MindsetProdigy

Highly recommended

Good Strategy Bad Strategy

The Difference and Why It Matters

by Richard Rumelt

Most 'strategies' are just goals and fluff. A strategy expert explains what real strategy looks like.

  • Published 2011
  • Demanding
  • Practical guidance
  • 1 min analysis
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Introduction

Richard Rumelt, a professor at UCLA Anderson School of Management, has advised companies and governments on strategy. Good Strategy Bad Strategy, published in 2011, argues that much of what passes for strategy is fluff, vague goals or wishful thinking.

He defines good strategy as having a 'kernel' of three parts: diagnosis, guiding policy and coherent action.

Who should read this book?

Founders, managers, leaders and anyone responsible for planning.

Helps with: Lead and grow at work, Think and decide more clearly

The central message

Good strategy diagnoses the real challenge, sets a guiding policy and takes coherent actions. Bad strategy confuses goals with strategy.

Key ideas and concepts

  1. The kernel

    Diagnosis, guiding policy and coherent actions.

  2. Bad strategy

    Fluff, failure to face the challenge, mistaking goals for strategy and bad objectives.

  3. Diagnosis

    Understanding what's really going on is the hardest and most important step.

  4. Leverage and focus

    Concentrate resources where they have the most effect.

  5. Proximate objectives

    Set achievable near-term objectives that move toward the larger aim.

Deeper analysis

Good Strategy Bad Strategy is one of the clearest books on strategy, and its 'kernel' is a powerful tool for any plan, from a business to a personal goal. Its critique of fluffy mission statements is refreshing.

The book is dense, with many historical and business examples, and some readers find it challenging. But it rewards careful reading.

Practical applications

  • Write a one-paragraph diagnosis of your main challenge.
  • Choose a guiding policy.
  • List coherent actions that support each other.
  • Remove fluff from your plans.
  • Set a proximate objective.

Your 7-day action plan

  1. Day 1

    Identify your key challenge.

  2. Day 2

    Write a diagnosis.

  3. Day 3

    Choose a guiding policy.

  4. Day 4

    List coherent actions.

  5. Day 5

    Review plans for fluff.

  6. Day 6

    Set a near-term objective.

  7. Day 7

    Reflect on focus.

Outcomes to expect

What readers who apply this book can realistically take away from it:

  • Clearer strategic thinking
  • Better plans
  • Focus on real challenges
  • Coherent actions

Strengths and limitations

Strengths

  • Clear definition of strategy
  • Powerful kernel framework
  • Refreshing critique
  • Applies widely

Limitations

  • Dense
  • Many examples
  • Challenging for beginners

Reflection questions

  1. What's your real challenge?
  2. Is your strategy just a goal?
  3. Where is your leverage?
  4. What actions support each other?

About the author

Richard Rumelt

Strategy professor; author of Good Strategy Bad Strategy.

Full profile and books

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Book details (title, author, year) are factual. Everything under the headings above is MindsetProdigy's own editorial analysis and interpretation, written to help you decide whether to read the book and how to apply it. It is not a substitute for reading the book itself. Last updated September 30, 2026.