Good Strategy Bad Strategy: The Difference and Why It Matters - Richard P. Rumelt

CoLab Book Club - October 2025

Our #CoLabBookClub took a short break but came back strong with our October pick: Good Strategy Bad Strategy: The Difference and Why It Matters by Richard P. Rumelt.

Originally published in 2012, it’s still one of the sharpest and most practical takes on what strategy really means and what it doesn’t. Its clarity, directness and focus on analysis were a refreshing change from the buzzword-heavy strategy content we often see.

We liked that Rumelt doesn’t shy away from the hard stuff. He reminds us that strategy is a leader’s job, that thinking is difficult, and that luck still plays a part. It’s packed with real examples from his consulting and teaching work, making it an easy book to dip back into as a reference.

Overview

Rumelt defines good strategy through what he calls the kernel, built on three essential elements:
1️⃣ Diagnosis – identifying the real challenge.
2️⃣ Guiding Policy – deciding the overall approach to tackle it.
3️⃣ Coherent Actions – aligning the steps that make the policy real.

He contrasts this with bad strategy, which is full of vague ambition, fluff and failure to face the real problem. Along the way, he explores the sources of power that make a strategy effective and offers techniques to challenge your own biases and assumptions.

Our Key Takeaways

✔️ Strategy is a leader’s job and it requires real thought, not just vision statements.
✔️ Thinking is hard work; good strategy means exploring all the options, not just the easy ones.
✔️ Clear frameworks help describe strategy in a way that’s analytical, structured and direct.
✔️ The book’s practical, specific examples make it a great reference to return to.
✔️ The ideas connect neatly with tools like Wardley Mapping and Brutal Prioritisation.
✔️ Even the best strategy can’t eliminate luck entirely.

Who is it For?

Anyone wanting to sharpen their strategic thinking - from executives and senior leaders to Product Owners, Delivery Managers and agile coaches. It’s especially valuable for those who don’t see themselves as “strategic” but want a clear, practical way to approach complex challenges.

Thank you!

Many thanks to Richard Rumelt for the solid reminder that good strategy isn’t about slogans or stretch goals. It’s about understanding the challenge and committing to clear, coherent action.

Thanks to this month’s #CoLabBookClub crew - Alfred Enslin, Elisabeth Stiller, John Allen, Kat Debney, Pete Tansey (host), Peter Bink, Sharon Blackburn and Toni Wilson. It was great to be back in the book discussion room with you!

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