RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

Don't call it a strategy; call it an action agenda. We need to identify the one or two key challenges we can address and outline coherent actions to tackle them.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

A good strategy starts with a clear diagnosis of the biggest challenge you face, followed by a guiding policy and coherent actions to address it.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

The essential components of a good strategy include a rich diagnosis of the situation, a guiding policy, and coherent actions that align with the diagnosis.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

A bad strategy often consists of a list of abstract goals or ambitions without a clear diagnosis or coherent actions to achieve them.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

Mistaking goals for strategy is a common pitfall; goals alone do not constitute a strategy without a clear diagnosis and actionable steps.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

A coherent strategy requires focus; trying to do too many things can dilute your efforts and lead to ineffective outcomes.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

Power in strategy is about exploiting asymmetries; you need to have some advantage that differentiates you from your competitors.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

To identify your power, consider how your company is different from others, what unique knowledge or resources you possess, and how you can leverage them.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

The size of your user base can create network effects, making your product more valuable as more people use it, which is a powerful advantage in today's market.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

Understanding history and previous human experiences is crucial for developing effective strategies, as it provides insights into complex situations.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

It's crucial to understand the challenge you face, not just the world around you. The diagnosis should focus on what makes the problem hard.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

The concept of strategy has been diluted by countless books and theories, making it difficult for people to create effective strategies.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

Don't call it a strategy; call it an action agenda. You're not creating a strategy, you're creating a plan to address a specific problem.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

A good strategy requires focus on important and achievable challenges, balancing ambition with what can realistically be addressed.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

The 'Crux' in strategy refers to the hardest part of a problem that must be overcome to achieve your goals.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

The best strategies are not about picking from a list of common strategies but about understanding the unique challenges you face.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

Insight is critical for strategy; it comes from immersing yourself in the nature of the problem and may arise unexpectedly.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

To improve strategy execution, organizations must navigate dynamics and politics, often requiring a clear hierarchy of power.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

When developing a strategy, it's essential to have one decider in the organization to make clear choices about priorities.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

Successful startups often pivot from their initial product ideas to better meet the needs of a different target market.

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Richard Rumelt

01/21/24

@ Lenny's Podcast

It's important to recognize that strategy is not mysterious; it's about practical problem-solving and taking actionable steps.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

Strategy is about solving the most important problem you're facing and taking action to address it.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

Understanding history and the stories behind successful strategies can provide valuable insights for current strategic thinking.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

The process of developing a strategy should involve gathering diverse perspectives and identifying key challenges to focus on.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

When creating a strategy, focus on the most significant challenges and how to address them effectively, rather than trying to do everything.

RR

Richard Rumelt

01/21/24

@ Lenny's Podcast

A strategy should be a living document that evolves as new insights and challenges arise, rather than a static plan.

Good Strategy, Bad Strategy | Richard Rumelt

Takeaways