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Perpetual: Reads | Good Strategy Bad Strategy

Our series of book recommendations to empower talent and fuel brands.

Good Strategy Bad Strategy

Why Perpetual recommends it

Richard Rumelt’s Good Strategy Bad Strategy is one of the sharpest, most unsentimental critiques of how strategy is typically practised in business, arguing that most of what gets called strategy is actually what Rumelt calls fluff, a restatement of goals dressed up in ambitious language with no actual logic connecting the aspiration to the action.

Rumelt’s model for good strategy is the kernel: an accurate diagnosis of the actual challenge, a guiding policy for dealing with it, and a set of coherent actions that carry out that policy. He’s relentless in showing how bad strategy skips the diagnosis entirely, jumping straight to goals and initiatives without ever being specific about the real problem being solved.

The book is particularly useful on the idea of finding a source of leverage, a proximate objective specific and achievable enough that concentrated resources can actually make a real difference, rather than spreading effort thin across every priority a leadership team can think of.

We use Rumelt’s kernel structure directly in our own strategy work with clients, because it exposes very quickly whether a stated strategy actually has a coherent logic behind it or is really just a wish list.

  • Much of what’s called strategy is fluff, ambitious language with no real logic behind it
  • Good strategy requires an honest diagnosis before jumping to goals and initiatives
  • The strategy kernel is diagnosis, guiding policy, and coherent action, in that order
  • Concentrating resources on a specific source of leverage beats spreading effort across every priority

A useful test is running your current strategy document through Rumelt’s kernel and checking honestly whether the diagnosis section exists at all, or whether it jumps straight to goals.

We give this book five out of five stars.

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