Not every plan is strategic. Strategy is the coherent set of choices that positions an organization to achieve superior performance relative to competitors or to fulfill its mission under resource constraints.

It answers where to play, how to win, and what capabilities must be in place. Strategy involves trade-offs; trying to be everything to everyone is the absence of strategy. Clarity about what the organization will not do is as important as clarity about what it will pursue.

Strategy lives in patterns of resource allocation and decision making, not only in documents. When daily choices contradict stated strategy, the real strategy is revealed. Effective leaders continually test and communicate strategic logic so that the organization moves as one.

• Coherent choices for positioning and performance
• Defines where to play and how to win
• Requires explicit trade-offs
• Realized through resource allocation and decisions