updated 20h ago
Good Strategy Bad Strategy: The Difference and Why It Matters
The first natural advantage of good strategy arises because other organizations often don’t have one. And because they don’t expect you to have one, either. A good strategy has coherence, coordinating actions, policies, and resources so as to accomplish an important end. Many organizations, most of the time, don’t have this. Instead, they have mult
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Benyamin Elias added 8mo ago
The idea that coordination, by itself, can be a source of advantage is a very deep principle. It is often underappreciated because people tend to think of coordination in terms of continuing mutual adjustments among agents. Strategic coordination, or coherence, is not ad hoc mutual adjustment. It is coherence imposed on a system by policy and desig
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Benyamin Elias added 8mo ago
A guiding policy creates advantage by anticipating the actions and reactions of others, by reducing the complexity and ambiguity in the situation, by exploiting the leverage inherent in concentrating effort on a pivotal or decisive aspect of the situation, and by creating policies and actions that are coherent, each building on the other rather tha
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Benyamin Elias added 8mo ago
Bad strategy tends to skip over pesky details such as problems. It ignores the power of choice and focus, trying instead to accommodate a multitude of conflicting demands and interests. Like a quarterback whose only advice to teammates is “Let’s win,” bad strategy covers up its failure to guide by embracing the language of broad goals, ambition, vi
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Benyamin Elias added 8mo ago
Nelson’s challenge was that he was outnumbered. His strategy was to risk his lead ships in order to break the coherence of his enemy’s fleet. With coherence lost, he judged, the more experienced English captains would come out on top in the ensuing melee. Good strategy almost always looks this simple and obvious and does not take a thick deck of Po
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Benyamin Elias added 8mo ago
universal buy-in usually signals the absence of choice.
from Good Strategy Bad Strategy: The Difference and Why It Matters by Richard Rumelt
Benyamin Elias added 8mo ago
- Having a coherent strategy—one that coordinates policies and actions. A good strategy doesn’t just draw on existing strength; it creates strength through the coherence of its design. Most organizations of any size don’t do this. Rather, they pursue multiple objectives that are unconnected with one another or, worse, that conflict with one another.
from Good Strategy Bad Strategy: The Difference and Why It Matters by Richard Rumelt
Minsuk Kang 강민석 added 8mo ago
- Despite the roar of voices wanting to equate strategy with ambition, leadership, “vision,” planning, or the economic logic of competition, strategy is none of these. The core of strategy work is always the same: discovering the critical factors in a situation and designing a way of coordinating and focusing actions to deal with those factors.
from Good Strategy Bad Strategy: The Difference and Why It Matters by Richard Rumelt
Minsuk Kang 강민석 added 8mo ago
- Good strategy requires leaders who are willing and able to say no to a wide variety of actions and interests. Strategy is at least as much about what an organization does not do as it is about what it does.
from Good Strategy Bad Strategy: The Difference and Why It Matters by Richard Rumelt
Minsuk Kang 강민석 added 8mo ago