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The kernel: diagnosis, guiding policy
The kernel: diagnosis, guiding policy
412 / 500 wordsArgument: Rumelt’s kernel explains the firm’s position better than the positioning school does.
2 The kernel: diagnosis, guiding policy, coherent action
Rumelt’s central move is to strip strategy of ambition. A goal is not a strategy; the kernel begins with a diagnosis that names the crux of the situation.
The resource-based view sharpens this. Where Barney 1991 ties advantage to resources that are valuable, rare and inimitable, the crux is the point at which those resources are actually tested. My own placement at Siemens offers a case to put against that claim.
Three of the five units reviewed had written a strategy document in the preceding year. Only one could name the constraint that made its target hard to reach.
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