Good Strategy, Bad Strategy: Richard Rumelt

Have you ever wondered how to you create a good Strategy?


Perhaps,  you have the feeling that your company doesn’t have a good strategy?


We can relate!

Today we will highlight 3 key areas that make up a bad strategy. We will also share the 3 KEY ITEMS that make up a Good Strategy, and FINALLY – HOW to Start your “Good Strategy”


3 ITEMS of a “Bad Strategy”

The First Area of a Bad strategy

Failure to face challenge
You must define the challenge. So often people fail to understand what their challenges are.

If you can not define the challenge, you can not evaluate means to improve or over come the challenge.

This also includes understanding your strengths.

NEXT. The second area of a “Bad strategy”

Mistaking goals for strategy

Having Goals DO NOT equal having a strategy.
Earning 20% more, making a million dollars, taking over the industry… are all goals.

Goals are “What” that would like to achieve, BUT Goals do not identify the challenges to get there. You really need to understand the challenges to get to the WHY and HOW of a strategy.

Goals also do not outline your strengths, your super power, your unfair advantage that you can leverage… these are aspects that one must diagnosis and understand are part of a strategy kernel

And THE THIRD area of BAD Strategy…

Bad Strategic Objectives
A strategic objective is set by a leader as a means to achieve goals. Strategice objectives are “bad” when they fail to address critical issues or when they are impractical.

Failure to have a guiding policy will lead to disorganization, confusion, and incoherent actions.

If the objectives do not align with a guilding policy, you and your organization are very likely to take actions that are incoherent address critical issues

Bad Strategic Objectives will be not only by waste energy and be counter productive, but also likely be frustrating and at best sub optimal towards your achieving your goals.

3 items that make a “Bad Strategy”






So Then….

Now… LET’S DIVE IN TO the 3 KEY components of a GOOD Strategy

Challenges clearly defined
Inventory of strengths and weaknesses
Market conditions
Potential existing or future advantage

Challenges and Options

IF you identify your challenges, you can consider options to overcome a challenge.




Additionally, IF you know your strengths you can apply them affectively to the challenge, GET REAL CLEAR ABOUT YOUR CHALLENGES so that everyone on your team can contribute to a successful diagnosis and remain KEY items of a GOOD Strategy.

SECONDLY, YOU must arrive at a
Guiding Policy
This is an overall approach for overcoming obstacles and / or realizing opportunities and advantages highlighted by the diagnosis.

A Guiding Policy SHOULD help your self or your team or your COMPANY, channel there energy in a certain direction and NOT in other directions.

A Guiding Policy DOES NOT intend to spell out exactly what shall be done, but rather GUIDES the direction.

Thirdly, you must have a set of
You can think of Coherent actions as a well trained team, knowing each of their rolls towards a common goal.

While COHERENT actions do not mean to be at a micro level, they should be CLEAR and specific and actionable.


A COHERENT ACTION should coordinate in such a way that each others actions SHOULD build upon each other.

They should FIT and be Consistent as to GENERATE momentum in the right direction.


Kernel of “Good Strategy”






If you want to kick start your learn how to craft a “Good Strategy” then start by reading Richard Rumelt’s “Good Strategy, Bad Strategy” by clicking the links below!

On Amazon “Good Strategy, Bad Strategy” by Richard Rumelt

Enjoy our video of this review!