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Summary
Good Strategy Bad Strategy by Richard Rumelt offers a clear-eyed examination of what makes a strategy effective—or ineffective. In a world where the word “strategy” is often misused or misunderstood, Rumelt provides a refreshing and practical guide to distinguishing between good and bad approaches. His insights are drawn from decades of experience as a strategy consultant, making this book an essential read for anyone involved in guiding an organization’s future.
Rumelt defines good strategy as a cohesive and focused response to a significant challenge. He emphasizes the importance of diagnosing the problem, creating a guiding policy, and designing coherent actions to address the issue. Throughout the book, he illustrates these concepts with real-world examples, from Apple’s turnaround under Steve Jobs to the success of IKEA, showing how clear, focused strategies lead to substantial competitive advantages.
In contrast, Rumelt criticizes bad strategy as being all too common in today’s business environment. He argues that many organizations mistake goals, visions, and buzzwords for actual strategy, leading to vague, ineffective plans that fail to address real challenges. Bad strategy, according to Rumelt, is characterized by a lack of focus, a failure to confront the actual problem, and a reliance on fluff rather than substance.
What makes this book particularly compelling is its straightforward approach to a topic that is often shrouded in jargon and complexity. Rumelt cuts through the noise to deliver actionable advice on how to craft strategies that work, emphasizing that good strategy is about making tough choices and sticking to them. For business leaders, strategists, and anyone tasked with setting a course for an organization, this book offers invaluable guidance on how to navigate the complexities of planning and decision-making.