Defining Business Strategy in 3 Steps

Strategic Spark: Episode 7 — Defining Business Strategy
In this episode of Strategic Spark, we dive into what makes a strategy truly effective by exploring Richard Rumelt’s “kernel of good strategy” framework. This simple yet powerful model helps leaders cut through the fluff and focus on clear, actionable thinking. We walk through the three parts of the kernel—diagnosis, guiding policy, and coherent actions—and show how they can be applied across industries and challenges. Plus, we explore real-world examples to illustrate how organizations can move from vague ambition to strategic clarity.

What you’ll learn:

What strategy really is—and why most “bad strategy” fails to make an impact.
Richard Rumelt’s “kernel of good strategy” framework: Diagnosis, Guiding Policy, Coherent Actions.
How to identify the real problem your strategy needs to solve.
Why a good guiding policy doesn’t try to do everything—and that’s a good thing.
How coherent actions bring strategy to life through focused execution.
Examples of the kernel in action, from startups to global enterprises.
How leaders can use this framework to sharpen their thinking and drive better outcomes.

Show Notes

[00:00] Welcome to Strategic Spark! Why strategy feels fuzzy—but doesn’t have to.

[01:30] Breaking down common misconceptions about what strategy actually is.

[03:00] Introducing Richard Rumelt’s “kernel” framework from Good Strategy, Bad Strategy.

[04:30] Part 1: Diagnosis — understanding the real problem you’re solving.

[06:00] Part 2: Guiding Policy — setting a focused, high-level approach to action.

[08:00] Part 3: Coherent Actions — how execution brings strategy to life.

[10:30] Real-world examples of how the kernel helps teams cut through complexity.

[12:00] Final takeaways: How leaders can apply the kernel framework to strengthen strategic clarity and execution.