Good Strategy, Bad Strategy
The Difference and Why It Matters
Author: Richard Rumelt
Length: 336 pages (~7 hour read)
Formats: Hardcover, Paperback, Kindle, Audible
Grab your copy of Good Strategy, Bad Strategy on Amazon here.
Why This Book Matters
If your business feels like it’s doing a lot but getting nowhere, this book might explain why. Good Strategy, Bad Strategy breaks down the difference between real strategy and vague fluff that sounds smart but does nothing. Rumelt doesn’t just criticize bad strategy—he gives a clear framework for crafting powerful, focused plans that solve real problems. It’s ideal for business owners drowning in goals, visions, and buzzwords, but lacking true direction or results.
Core Idea
A good strategy is a coordinated set of actions designed to overcome a critical challenge. A bad strategy, on the other hand, is often a mix of wishful thinking, jargon, and vague goals masquerading as direction. Rumelt’s core message is simple but powerful: real strategy starts with diagnosing the problem, then developing a guiding policy, and finally implementing coherent actions. If you skip any of those steps, you don’t have a strategy—you have a slogan.
Key Tactics & How to Apply Them
1. Spot Bad Strategy Fast
Most companies don’t suffer from a lack of strategy—they suffer from bad ones.
How to apply: Look out for vague goals (“be the best”), lists of unrelated initiatives, or plans with no diagnosis. If your “strategy” could apply to any business, it’s not a strategy.
2. Start with the Problem, Not the Goal
Good strategy begins by identifying the core challenge you must overcome.
How to apply: Ask, “What’s really holding us back?” Get specific. Whether it’s declining customer retention, poor unit economics, or operational bottlenecks, name the problem clearly before deciding what to do.
3. Craft a Guiding Policy
A strategy isn’t a to-do list—it’s a focused approach to solving the challenge.
How to apply: Develop a clear viewpoint on how you’ll overcome the problem. This is your lens for evaluating every future decision. It should narrow choices, not expand them.
4. Design Coherent Actions
Every tactic should align with your guiding policy.
How to apply: Ditch random improvement projects. Instead, stack deliberate actions that reinforce each other—like product changes, pricing strategy, and marketing—all working in sync toward one objective.
5. Don’t Confuse Strategy with Ambition
Bold vision without a plan is just hope.
How to apply: Avoid dressing up goals (“Grow 10x in 3 years”) as strategy. Ask yourself: “Do I have a real pathway to make this happen—or just a desire for it to be true?”
6. Leverage Strategic Leverage
Not all actions are equal—some have outsized impact.
How to apply: Focus resources on the small hinges that swing big doors. A well-targeted pricing shift or partnership could do more than months of scattered effort.
7. Say No to the Noise
Good strategy is as much about what you don’t do.
How to apply: Ruthlessly cut distractions, pet projects, and legacy habits that don’t serve your core challenge. Strategic focus means accepting trade-offs.
Real-World Example
When Steve Jobs returned to Apple in 1997, the company was near collapse. Instead of making bold proclamations, he killed 70% of the product line and focused the entire company on four key products. That wasn’t just operational trimming—it was strategy. Jobs diagnosed Apple’s core issue (lack of focus), set a guiding policy (simplify and concentrate), and aligned every action behind it. The result: one of the greatest turnarounds in business history.
When to Use This Book
You feel overwhelmed by priorities, initiatives, and ideas—but lack clear direction
Your team confuses lofty goals with actionable strategy
You’re facing a complex challenge and don’t know where to start
You’re leading a strategic planning process and want to avoid empty jargon
You suspect your current strategy isn’t really a strategy at all
Grab your copy of Good Strategy, Bad Strategy on Amazon here.