I first heard about Good Strategy, Bad Strategy in Tom Critchlow’s SEO MBA course, where he introduced the concept of the “kernel”—the foundation of a good strategy. It consists of three elements:
- A diagnosis of the situation
- A guiding policy
- A set of coherent actions
I found it interesting, but I didn’t immediately feel the pull to read the book.
Then, toward the end of 2024, I listened to Richard Rumelt’s interview on Lenny Rachitsky’s Podcast, and that conversation finally convinced me to buy it. (And yes, I sometimes fall into the trap of thinking that if I’ve heard a couple of podcast interviews with an author, I don’t need to read the book. Am I the only one guilty of this? 😅 I’m glad I didn’t make that mistake here.)
Now that I’ve finished it, I can confidently say this book is a wealth of knowledge and inspiration. My eReader is full of highlights, and I’ve made countless notes. Here are just a few key takeaways:
1. Strategy as design
Simply choosing a direction isn’t enough. A strategist’s job is to arrange all the moving parts into the best possible configuration.
2. Good strategy anticipates behavior
Strategy isn’t just about setting goals—it’s about anticipating how the market, competitors, and other forces will respond to your moves.
3. A strategy is a hypothesis
The only real way to validate a strategy is to execute and observe what happens—just like in scientific research. Assumptions need to be tested, not just written down in a PowerPoint deck.
4. Don’t stop at the first solution
When tackling complex problems, it’s tempting to settle for the first viable answer. Instead, challenge your assumptions. Even better alternatives may be available if you continue your work as a strategist.
Rumelt brings these ideas to life with fascinating case studies, including Nvidia and Starbucks, making the book both practical and engaging.
If you’re looking to sharpen your strategic thinking, I highly recommend this book. And if you’ve read it—what were your biggest takeaways?