In all cases, strategy is the process of confronting and solving critical challenges. I emphasize this because there is a widespread misconception that a business strategy is some sort of long-range sketch of a desired destination. I encourage you to think of strategy as a journey through, over, and around a sequence of challenges.

Effective strategy emerges out of an exploration of challenges, ambitions, resources, and competition. By confronting the situation actually being faced, a talented leader creates a strategy to further some elements out of the whole bundle of ambitions.