How do you define or evaluate your strategy?

There are always too many options, too many ideas, too many unknown even too many answers.

Do you have any methodology?
What tool do you use?
How do you define or evaluate your strategy?

The methodology that works best for me is as follows:

1. Define Your Desired Future State: This is what you want to shoot for in maybe 2-3 years. This sets your target. Be as specific as possible. Give your future state concrete numbers and specific products.
2. Define Your Present State: This is where you are today. Again, specifics are important since you really want to understand where you are at.
3. Choose Metrics: Determine the metrics you want to track to evaluate your progress from the present state to the future state.
4. Analyze the Gap: Figure out the gaps in where you are and where you want to be. This gap analysis should be as specific as possible because you want to make concrete progress that is measurable.
5. Select Strategies that Close the Gap: Brainstorm about what you need to do in order to close the gap between now and the future.
6. Pick a Mantra: This sounds kind of strange but it's good to choose a simple word or phrase that defines your future state. This is your mantra or strategic vision. When you stray, this puts you back on track.
7. Monitor Your Progress: Strategy takes time to implement so it's important to monitor it at regular intervals to keep yourself on track.

In terms of picking from the many options, ideas and dealing with all those unknowns and many answers, it's best to focus on a single market, idea or product. Doing too much will just bog you down.

Strategy is all about the path you choose not the zigs and zags in the path (tactics deal with those). There will be many setbacks, false starts and opportunities to get distracted along your chosen path. Resist the urge to change your strategy at every misstep -- that will just frustrate and set you back.