This is a review of the book Good Strategy, Bad Strategy.
The first 20% of the book is still okay. But I could not read beyond that, as it is long winded, and used too many examples from US Military strategies.
Nonetheless, here’s what I learnt:
Definition of Strategy – We don’t really understand it.
Confused, and “strategy” became a verbal tic. eg. IT Strategy, Low-price Strategy, …
A word that can mean anything has lost its bite.
We need a redefintion. A real understanding of Strategy.
Core of strategy work
= Discover critical factor in a situation + Design a way of coordinating and focusing actions
= Recognise Challenges + Approach to overcome them
A leader’s most important responsibility is working on strategy.
Mastering the shift from others defining your goals, to being the architect of the organisation purposes and objectives.
A good strategy
- Selects the path, identifying the how, why and where leadership and determination are to be applied
- Say “NO” to wide variety of actions and interests
- It’s as much as what an organisation does not do, as what it does
Why so much bad strategy?
Strategy involves focus, and choice; Most people have unwillness or inability to choose
A logical structure:
1) Diagnosis – Simplify and identify the critical
2) Guiding policy – Overall approach
3) Coherent actions – Steps that work together
Example (Apple by Steve Jobs in 1998):
Challenge: Product lineup was too complicated. Too many price points and too much markup.
Action: Cut all except 1 laptop, Cut distributors, Cut development
When PC is dominated by Microsoft, Apple Strategy is “to wait for the next big thing”
Apple eventually released the iPhone
What I didn’t read..
After finished Part I, I merely browsed Part II and III..
Part II – Sources of Power – I don’t read. Not necessary. Using leverage, advantage, dynamics, focus, growth, etc..
Part III – Not sure what’s the conclusion