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Good Strategy / Bad Strategy
Richard Rumelt
The TL;DR
Most documents labeled "strategy" are actually bad strategy — wishful thinking, fluff, failure to face the real challenge, or lists of goals masquerading as plans. Rumelt defines the kernel of good strategy as three things: an honest diagnosis of the situation, a guiding policy that addresses the challenge, and a coherent set of actions to carry it out. He teaches how to find the "crux" — the one hard problem whose solution unlocks everything else — and how to concentrate strength against weakness rather than spreading resources thin. Strategy is scarcity's child: to have a real strategy, you must choose what not to do. The book gives you the vocabulary and courage to call out bad strategy and build good ones.
Core ideas
- 1The kernel of strategy: Diagnosis → Guiding Policy → Coherent Actions.
- 2Bad strategy is fluff, failure to face the challenge, mistaking goals for strategy, and bad objectives.
- 3Find the crux: the one hard problem where progress unlocks everything else.
- 4Strategy concentrates strength against weakness. Don't spread bets.
- 5Proximate objectives — close enough to be feasible — beat lofty visions.
Key quotes
"A good strategy honestly acknowledges the challenges being faced."
"Strategy is scarcity's child. To have a strategy, rather than vague aspirations, is to choose."
"The kernel of strategy contains three elements: diagnosis, guiding policy, and coherent action."
Apply it this week
- →Write a one-page strategy with three sections: diagnosis, policy, actions.
- →Identify the crux of your roadmap and concentrate the team there.
- →Kill any 'strategy' doc that is just a list of goals.
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