3 Elements in a Strategy Kernel

(Excerpt from Good Strategy / Bad Strategy by Richard Rumelt)

A good strategy may consist of more than the kernel, but if the kernel is absent or misshapen, then there is a serious problem.

The kernel of a strategy contains three elements:

1. A diagnosis that defines or explains the nature of the challenge. A good diagnosis simplifies the often overwhelming complexity of reality by identifying certain aspects of the situation as critical.
2. A guiding policy for dealing with the challenge. This is an overall approach chosen to cope with or overcome the obstacles identified in the diagnosis.
3. A set of coherent actions that are designed to carry out the guiding policy. These are steps that are coordinated with one another to work together in accomplishing the guiding policy.