Module 3 — Strategy at This Layer — Setting It, Not Translating It
Move from translating company strategy into team goals to setting the strategy for your function. Hypothesis-driven planning, bets-based portfolios, and…
On this page▾
- Module 3 of the Advanced Manager-of-Managers program. Theme: Become a source of strategy, not just a translator.
- Your function's 12-month strategy doc — the real artefact you produce.
- 4-hour monthly intensive + biweekly coached practice on real work.
- Reviewed by CHRO, VP/Director, sitting CEO, and OB faculty lenses.
As a manager, your job was to translate strategy. At this layer, your job is to set it for your function — and to do so in a way that integrates with the company strategy without being dictated by it. The leaders who never make this shift remain executors. The ones who do become indispensable to the executive layer.
What the evidence says
- Rumelt (Good Strategy / Bad Strategy): the diagnostic-guiding-policy-coherent-action triad — most director-level strategy fails at the diagnostic.
- Lafley & Martin (Playing to Win): five cascading choices; most functional strategies skip them and become goal lists.
- McGrath on transient advantage: at the director layer, strategy is a portfolio of bets with explicit kill criteria, not a 3-year plan.
Pre-read (90 minutes)
- Rumelt — Good Strategy / Bad Strategy, ch. on the kernel of strategy — 45 min.
- Lafley & Martin — Playing to Win, the five questions — 30 min.
- Your function's last strategy doc (if any) and the most recent company strategy — 15 min.
Monthly intensive (4 hours)
- 1Diagnostic discipline (60 min)Each leader writes a one-paragraph diagnostic for their function. Coach and cohort attack it. Most fail Rumelt's test.
- 2Cascading choices (60 min)Run the Playing to Win five-question framework on each leader's function. Where to play, how to win, what capabilities, what systems, what aspiration.
- 3Bets portfolio (60 min)Frame strategy as a portfolio: 3–5 explicit bets with hypotheses, leading indicators, and kill criteria. Cohort builds theirs live.
- 4Strategy doc draft (45 min)Each leader drafts a 2-page strategy doc. Cohort reviews.
- 5Wrap (15 min)Who will see this doc this month? Schedule the conversation.
The artefact you produce
Two pages: diagnostic, guiding policy, 3–5 bets with hypotheses and kill criteria, and the cascading choices. Reviewed by your manager and at least one peer leader.
Tools at this layer
| Layer | Examples (2026) | Use |
|---|---|---|
| Strategy frameworks | Rumelt kernel, Playing to Win, Wardley mapping, OKRs (carefully) | Pick one; commit; don't mix |
| Bets tracking | Notion bets doc, Mooncamp, Quantive, internal portfolio review | Visible, measurable, killable |
| AI for synthesis | Claude/ChatGPT for landscape research, competitive synthesis, devil's advocate critique | Synthesis aid, not strategy author |
Here's my function and current context [scope, team, market position, key constraints]. Help me draft: (1) a one-paragraph Rumelt-style diagnostic, (2) a guiding policy that responds to it, (3) 3–5 bets I should consider with hypothesis, leading indicator, and kill criterion for each, (4) the strongest counter-argument an exec might make.
Between-session homework
- Strategy doc draft completed and shared with at least one peer leader for critique.
- Bets portfolio defined with kill criteria.
- Strategy presented to your manager; one revision incorporated.
- Cascade plan to your direct-report managers drafted.
Success signal
By end of this module, you have a written strategy for your function that passes Rumelt's diagnostic test, survives peer challenge, and gives your managers something to translate. Your CEO or your manager can say what your function is uniquely doing in the next 12 months.
Reviewer notes
Strategy fluency is the single largest differentiator at this layer. Leaders who can write a defensible 2-page strategy doc get pulled into exec conversations; those who can't get treated as executors.
Write the doc. Even if no one asks for it. The exercise of writing it changes how you make every decision for the next year.
When a director hands me a real strategy doc unprompted, that's a candidate for VP. When they ask me what the strategy is, that's a candidate for replacement.
Rumelt's diagnostic is the most under-used framework in business. Most 'strategy' documents are goal lists. The diagnostic forces you to name what's actually true about your situation, which is what makes the rest possible.
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