“It is like a signpost, marking the direction forward … Rumelt states that there are three key elements that make up good strategy: A diagnosis: an explanation of the nature of the challenge. For a quick overview of his work, make sure to read The Perils of Bad Strategy.. Well put together, though, and pithy. Instead, they espouse what I call “bad strategy.” Bad strategy ignores the power of choice and focus, trying instead to accommodate a multitude of conflicting demands and interests. Because if you are talking about a ‘customer strategy’, a ‘customer experience strategy’, or any other strategy you should know what you are talking about when you talk ‘strategy’. Anyone who has spent any time on the overblown, abstract mission statements or the tired PowerPoint slides will appreciate the new book, Good Strategy, Bad Strategy … His central thesis is that good strategy has good structure, a "kernel" consisting of a diagnosis, a guiding policy, and a coherent action." I was struck by how relevant Richard’s work is to organizations struggling to adopt systems thinking. One of the silliest remarks in business is “strategy is easy, implementation is difficult”. And because you should know the difference between what passes for strategy (‘bad strategy’) and real strategy (‘good strategy’). “A hallmark of true expertise and insight is making a complex subject understandable” Client to Consultant: “So I am paying you to ask … I think “Good Strategy – Bad Strategy” by Richard Rumelt is one of the best books on strategy I have come across. Nelson’s victory is a classic example of good strategy, which almost always looks this simple and obvious in retrospect. (77) Has some good thoughts regarding why bad strategy is so pervasive (normally a result of an unwillingness to make hard choices, templating, or a belief in the power of positive attitude as sufficient for good strategy. Article Type: Suggested reading From: Strategic Direction, Volume 28, Issue 8 Richard P. Rumelt,Crown Business, New York, NY, 2011, 336 pp.. The guiding policy outlines the approach to dealing with the obstacles highlighted in the diagnosis. And because you should know the difference between what passes for strategy (‘bad strategy’) and real strategy (‘good strategy’). His central thesis is that good strategy has good structure, a "kernel" consisting of a diagnosis, a guiding policy, and a coherent action." Bad strategy abounds, says UCLA management professor Richard Rumelt. Good Strategy By Dr. Michael McDermott mcdermottm1@nku.edu 2. A good primer for strategy. Good strategy, results from investing the time to make the hard choices to gain focus, and identifying obstacles and working out how to deal with them. Using the “Good Strategy – Bad Strategy” approach to develop a strategy. I was one of the first to read it, and once I picked […] The purpose of Rumelt’s book is to clarify the differences between good and bad strategy, and help readers create good strategy. Good Strategy/Bad Strategy argues that a coherent strategy can be, by itself, a significant source of competitive advantage. Rumelt states that there are three key elements that make up good strategy: A diagnosis: an explanation of the nature of the challenge. The premise is that there is very little good strategy, a great deal of bad strategy, and it's possible to distinguish the two. In Good Strategy/Bad Strategy, Richard Rumelt describes what bad strategy is and why we see so much of it.He also shares his framework for what drives good strategy along with guidance on how to create more of it. He summarizes that a good strategy has three crucial elements: a diagnosis, a guiding policy and coherent action. But strategy that lacks a clear path to implementation is not strategy at all, just wishful thinking. This is what Rumelt says in his book Good Strategy Bad Strategy: “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.” Senior executives who can spot it stand a much better chance of creating good strategies. Good Strategy/Bad Strategy: The Difference and Why It Matters. Over the last month I've been reading Good Strategy, Bad Strategy during my commute, and it's been the most thought-provoking book I've read in some time. Like a quarterback whose only advice to his teammates is “let’s win,” bad strategy covers up its failure to guide by embracing the language of broad goals, ambition, vision, and values. Fairly standard corporate strategy fare. This post is about using the approach in “Good Strategy Bad Strategy” to question, review and develop an organisation’s strategy.