Good Strategy, Bad Strategy | Richard Rumelt

ℹ️ EPISODE INFO

Released

January 21, 2024

Duration

1h 49m

Channel

Lenny's Podcast

Watch on YouTube

▶ Open ↗

📝 EPISODE DESCRIPTION

Richard Rumelt is a legend in the world of strategy. He’s the author of Good Strategy/Bad Strategy and The Crux: How Leaders Become Strategists, both of which are often recommended by guests on this podcast. From his early days teaching in Iran at a Harvard-sponsored business school to teaching at Harvard Business School itself to over four decades teaching at UCLA’s Anderson School of Management, Richard’s impact resonates globally. His strategic insights are sought after by major corporations including Microsoft, Shell, Apple, AT&T, Intel, and Commonwealth Bank and by governmental organizations such as the U.S. Army Special Operations Command. In this episode, we discuss:

• The essential components of a good strategy
• The importance of coherence in strategy
• Common pitfalls that create a bad strategy
• How “power” plays into strategy, and common sources of power
• The value of knowing history when developing effective strategies
• Why a strategy should simply be called an “action agenda”
• The need for one decider in an organization

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Find the transcript and references at: https://www.lennysnewsletter.com/p/good-strategy-bad-strategy-richard Where to find Richard Rumelt:

• Email: richard@generalimagination.com
• LinkedIn: https://www.linkedin.com/in/richard-rumelt-18520828/
• Website: https://thecruxbook.com/

Where to find Lenny:

• Newsletter: https://www.lennysnewsletter.com
• X: https://twitter.com/lennysan
• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/

In this episode, we cover: (00:00) Richard’s background (04:29) What is a strategy? (06:23) The essential components of a good strategy (the “kernel”) (15:04) An example of good strategy (16:55) Bad strategy (25:17) The importance of focus and power (28:19) Identifying and utilizing power (34:38) Types of power (41:13) Implementing power (48:15) The importance of historical knowledge (55:23) How to write an action agenda (01:02:47) The crux (01:10:40) Challenges to executing a strategy (01:15:44) The need for a decider (01:20:39) Strategy for startups (01:26:04) Richard’s “value denials” exercise (01:31:01) Closing thoughts (01:33:57) Lightning round Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com. Lenny may be an investor in the companies discussed.

🎤 SPEAKERS

• Richard Rumelt

  guest

• Lenny Rachitsky

  host

🧾 EPISODE SUMMARY

In this episode of Lenny's Podcast, featuring Richard Rumelt and Lenny Rachitsky, Good Strategy, Bad Strategy | Richard Rumelt explores richard Rumelt Redefines Strategy As Focused, Actionable Problem-Solving Agenda Richard Rumelt argues that strategy is not slogans, goals, or vision statements, but a concrete design for overcoming a high‑stakes challenge through focused, coherent action.

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