Given the number of times I've referred to it recently, I've written up some notes to share! Good strategies amplify the impact of your strengths. Once people clearly grasp the issue, it’s easier to craft and execute a coherent response. A Good Strategy identifies the one or two critical issues — and then focuses and concentrates action and resources on them. But it is wiser to build levers and wheels and then move the rock. It assumes that goals are all … “Bad strategy is long on goals and short on policy or action. Anticipation does not require psychic powers. Report. Good Strategy/Bad Strategy has much to offer and has every chance of becoming a business classic.” --Management Today "Drawing on a wealth of examples, Rumelt identifies the critical features that distinguish powerful strategies from wimpy ones—and offers a cache of advice on how to build a strategy that is actually worthy of the name. For a quick overview of his work, make sure to read The Perils of Bad Strategy.. 11:41. The hallmarks of bad strategy. It is a natural or created imbalance in a situation, a place where a relatively small adjustment can unleash much larger pent-up forces. Good strategy almost always looks simple and obvious and does not take a thick deck of Powerpoint slides to explain. “Bad strategy” occurs when…hard choices are avoided, and/or when leaders are unwilling or unable to define and explain the nature of the challenge. The key is to press where you have an advantage and to side-step situations in which you don’t. The must-read summary of Richard Rumelt's book: "Good Strategy Bad Strategy: The Difference and Why It Matters". A large section of the book is devoted to explaining various sources of power that you can harness to develop a great strategy. For the full details, examples and tips, do get a copy of the book, or get a detailed overview with our complete book summary bundle. Key Takeaways. Upgrade Your Team with Some Give and Take, Three Tips for Making Innovation Part of Everyone’s Job, Maybe You Are the Problem in Your Own Business. - Good Strategy Bad Strategy, page 7. If you fail to identify and analyse the obstacles you don’t have a strategy. A summary of the key ideas from Richard Rumelt’s landmark book Good Strategy / Bad Strategy. There is no greater way for sharpening strategic tools than the necessity to act. The premise is that there is very little good strategy, a great deal of bad strategy, and it's possible to distinguish the two. Getting down to essentials, the book is divided into three major chunks: 1. Good Strategy, Bad Strategy—The difference and why it matters Richard Rumelt, UCLA (Crown Business, 2011) “Good strategy has a basic underlying logic: coherent action backed up by an argument, an effective mixture of thought and action. It really makes you realise how few companies in the world actually have a good strategy and what a good strategy even is. Over the last month I've been reading Good Strategy, Bad Strategy during my commute, and it's been the most thought-provoking book I've read in some time. My role was to provide a business and corporate-strategy perspective. A strategy should be a cohesive blend of ideas, analyses, policies and actions in response to an important, high-stakes challenge. And the greater the challenge, the more a strategy focuses and coordinates efforts to achieve a powerful competitive punch or problem-solving effect. Book summary: Good strategy bad strategy. “What would need to happen if this would absolutely have to happen?” Make the hard choice. This is a brief summary of some of what you will find here that is new and different: Good strategy is rare. Download Good Strategy Bad Strategy Summary in pdf infographic, text and audio formats, or preview the book summary via our blog. Book Summary - The Blue Zones: 9 Power Lessons For Living Longer From The People Who’ve Lived The Longest, Book Summary - The Life-Changing Magic of Tidying Up: The Japanese Art of Decluttering and Organizing, Psychology, Economics, Sociology & General. An insightful reframing of a competitive situation can create whole new patterns of advantage and weakness. A good strategy will create the conditions that will make the “push” effective and worthy of the effort required. A good strategy doesn’t just draw on existing strength; it creates strength through the coherence of its design. Get more tips and examples in our complete summary bundle! End result should be a strategy that is aimed at channelling energy into what seem to be one or two of the most attractive opportunities, where it looks like you can make major inroads or breakthroughs. Bad strategy results from "following the crowd" and failing to be insightful. (PDF) Richard Rumelt Good Strategy Bad Strategy The ... ... aaa 2. A good strategy has 3 essential components which form its core or “kernel”: a diagnosis, a guiding policy, and coherent action. Bad strategy results not from "miscalculation" but rather from avoiding the task of crafting good strategy. Good Strategy. 11:41. It comes from misconceptions that hinder sound strategy. Routines serve to preserve old ways of dealing with things. 2000 Books 5,055 views. The premise is that there is very little good strategy, a great deal of bad strategy, and it's possible to distinguish the two. A good strategy is coherent; most organizations pursue multiple objectives that are unconnected with each other, or even conflict with each other. Good Strategy, Bad Strategy pinpoints the polar difference: The diagnosis and actions that constitute good strategy, the fluff and failures that cause the bad. Good Strategy/Bad Strategy argues that…advantage flows … At the core, strategy is about focus, and most complex organisations don’t focus their resources. The creation of new strengths through subtle shifts in viewpoint. In Good Strategy/Bad Strategy: The Difference and Why it Matters, Richard Rumelt argues that the essence of strategy is discerning the one or two critical issues in a business problem and concentrating effort on them. [Ch. Is your strategy a mix of slogans and goals, or a set of objectives that offer solutions to key problems? See more details below. The kernel needn’t define all the actions to be taken, but it must provide enough clarity to make the strategy actionable while ensuring your actions are coordinated and non-conflicting. It offers a picture of what good strategy looks like. not realistic, no accountability, not cascaded or aligned) is as bad as magical thinking. Unlike a stand-alone decision or a goal, a strategy is a coherent set of analyses, concepts, policies, arguments, and actions that respond to a high-stakes challenge. Instead, they pursue multiple goals at once, not concentrating enough resources to achieve a breakthrough in any of them. In creating strategy, it is often important to take on the viewpoints of others, seeing how the situation looks to a rival or to a customer. Coherent actions are feasible coordinated policies, resource commitments, and actions designed to carry out the guiding policy. Good Strategy Bad Strategy Book Summary - Strategy 101 - Duration: 11:41. 2. For example, I believe that terms like “seamless” or multi-channel have become so overused that they have lost a lot of meaning. • Use and keep your head: Check out a series of techniques to build 3 essential skills/habits needed for good strategic thinking (instead of falling prey to the impulses of bad strategy or herd instincts). Find helpful customer reviews and review ratings for Summary: Good Strategy Bad Strategy: Review and Analysis of Rumelt's Book at Amazon.com. It offers a picture of what good strategy looks like. Richly illustrated and persuasively argued by a researcher, teacher, and consultant, Richard Rumelt has authored the playbook for anybody in a leadership position who must think and act strategically. In Good Strategy/Bad Strategy, Richard Rumelt explains the basic elements of strategy and how they are employed. 2000 Books 5,055 views. Just like how a doctor must diagnose a disease before prescribing medication and therapies, businesses must first diagnose the situation and challenge(s) before deciding what to do. Good strategy requires leaders who are willing and able to say no to a wide variety of actions and interests. A leader’s most important job is creating and constantly adjusting this strategic bridge between goals and objectives. The must-read summary of Richard Rumelt's book: "Good Strategy Bad Strategy: The Difference and Why It Matters". Anomalies — are facts that do not fit received wisdom. Leaders job is to reduce ambiguity and pass on simpler, solvable problems. Good and bad strategies which addresses the differences between these two groups. Become a great strategist: Develop good strategies and avoid bad ones! Good Strategy/Bad Strategy argues that a coherent strategy can be, by itself, a significant source of competitive advantage. Good Strategy Bad Strategy– Page 1 GOOD STRATEGY BAD STRATEGY The Difference and Why It Matters RICHARD RUMELT RICHARDRUMELT is Professorof Business& Scienceat UCLA’s graduateschoolof businessandmanagement.In addition to his academic work, Dr. Rumelt is a consultant to nonprofits and firms such as the Samuel Goldwyn Company, Shell Good Strategy/Bad Strategy clarifies the muddled thinking underlying too many strategies and provides a clear way to create and implement a powerful action-oriented strategy for the real world. Good Strategy Needs a Kernel "A good strategy has an essential logical structure that I call the kernel. At the root, strategy is about applying your biggest strengths to your biggest opportunity. FeATUReS • Numerous case … This book is packed with detailed examples and case studies across a wide range of industries, e.g. Good Strategy, Bad Strategy dissects good strategies by using historical examples from a variety of fields, and offers insight into developing our own effective strategies through practical advice and a solid blueprint.. Click here for more resources and free tips! It doesn’t just draw on existing strength; it creates strength through the coherence of its design. Developing and implementing a strategy is the central task of a leader.A good strategy is a specific and coherent response to—and approach for—overcoming the obstacles to progress. Digest these powerful tips in minutes with our summary & infographic! The only remedy is for us to demand more from those who lead. truck manufacturing, retail, F&B, military campaigns, schools, computing, automobiles, farming, TV and media. The advantage flows from coordination and focus as well as from resolving the impossible ambiguity of reality into a problem that fits the organization’s resources and abilities, a problem on which the organization can actually go to work. Having a coherent strategy in itself already gives you 2 natural sources of strength since (i) most organizations don’t have one and won’t expect you to have one, and (ii) you can always uncover hidden insights just by looking at things from a fresh perspective. Bad strategy isn’t just the opposite of good strategy; bad strategy materializes from “specific misconceptions and leadership dysfunctions.” Four characteristics typify most bad strategies: 1. • Coherent actions are the ways to execute the guiding policy. Good Strategy, Bad Strategy: The Difference & Why It Matters Author: Richard Rumelt. Good strategy gathers power from its very rareness. The most basic idea of strategy is the application of strength against weakness. Advice to do this is both often given and taken. (PDF) Richard Rumelt Good Strategy Bad Strategy The ... ... aaa A strategy should be a cohesive blend of ideas, analyses, policies and actions in response to an important, high-stakes challenge. “Good Strategy/ Bad Strategy pinpoints the polar difference: The diagnosis and actions that constitute good strategy, the fluff and failures that cause the bad. Overall, this book is a good library addition for our fellow practitioners of strategy. Bad strategy “Good Strategy. A pivot point magnifies the effect of effort. It puts forward strategic objectives that are incoherent and, sometimes, totally impracticable. When leaders are unwilling or unable to make choices among competing values and parties, bad strategy is the consequence. A target that the organisation can reasonably expect to hit, even overwhelm. It assumes that goals are all you need. Feel free to get our complete Good Strategy Bad Strategy summary for more specific details. 0:26 [PDF] Summary: Good Strategy Bad Strategy - Richard Rumelt: The Difference and Why It Matters Full. Find a summary of this and each chapter of Good Strategy/Bad Strategy: The Difference and Why It Matters! The first natural advantage of good strategy arises because other organisations often don’t have one. Inertia might be internal as well as for customers. Good strategy, bad strategy : the difference and why it matters / Argues that a manager's central responsibility is to create and implement strategies, challenges popular motivational practices, and shares anecdotes discussing how to enable action-oriented plans for real-world results. It arises from misconceptions that block sound strategy. Click Here to Get the PDF Summary of This Book & Many More. You can find all my book summaries — here. Strategic leverage arises from a mixture of anticipation, insight into what is most pivotal or critical in a situation, and making a concentrated application of effort. And because they don’t expect you to have one. In this Good Strategy Bad Strategy summary, we’ll briefly outline some of these powerful ideas. For the full details, examples and tips, do get a copy of the book, or get a detailed overview with our complete book summary bundle. The sources of power are: strategic leverage, proximate objectives, focus, chain-link systems, growth, design, using advantages, dynamics, inertia and entropy. The must-read summary of Richard Rumelt's book: "Good Strategy Bad Strategy: The Difference and Why It Matters". In Good Strategy/Bad Strategy, Richard Rumelt describes what bad strategy is and why we see so much of it.He also shares his framework for what drives good strategy along with guidance on how to create more of it. In this Good Strategy Bad Strategy summary, we’ll briefly outline some of these powerful ideas. Strategy = transforms vague goals into actionable, coherent objectives. Good Strategy Bad Strategy 17 May 2019. It points you in a certain direction without dictating exactly what to do. Bad strategy rests on a faulty foundation of misconceptions and leadership dysfunction. Good Strategy/Bad Strategy integrates fascinating examples from business, nonprofit, and military affairs to bring its original ideas to life: From Apple to General Motors, from the two Iraq wars to Afghanistan, from a small local market to Wal-Mart, from the Getty Trust to the Los Angeles Unified School District, from Global Crossing to the 2007-08 financial crisis, and many more. Here are the three most relevant to systems thinking: Mistaking goals for strategy— Maps of complex systems, such as early childhood development or water conservation, naturally end up with lots of factors and sectors involved. • The 3 key reasons why bad strategy is so prevalent. 3] ! The One Thing by Gary Keller (Study Notes) - Duration: 1:14:33. Overall, this book is a good library addition for our fellow practitioners of strategy. • A diagnosis defines the challenge in clear, simple terms. Or, if you prefer, strength applied to the most promising opportunity. It does not pop out of some “strategic management” tool, matrix, chart, triangle, or fill-in-the-blanks scheme. No one has advantage at everything. Inertia — unwillingness to change or adapt, Entropy — System’s degree of disorder always increases in an isolated system. [Ch. Richly illustrated and persuasively argued by a researcher, teacher, and consultant, Richard Rumelt has authored the playbook for anybody in a leadership position who must think and act strategically. Deepening an advantage means widening the gap by either increasing value to buyers, reducing costs, or both. It is a leader’s job to identify asymmetries and which ones are critical, which can be turned into advantages.