Why do so many organizations get their strategy wrong? | Sonu Goswami
Why do so many organizations get their strategy wrong? Even some of the world's biggest organizations do strategy poorly,and incorrectly credit their success to their personal decision-making skill. Leaders often do what makes them feel good, whether it helps their company or not. Greetings, LinkedIn community 😊 , on this beautiful morning! Today we talk about a HeavyWeight Book that may not be the easiest to read for everyone, but it’s highly rewarding for those who persevere. *Good Strategy/Bad Strategy* by Richard P. Rumelt.This book was even considered by the Financial Times to be the business book of the year in 2011. It really makes you realize how few companies in the world actually have a good strategy and what a good strategy even is. In today's fast-paced business world, the term Strategy is often misused and misunderstood. We tend to oversimplify it, using it interchangeably with Ideas, Goals, or Actions. However, Richard's captivating book delves into the core of this issue, offering profound insights that will transform your strategic thinking. 1.The Strategy Illusion: Strategy has become an overused buzzword, leading to a lack of genuine strategic advantages. We must rise above this illusion and understand the true essence of strategy. 2.The Pitfall of Bad Strategy: Bad strategy stems from laziness and a lack of depth in formulating a Coherent Plan. It's important to recognize the difference between a poorly formulated strategy and the absence of a strategy altogether. 3.Beyond Ambition: Strategy is not merely about being Ambitious or Setting Audacious Goals. It requires a Comprehensive Approach, Integrating Analysis, Policies, Arguments, and Actions to tackle complex challenges. 4.Leadership Isn't Everything: While strong leadership is crucial, it is Not a substitute for a well-defined strategy. Strategy involves careful Decision-Making, Planning, and Execution that go beyond individual leadership qualities. 5.The Essence of Strategy: Strategy goes beyond isolated Decisions or Goals. It is a Cohesive set of Analyses, Concepts, Policies, and Actions that respond to high-stakes challenges. Strategy requires a deep understanding of the challenges at hand. 6.The Strategy Kernel: Rumelt introduces the concept of the strategy Kernel, comprising three vital components: #diagnosis , #guiding #policy , and a #coherent Set of actions .This powerful framework lays the foundation for effective strategy formulation. 7.Embracing Complexity: #strategy is far more intricate than Simple Ideas, Goals, or Plans. It requires a holistic and integrated approach, leveraging innovation, ambition, and inspirational leadership to create a path to success. A good strategy has an essential logical structure that I call the kernel. The kernel of a strategy contains three elements: A Diagnosis,A Guiding Policy, Coherent Action. ✅ Lesson: Strategy thrives when rooted in purpose, backed by diligent planning, and executed with unwavering determination. | 38 comments on LinkedIn
www.linkedin.com
Why do so many organizations get their strategy wrong? Even some of the world's biggest organizations do strategy poorly,and incorrectly credit their success to their personal decision-making skill. Leaders often do what makes them feel good, whether it helps their company or not. Greetings, LinkedIn community 😊 , on this beautiful morning! Today we talk about a HeavyWeight Book that may not be the easiest to read for everyone, but it’s highly rewarding for those who persevere. *Good Strategy/Bad Strategy* by Richard P. Rumelt.This book was even considered by the Financial Times to be the business book of the year in 2011. It really makes you realize how few companies in the world actually have a good strategy and what a good strategy even is.
In today's fast-paced business world, the term Strategy is often misused and misunderstood. We tend to oversimplify it, using it interchangeably with Ideas, Goals, or Actions. However, Richard's captivating book delves into the core of this issue, offering profound insights that will transform your strategic thinking.
1.The Strategy Illusion: Strategy has become an overused buzzword, leading to a lack of genuine strategic advantages. We must rise above this illusion and understand the true essence of strategy.
2.The Pitfall of Bad Strategy: Bad strategy stems from laziness and a lack of depth in formulating a Coherent Plan. It's important to recognize the difference between a poorly formulated strategy and the absence of a strategy altogether.
3.Beyond Ambition: Strategy is not merely about being Ambitious or Setting Audacious Goals. It requires a Comprehensive Approach, Integrating Analysis, Policies, Arguments, and Actions to tackle complex challenges.
4.Leadership Isn't Everything: While strong leadership is crucial, it is Not a substitute for a well-defined strategy. Strategy involves careful Decision-Making, Planning, and Execution that go beyond individual leadership qualities.
5.The Essence of Strategy: Strategy goes beyond isolated Decisions or Goals. It is a Cohesive set of Analyses, Concepts, Policies, and Actions that respond to high-stakes challenges. Strategy requires a deep understanding of the challenges at hand.
6.The Strategy Kernel: Rumelt introduces the concept of the strategy Kernel, comprising three vital components: #diagnosis , #guiding #policy , and a #coherent Set of actions .This powerful framework lays the foundation for effective strategy formulation.
7.Embracing Complexity: #strategy is far more intricate than Simple Ideas, Goals, or Plans. It requires a holistic and integrated approach, leveraging innovation, ambition, and inspirational leadership to create a path to success.
A good strategy has an essential logical structure that I call the kernel. The kernel of a strategy contains three elements:
A Diagnosis,A Guiding Policy, Coherent Action.
✅ Lesson: Strategy thrives when rooted in purpose, backed by diligent planning, and executed with unwavering determination.
