CMOs and marketing leaders believe that having a strategic vision is critical, but many do not feel confident in their ability to formulate a strategy. Strategy formulation can be further complicated by confusion about what strategy means, weak executive alignment, and ambiguity around corporate direction. In this report, we describe the components of the Forrester Marketing Strategy Compass, a step-by-step guide to formulating a best-in-class marketing strategy that is aligned to business goals and can be cascaded throughout the marketing function.