Book

Good Strategy/Bad Strategy

📖 Overview

Good Strategy/Bad Strategy exposes the flaws in what many organizations call "strategy" - fluffy vision statements, goals, or motivational slogans. Richard Rumelt draws from decades of research and consulting to demonstrate what makes a real strategy effective. Through case studies across business, military history, and public policy, Rumelt illustrates the core elements of good strategy: a clear diagnosis of the challenge, a guiding policy to address it, and coherent actions to execute that policy. He contrasts this with examples of bad strategy characterized by vague aspirations, failure to face problems, and disconnected initiatives. The book provides frameworks and tools for developing strategy, from identifying sources of power to overcoming organizational inertia. Rumelt walks through the strategy development process using examples from companies like NVIDIA, Apple, and General Motors. This work challenges conventional wisdom about strategic planning while offering a practical approach to creating advantage. The principles apply across sectors and scenarios, making it relevant for leaders at any level tasked with setting direction and solving complex challenges.

👀 Reviews

Readers describe this as a practical guide that cuts through typical corporate strategy jargon. Multiple reviewers note it helped them identify flawed strategies in their organizations and provided a framework for improvement. Liked: - Clear examples from business, politics and military history - Framework for distinguishing effective vs ineffective strategy - Actionable advice for creating strategies - Direct writing style that challenges conventional thinking Disliked: - First third of book focuses heavily on defining bad strategy - Some examples feel dated or overused (e.g. NVIDIA) - Military examples don't always translate well to business - Repetitive points in later chapters Ratings: Goodreads: 4.3/5 (17,000+ ratings) Amazon: 4.6/5 (2,000+ ratings) Common review quote: "This book helped me realize why so many corporate strategies fail - they're actually just goals or wishful thinking rather than real strategies." Most negative reviews focus on the book's length, suggesting it could deliver key points in half the pages.

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🤔 Interesting facts

🔹 Author Richard Rumelt was ranked #1 on the Thinkers50 list of strategic thinkers in 2013, surpassing renowned strategists like Michael Porter and Clayton Christensen. 🔹 The book's core concept of the "kernel of strategy" (diagnosis, guiding policy, coherent actions) was inspired by scientific methods, particularly how scientists approach complex problems. 🔹 During his early career, Rumelt worked as an engineer at NASA's Jet Propulsion Laboratory, which influenced his systematic approach to strategy development. 🔹 The term "bad strategy" was rarely discussed in business literature before this book's publication in 2011, despite its prevalence in organizations worldwide. 🔹 The book's examples span beyond business, including analyses of military campaigns like Hannibal's invasion of Italy and General MacArthur's Inchon landing, demonstrating strategy's universal principles.