The Ten Tests of Strategy

Back in 2011, McKinsey published a piece called, “Have You Tested Your Strategy Lately?”, where they introduced the Ten Tests of Strategy.

While lots has changed in the years since, the questions they posed are still just as effective as they were back then—and still worth asking.

Designed as challenging, thought-provoking, hard-to-answer questions to assess the robustness and clarity of an organization’s strategy, these tests “intentionally set a high bar, aiming to reveal potential weaknesses and blind spots.”

The original article is worth your time, and I’ve found these tests, which are really just questions, to be pretty useful.

Seth Godin says that strategy is a philosophy of becoming.

McKinsey defines strategy as a way of thinking.

I think of strategy as a vision, a view on what we want our organizations to become.

We’re all essentially saying the same thing.

However, regardless of how you define strategy for yourself, you should test it by asking these ten questions.

Here’s how I think about each one of these tests, followed by a key insight from McKinsey’s original article.

Will your strategy beat the market?

Your strategy needs to clearly differentiate you—and show a convincing path to market leadership. If it’s tentative or cautious, you’re not playing to win. Bold moves are essential to truly outperform competitors; otherwise, you’re merely keeping pace.

According to McKinsey, market-beating advantages must be robust and responsive, as markets naturally push performance back to average levels over time.

Does your strategy tap a true source of advantage?

You have to understand exactly why your customers choose you. (Much easier said than done.) Assumptions won’t cut it; validate your competitive advantage relentlessly. (See my IDEA Framework for Strategy.) Misdiagnosing this can send your strategy in entirely the wrong direction.

McKinsey emphasizes two clear sources of competitive advantage: positional advantages within attractive markets and special internal capabilities or assets.

Is your strategy granular about where to compete?

Precision matters. Your strategy should clearly define specific market opportunities and target them with laser focus. Generic strategies dilute resources and lead to weak outcomes.

McKinsey highlights that choices about where to compete explain up to 80 percent of revenue growth variance. Let that sink in for a minute.

Does your strategy put you ahead of trends?

Ignoring trends or disruptions puts you behind. Effective strategies anticipate and leverage emerging trends. To lead, you must look forward and prepare for what’s next rather than expecting things to remain unchanged.

McKinsey warns that many organizations delay their strategic response until trends significantly impact profitability, at which point it’s often too late.

Does your strategy rest on privileged insights?

Great strategy demands insights no one else has. If you’re working from the same data as everyone else, your strategy will be ordinary. You need uncommon insights that create real strategic leverage.

McKinsey notes that privileged insights often arise from identifying weak signals others overlook.

Does your strategy embrace uncertainty?

Uncertainty can paralyze strategy if it isn’t handled correctly. Clearly defining uncertainty allows you to prepare adaptive strategies and scenarios. Don’t ignore it—embrace it.

McKinsey advises categorizing uncertainties precisely to avoid both oversimplification and paralysis.

Does your strategy balance commitment and flexibility?

Your strategy should commit boldly yet remain agile enough to pivot based on new learnings. Rigid planning without the ability to adapt will lock you into outdated paths and diminish strategic responsiveness.

McKinsey suggests framing strategy as a balanced portfolio of committed bets, no-regret moves, and adaptable options.

Is your strategy contaminated by bias?

Be ruthless about removing bias from your strategic decision-making. Faulty logic and internal politics are frequent sources of strategic failure. Rigorously testing alternatives ensures stronger decisions.

McKinsey identifies biases such as anchoring, confirmation bias, and loss aversion as common strategic pitfalls.

Is there conviction to act on your strategy?

Conviction isn’t just agreeing in meetings; it’s about willingness to make significant, often uncomfortable changes. Strategy demands courage—without it, you’ll never fully commit to your new direction.

McKinsey emphasizes the importance of shared, genuine conviction across the leadership team, beyond superficial agreement.

Have you translated your strategy into an action plan?

A strategy without clear actions and resource allocations isn’t a strategy—it’s a wish. Your strategy must translate into concrete, measurable actions and specific resource commitments.

McKinsey notes that true strategy alignment is reflected in actual resource allocation and organizational action, not just high-level planning.

Put your strategy to the test

These tests can transform your strategic thinking, ensuring clarity, courage, and actionable direction.

Put your strategy to the test—and be ready to adjust based on what you discover.