Why Your Strategy Needs a Fresh Perspective — And How AI Fits In (Part 2)
Strategy is only real when it adapts — and drives action.
Published
May 8, 2025
How GPS Works
GPS follows a structured decision-making process, closely mirroring the OODA loop (Observe, Orient, Decide, Act) — a proven model for agile, real-time adaptation. Let’s dive into how it works.
Set Your Goals
These can be high-level strategic pillars like “Deliver the most enjoyable shopping experience,” or “Automate supply chain processes,” or “Grow market share by 15%.”Identify the Problems (Obstacles)
Ask: What might prevent us from achieving these goals? These could be anything from resource shortages and regulatory changes to market disruptions and competitor launches. The important part is to constantly scan for new Problems and update them as circumstances shift.Develop Solutions
For every Problem, define one or more Solutions — concrete initiatives that will neutralize or otherwise overcome the obstacle. If your Problem is “Inefficient last-mile logistics,” your Solutions might be “Expand courier partnerships” or “Implement store automation for faster pick-ups.” Each Solution is then assigned a priority based on how critical it is to remove that Problem.Reassess and Adapt
GPS is not a one-and-done exercise. You continuously reprioritize Problems and Solutions as new data emerges, ensuring you never lose sight of the biggest threats to your Goals.
While it’s easy to assess the most important goals and prioritize them, we often struggle with prioritizing activities related to Solutions. This is really where Problems help — solving the biggest Problem should most often be the priority.
Why GPS Matters (and Why It’s Machine-Readable)
Adaptive Strategy Execution
Strategies often fail when teams ignore the obstacles. GPS puts Problems at the forefront. By methodically scanning and prioritizing them, you stay alert and responsive. If a new competitor comes to market, it’s immediately added to the “Problem” list — no waiting until next quarter’s review.AI-Collaboration
AI can’t help you effectively if it only sees operational metrics. It needs to understand your goals, the obstacles to those goals, and the potential solutions. Because GPS is structured and can be interlinked across different levels of decision-making and operations, it’s inherently machine-readable. With this data, AI can:Suggest creative Solutions.
Predict the impact of each Solution on your Goals.
Analyze the quality of the Solutions proposed in the current operating environment.
Find the most important priorities on the fly.
Automate repetitive parts of the strategy assessment process.
Institutional Learning
By continuously capturing both successes and near misses, your organization builds a repository of knowledge. This is where AI shines, as AI algorithms can learn from these patterns, leading to more accurate forecasting and better decision-making over time.Clarity & Transparency
GPS spells out exactly what you’re trying to achieve – what’s in the way, and the plan to fix it. No fluff, no buzzwords. This clarity helps teams avoid confusion and keep efforts aligned with the strategic north star.
GPS in Action: The Tesla Example
How We Recommend Implementing GPS
GPS vs. Other Frameworks
GPS vs. OKRs (Objectives and Key Results): While OKRs offer clarity on what success looks like, GPS clarifies what can derail it. Another key difference is thatOKRs typically run in set cycles (like quarterly), whereas GPS prioritizes continuous updating so you don’t miss urgent threats in between review cycles.
OKRs: Focus on high-level Objectives and measure progress through Key Results.
GPS: Goes further by incorporating a built-in mechanism to identify and prioritize problems that could derail those objectives.
GPS vs. Balanced Scorecard: Balanced Scorecard can be great for high-level alignment but can become static if not revisited often. In contrast, GPS is inherently agile, spotlighting immediate blockers and guiding rapid resource allocation to fix them.
Balanced Scorecard: Divides goals into perspectives (Financial, Customer, Internal Processes, Learning & Growth).
GPS: More directly tackles problem-solving and forces you to frequently re-prioritize solutions as obstacles arise.
Tying It to the OODA Loop: Originally formulated for military decision-making, the OODA Loop (Observe, Orient, Decide, Act) emphasizes rapid reactions in dynamic environments.
Observe & Orient: GPS identifies and prioritizes Problems.
Decide & Act: GPS sets the Solutions.
After implementing Solutions, you return to observing new Problems. This cyclical approach ensures that strategy evolves in real time — not just annually or quarterly.
The Bottom Line: Adaptive, Actionable Strategy
At the heart of GPS is a simple insight: Your strategy can only succeed when you proactively address the obstacles en route to the goals. By embedding Problems into the heart of your planning — rather than treating them as afterthoughts — GPS helps you pivot in real time, keep your teams aligned, and ensure that no critical threat go unnoticed. Here's why it matters:
Strategies fail when obstacles are ignored. GPS makes sure Problems are front and center.
Execution needs clarity. With GPS, what needs doing and why becomes obvious to everyone.
AI needs a seat at the table. A codified (machine-readable) format enables AI to support knowledge work, from spotting new threats to suggesting innovative Solutions.
You stay agile. When the world changes — tomorrow, next week, or six months from now — you can update your Problem set and Solutions without trashing your overall Goals.
The ultimate payoff? Organizations that continuously do the right things right — elevating performance, engagement, and results in a way that’s future-proofed against disruption.
Conclusion: Turning Strategy into Action
Success in today’s business environment isn’t about having the perfect strategy — it’s about continuously adapting to change while staying aligned with long-term goals. The GPS framework (Goals–Problems–Solutions) provides a structured, dynamic approach to strategy execution, ensuring organizations remain agile, focused, and responsive.
By systematically identifying obstacles, prioritizing the right solutions, and integrating AI-driven insights, companies can bridge the Strategy-Market Gap and execute with precision. This shift moves strategy from a static exercise to a living, evolving system — one that keeps teams aligned and decisions grounded in real-time realities.
Organizations that embrace this model will not only navigate uncertainty more effectively but also unlock a new level of strategic agility and competitive advantage. The future of strategy isn’t about rigid plans—it’s about the ability to continuously do the right things, right.