This book addresses a fundamental question: Why is so much strategy ineffective, and what distinguishes good strategy from bad strategy?
Rumelt argues that bad strategy is not the absence of strategy, but the presence of superficial substitutes for it—such as vague ambitions, buzzwords, growth targets, and overly complex frameworks that avoid hard choices. According to the book, the core failure of bad strategy is the inability or unwillingness to clearly diagnose the organization’s real challenge.
The central contribution of the book is the concept of the kernel of good strategy, consisting of three elements:
(1) a clear diagnosis that defines the critical challenge,
(2) a guiding policy that sets the overall approach for dealing with the challenge, and
(3) coherent actions that are aligned with and reinforce the guiding policy.
Rumelt emphasizes that strategy is fundamentally about focus, trade-offs, and coordinated action under constraints. Good strategy is pragmatic, grounded in reality, and oriented toward overcoming obstacles, rather than articulating aspirational goals or visions.
Reference:
Rumelt, R.P. (2011). Good Strategy/Bad Strategy: The Difference and Why It Matters. Crown Business, New York.
