Good Strategy Bad Strategy by Richard Rumelt is an insightful book that cuts through a lot of the jargon and fluff often associated with the concept of “strategy” to get to its core essence. It’s a book that really makes you think about how to approach problem-solving in a meaningful way.

Rumelt argues that a lot of what passes for strategy today is actually “bad strategy.” He identifies four hallmarks of this: “fluff” (vague, high-sounding words that lack substance), a “failure to face the problem” squarely, “mistaking goals for strategy” (simply stating what you want to achieve without a clear path), and having “bad strategic objectives” that are either impractical or don’t address the critical issues.

 Essentially, bad strategy often avoids the hard work of making difficult choices and dealing with reality.

In contrast, a good strategy, according to Rumelt, has a clear “kernel” with three essential elements. First, there’s a diagnosis, which involves honestly defining the challenge and understanding the critical aspects of the situation. This isn’t just about identifying a problem, but truly comprehending what’s going on. Second, there’s a guiding policy, which outlines the overall approach for overcoming the obstacles identified in the diagnosis. It provides direction without dictating every single action.

Finally, a good strategy includes a set of coherent actions.⁸ These are not just a list of things to do, but coordinated steps that reinforce each other and are designed to accomplish the guiding policy.⁹ These actions should focus resources and energy to create a powerful effect. Rumelt emphasizes that good strategy often appears simple because it has distilled complex situations down to their critical elements and focused efforts where they will have the greatest impact.¹⁰ It’s about making deliberate choices and being willing to say “no” to things that don’t align with the chosen path.