Developing a strategy requires making a clear diagnosis of the problem, defining an overall approach to solving it, and creating a set of mutually reenforcing coherent actions. The difference and why it matters good strategy, bad strategy by richard rumelt 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. Strategy comprises a diagnosis that defines the nature of the challenge. The book argues that the notion of strategy has become much misunderstood. His current research interests center on the dynamics of industry transitions, with a focus on the patterns and forces shaping the evolution of complex industries.
Richard rumelt has written one of the best books good strategy bad strategy i have read on strategy and i have ready many of them. Since then, his original and pragmatic ideas have won fans around the world and continue to help readers to recognise and. The difference and why it matters 2011 affiliate link. A good strategy is a specific and coherent response toand approach forovercoming the obstacles to progress. Developing a strategy requires making a clear diagnosis of the problem, defining an overall approach to solving it, and creating.
Dec 24, 2017 a good strategy is an entirely intentional and focused problemsolving activity, which focuses on fundamental and vital issues. Good strategybad strategy by rumelt, richard ebook. A rumelt perpsective on good strategy linkedin slideshare. Rumelt, takes a nebulous concept and makes it concrete. Good strategy, bad strategythe difference and why it matters. Richard rumelt shows that there has been a growing and unfortunate tendency to equate motherhood and applepie values and fluffy packages of buzzwords with strategy. The premise is that there is very little good strategy, a great deal of bad strategy, and its possible to distinguish the two. Use features like bookmarks, note taking and highlighting while reading good strategy bad strategy. This third post deals with the second hall mark of bad strategy. Good strategy, bad strategythe difference and why it. An especially insightful diagnosis can transform ones view of the situation, bringing a radically different perspective to bear. The comment of prof rumelts colleague appears banal but gets to the heart of the matter. Download it once and read it on your kindle device, pc, phones or tablets.
Instead, bad strategy involves fillintheblank, templatestyle thinking. Since then, his original and pragmatic ideas have won fans around the world and continue to help readers to recognise and avoid the. The british admirals fleet was outnumbered at trafalgar by an armada of french and spanish ships that napoleon had ordered to disrupt britains commerce. I picked up this book not thinking much of it, but was very surprised by how much i learned, which actually is a testament to the pervasiveness of bad strategy in the corporate world something that rumelt talks about right away. He says that there are 4 hallmarks that we can look out for when detect a bad strategy. Jun 09, 2011 when richard rumelts good strategybad strategy was published in 2011, it immediately struck a chord, calling out as bad strategy the mishmash of pop culture, motivational slogans and business buzz speak so often and misleadingly masquerading as the real thing. He debunks these elements of bad strategy and awakens an understanding of. After youve bought this ebook, you can choose to download either the pdf. Developing and implementing a strategy is the central task of a leader. It does an excellent job of clearly defining strategy and giving real world, easytounderstand examples of both good and bad strategy. Alas i spotted one such book good strategy bad strategy. Jan 01, 2011 good strategy bad strategy flips strategy on its head, cuts out the fluff and digs beneath the success of companies across the ages and teaches us to replicate it by following the kernel basic skeleton of strategy.
Combining your own proprietary knowledge of your customers. Good strategy bad strategy pdf summary richard rumelt. For a quick overview of his work, make sure to read the perils of bad strategy i was struck by how relevant richards work is to organizations struggling to adopt systems thinking. Good strategybad strategy clarifies the muddled thinking underlying too many strategies and provides a clear way to create and implement a powerful actionoriented strategy for the real world. I long ago realised that to understand a business i would learn much more by talking to people involved in daytoday operations than the chief executive. So i am paying you to ask me questions consultant to client. Richard rumelt shows that there has been a growing and unfortunate tendency to equate momandapplepie values, fluffy packages of buzzwords, motivational slogans, and financial goals with strategy. Reflecting an astonishing grasp and integration of economics, finance, technology, history, and the brilliance and foibles of the human character, good strategybad strategy stems from rumelts decades of digging beyond the superficial to address hard questions with honesty and integrity. Like a quarterback whose only advice to his teammates is lets win, bad strategy covers.
Richard rumelt, ucla professor, outlines 4 common ways that companies often fool themselves into a bad strategy in a mckinsey quarterly article here based on his book good strategy bad strategy. Good strategy bad strategy summary by richard rumelt is an all encompassing book that emphasizes the flow of designing a good strategy. The more recent, good strategybad strategy, was the most interesting business book of 2011. Hughes engineers start to guess at strategies you can only use deduction. Download it once and read it on your kindle device, pc. The lead british ships took a great risk, but nelson. When richard rumelts good strategybad strategy was published in 2011, it immediately struck a chord, calling out as bad strategy the mishmash of pop culture, motivational slogans and business buzz speak so often and misleadingly masquerading as the real thing. Senior executives who can spot it stand a much better chance of creating good strategies.
Good strategy bad strategy by richard rumelt overdrive. Notes from good strategy bad strategy by jeff zych. 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. Bad strategy is distressingly common because it is much easier to conceive than good strategy, which involves rigorous analysis, logical thinking, difficult choices and focused action. In the first post of this series i listed the 4 hallmarks of a bad strategy. The emphasis on taking action is a key component of the book. Good strategy bad strategy is an enjoyable exception. According to richard rumelt in good strategybad strategy. A good strategy is a specific and coherent response toand approach for. In the second post i expanded out one of these hallmarks fluff. Align the strategy with the overall company strategy. Good strategy, bad strategythe difference and why it matters richard rumelt, ucla crown business, 2011 good strategy has a basic underlying logic. Here rumelt injects a sense of realism, arguing that strategy does not equate to a list of things you wish would happen p.
Good strategybad strategy is an enjoyable exception. Over the last month ive been reading good strategy, bad strategy during my commute, and its been the most thoughtprovoking book ive read in some time. Good strategybad strategy by richard rumelt youtube. He debunks these elements of bad strategy and awakens an understanding of the power of a good strategy. Praise for good strategybad strategy rumelts new book clearly elevates the. Good strategybad strategy has much to offer and has every chance of becoming a business classic. Oct 25, 2011 richard rumelt shows that there has been a growing and unfortunate tendency to equate motherhood and applepie values and fluffy packages of buzzwords with strategy. Fluff is gibberish that sounds like a coherent plan, but which doesnt say anything. Strategy is probably the most misunderstood business concept. Management today drawing on a wealth of examples, rumelt identifies the critical features that distinguish powerful strategies from wimpy onesand offers a cache of advice on how to build a strategy that is actually worthy of the name. The difference and why it matters kindle edition by rumelt, richard. Align the strategy with the organisations brand attributes. Rumelt states, bad strategy ignores the power of choice and focus, trying instead to accommodate a multitude of conflicting demands and interests. Jul 19, 2011 good strategybad strategy has much to offer and has every chance of becoming a business classic.
Do not, i repeat, do not read this book if you plan to savor the coming 11 months of political. This is what rumelt says in his book good strategy bad strategy. Part i good and bad strategy 9 chapter 1 good strategy is unexpected 11 how steve jobs saved apple business 101 is surprising general schwarzkopfs strategy in desert storm why plan a remains a surprise chapter 2 discovering power 21 david and goliath is a basic strategy story discovering walmarts secret. Most frequently a great jumble of buzzwords structured into a grammatically coherent format that nonetheless conveys quite little substance, such as using technologically advanced solutions to drive synergy across our geographically distributed teams. 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. For example, in business, most mergers and acquisitions, investments in. When a diagnosis classifies the situation as a certain type, it opens access to knowledge about how analogous situations were handled in the past.
Mar 01, 2018 bad strategy shares one of four defining characteristics. Richard rumelt, described by mckinsey quarterly as a giant in the field of strategy and. Given the number of times ive referred to it recently, ive written up some notes to share. While he has vented about strategy in articles, in lectures and in advisory work for companies, he has bottled up plenty of frustration over the past decades. Written by one of the foremost authorities on the subject of strategy richard rumelt, the book is a true nononsense endeavor. Pdf richard rumelt good strategy bad strategy the difference. Despite rumelts lofty reputation in this crowded field, good strategybad strategy is his first book aimed at a general audience and only his second as a sole author since 1974.
The diagnosis and actions that constitute good strategy, the fluff and failures that cause the bad. If youve ever been told to be more strategic particularly by a manager who cant define what that means, this book is for you. Rumelts research has centered on corporate diversification strategy and the sources of sustainable advantage to individual business strategies. It utilizes the intelligent application of advantage to reach better placement in the market.
The book is easy to read and one of the best ways to convey its flavour is to let it speak for itself with a few quotes. He also shares his framework for what drives good strategy along with guidance on how to create more of it. This is a blinkist staff pick my boss kept asking me, emily, whats your strategy. Clears out the mumbo jumbo and muddled thinking underlying too many strategies and provides a clear way to create and implement a powerful actionoriented strategy for the real world developing and implementing a strategy is the central task of a leader, whether the ceo at a fortune 100 company, an entrepreneur, a church pastor, the head of a school, or a government. Good strategybad strategy argues that a coherent strategy can be, by itself, a significant source of competitive advantage. Feb 22, 2015 billionaire book club good strategy bad strategy. Bad strategy abounds, says ucla management professor richard rumelt.
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. The advantage flows from coordination and focus as well as from resolving the impossible ambiguity of reality into a problem that fits the organizations resources and abilities, a problem on which the organization can. Jan 16, 2014 a rumelt perpsective on good strategy 1. Good strategy bad strategy, by ucla anderson school of management professor richard p. Jun 14, 2012 good strategy, bad strategy pinpoints the polar difference. Pdf good strategy bad strategy richard rumelt, 2011. The core content of a strategy is a diagnosis of the situation at hand, the creation or identification of a guiding policy for dealing with the critical difficulties, and a set of coherent actions. Feb 27, 2018 good strategybad strategy has much to offer and has every chance of becoming a business classic. I picked up this book not thinking much of it, but was very surprised by how much i learned, which actually is a testament to the pervasiveness of bad strategy in the corporate.
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