Good Strategy/Bad Strategy the Difference and Why it Matters by Richard P. Rumelt

In the book, “Good Strategy/Bad Strategy the Difference and Why it Matters,” by Richard P. Rumelt describes the difference between the two strategies by providing different examples. The book is divided in three different parts the first part consists of “Good and Bad Strategy,” followed by the “sources of power,” and the last part consists of “Thinking like a Strategist.” In the introduction chapter Rumelt describes how good strategy looks simple and obvious not requiring much to explain. He furthermore says that such strategies do not come from some tool or chart it is however identified by a talented leader who highlights one or two critical situations. The author says the most important responsibility of a leader is to identify the biggest challenges in order to progress further and find ways to overcoming those challenges. The book is driven by lifetime experience as consultant of organizations, personal adviser, teacher and a researcher. Good strategy is concentrates on solving the problem. However, bad strategies skip problems and focus on multiple conflict demands and interest.

Good strategy is not the rule, it is the exception. The two natural sources of strength are having coherent strategy and creating new strengths through the subtle shifts in viewpoint. The first natural strategy which is a good strategy is consists of coherence, policies and resources that accomplish an important end. Many businesses and organizations take to a different approach such as spending more money and working harder to accomplish multiple goals. Apple Inc. is used as an example of the natural advantage of good strategy. At the time apple was going through a tough time instead of spending more and trying harder Steve Jobs cut back on almost everything to a pin point. Steve Jobs had explained the coherence by saying, “The product lineup was too complicated and the company was bleeding cash” (Rumelt 19). Leaders who willingly say no to variety of actions and interests are required for good strategy. The second natural advantage of good strategies is the sources of strength and weakness. In the example of David and Goliath from about 1030 B.C., the author explains the different strengths and weaknesses David and Goliath had. Although huge, strong, and experienced Goliath had lost to David in the face off. David was small however he used his shepherd’s sling strength, and his youthful quickness to beat Goliath by aiming straight at Goliath’s forehead where he was not covered (Rumelt 27).