Good Strategy, Bad Strategy

Outline

Good Strategy, Bad Strategy (2011) explains the difference between real strategy and empty goals or slogans. Richard Rumelt argues that good strategy has three parts: a clear diagnosis of the challenge, a guiding policy for dealing with it, and coherent actions to carry it out. With examples from business, the military, and history, the book shows how leaders can create strategies that truly work.

• Real strategy is different from empty goals and slogans, which often pass for strategy but give no guidance.
• Good strategy has three parts: a clear diagnosis, a guiding policy, and coherent actions.
• Start by diagnosing the real challenge, because a strategy can only work if it addresses the actual problem.
• A guiding policy sets a clear direction for dealing with the challenge instead of relying on wishful thinking.
• Actions should fit together and carry out the policy, with examples drawn from business, the military, and history.

Richard Rumelt is an American business strategist and professor emeritus at the UCLA Anderson School of Management. He is widely regarded as one of the world’s leading thinkers on strategy and has advised many major organisations. His books include Good Strategy, Bad Strategy and The Crux.