Good Strategy Bad Strategy: The Difference and Why It Matters
Nelson’s challenge was that he was outnumbered. His strategy was to risk his lead ships in order to break the coherence of his enemy’s fleet. With coherence lost, he judged, the more experienced English captains would come out on top in the ensuing melee. Good strategy almost always looks this simple and obvious and does not take a thick deck of Po
... See moreRichard Rumelt • Good Strategy Bad Strategy: The Difference and Why It Matters
A long list of “things to do,” often mislabeled as “strategies” or “objectives,” is not a strategy. It is just a list of things to do. Such lists usually grow out of planning meetings in which a wide variety of stakeholders make suggestions as to things they would like to see done. Rather than focus on a few important items, the group sweeps the wh
... See moreRichard Rumelt • Good Strategy Bad Strategy: The Difference and Why It Matters
When a leader characterizes the challenge as underperformance, it sets the stage for bad strategy. Underperformance is a result. The true challenges are the reasons for the underperformance.
Richard Rumelt • Good Strategy Bad Strategy: The Difference and Why It Matters
decentralized decision making cannot do everything. In particular, it may fail when either the costs or benefits of actions are not borne by the decentralized actors.
Richard Rumelt • Good Strategy Bad Strategy: The Difference and Why It Matters
Having a coherent strategy—one that coordinates policies and actions. A good strategy doesn’t just draw on existing strength; it creates strength through the coherence of its design. Most organizations of any size don’t do this. Rather, they pursue multiple objectives that are unconnected with one another or, worse, that conflict with one another.
Richard Rumelt • Good Strategy Bad Strategy: The Difference and Why It Matters
The second form of bad strategic objectives is one that is “blue sky.” A good strategy defines a critical challenge. What is more, it builds a bridge between that challenge and action, between desire and immediate objectives that lie within grasp.
Richard Rumelt • Good Strategy Bad Strategy: The Difference and Why It Matters
The creation of new strengths through subtle shifts in viewpoint. An insightful reframing of a competitive situation can create whole new patterns of advantage and weakness. The most powerful strategies arise from such game-changing insights.
Richard Rumelt • Good Strategy Bad Strategy: The Difference and Why It Matters
Failure to face the challenge.
Richard Rumelt • Good Strategy Bad Strategy: The Difference and Why It Matters
increasing value requires a strategy for progress on at least one of four different fronts: deepening advantages, broadening the extent of advantages, creating higher demand for advantaged products or services, or strengthening the isolating mechanisms that block easy replication and imitation by competitors.