speak for themselves." You need to explain why certain decisions have been made, as nothing ever speaks for itself.

To avoid:

• Not providing enough evidence to support the strategy
• Not effectively communicating the reasoning behind key decisions

To do it correctly:

• Use data and research to support the strategy
• Clearly explain why certain decisions have been made
• Address potential objections and provide counterarguments

Fatal Flaw 5: The strategy is not actionable

Strategy is a means to an end, not the end itself. The ultimate goal is always action. Your strategy must provide clear instructions on what needs to be done, and by whom. Too often, strategies fail to provide this information, resulting in poor execution.

To avoid:

• Lack of clear action steps
• Failing to assign responsibilities and deadlines

To do it correctly:

• Clearly outline the steps necessary to achieve the strategy's objectives
• Assign specific responsibilities and deadlines for each action step
• Ensure that the strategy is tied to a well-defined implementation plan.

In conclusion, before you implement your company's latest strategy, take a step back and assess it for these five fatal flaws. Recognizing and correcting these flaws will help ensure that your strategy is concrete, contrasted, coherent, convincing, and actionable. If your strategy is free from these flaws, then it's time to spread the word and let the world know!