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Good StrategyBad Strategy

A good strategy is a coherent response to a critical challenge, consisting of a diagnosis, a guiding policy, and coordinated actions, while the common affliction of 'bad strategy' is merely a mix of wishful thinking, buzzwords, and ambitious goals.

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What it’s about

In a world awash with fluffy mission statements, blue-sky objectives, and motivational slogans that are passed off as 'strategy,' Richard Rumelt argues that we have lost our way. 'Good Strategy/Bad Strategy' cuts through the clutter to reveal what strategy truly is: a focused and coherent approach to overcoming a high-stakes challenge. Rumelt introduces the 'kernel' of a good strategy—a clear diagnosis of the problem, a guiding policy to address it, and a set of coherent actions to execute that policy. By dissecting compelling case studies from business, military, and history—from Apple's turnaround to the First Gulf War—he provides a practical framework for identifying the all-too-common hallmarks of bad strategy and equips leaders with the tools to craft powerful, effective strategies that create real competitive advantage and solve pressing problems.

The through-line

Who it’s for: A leader, manager, or ambitious professional who is responsible for guiding an organization—be it a company, a division, a non-profit, or a government agency. They want to achieve breakthrough results and overcome significant challenges, but are frustrated with the vague, ineffective, and buzzword-laden 'strategic plans' they are forced to create and endure.
The problem: The organization is surrounded by 'bad strategy'—fluffy mission statements, laundry lists of conflicting priorities, and ambitious goals with no clear path to achievement. This leads to wasted resources, uncoordinated efforts, and a failure to make meaningful progress on the most critical issues. They feel confused, overwhelmed, and cynical about the strategic planning process. They doubt their ability to cut through the noise, make the necessary hard choices, and create a plan that provides actual guidance and generates real momentum.
The plan: Learn to instantly recognize 'Bad Strategy' by its four distinct hallmarks.
Master the 'Kernel' of Good Strategy: a clear Diagnosis, a powerful Guiding Policy, and a set of Coherent Actions.
Discover and learn to apply the hidden sources of power in any situation, from Leverage and Proximate Objectives to Design and Dynamics.
Adopt the mindset of a true strategist, learning to question assumptions, overcome cognitive biases, and treat strategy as a testable hypothesis.
The payoff: The reader becomes a clear-thinking and decisive leader, capable of crafting powerful strategies that focus energy and resources. · Their organization overcomes its most significant challenges and achieves superior performance. · They gain a reputation as a true strategist who delivers results, not just buzzwords.

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Related profiles we’ve built

Additional reading

Competitive Strategy: Techniques for Analyzing Industries and Competitors · Michael Porter
Cited as perhaps the most widely respected book on strategy ever written. The book's concepts, such as the two ways to win (cost leadership and differentiation) and the five-forces analysis, are foundational to the framework presented in 'Playing to Win'.
The works of Peter Drucker · Peter Drucker
The book is inspired by and dedicated to Drucker, who is described as a mentor and friend. His foundational idea that the purpose of an organization is to create a customer is cited as a core principle for setting winning aspirations.
The works of Chris Argyris · Chris Argyris
Credited as a seminal influence whose work on organizational learning shaped the authors' thinking. His concept of balancing advocacy with inquiry is the basis for the 'assertive inquiry' communication method promoted in the book.
Moments of Truth · Jan Carlzon
Mentioned as an influence on A.G. Lafley's thinking. The concept was adapted to create one of P&G's core strategic messages: 'Win the two most important moments of truth' (in-store and at-home).
The Concept of Corporate Strategy · Kenneth R. Andrews
The book explicitly positions itself as building on the 'classic approach to strategy formulation' heavily influenced by Andrews' work at Harvard, which focused on matching company strengths and weaknesses to environmental opportunities and threats.
Business Policy: Text and Cases · C. Roland Christensen, Kenneth R. Andrews, and Joseph L. Bower
Cited along with Andrews' work as a standard-setter in the field of strategy formulation that provided the intellectual starting point for the more analytical frameworks developed in this book.
The Strategy of Conflict · Thomas Schelling
The concepts in Chapter 5 on Competitive Moves, such as commitment, threats, and focal points, are direct applications of Schelling's seminal game theory work to business competition.
Interbrand Choice, Strategy and Bilateral Market Power · Michael E. Porter
This is the author's own prior academic work, and the preface notes that the research journey for 'Competitive Strategy' began with his doctoral dissertation and subsequent research in industrial organization, which this book represents.
Co-opetition · A. Brandenburger and B. Nalebuff
In the 1998 introduction, Porter cites this book as the single most important contribution to extending his ideas, particularly regarding the cooperative enhancement of total value with buyers, suppliers, and producers of complements.
Capitalism, Socialism and Democracy · Joseph A. Schumpeter
The book's concept of value innovation creating new markets is compared to Schumpeter's idea of 'creative destruction,' but the authors distinguish Blue Ocean Strategy by emphasizing that it can also be about 'nondestructive creation,' where a new market doesn't necessarily displace an old one.