- A diagnosis: an explanation of the nature of the challenge. A good diagnosis simplifies the often overwhelming complexity of reality by identifying certain aspects of the situation as being the critical ones.
- A guiding policy: an overall approach chosen to cope with or overcome the obstacles identified in the diagnosis.
- Coherent actions: steps that are coordinated with one another to support the accomplishment of the guiding policy.
Source: https://www.mckinseyquarterly.com/Strategy/Strategic_Thinking/The_perils_of_bad_strategy_2826