Reading Library · Business Strategy Tier 1: Core Influence

Good Strategy Bad Strategy: The Difference and Why It Matters

by Richard Rumelt (2011)

★★★★★ 5/5

Defining what strategy actually means and how to create it

"A good strategy has an essential logical structure that I call the kernel."

— Richard Rumelt

My Review

Rumelt cuts through strategic fluff to the essence: a good strategy is a coherent response to a challenge. His kernel of strategy - diagnosis, guiding policy, coherent actions - maps to how organisms respond to environmental challenges.

Why It Matters

Rumelt provides clarity on what strategy actually is. His framework maps to biological response to challenges - sense the environment, form a response, coordinate action.

Key Ideas

  • Strategy is a coherent response to a challenge
  • The kernel: diagnosis, guiding policy, coherent actions
  • Most 'strategy' is actually just goals or fluff
  • Leverage and focus beat diffuse effort

How It Connects to This Framework

The framework's emphasis on environmental sensing, coherent response, and coordinated action.

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