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A review by erwinlemueloliva
Good Strategy Bad Strategy: The Difference and Why It Matters by Richard Rumelt
informative
inspiring
reflective
slow-paced
5.0
Richard Rumelt’s "Good Strategy, Bad Strategy: The Difference and Why It Matters" is a compelling exploration into the nature of strategy in business and leadership. Through deep analysis and engaging anecdotes, Rumelt dissects what makes a strategy effective and separates genuine insights from the fluffy, ineffectual advice often touted in the business world.
Here are the highlights of this book, which took me a while to finish because it was that good.
1. The Kernel of Good Strategy: Rumelt introduces the concept of the "kernel," the backbone of any good strategy, which consists of three elements: a diagnosis, a guiding policy, and coherent actions. This framework helps clarify what a plan is as opposed to what many think it is. He emphasizes, "Good strategy requires leaders willing and able to say no to various actions and interests. Strategy is at least as much about what an organization does not do as it is about what it does."
2. The Fallacy of Bad Strategy: As Rumelt outlines, bad strategy often stems from having vague objectives, mistaking goals for strategy, or implementing a series of fluff-filled statements that do not address the organization's core challenges. He argues, "Bad strategy is long on goals and short on policy or action. It assumes that goals are all you need. It puts forward strategic objectives that are incoherent and, sometimes, totally impractical."
3. The Role of Insight and Focus: Insight plays a pivotal role in developing good strategy. Rumelt points out that insightful strategies simplify the complexity of reality by identifying pivotal factors in a situation and designing a way of coordinating and focusing actions to deal with those factors. He states, "The most powerful strategies arise from such game-changing insights."
After careful reading (with a lot of highlighting), I can extract numerous practical strategies for personal and professional growth:
1. Clarify and Confront the Real Challenges: In everyday life, just as in business, directly acknowledging and diagnosing your main challenges or obstacles is vital. Rather than avoiding brutal truths or complex issues, identifying and confronting them head-on allows you to formulate practical and actionable strategies.
2. Simplify and Focus: Rumelt’s advice to simplify complexity and focus on critical aspects can be applied to personal productivity and decision-making. By focusing on a few crucial priorities and designing your actions around them, you can achieve more impactful results, whether in managing your time, projects, or personal goals.
3. Be Decisive in Action: The principle of coherent action in good strategy emphasizes aligning actions with overall strategy. In personal contexts, this means making decisions that consistently align with your long-term goals and values and being willing to say no to distractions that do not serve these objectives.
"Good Strategy, Bad Strategy" is not just a book for CEOs and managers; it is a text that offers valuable insights for anyone looking to think more strategically about their personal and professional lives. Rumelt’s clear and often provocative lessons help crystallize the essence of strategic thinking and how it can be applied across various scopes of life.
Here are the highlights of this book, which took me a while to finish because it was that good.
1. The Kernel of Good Strategy: Rumelt introduces the concept of the "kernel," the backbone of any good strategy, which consists of three elements: a diagnosis, a guiding policy, and coherent actions. This framework helps clarify what a plan is as opposed to what many think it is. He emphasizes, "Good strategy requires leaders willing and able to say no to various actions and interests. Strategy is at least as much about what an organization does not do as it is about what it does."
2. The Fallacy of Bad Strategy: As Rumelt outlines, bad strategy often stems from having vague objectives, mistaking goals for strategy, or implementing a series of fluff-filled statements that do not address the organization's core challenges. He argues, "Bad strategy is long on goals and short on policy or action. It assumes that goals are all you need. It puts forward strategic objectives that are incoherent and, sometimes, totally impractical."
3. The Role of Insight and Focus: Insight plays a pivotal role in developing good strategy. Rumelt points out that insightful strategies simplify the complexity of reality by identifying pivotal factors in a situation and designing a way of coordinating and focusing actions to deal with those factors. He states, "The most powerful strategies arise from such game-changing insights."
After careful reading (with a lot of highlighting), I can extract numerous practical strategies for personal and professional growth:
1. Clarify and Confront the Real Challenges: In everyday life, just as in business, directly acknowledging and diagnosing your main challenges or obstacles is vital. Rather than avoiding brutal truths or complex issues, identifying and confronting them head-on allows you to formulate practical and actionable strategies.
2. Simplify and Focus: Rumelt’s advice to simplify complexity and focus on critical aspects can be applied to personal productivity and decision-making. By focusing on a few crucial priorities and designing your actions around them, you can achieve more impactful results, whether in managing your time, projects, or personal goals.
3. Be Decisive in Action: The principle of coherent action in good strategy emphasizes aligning actions with overall strategy. In personal contexts, this means making decisions that consistently align with your long-term goals and values and being willing to say no to distractions that do not serve these objectives.
"Good Strategy, Bad Strategy" is not just a book for CEOs and managers; it is a text that offers valuable insights for anyone looking to think more strategically about their personal and professional lives. Rumelt’s clear and often provocative lessons help crystallize the essence of strategic thinking and how it can be applied across various scopes of life.