Good Strategy Bad Strategy
by Richard Rumelt
Business & Economics
Good Strategy/Bad Strategy clarifies the muddled thinking underlying too many strategies and provides a clear way to create and implement a powerful action-oriented strategy for the real world. Developing and implementing a strategy is the central task of a leader. A good strategy is a specific and coherent response to—and approach for—overcoming the obstacles to progress. A good strategy works by harnessing and applying power where it will have the greatest effect. Yet, Rumelt shows that there has been a growing and unfortunate tendency to equate Mom-and-apple-pie values, fluffy packages of buzzwords, motivational slogans, and financial goals with “strategy.” In Good Strategy/Bad Strategy, he debunks these elements of “bad strategy” and awakens an understanding of the power of a “good strategy.” He introduces nine sources of power—ranging from using leverage to effectively focusing on growth—that are eye-opening yet pragmatic tools that can easily be put to work on Monday morning, and uses fascinating examples from business, nonprofit, and military affairs to bring its original and pragmatic ideas to life. The detailed examples range from Apple to General Motors, from the two Iraq wars to Afghanistan, from a small local market to Wal-Mart, from Nvidia to Silicon Graphics, from the Getty Trust to the Los Angeles Unified School District, from Cisco Systems to Paccar, and from Global Crossing to the 2007–08 financial crisis. Reflecting an astonishing grasp and integration of economics, finance, technology, history, and the brilliance and foibles of the human character, Good Strategy/Bad Strategy stems from Rumelt’s decades of digging beyond the superficial to address hard questions with honesty and integrity.
Bridges
Books that connect different domains
Bridges summary
Richard Rumelt's seminal work, "Good Strategy Bad Strategy," offers a foundational framework for understanding the critical distinction between effective action and superficial platitudes, a concept deeply resonant with the insights found in Rolf Dobelli's "The Art of Thinking Clearly." While Dobelli meticulously dissects the myriad cognitive biases that cloud human judgment, leading us astray from rational decision-making, Rumelt's book directly addresses the consequences of such misguided thinking when it manifests as "bad strategy." The bridge between these two powerful texts lies in their shared emphasis on clear, unvarnished diagnosis as the prerequisite for effective action. Just as Dobelli exposes the fallacies that prevent us from seeing reality clearly, Rumelt argues that a "bad strategy" is often born from a failure to accurately diagnose the core problem. He posits that true strategy isn't about motivational slogans or aspirational goals, but rather a coherent response to overcoming obstacles. This directly aligns with Dobelli's exploration of cognitive errors; a leader succumbing to confirmation bias, for instance, might embrace a flawed strategic direction simply because it confirms their pre-existing beliefs, thereby generating what Rumelt would unequivocally label "bad strategy."
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