Developing and implementing a strategy is the central task of a leader, whether the CEO at a Fortune 100 company, an entrepreneur, a church pastor, the head of a school, or a government official. Richard Rumelt argues that the heart of a good strategy is insight - into the true nature of the situation, into the hidden power in a situation, and into an appropriate response. He shows you how insight can be cultivated with a wide variety of tools for guiding your own thinking.
Good Strategy/Bad Strategy integrates fascinating examples from business, nonprofit, and military affairs to bring its original ideas to life: From Apple to General Motors, from the two Iraq wars to Afghanistan, from a small local market to Wal-Mart, from the Getty Trust to the Los Angeles Unified School District, from Global Crossing to the 2007-08 financial crisis, and many more. The abundance of business-ready insights offered by Rumelt stem from his decades of digging beyond the superficial to address hard questions with honesty and integrity.
©2012 Original material © 2011 by Richard Rumelt. Recorded by arrangement with Crown Business, an imprint of the Crown Publishing Group, a division of Random House, Inc. (P)2012 (p) 2012 HighBridge Company
“Refreshing...clear...elegant.... If you want to make strategy, you will need...this book.” (Walter Kiechel, author of The Lords of Strategy)
“Brilliant...a milestone in both the theory and practice of strategy.” (John Stopford, Emeritus Professor, London Business School)
"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. If you're certain your company is already poised to out-perform its rivals and out-run the future, don't buy this book. If, on the other hand, you have a sliver of doubt, pick it up pronto!” (Gary Hamel, co-author of Competing for the Future)
A book that sounds a bit 'dorky' like this one I normally leave alone for fear of empty words. But I am very happy to have picked this one up!
Rummelt is a very senior strategist to big and smaller firms, and have seen where they can go wrong: confusing objectives with strategy ("our strategy is to grow revenue"), strategy with excel sheets or (worst of all, and very hot right now) confusing leadership ("a will to succeed") with strategy.
Instead, he outlines a simple yet powerful method of building a strategy:
1. diagnose the situation and determine the key challenge for the organisation/firm
2. develop/create a guiding policy (Porter would say, competitive strategy) to overcome the challenge or reap the opportunity
3. develop and execute a coherent action plan.
He goes on the enrich each of these parts, which to a certain extent have been discussed elsewhere (Porter, Ansoff, Hamel, Kaplan) but not in such a concise and easy to follow way.
The strength of the book is not only in how strategies should be build and executed, but also how many companies go wrong: e.g. that your strategy needs commitment from the organization is ruthlessly attacked: if the entire organisation agrees with the strategy, there is no 'hard' choice involved. A strategy that pleases all in the end does not deliver. Though provoking and pragmatic at the same time.
What I personally found most pleasing is that Rummelt does not say that planning is better than execution, or leadership is superior or not, but that all are parts in a chain that need to fit together. You need strategy AND execution AND leaderhip AND creativity/innovation AND ...while simultaneously focusing your energy.
If you are in a leadership or management position in any organisation, private or public, I highly recommend this book for its framework, coherence and ease of understanding, combined with its focus on the essential elements and pitfalls.
Runnette does the impossible in this book and makes a book on strategy interesting. It's amazing how stories and anecdotes can make all the difference. By highlighting some funny examples of bad strategy, good strategy becomes more and more obvious in contrast. Looking forward to future books from Runnette.
Richard Rumelt, in Good Strategy Bad Strategy,makes strategic thinking readily available all. There is a lot of clear thinking here that will enlighten readers. For example, aspiration is not strategy. JFK proposed that we go to the moon in a decade. That was technically possible. Going to Mars is technical available to us as well. However, since Kennedy’s moon shot project people have been confusing aspiration with strategy. The implication is that if we just set goals they will be attained. Rumelt sets the reader straight. Rumelt goes beyond telling readers What they should do to telling the readers HOW to do it. Rumelt strays into military strategy at times and his examples can be a little long for my taste. However, this book is still a worthwhile read. After this book interested readers may want to pickup Joan Magretta’s (2011) Understanding Michael Porter and then tackle Michael Porter’s (1998) Competitive Strategy. A third volume, a favorite of mine, is Henry Mintzberg’s Strategy Safari which introduces the reader to all of the basic schools of strategic planning thought. He makes the argument that there is no such thing as strategy and cognitive scientists just might agree. The reading of Sean Runnette is very good. Enjoy.
It took a couple of listens to really digest it. Not a lot of fluff. Careful though, if your organization is run by ineffective leaders, this book will open your eyes to the root causes. THAT makes working for them even harder. I'm in a better job than the one I had when I first picked this book up. Maybe there's a correlation (or maybe not).
The author presents a very clear framework for understanding strategy and uses compelling examples to illustrate the elements of strategy.
This is a superb treatment of a topic that too many businesses, and way too many consultants and academics fill with fluff and buzz-words.
If you feel that "if you conceive it, and believe it, you'll achieve it" --- this book is probably your cup of tea. However, if you value actual performance over platitudes, and are willing to do the mental work to assure success, then invest in this book!
I liked the audio version so well I will be buying the paper version to use as a reference.
Mr. Rumelt is an extremely smart person with a world of experience in strategic situations. He has an almost unique, scientific-like, ability to break down complex socio-economic issues into small and meaningful subsets which can be analyzed and acted upon without ever loosing the sight of the big picture. Mr. Rumelt gives hope that scientific approach, hypothesizing, and analytical work in general still have a say in the socio-economic context. A truly great book!
p.s. narrator is good too
"Good Strategy / Bad Strategy" was the most interesting book on strategy I have read so far. Cuts through the leadership consult fluff speak that use template strategy that leads no where to actionable steps that drive visions to values to goals to strategy. The key according to the author is to start by determining what is going on and then building strategy around that reality based on where the company wants to go. The author's discussion on company's with hundreds of supposed strategies leading to stagnation via divide and conquer was very interesting. The author backs up his concepts with real life examples from the class room, corporate world and military campaigns.
"A very convincing argument about strategy being the key factor in the success or failure of businesses."
A very convincing argument about strategy being the key factor in the success or failure of businesses. Motivation, grit to succeed, leadership all become fluff if not backed by an effective strategy that can give you the upper hand.
Great lesson. I bought the paper book version after I listened so I could break it down for further review.
"Best strategy advice ever"
I haven't read the print version
Explaining the difference between strategy and goal setting
Sean is an excellent narrator and really drives through how crucial it is to understand the difference between good strategy and bad strategy.
Good strategy? Bad strategy? if you don't know the difference your business could be dead already.
The very word strategy has become associated with lots of talk and no action. This excellent book shows you that most strategy we see is just bad strategy and that good strategy is very straight forward, but requires extreme hard work and discipline to carry out.
I enjoyed listening to this book the narration is good and the book is well laid out covering a lot of topics in an accessible style with good real world examples and the authors own experience/style as a lecturer - I wouldn't have had the time to read the book. Some of the topics/chapters are quite deep and i found difficult to comprhend compared to the book version, but will probably by a copy of the book to dip into and revisit some of the chapters to gain a more thorough understanding.
The style and depth of knowledge I found similar to The effective executive, by Peter Drucker. This book is similar to Drucker that I feel you could re-read and gain a different insite or perspective each time.
"Excellent: interesting and insightful"
The clear expertise of the author, and his combination of theoretical information with practical, real-world examples.
This wasn't a story, but the book did contain many stories of companies and organisations implementing strategies in good ways and bad. This made it clear what the benefits were of understanding the process of creating a strategy and implementing it consistently
The narrator was able to lend gravitas and authority in keeping with that of the author.
I particularly found it interesting at the various points when the author described teaching seminars on strategy. As someone who has never done an MBA, it felt like I was gaining a small part of one by being able to look in on seminars run by a great tutor.
"Suprisingly good and intresting!"
fact based, lots of data, good analysis
Great book. A lot of real life examples that demonstrate good and bad strategies of different organizations and the outcomes. Easy to listen to and interesting. Helps one to see how some huge undertakings completely lacks the reason despite millions of dollars behind them.
"Good book/Bad book"
This is a great book about the creation, implementation and consistency required to bring good strategy to life. It is also a slightly boring book full of MBA case studies which I felt could have been trimmed.
Rumelt has written a serious account of strategy which is more thoughtful and academic than many of the guru books which are available. He is an expert in his field and this book is hard to fault. My preference was for his thoughts on strategy creation rather than the case studies he used to support his views.
"Food for the Brain"
Strategy can be an absolute brain bender and so easy to get wrong. This book through examples and the authors excellent understanding helps you to get to grips with it and to the real essence of strategy. As the title suggests it provides examples of both good and bad and what we often think of as strategy is actually just fluff and a list of objectives. I would highly recommend this book to anyone involved with strategy or anyone infact involved with business.
"Great book, very nicely narrated"
Having listen to Richard Rumelt online, it was kind of little weird listening to his words spoken by Sean. As it moved on, Sean did manage to get a good rapport of making his speech close to how Richard would have spoken. Thoroughly enjoyed.
"Good content, heavy on tech strategy"
Yes - really useful content on good and bad strategy.
Good strategy content but gets heavy on tech industry strategy in the second half.
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