Book Cover

Good Strategy Bad Strategy by Richard Rumelt

How strongly I recommend this book: 8 / 10

Date read: April 24, 2022

Summary

Richard Rumelt’s book is a classic on strategy. Every good strategy, according to Rumelt, has a kernel —

“A good strategy has an essential logical structure that I call the kernel. The kernel of a strategy contains three elements: a diagnosis, a guiding policy, and coherent action.”

This book is covered with a plethora of examples where organizations failed at their strategy, and where some excelled. I’ve written a detailed summary in my newsletter here, but you can check out key highlights below.

Favorite Quotes and Chapter Notes

I went through my notes and progressively capture key quotes from all chapters below.

P.S. – Highly recommend Readwise if you want to get the most out of your reading.

Introduction - Overwhelming Obstacles

Part I Good and Bad Strategy

FLUFF

BAD STRATEGIC OBJECTIVES

THE UNWILLINGNESS OR INABILITY TO CHOOSE

TEMPLATE-STYLE STRATEGY

THE DIAGNOSIS

THE GUIDING POLICY

COHERENT ACTION

Part II Sources of Power

Deepening Advantage

DISCERNING THE FUNDAMENTALS

Guidepost 1 — Rising Fixed Costs

Guidepost 2 — Deregulation

Guidepost 3 — Predictable Biases

Guidepost 4 — Incumbent Response

Guidepost 5 — Attractor States

INERTIA

Part III Thinking like a strategist

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