Why do some strategies fail spectacularly while others propel organizations to new heights? Richard Rumelt, one of the leading thinkers in strategic management, offers a simple yet profound answer: evaluation. Rumelt’s Strategy Evaluation Framework is a powerhouse of insights, cutting through the complexities of business to focus on what really matters. The 4 criteria of Consistency, Consonance, Feasibility, and Advantage provide the perfect lens for organizations to scrutinize their strategies and course-correct before it’s too late.
Every organization wants to succeed. That’s a given. But the path to success is often riddled with distractions—shiny new technologies, competitor moves, or shifting regulations. Without a robust evaluation system, strategies can easily veer off course, chasing trends or ambitions that aren’t aligned with the organization’s core strengths or market realities. Rumelt’s framework brings order to this chaos, offering a structured approach to ensure that strategy remains viable and on point.
Breaking Down Rumelt’s Key Criteria
Rumelt’s framework is built around 4 essential pillars:
- Consonance – Demands alignment with external trends and market conditions.
- Feasibility – Assesses whether the organization has the resources to execute the strategy.
- Consistency – Ensures that there’s internal alignment across policies and actions.
- Advantage – Ensures that the strategy provides a sustainable market edge.
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By focusing on these four criteria, leaders can ensure that their strategy isn’t just good on paper but actually workable in the real world.
The Power of Consonance and Feasibility
Two criteria that often get overlooked in strategy are Consonance and Feasibility.
Consonance forces organizations to stay attuned to external market realities. In today’s fast-moving world, where consumer preferences shift overnight and technology disrupts entire industries, a strategy that isn’t aligned with these external forces is doomed to fail.
Feasibility, meanwhile, brings strategy back to earth. It asks the tough questions about whether the organization has the resources—whether financial, human, or technological—to make the strategy a reality. Lofty goals are great, but only if they can be executed with the resources available. Otherwise, they’re just dreams.
Walmart’s Feasibility in Expanding E-Commerce
Walmart’s recent push into e-commerce is a perfect case study for Feasibility. The retail giant recognized the growing demand for online shopping and quickly scaled its infrastructure to meet this need. By investing heavily in logistics, fulfillment centers, and digital capabilities, Walmart ensured that its e-commerce strategy was feasible. They didn’t just dream of competing with Amazon—they built the systems and processes necessary to make it happen.
Why Strategy Evaluation Saves Time and Money
Evaluating a strategy through Rumelt’s lens isn’t just a nice-to-have. It’s a financial imperative. Strategies that aren’t rigorously evaluated are prone to costly failures. Misaligned goals, lack of resources, or ignoring market trends can lead to wasted investments and missed opportunities. By using Rumelt’s framework to evaluate strategies early and often, organizations can avoid the pitfalls of bad planning and stay focused on what really matters.
This is especially true in industries with tight margins or high competition, where the cost of getting it wrong can be catastrophic. Take the airline industry, for example. With fuel prices, regulatory changes, and customer preferences constantly shifting, airlines must constantly evaluate their strategies to stay ahead of the curve. Those that don’t—fail.
FAQs
Why is external alignment so critical in strategy?
External forces like market trends and technological changes shape industries. A strategy that doesn’t account for these will quickly become irrelevant.
How can leaders ensure that their strategy is feasible?
By conducting regular resource audits and aligning strategy with the organization’s financial, operational, and technological capabilities.
What happens if a strategy isn’t aligned with external realities?
It will likely fail. Without alignment, even the best internal plans can crumble under pressure from market shifts or industry disruptions.
Strategy Is Only as Strong as Its Evaluation
In business, as in life, ambition alone isn’t enough. Strategies need to be constantly evaluated to ensure they’re grounded in reality, aligned with external forces, and supported by the necessary resources. Rumelt’s framework offers a clear path to doing just that. For leaders looking to guide their organizations to success, strategy evaluation isn’t optional—it’s essential. Whether you’re charting new territory or refining your existing plans, this framework is the key to ensuring that your strategy doesn’t just sound good—it actually works.
Interested in learning more about the other criteria of Rumelt’s Strategy Evaluation Framework? You can download an editable PowerPoint presentation on Rumelt’s Strategy Evaluation Framework here on the Flevy documents marketplace.
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