"Good Strategy Bad Strategy" - 2 min book review
Does your company have a good strategy? What is the strategy? One thought with which I can relay a lot from the “Good Strategy Bad Strategy” that staff usually perceive as a strategy as anything published and approved by the C-suite level. But is it a strategy? And if not - what makes a good strategy. Richard P. Rumelt in “Good Strategy Bad Strategy: The Difference and Why It Matters” tries to summarise what is a strategy, its core components, and how to create a good one.
Not a strategy
Before we go to what strategy is, maybe let’s start with a common misconception as highlighted in the book:
- Strategy is not goal setting
- Strategy is not a synonym for success
- Strategy is not just an actions
- There is only one strategy (there could be multiple strategies on multiple levels)
What makes a bad strategy
To detect Bad strategy look for:
- Fluff - use of inflated words
- Failure to face a challenge
- Mistaking goals for strategy
- A bad strategy objective - impractical or don’t address problems
Richard Rumelt provides a simple kernel of a strategy :
- Diagnosis - identify a core challenge
- Policy - choose a direction to move towards
- Coherent actions - set of logical actions to keep you focused on the goal
Strategy is a lever that magnifies the strength
Good strategy coordinates policies and actions; explains how an organization will move forward; helps to supply more value to a segment of the market than competitors; rise brand value by consistent characteristics of their product; challenges system entropy.
Strategy is an internally consistent argument that leads to diagnosis and then actions
Good Strategy Bad Strategy - gives you a lot of useful information. The author explains what is a strategy and how to create one. Provide a lot of examples from business and his professional tuition. In case you are looking to learn only about the Strategy framework part - it could be summarised in one chapter, you can get it in most book reviews posted online. Having said that, I enjoyed reading the book.
We think that future winners will look like current winners
Photo by Sebastian Voortman from Pexels