For the slaughtered troops did not suffer from a lack of motivation. This is a mistake. He was proved right: He defines the thesis in a section that criticizes The Power of Positive Thinking. A good primer for strategy.

good strategy bad strategy richard rumelt

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Our Two Cents on “Good Strategy, Bad Strategy”

No trivia or quizzes yet. Actionable tips, case studies, best practices in gumelt inbox every other week. Jul 01, Hj Barraza rated it it was amazing Shelves: It is very empty, lack of concrete content, just examples stratwgy up with abstract words.

Unfortunately, in Part II, he loses focus and rambles with business case after case. Sign up for email alerts.

Good Strate Rumelt is surly and arrogant. Instead, you have a stretch goal or a budget or a list of things you wish would happen. Intel introduced its 3-D graphics chip in but did not keep up the pace, exiting the business of discrete 3-D graphics chips a year later.

good strategy bad strategy richard rumelt

Analyze context deeply and make diagnosis 2. By using this Site or clicking on “OK”, you consent to the use of cookies. Building on solid academic foundations and using fascinating examples from business, politics and history, Rumelt exposes the many fallacies rumeot surround this important concept while providing his own unique and refreshingly-clear approach on how to develop a coherent and successful strategy.

A good strategy works by harnessing and applying power where it will have the greatest effect in challenges as varied as putting a man on the moon, fighting a war, launching a new product, responding to changing market dynamics, starting a charter school, or setting up a government program. Palmer stopped the losses for a while but could not stem the tide of ever more powerful personal richatd that were overtaking the firm.


He was President of the Strategic Management Society in Some of the themes will be well recognized by students of strategy: He defines the thesis in a section that criticizes The Power of Positive Thinking. It does not pop out of some strategic-management tool, sstrategy, triangle, or fill-in-the-blanks scheme. It is often only the imperative to act that brings out strategic thinking in organisations, forcing prioritisation and decision making.

This path offers a one-size-fits-all substitute for the hard work of analysis and coordinated action.

The perils of bad strategy

It was unable to do that, because a majority preferred Solutions to Boxes, a majority preferred Boxes to Chips, and a majority also preferred Chips to Solutions. Drawing on a wealth of examples, Rumelt identifies the critical features that distinguish powerful strategies from wimpy ones—and offers a cache of advice on how to build a strategy that is actually worthy of the name.

They suffered from a lack of competent strategic leadership. To have a strategy is to choose one path and eschew others. ATI, now part of AMD, has become a powerful competitor in graphics processing units, and Nvidia has been challenged in the fast-growing mobile-graphics business, where cost is often more important than performance.


Good strategies work by harnessing and applying power where it will have the greatest effect for facing big challenges.

good strategy bad strategy richard rumelt

Ambition and motivation aren’t strategy. The “kernel” of Rumelt’s understanding of strategy consists of three parts: For the most part the praise is well deserved. This can be effectively addressed by conducting a rigorous SWOT exercise, as this will help you diagnose your company just like a doctor might a patient. Is your strategy a mix of slogans and goals, or a set of objectives that offer solutions to key problems?

The American public—including many of its top business and policy officials—tend to gravitate toward richhard and inspiring goal-setters rather than to strrategy with analytical depth.

Good Strategy Bad Strategy: The Difference and Why It Matters

Rumelt states that there are three key elements that make up good strategy:. Bad strategy is long on goals and straegy on policy and action.

This is a must read for CEOs or planners whose job depends on getting it right!