Foundations of Strategy

This chapter covers the core building blocks of Innovation Strategy by introducing foundational concepts from game theory, including strategy sets and the more collaborative model of correlated equilibrium points (CEPs). It reframes project execution as a multi-turn game, where each decision shapes future alignment and outcomes. The chapter also introduces backward planning as a practical tool for managing uncertainty—helping teams define meaningful end states and trace a path that remains flexible and responsive. Together, these concepts create a mental model—a spiral—for thinking strategically in complex environments, where success depends not just on control, but on coordination.