Strategy model - Good Strategy, Bad Strategy - Richard Rumelt

View fullsize

Good Strategy, Bad Strategy - The Difference and Why it Matters - Richard Rumelt. Main components, sources of power to increase effectiveness of actions, hallmarks of bad strategy. | Click to enlarge.

Strategy according to Rumelt 

The kernel of good strategy according to Richard Rumelt is a logical structure that contains three main components:

1. A diagnosis that defines the nature of the challenge

2. A guiding policy for dealing with the challenge

3. A coherent set of actions to carry out the guiding policy

Hallmarks of bad strategy

1. Fluff

2. Failure to face the change

3. Mistaking goals for strategy

4. Bad strategic objectives

Sources of power to increase the effectiveness of actions:

1. Leverage

2. Proximate objectives

3. Chain-link systems

4. Design

5. Focus

6. Growth

7. Advantage

8. Dynamics

9. Inertia

10. Entropy