Good Strategy Bad Strategy Rumelt en 15024

8/9/2019 Good Strategy Bad Strategy Rumelt en 15024

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Good Strategy / Bad Str a t eg yThe Difference and Why It Ma tt er sRichard R umeltProfile Books !""##$ %ag es&B ' oo ( k: getab.li/15024

Ra ting

) *%%lica+ility) Inno,a tion- Styl e

T ak e. * / a ys0 * 1good strategy2 is not a+out ,ision or goals3 It is a carefully researched and

ell. thought.out action %lan designed to meet a challenge3

0 4o e,er5 leaders often su+stitute targets5 e6hortations and slogans for strategy3

0 1Bad strategy52 a form of magical thinking5 contains 1fluff52 dodges %ro+lems5 1mistakes goals for strategy2 and sets unrealistic o+7ecti,es3

8 ocus9 eader shi% : Manag ement

Str a t eg y

Sales : Mark e ting

8inance

4uman R esour ces

IT5 Production : 9ogis tics

;areer : Sel f.De , elo%ment

Small Business

ing are to identify and le,erage your com%etiti,e ad,antages3

0 * 1diagnosis52 a 1guiding %olicy2 and a 1set of coherent actions2 form the 1kernel2 ofa good strategy3

0 1Master strategists2 design their o n no,el a%%roaches to sol,ing a %ro+lem? theydon@t choose from standard o%tions3

0 Strategic o+7ecti,es should al ays +e %ractical and feasi+le3

0 Good strategy re%resents a hy%othesis5 an educated guess5 a+out ho to increaseyour +usiness in the most %roducti,e ay3

To %urchase %ersonal su+scri%tions or cor%orate solutions5 ,isit our e+site at 3 ge t*+ s tra c t 3com5 s end an email to i n fo ' ge ta+ s tr a c t 3com5 or call us at our AS of ce C".) . ).$$ E or at our S isso f ce CFG".G".#$ .H"H"E3 get*+stract is an Internet.+ased kno ledge rating ser,ice and %u+lisher of +ook a+stracts3 get*+stract maintains com%lete editorial res%onsi+ility for all %arts of this a+stract3ge t*+s tr ac t ackno ledges the co%yrights of authors and %u+lishers3 *ll rights reser,ed3 o %art of this a+stract may +e re%roduced or transmitted in any form or +y any means J electronic5 %hotoco%yingor other ise J ithout %rior ritten %ermission of get*+stract 9 t d3 CS/it> erlandE3

This summary is restricted to the personal use of bdutTa!ab "ahmani #abdutta!ab.rahmani$accenture.com% " of H

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http://getab.li/15024http://www.getabstract.com/http://www.getabstract.com/mailto:[email protected]://www.getabstract.com/mailto:[email protected]://getab.li/15024


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R el e ,ance

What You Will LearnIn this summary5 you ill learnK "E What distinguishes good strategy from +ad and E 4o to de,elo% andim%lement good strategy3

ReviewWouldn@t it +e orth hile to sit do n for an e6tended session ith a to% +usiness thinker hile he discusses thefine %oints of cor%orate strategy ith youL ou can5 at least in an editorial sense5 hen you read Richard Rumelt@sork on +usiness strategy3 The %restigious McKinsey Quarterly calls Rumelt 1strategy@s strategist52 and The

Economist includes him on its list of the H most influential %eo%le in +usiness management today3 Who does hethink he is5 a rocket scientistL Well5 yes5 he also orked as an engineer on the AS Voyager mission to Nu%iter3Distilling a lifetime of e6%erience5 and del,ing into history and the classics to illustrate strategy@s im%ortance5Rumelt shares ays to discern good strategy from +ad and tells you ho to im%lement the good3 getAbstract recommends his fascinating5 informati,e5 en7oya+le5 erudite +ook and considers it necessary reading for e6ecuti,es and managers on the to%ic of strategy3

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Summary

getabstract A good strategyrecognizes the natureof the challengeand offers a way of

surmounting it. Sim lybeing ambitious is not a

strategy.! getabstract

getabstract "or many eo le inbusiness# education and

go$ernment# the word %strategy& has become a$erbal tic.!

getabstract

Our Strategy? To Be the Best!* gra%hics firm asked author and strategic management consultant Richard Rumelt for hisassistance in defining its strategy3 *t their first meeting5 the ;


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Bad strategy is distressingly common +ecause it is much easier to concei,e than goodstrategy5 hich in,ol,es rigorous analysis5 logical thinking5 difficult choices and focusedaction3 Instead5 +ad strategy in,ol,es fill.in.the.+lank5 tem%late.style thinking3

getabstract (rowth is the outcomeof a successful strategy#and attem ts toengineer growth aree'ercises in magical thin)ing.!

getabstract

getabstract A leader does not need

to get it totally right , the organization&s strategy merely hasto be more right thanthose of its ri$als.!

getabstract

getabstract To see effecti$edesign-ty e strategy#

you must usually loo)away from the long-

successful incumbenttoward the com anythat effecti$ely in$adesits mar)et s ace.!

getabstract

getabstract A high- uality

strategic resource yielding a owerfulcom etiti$e ad$antagema)es for great

strategic sim licity.! getabstract

The +ore o# Good StrategyGood strategy al ays starts ith the 1kernel52 a foundation ith three com%onentsK

,- %.iagnosisDon@t 7ust ask5 1What@s going on hereL2 Take the ne6t ste% to identify %atterns and factsthat might steer your thinking into ne and different areas3 Strategi>ing is an e6ercise inthinking and imagination5 +ut it also in,ol,es 7udgment and e,aluation3 To im%ro,e your

7udgment5 list your strategic ideas3 ;ataloging your ideas gi,es you a relia+le systemfor turning conce%ts into actions5 and it also hel%s you counter your +iases andshortcomings5 the mental myo%ia that afflicts e,eryone3 The more kno ledge you gaina+out your com%any@s challenges and the ramifications of its strategic o%tions5 the +etter

%ositioned you are to tackle a diagnosis3

*fter you@,e made a diagnosis5 don@t settle on the first solution or insight that %resentsitself3 Instead5 attack the ideas you de,elo% ith a 1create.destroy2 mind.set3 De,elo%

ro+ust alternati,e ,ie %oints that can o%en u% ne a,enues of thinking3 Then doe,erything you can to tear them a%art to demonstrate ho ell the ideas stand u% to

%ressure3 To hel% in this as%ect5 create a 1,irtual %anel of e6%erts2K Imagine ho %eo%leyou greatly res%ect ould e,aluate your ,ie s5 and hone in on their %ossi+le criti=ues3es your


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strengths3 Think of strategy as something you im%ose on a challenging situation throughyour actions3

getabstract (ood strategy growsout of an inde endentand careful assessment of the situation#harnessing indi$idualinsight to carefullycrafted ur ose. /ad

strategy follows thecrowd# substituting

o ular slogan forinsights.!

getabstract

getabstract 0t is hard to show

your s)ill as a sailorwhen there is no wind.Similarly# it is inmoments of industrytransition that s)illsat strategy are most $aluable.!

getabstract

getabstract Strategy is about action# about doing

something.! getabstract

*s you %lan5 +e a are of 1chain.link logic32 *ny system or organi>ation is only as strongas its eakest link3 Reinforcing all your stronger units is fruitless unless you also im%ro,eyour eakest area3 In your analysis5 determine if your %otential +ottlenecks J or eak

links J can harm your strategic %lan3

;hain.link logic also can ha,e a %ositi,e as%ectK ;onsider the e6am%le of IQ


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Ri hard Ru elt is a %rofessor at A;9*@s *nderson School of Management and a consultant on strategicmanagement issues3

Good Strategy Bad Strategy Rumelt en 15024

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