Good Strategy Bad Strategy

Richard Rumelt defines strategy as "a way through a difficulty" and introduces the kernel of good strategy: diagnosis of the problem, guiding policy as the overall approach, and coherent actions to execute the plan. The book identifies hallmarks of bad strategy including fluff (gibberish masquerading as strategic thinking), failure to face challenges, and mistaking goals for strategy—confusing statements of desire with plans for overcoming obstacles. Rumelt argues that good strategy almost always looks simple, identifying one or two critical pivot points that can multiply the effectiveness of effort.

6 sections · 22 lessons

Course outline

Strategy Fundamentals

  1. Strategy Paradox
  2. Hidden Insight
  3. Diagnosis
  4. Guiding Policy
  5. Coherent Actions
  6. Strategy Fundamentals

Bad Strategy Patterns

  1. Fluff Recognition
  2. Face Hard Truths
  3. Goals vs Strategy
  4. Bad Strategy Persists
  5. Bad Strategy Patterns

Sources of Power

  1. Leverage Points
  2. Anticipation
  3. Proximate Objectives
  4. Chain-Link Systems
  5. Strategic Design
  6. Sources of Power

Strategic Choices

  1. Focus
  2. Strategic Growth
  3. Exploit Advantages
  4. Strategic Choices

Strategic Dynamics

  1. Ride Change Waves
  2. Inertia & Entropy
  3. Strategic Dynamics

Strategic Thinking

  1. Strategy Hypotheses
  2. Avoid Myopia
  3. Independent Thinking
  4. Strategic Thinking

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