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AI-powered strategy (AIPS) framework for your company
Strategy at decision time, not in the deck.
Encode your strategy as skills the team's AI applies during every decision. Conversation logs reveal which decisions land on strategy and which quietly don't. The strategy becomes observable, falsifiable, and revisable — at the grain of the actual work.
Why AIPS?
Why is AI new to strategy?
AI is new to strategy because for the first time the discipline has a mechanism: a way to insert the strategy at the moment a decision is being made, and a way to measure whether it was actually applied.
For most of strategy's history, those two things were impossible at the right grain. Strategy lived in slide decks and quarterly reviews. The thousands of micro-decisions a team made every week — which customer to prioritise, what tone to use, whether to discount, which feature to ship — happened without any direct connection to the document. Whether the strategy was being followed in those decisions was unknowable until revenue moved, by which point course-correction was expensive and the diagnosis was muddled. This is the execution gap that the literature has been cataloguing for decades.
Why AIPS?
What does AIPS actually do?
AIPS — AI-Powered Strategy — is a framework for making strategy executable, observable, and revisable at the grain of individual decisions. It rests on two preconditions and three operational steps.
Two preconditions make the framework possible: a working strategy someone in the company actually believes in, and AI maturity — meaning most of the daily decisions are already being made with the help of AI assistants. When both are present, a new layer of implementation opens up that wasn't possible before. See Requirements to the Strategy for what counts as a "working strategy" in this context.
Why AIPS?
How is this different from OKRs and the execution tools I already have?
A 300-person company arriving at AIPS already has a stack: OKRs, a balanced scorecard, a strategy-deployment cascade, a PMO, quarterly business reviews. The reasonable first question is what does AIPS add to this that we don't already have? The short answer: a different grain, a different latency, and a different kind of evidence. AIPS is complementary to existing execution tools, not a replacement for any of them.
Different grain — outcomes vs decisions
Will it work for my strategy?
Is my strategy good enough to encode?
Before the AIPS Framework can do anything useful, a strategy has to exist — and not every document called "strategy" qualifies. This article catalogues what counts as a working strategy in this context, and the cascade of artefacts that turns abstract intent into something granular enough to encode into AI skills.
Many definitions, one shared discipline
Will it work for my strategy?
Is my strategy the right kind for my environment?
Most of the strategy literature treats "what is a good strategy?" as the central question. The prior question — what kind of strategy fits the environment I'm in? — is the one that decides whether the rest of the work is worth doing.
A firm running classical position-defence strategy in an unpredictable market will plan its way past obsolescence. A firm running adaptive-experiment strategy in a stable, position-defendable industry will burn out chasing optionality it doesn't need. The same strategy, well executed, can be the right answer to one environment and the wrong answer to the next.
Will it work for my strategy?
Why is my strategy not executing already?
The diagnosis senior teams usually reach for is "the people below us don't get it." The empirical evidence is that they almost always do — and that the failure happens elsewhere.
In the two largest public studies of strategy execution, the answer converges:
Will it work for my strategy?
How do I know if my strategy is working today?
Pick two or three indicators that would visibly change if the strategy were working — and then watch them, not revenue.
Leading indicators, not lagging ones
How do I run it?
How do I turn my strategy into skills?
A skill is the operational form of strategy in the AIPS Framework. It is a small, named package — system prompt, checklist, optional reference document — that an AI assistant pulls in when a relevant task comes up. This article describes the mechanism and the failure modes worth knowing about before you write your first ten.
How a skill works
How do I run it?
How do I install the log analyser and read the logs?
With skills deployed (Step 1) and instrumented to declare themselves, the next move is to turn the conversation log stream into something queryable. This article covers what Anthropic provides on Team and Enterprise plans, what you need to build on top, and what to look for once it's running.
What Anthropic Team and Enterprise plans give you
How do I run it?
Who owns this in a 300-person org?
At 30 people, the CEO writes the skills personally. At 3,000, the question is one of multi-level governance and is no different from any other corporate-policy machinery. At 300 — the size where AIPS most often lands — neither default works, and the question of who owns AIPS becomes the most consequential operational decision in the rollout. Get it wrong and the framework produces fifty contradictory readings of the same strategy, with no mechanism to reconcile them. Get it right and AIPS becomes one of the few strategy instruments that actually scales.
Strategy ownership stays with the CEO
How do I run it?
What are the limits and risks?
The framework is in active development, and its strongest critics have been practitioners who agree with the underlying motivation. The complaint is rarely that the idea is wrong — it is that the rhetoric outruns the mechanism. The honest scope: AIPS is a feedback loop on the tactical layer of strategy implementation, not on the strategic layer itself. See Known Risks and Criticisms of AIPS for the longer audit; the points below are the short answer to a CEO asking what won't this fix?
Preconditions you can't fake
AIPS Framework
AIPS Framework — the concept
AIPS — AI-Powered Strategy — is a framework for making strategy executable, observable, and revisable at the grain of individual decisions. It rests on two preconditions and three operational steps.
Two preconditions make the framework possible: a working strategy someone in the company actually believes in, and AI maturity — meaning most of the daily decisions are already being made with the help of AI assistants. When both are present, a new layer of implementation opens up that wasn't possible before. See Requirements to the Strategy for what counts as a "working strategy" in this context.
Until now, strategy lived in slide decks and quarterly reviews. The thousands of micro-decisions a team makes every week — which customer to prioritise, what tone to use, whether to discount, which feature to ship — were never directly shaped by the strategy. The strategy reached the people who wrote it. It rarely reached the people who used it. With AI assistants now mediating those decisions, the strategy can be inserted at the moment a decision is being made, and the result — was it applied or not? — is recorded automatically. The framework builds on those two facts.
Step 1 — Skills: express the strategy so AI can use it
A skill is a small, well-named package an AI assistant pulls in during decision-making: a system prompt, usually a checklist, sometimes a reference document. When a relevant task comes up — drafting a customer email, prioritising the backlog, deciding a discount — the skill activates and the assistant's answer is shaped by the strategy encoded inside it.
AIPS Framework
Requirements to the strategy
Before the AIPS Framework can do anything useful, a strategy has to exist — and not every document called "strategy" qualifies. This article catalogues what counts as a working strategy in this context, and the cascade of artefacts that turns abstract intent into something granular enough to encode into AI skills.
Many definitions, one shared discipline
The strategy field has no single definition. Mintzberg's Ten Schools of Strategy catalogues ten schools, each with its own vocabulary; Schools of Strategy surveys the wider landscape. But the operational test of whether a document is actually a strategy is more invariant than the definitions suggest. It must:
- Imply trade-offs — name what the firm has chosen not to do.
- Pass an evaluation test. The earliest published checklist is Tilles's six criteria (1963): internal consistency, consistency with the environment, appropriateness of resources, satisfactory degree of risk, appropriate time horizon, and workability.[1] These were tightened by Rumelt's four tests and elaborated by McKinsey's ten.
- Rest on an explicit theory of the business. Drucker's 1994 formulation: the assumptions about environment, mission, and core competencies must fit reality, fit each other, be known throughout the organisation, and be tested constantly.[2] See Drucker — The Theory of the Business.
- Contain commitments, not only postures. Ghemawat: reversibility is the universal solvent of competitive advantage; a strategy whose moves can all be undone in a quarter is operationally interesting and strategically void.[3] See Commitment — The Dynamic of Strategy.
A strategy you can analyse with the strategy checker passes these tests; the full list of 27 criteria is the operational form of "what counts as a strategy".
AIPS Framework
Turning strategy to skills
A skill is the operational form of strategy in the AIPS Framework. It is a small, named package — system prompt, checklist, optional reference document — that an AI assistant pulls in when a relevant task comes up. This article describes the mechanism and the failure modes worth knowing about before you write your first ten.
How a skill works
The technical mechanism is simple. Each skill has a name, a description / trigger condition, and a body (the system prompt, plus any reference material). When the AI assistant is given a task, it considers the available skills, picks the relevant ones based on the description, and uses the body to shape its reply.
For Claude in particular, skills can be published organisation-wide. Every team member's Claude has access to the same set automatically. Updates propagate instantly. The deployment model is closer to software than to training: you ship a new version, not a new workshop.
A well-written skill has four parts:
AIPS Framework
Installing the log analyser
With skills deployed (Step 1) and instrumented to declare themselves, the next move is to turn the conversation log stream into something queryable. This article covers what Anthropic provides on Team and Enterprise plans, what you need to build on top, and what to look for once it's running.
What Anthropic Team and Enterprise plans give you
Both Team and Enterprise plans give admins programmatic access to the organisation's conversation logs. The shape of the data — at the time of writing — is broadly:
- Conversation metadata. ID, timestamp, participant, project (when used), model version.
- Message stream. Prompts and replies, in order, with tool calls and skill activations annotated.
- Skill annotations. When a skill activates, it can be configured to include a structured note in the reply. This is where the "skill: pricing-decisions applied" marker shows up, and where a reason field can be captured.
Enterprise plans add SSO, audit logs, finer-grained role-based access, and (depending on the negotiated terms) better export tooling. For the framework, the minimum is reliable programmatic access to the message stream with skill annotations preserved.
AIPS Framework
Drawing conclusions
When strategy becomes measurable, it immediately becomes an object of change. This is, in many ways, the whole point of the AIPS Framework — not the skills and not the logs, but the feedback loop they enable.
The asymmetry of visibility
Until recently, the dominant signal about whether a strategy was working was revenue, twelve to eighteen months out. Strategies that were silently wrong stayed silently wrong for a long time. Strategies that were quietly right got attributed to other things. The relationship between strategy and outcome was so noisy that most strategy reviews were exercises in narrative — telling a story that matched the numbers, after the fact.
With skills and logs, the signal moves earlier and gets richer:
- Per-decision evidence, not per-quarter aggregate.
- Pattern visibility, not vivid-anecdote bias (see cognitive biases in strategy formulation).
- Actionable resolution: when something is off, you can usually point at which skill, which decision class, which part of the strategy.
AIPS Framework
Known risks and criticisms
AIPS is a framework in active development, and its strongest critics have not been outsiders to AI but practitioners who agree with the underlying motivation. The complaint is rarely that the idea is wrong — it is that the rhetoric outruns the mechanism, and that several preconditions, mechanics, and political realities deserve more attention than v0.2 currently gives them.
Preconditions
The "AI maturity" precondition does most of the heavy lifting
AIPS requires that "most daily decisions are already being made with the help of AI assistants." In practice this collapses into a stronger requirement: most daily decisions are made with one AI assistant whose logs the organisation owns. Few mid-sized companies meet this bar today. Engineering uses Cursor; sales has Gong; marketing has Jasper or its replacement of the month; finance and legal often don't use AI at all; executive assistants are heavy Claude users. The logs available to AIPS are therefore a biased sample of a biased sample — usually skewed toward the functions that adopted the assistant earliest, which are rarely the functions whose decisions move the strategy.
This is not a fatal objection — the framework can be operated on a partial dataset — but it should make any conclusions drawn from the logs locally scoped. See Requirements to the Strategy and Operating Model Design for the surrounding considerations.
What Strategy Is
- What IS strategy? (and what isn't)
- Do I actually need a strategy?
- Strategy Thinkers
- Definitions of Strategy
- Business Strategy as Organisational Master Plan
- Henderson's Concept of Strategy
- Andrews — The Concept of Corporate Strategy
- Chandler — Structure Follows Strategy
- Selznick — Distinctive Competence and the Institution
- Drucker's Three Questions of Business Strategy
- Drucker — The Theory of the Business
- Marketing Myopia — Defining the Business by Customer Need
- Mintzberg's Five Ps of Strategy
- Levels of Strategy
- Corporate vs Business Strategy
- Stakeholder Value Creation as Strategy
- Strategy vs Related Concepts
- Schools of Strategy
- Mintzberg's Ten Schools of Strategy
- Strategy as Practice
- Resource-Based View of Strategy
- Strategic Intent — Stretch, Leverage, Stability
- Strategy as Simple Rules
- The Strategy Palette — Five Styles Matched to the Environment
- Transient Advantage — Strategy When Sustained Advantage Is Rare
- Commitment — The Dynamic of Strategy
Competitive Frameworks
- Competitive Positioning
- Porter's Five Forces Framework
- Co-opetition — Value Nets, Complementors, and PARTS
- Innovation Strategy Frameworks (Blue Ocean, Disruption, JTBD)
- Classical Strategy Instruments (SWOT, PESTLE, BCG, Ansoff, BMC)
- Value Capture — The Value Stick and Value Innovation
Strategy Quality and Criteria
- Is my strategy formulated well?
- Strategy Checker Criteria — All Twenty-Seven Tests
- Good Strategy / Bad Strategy
- Kernel of Strategy
- Rumelt's Four Tests of Strategy
- Hambrick and Fredrickson's Strategy Diamond
- Lafley and Martin's Strategy Cascade
- Martin's Five Questions of Strategy
- Pre-Rumelt Strategy Tests (Tilles and Bartholomees)
- McKinsey's Ten Tests of Strategy
- Porter's Five Tests of an Excellent Strategy
- The Outside View — Cognitive Bias in Strategic Decisions
- Strategy Testing and Validation
- Five Substitutes for Strategy
- Magretta's Five Common Strategy Mistakes
Strategy Work — Formulation, Execution, Governance
- Strategy Formulation
- Strategy Execution
- Is my strategy easy to use?
- Operating Model Design
- OKRs and Strategy
- Balanced Scorecard and Strategy Maps
- Resource Allocation as the Real Strategy
- Five Myths of Strategy Execution
- The Silent Killers of Strategy Execution
- The Strategy Communication Gap
- Single Decider Principle
- Strategic vs Operational Goals (and SMART)
- Strategy and Culture
- Strategy Governance
- Strategy at Different Stages
- Common Failure Modes
- Canonical Strategy Cases
Check your strategy
Paste your strategy in the box. An AI reviewer reads it against a curated library of strategic ideas — each one a named test from the strategy literature, attributed to its original thinker — and reports where your strategy is solid, where it is partial, and what a stronger version of each missing piece could look like.
Twenty-seven tests in three arcs. Structural fundamentals (post-1980): Rumelt's kernel, the four tests (consistency, consonance, advantage, feasibility), Porter's trade-offs and defensibility, the distinction from goals and vision, daily usability, falsifiability. Modern extensions (2000s–2020s): Jobs to be Done, stage-appropriateness, culture–strategy fit, operating model and management systems, Blue Ocean value innovation, OKR translation, political coalition, pre-registered failure conditions, time horizon and staging, and market-type awareness. Broader strategy canon: outside-view discipline, environment–style fit (the strategy palette), executability against silent killers, transient-advantage portfolio, co-opetition and complementors, Barney's VRIO, Ghemawat's commitment, and parenting advantage for corporate-level strategy. The full list with criteria is at Strategy Checker Criteria.
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