Strategic Planning For FP&A: Helpful Strategic Frameworks

Stop being just the FP&A reporting team—lean into strategy. This post shares a practical framework any FP&A leader can apply to sharpen strategic thinking. 🎯

In Good Strategy / Bad Strategy, Richard Rumelt introduces the “kernel of strategy” and breaks it down into three components:
• Diagnosis
• Guiding Policy
• Coherent Actions

I’m using this as the organizing structure for this post, but I’ll also include a few helpful ideas from other sources.

🧠 𝗗𝗶𝗮𝗴𝗻𝗼𝘀𝗶𝘀 (𝗪𝗵𝘆)

Rumelt reminds us there needs to be an explicit diagnosis which “simplifies the … complexity of reality by identifying certain aspects of the situation as critical.”

Strategy is often described as what a company will do, but the diagnosis of explains why the company is taking these actions.

There is no shortcut to this step. While frameworks like SWOT and Porter’s Five Forces are helpful starting points, the insights emerge from repeated discussions with company leaders.

In Zero to One, Peter Thiel asks, “What important truth do very few people agree with you on?” Although Thiel is talking about startups and Rumelt is talking about strategy, there is a shared idea that both require uncovering a non-obvious truth.

🎯 𝗚𝘂𝗶𝗱𝗶𝗻𝗴 𝗣𝗼𝗹𝗶𝗰𝘆 (𝗪𝗵𝗮𝘁)

Rumelt notes that a guiding policy is “an overall approach … to cope with … the obstacles identified in the diagnosis.”

In other words, after diagnosing the situation, you need to make choices about where to focus resources and attention, and importantly what will not be areas of focus.

In Playing to Win, the authors highlight two key choices when forming the strategy: (1) where to play, meaning which markets or customer segments to target, and (2) how to win, meaning the competitive advantage you’ll use. If a company’s strategy doesn’t clearly answer these questions, it’s worth asking for clarification.

🚀𝗖𝗼𝗵𝗲𝗿𝗲𝗻𝘁 𝗔𝗰𝘁𝗶𝗼𝗻𝘀 (𝗪𝗵𝗼/𝗛𝗼𝘄/𝗪𝗵𝗲𝗻)

Rumelt notes that coherent and coordinated actions are “designed to carry out the guiding policy.”

While the guiding policy is an approach, the strategy becomes real with action. Coordination is important so that each action builds on each other and does not contradict.

In “The Art of Action,” Stephen Bungay discusses “Directed Opportunism,” which is the idea that leaders should define what should be accomplished but not necessarily how, as this doesn’t allow teams to adapt to circumstances. As actions unfold and new information comes in, this can refine both the diagnosis and the guiding policy.

For a company, this plays out as the strategic planning process sets the direction, while the company’s operating rhythm guides the actions.


All the sources mentioned above are 10+ years old. Are these frameworks still relevant? Is there anything fresher that works better in today’s world?