To help people to understand a complex or unstructured problem, it also helps to use a metaphor, analogy, or an accepted framework. In this Good Strategy Bad Strategy summary, we’ll briefly outline some of these powerful ideas. The advantage flows from coordination and focus as well as from resolving the impossible ambiguity of reality into a problem that fits the organization’s resources and abilities, a problem on which the organization can actually go to work. A good strategy has an essential logical structure that I call the kernel. And because they don’t expect you to have one. The must-read summary of Richard Rumelt's book: "Good Strategy Bad Strategy: The Difference and Why It Matters". Strategy is about how an organization will move forward. Good strategy requires leaders who are willing and able to say no to wide variety of actions and interests. To start thinking like a real strategist, you need to: • Understand the Science of Strategy: Think of a good strategy as a well-formed hypothesis of what’ll work, learn to capture proprietary info and validate your hypotheses with logical and empirical tests. It can mark an opportunity to learn something, perhaps something valuable. I was struck by how relevant Richard’s work is to organizations struggling to adopt systems thinking. 0:26 [PDF] Summary: Good Strategy Bad Strategy - Richard Rumelt: The Difference and Why It Matters Full. Good strategy gathers power from its very rareness. Browse more videos. The most basic idea of strategy is the application of strength against weakness. Good Strategy, Bad Strategy. Overall, this book is a good library addition for our fellow practitioners of strategy. Here are some of my notes, but I recommend reading it. He said it was the best book he’d read on the topic, and I found it extremely useful. For the full details, examples and tips, do get a copy of the book, or get a detailed overview with our complete book summary bundle. Good Strategy Bad Strategy Book Summary - Strategy 101 - Duration: 11:41. Bad strategy “Good Strategy. See more details below. Bad strategy is charact... Read More. A pivot point magnifies the effect of effort. The key is to press where you have an advantage and to side-step situations in which you don’t. It uses high-sounding words and phrases to hide these failings.” What is more, it builds a bridge between that challenge and action, between desire and immediate objectives that lie within grasp.” Bad Strategy. Each key message is reinforced by one or more example to illustrate the concepts at work. Inertia — unwillingness to change or adapt, Entropy — System’s degree of disorder always increases in an isolated system. Good strategy, bad strategy : the difference and why it matters / Argues that a manager's central responsibility is to create and implement strategies, challenges popular motivational practices, and shares anecdotes discussing how to enable action-oriented plans for real-world results. Good guiding policies provide parameters that’ll help you to choose certain alternatives over others, e.g. It is the outcome of growing demand for special capabilities or of expanded or extended capabilities. Siren song of template-style strategy — filling out the blank vision, mission, values and strategies, New thought — the belief that all you require is positive mental attitude, Incremental changes sometimes doesn’t work and brings the system to a stop, Coordination of policies that produces extra power through their interacting and overlapping effects, Demands application of that power to the right target, Rising fixed costs — ie product development costs, Predictable biases — economic and demand downturns, Incumbent response — resisting transition, Attractor states — what should an industry look like, Power of design, focus, using advantage, riding a dynamic wave of change, and the important role played by inertia and disarray of rivals, Construct a list — thinking through the list helps more than the list itself, Do a complete analysis and don’t just opt-in for the first solution that comes to mind, Have tools to fight myopia and guide attention, Record judgements so you can learn from them, Think about first principles — not what is done but by WHY it’s done, Create-Destroy — try hard to destroy current alternative, Engineering overreach — so complex nobody understands it, Smooth sailing fallacy — things have been so good for so long nothing will change, Risk seeking incentives — misalignments of incentives where someone disproportionately wins / loses out on risk, Social herding — belief in the mass opinion, Inside view — belief that “this case is different”. 1] ! Save my name, email, and website in this browser for the next time I comment. Good Strategy Bad Strategy Book Summary - Strategy 101 - Duration: 11:41. The sources of power are: strategic leverage, proximate objectives, focus, chain-link systems, growth, design, using advantages, dynamics, inertia and entropy. Good Strategy, Bad Strategy—The difference and why it matters Richard Rumelt, UCLA (Crown Business, 2011) “Good strategy has a basic underlying logic: coherent action backed up by an argument, an effective mixture of thought and action. Bad strategy rests on a faulty foundation of misconceptions and leadership dysfunction. Good Strategy Needs a Kernel "A good strategy has an essential logical structure that I call the kernel. To achieve leverage, you must have insight into a pivot point that with magnify the effects of focused energy and resources. It is a leader’s job to identify asymmetries and which ones are critical, which can be turned into advantages. Report. Good Strategy Bad Strategy 17 May 2019. For a quick overview of his work, make sure to read The Perils of Bad Strategy.. Instead, they pursue multiple goals at once, not concentrating enough resources to achieve a breakthrough in any of them. Despite Rumelt’s lofty reputation in this crowded field, Good Strategy/Bad Strategy is his first book aimed at a general audience and only his second as a sole author since 1974. Leaders job is to reduce ambiguity and pass on simpler, solvable problems. BR Review : good Strategy, Bad Strategy Richard Rumelt good Strategy, Bad Strategy : The Difference and Why it Matters Profile Books, ondon, 2011.l PRéCiS • Strips the bluff and fluff from fuzzy strategy and replaces them with a simple strategy structure. Yes, you might be able to drag a giant block of rock across the ground with muscles, ropes and motivation. Speaker(s): Professor Richard Rumelt Chair: Professor Gordon Barrass Recorded on 20 October 2011 … ANALYSIS/OPINION: GOOD STRATEGY/BAD STRATEGY By Richard P. Rumelt Crown Business, $28, 321 pages. • A guiding policy is the broad approach to addressing the obstacles you’ve identified. Key Takeaways. Good Strategy, Bad Strategy pinpoints the polar difference: The diagnosis and actions that constitute good strategy, the fluff and failures that cause the bad. These are a set of coordinated policies, resources, and maneuvers that are aligned with and support each other. Or, if you prefer, strength applied to the most promising opportunity. By Richard Rumelt. The hallmarks of bad strategy. As we engage stakeholders across the system in a participatory approach, sometimes just getting a “finalized” map and aligning around goals for our collective effort is a daunting enough ch… Just like how a doctor must diagnose a disease before prescribing medication and therapies, businesses must first diagnose the situation and challenge(s) before deciding what to do. Over the last month I've been reading Good Strategy, Bad Strategy during my commute, and it's been the most thought-provoking book I've read in some time. Entropy is the consultants bread and butter — cutting out the growing weeds. The premise is that there is very little good strategy, a great deal of bad strategy, and it's possible to distinguish the two. Deepening an advantage means widening the gap by either increasing value to buyers, reducing costs, or both. The concept of a kernel is important, as it serves as the core of any good strategy. My role was to provide a business and corporate-strategy perspective. Peggialewski. Book Summary - Good Strategy Bad Strategy: The Difference and Why it Matters, Click here to download the Good Strategy Bad Strategy summary & infographic. The One Thing by Gary Keller (Study Notes) - Duration: 1:14:33. Failure to face the challenge — when you cannot define the challenge you cannot evaluate a strategy and improve it, Mistaking goals for strategy — often they are just statements of desire than plans for overcoming obstacles, Bad strategic objectives — when they fail to address critical issues or when they are impracticable. Richard highlights a number of different ways we stumble when trying to create good strategy. Strategy = transforms vague goals into actionable, coherent objectives. For the full details, examples and tips, do get a copy of the book, or get a detailed overview with our complete book summary bundle. Once people clearly grasp the issue, it’s easier to craft and execute a coherent response. Bad strategic objectives: A long list of goals and projects cobbled together at a planning session, or a set of ideas that no one has a clue about what to do or how to get there, are signs of bad strategic objectives. Guiding policies are not desired end-states, goals or visions—those merely express your ambitions without defining how to get there. • Coherent actions are the ways to execute the guiding policy. And the greater the challenge, the more a strategy focuses and coordinates efforts to achieve a powerful competitive punch or problem-solving effect. In creating strategy, it is often important to take on the viewpoints of others, seeing how the situation looks to a rival or to a customer. More than charisma and vision, we must demand good strategy. If a leader lists underperformance as a challenge, then the exercise is doomed because underperformance is the result of the true challenges. Coherent actions are feasible coordinated policies, resource commitments, and actions designed to carry out the guiding policy. But it is wiser to build levers and wheels and then move the rock. 1. by Richard Rumelt Most people give up very close to the finish line - Ross Perot Book Review Good Strategy Bad Strategy. Good Strategy/Bad Strategy has much to offer and has every chance of becoming a business classic.” --Management Today "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. • The 3 key reasons why bad strategy is so prevalent. Is your strategy a mix of slogans and goals, or a set of objectives that offer solutions to key problems? 2. Routines serve to preserve old ways of dealing with things. At the core, strategy is about focus, and most complex organisations don’t focus their resources. And the great… Many organizations which claim to have a strategy do not. Bad strategy isn’t just the opposite of good strategy; bad strategy materializes from “specific misconceptions and leadership dysfunctions.” Four characteristics typify most bad strategies: 1. […] Instead, they have multiple goals and initiatives to symbolize progress, but no coherent approach to accomplish that progress other than “spend more and try harder”. It really makes you realise how few companies in the world actually have a good strategy and what a good strategy even is. You must identify the critical aspects of the situation—this provides a focal point to design/evaluate the strategy, and to adjust the strategy as circumstances change. This is a Blinkist staff pick “My boss kept asking me, “Emily, what’s your strategy?” and I kept coming up empty (#truestory). Or, get a copy of the book for the full details or check out more resources/details at http://goodbadstrategy.com. 2000 Books 5,055 views. Having a coherent strategy in itself already gives you 2 natural sources of strength since (i) most organizations don’t have one and won’t expect you to have one, and (ii) you can always uncover hidden insights just by looking at things from a fresh perspective. “Good Strategy/ Bad Strategy pinpoints the polar difference: The diagnosis and actions that constitute good strategy, the fluff and failures that cause the bad. The premise is that there is very little good strategy, a great deal of bad strategy, and it's possible to distinguish the two. Richly illustrated and persuasively argued by a researcher, teacher, and consultant, Richard Rumelt has authored the playbook for anybody in a leadership position who must think and act strategically. Failure to face the problem. Part 1, Chapter 4. A while ago, the excellent Russell Davies gave me a copy of Good Strategy, Bad Strategy. Access a free review of Good Strategy / Bad Strategy, by Richard Rumelt and 20,000 other business, leadership and nonfiction books on getAbstract. That’s why it’s so crucial to know the difference between good strategy and bad strategy, learn how to think like a strategist and craft good strategies that will propel your organization forward. 11:41. A Good Strategy identifies the one or two critical issues — and then focuses and concentrates action and resources on them. 0:23 I call this basic underlying structure the kernel. End result should be a strategy that is aimed at channelling energy into what seem to be one or two of the most attractive opportunities, where it looks like you can make major inroads or breakthroughs. GOOD STRATEGY/BAD STRATEGY 5 a multitude of confl icting demands and interests. The kernel needn’t define all the actions to be taken, but it must provide enough clarity to make the strategy actionable while ensuring your actions are coordinated and non-conflicting. At the root, strategy is about applying your biggest strengths to your biggest opportunity. The impact of culture on management: A primer. It offers a picture of what good strategy looks like. (PDF) Richard Rumelt Good Strategy Bad Strategy The ... ... aaa For example, I believe that terms like “seamless” or multi-channel have become so overused that they have lost a lot of meaning. Although external ideas and feedback are useful, the most vital tool to a strategist could simply be to change your own way of thinking. Unlike a stand-alone decision or a goal, a strategy is a coherent set of analyses, concepts, policies, arguments, and actions that respond to a high-stakes challenge. Maintaining a balance between independence and eccentricity, as well as skepticism and negativity, is difficult but essential to successful strategy work. There is no greater way for sharpening strategic tools than the necessity to act. In Good Strategy/Bad Strategy, Richard Rumelt explains the basic elements of strategy and how they are employed. A good strategy will create the conditions that will make the “push” effective and worthy of the effort required. 11:41. Use your relative advantage to impose out-of-proportion costs on the opposition and complicate his problem of competing with you. Playing next. Feel free to get our complete Good Strategy Bad Strategy summary for more specific details. Become a great strategist: Develop good strategies and avoid bad ones! All you have is a stretch goal, a budget, or a list of things you wish would happen. It arises from misconceptions that block sound strategy. It puts forward strategic objectives that are incoherent and, sometimes, totally impracticable. Anomalies — are facts that do not fit received wisdom. In many circumstances, anticipation simply means considering the habits, preferences and policies of others, as well as various inertias and constraints in change.
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