Bad strategy lacks actions to take. I was one of the first to read it, and once I picked it up I had trouble putting it down.  Also a very effective tool as a client. 6 Steps to Successful Customer Onboarding, a Critical CX Activity that Most Companies Fail, Conversational AI in 2021: 3 top trends to look out for, Digitization, Digitalization, Digital Transformation – A Stake in the Ground, Reflections on the Causes of Lousy Customer Experiences, 7 steps to a successful customer experience program — and the ones everyone misses, 6 Ways to Support Your Remote Customer Service Team in 2021, The Impact of AI and the Empathy Economy on the Customer Service Experience, How Advertisers Are Using PPC To Improve Business Online, Why Trademark Search is Important & How to Perform It for Branding of Your Business, Once Upon a Time People Assisted One Another…. Lets make this discussion real through a personal example.   How would recent leads and current clients, take to this story?  What is the situation? not realistic, no accountability, not cascaded or aligned) is as bad as magical thinking. Good Strategy Needs a Kernel "A good strategy has an essential logical structure that I call the kernel. THE CULTURE CHANGE ZONE This means any diagnosis and every diagnosis in an ill-structured situation is an educated guess. And the grea… 10 B2B Customer Experience Myths & How to Improve Your CX…, Explained – Working and Advantages of a Recommendation Engine, The Customer Advocacy Advocate: 4 Steps Towards a Positive Customer Experience, The Unified Subscription Adoption Model and its 13 attributes that separate…, 3 Consumer Behavior Trends to Watch in 2021, After UK Coronavirus Lockdown #3, Will Remote Contactless Customer Support be…, Virtual Call Center Turnover Rate: Houston, We Have a Problem, Top 7 Business recovery plans for ride-hailing companies post COVID-19, eCommerce Mobile App Development: Factors, Cost, and Features. Experienced management consultant and customer strategist who has been grappling with 'customer-centric business' since early 1999. Performance management and its culture has many forms…. Designed to carry out the guiding policy. It continued to hurt for several days and we could not figure out why it was hurting. In this post I want to explore the first strand – Diagnosis – and stress its criticality to generating a ‘good strategy’. Join now to get "The Top 5 Practices of Customer Experience Winners," an e-book of CustomerThink's latest research. The main themes of our site and our consultancy work, Simply Phone UK +44 (0) 1780 784887 Kate Leggett of Forrester Research and Peter Milligan of Five9 reveal the top digital CX opportunities to kickstart 2021. Diagnosis: insight, genuine insight, is of the utmost significance. According to Richard Rumelt in Good Strategy/Bad Strategy: “An especially insightful diagnosis can transform one’s view of the situation, bringing a radically different perspective to bear. Why is it that our sales folks are so much less effective in selling to our business customers? NHS: Focusing a Management team on what matters: their strategy. a) What is the  problem? and why we say ‘Performance Management does NOT exist.’  (Yes really). Good Strategy/Bad Strategy uses fascinating examples from business, nonprofit, and military affairs to bring its original and pragmatic ideas to life. And the linkage between actions and outcomes are not clear. "Increase sales by 20%" is a goal without context or a plan. Make strategy a learning process. A diagnosis: an explanation of the nature of the challenge. Often what passes for strategy is really a goal or, at best, a tactic. Importantly, the guiding policy must rule out actions, as well as directing us towards a num… Good strategy includes actions to take to overcome the challenge. Good strategy almost always looks simple and obvious and does not take a thick deck of Powerpoint slides to explain. So, overall a very satisfying experience as a facilitator and consultant.  Was it congruent to offer products as well as being an expert based business? b) Given the diagnosis of the situation, what guiding principles and policies should now be applied. Save my name, email, and website in this browser for the next time I comment. The doctor asked various questions: when did it start; what were you doing, where does it hurt, what kinds of actions cause it to hurt…. Book Review. Article Type: Suggested reading From: Strategic Direction, Volume 28, Issue 8 Richard P. Rumelt,Crown Business, New York, NY, 2011, 336 pp.. Richard highlights a number of different ways we stumble when trying to create good strategy. [Ch. Diagnosis — A clear definition of the nature of the challenge. And then he examined her arm: pressing here, pressing there, and observing her reactions. 9 Full PDFs related to this paper. A good strategy honestly acknowledges the challenges being faced and provides an approach to overcoming them. What does this mean for customer experience (CX) and contact center leaders? - Good Strategy Bad Strategy, page 7. What does an insightful diagnosis look like?  Strategies and options you might choose. Stepen Eloph who has shifted Nokia from independence to being reliant on Microsoft and its operating software for smartphones. Why? That is to say it is not obvious how to define the problem (the situation at hand) nor is there an obvious/sound list of guiding policies or actions. Once this was complete, the coherent actions where addressed using a time line and structuring the main tasks against the guiding principles.  As the work progressed, additional areas of problem and analysis were also exposed. 2.  Unless you understand this you are not addressing a strategy. Examples include: Why are we signing up less and less customers through our website? And because you should know the difference between what passes for strategy (‘bad strategy’) and real strategy (‘good strategy’). Ngân Trần. The first step was to create three areas on the wall to contain the thoughts from the three main questions: Situation, Guiding policies and coherent actions. THE PERFORMANCE  ZONE Rumelt's `Good Strategy Bad Strategy' provides a refreshing, straight-forward take on business strategy basics.  However these were only visited once the guiding principles were complete. CustomerThink’s research finds just 19% of CX initiatives can show tangible benefits.  One noticeable feature was the frequent return to the stories and situations to ensure they were complete. Having recently listened to Good Strategy, Bad Strategy by Richard Rumelt on Audible I am reminded by why it is considered one of the best books on thinking strategically. You will find them (Apple, IBM) towards/at the end of this post. •Instead, you have either a stretch goal, a budget, or a list of things you wish would happen. c) What therefore are the coherent actions. Given this simple framework, I set to work with a Professional Services business, analysing their strategy.  Were the executive team happy with the overall consistency? 1. Richard Rumelt Good Strategy Bad Strategy The Difference and Why It Matters Crown Business. Following Rumelt’s main ideas presented in the book, it is important to state that good strategies always have the ‘kernel’ that is the strategy’s structure including such components as a diagnosis, a guiding policy, and actions; and good strategies are always the result of identifying the power to overcome the problem in the organization.  Also, the concise, yet powerful guiding principles provide an excellent point of reference when working on any aspect of the strategy, for instance is the website approach consistent with the positioning and sales policies?  If PR is our preferred channel for influencing the market where do we choose that is consistent with our policy on clients?    Clearly other sources could be used to address other aspects. if (d.getElementById(id)) return; Sometimes we just have to settle for a good diagnosis. Rumelt identifies the elements of the kernel and includes examples that illustrate what an effective strategy really looks like. The paradigm shifts that have changed how we view and manage our organisations today. Do you want examples of especially insightful diagnosis that transformed a view of the situation at hand? A good diagnosis according to Rumelt: The real world is complex there are so many actors/variables that interact and are interdependent. When a diagnosis classifies the situation as a certain type, it opens access to knowledge about how analogous situations were handled in the past…”. It also means the a diagnosis is a decision – a decision of substantial importance. This post is about using the  approach in “Good Strategy Bad Strategy” to question, review and develop an organisation’s strategy. Due to the COVID-19 crisis, the ROI issue is now front and center with CX leaders. Ngân Trần. 2. “The kernel of a strategy contains three elements: a diagnosis, a guiding policy, and coherent action.” ― Richard Rumelt, Good Strategy/Bad Strategy: The Difference and Why It Matters Set of Coherent Actions — The coordinated actions set out to accomplish the guiding policy. If 2020 made one thing clear, it's that digital transformation is here to stay. As the following diagram shows the kernel is composed of three strands: Diagnosis; Guiding Policy; and a Set of Coherent Actions. Customer Experience at Netflix: 6 lessons we can all learn from! Members receive weekly Advisor newsletter with Editor’s Picks and Alerts of insightful content and events. Once I have an adequate (usually high level) ‘map of the territory’ to orient myself I concern myself with the task of Diagnosis. One of the top business books for 2011 is Richard Rumelt’s Good Strategy/Bad Strategy: The Difference and Why it Matters, an insightful book on business strategy and successful differentiation. i.e., Framing. good strategy bad strategy the difference and why it matters Dec 06, 2020 Posted By Jackie Collins Public Library TEXT ID e60afe86 Online PDF Ebook Epub Library ironically that will make your work harder thankfully it will also increase your odds of success chapter summary for richard rumelts good strategy bad strategy the Strategy Maps and Strategy Mapping: An essential guide, Environmental Balanced Scorecards: Tracking, improving and influencing your impact, Input Output Outcome: Use the misunderstood Outcome Model successfully, Book: Strategy Mapping for Learning Organizations – Building Agility into your Balanced Scorecard, Book: Communicating Strategy – a practical guide, Our Consultancy is underpinned by extensive Research, Strategy Mapping for Learning Organizations – The Book. Because the diagnosis shapes the future: the guiding policy, the set of coherent actions, and the outcomes that result. “Good Strategy/ Bad Strategy pinpoints the polar difference: The diagnosis and actions that constitute good strategy, the fluff and failures that cause the bad. }(document, "script", "twitter-wjs")); In this post I continue the conversation I started in the last post on the kernel of a ‘good strategy’. Bad strategy mistakes goals, ambition, vision, values, and effort for strategy (these things are important, but on their own are not strategy). The second is a clear guiding policy.This is an overarching approach or method for solving the diagnosed challenges. for dealing with the challenge. By this time it was clear we had what would traditionally be called a vision and mission. The book demonstrates strategies from large corporations and his personal anecdotes. In Good Strategy/Bad Strategy, Richard Rumelt makes a two-fold contribution to the strategy literature – first he clearly distinguishes bad strategy from good and, secondly, he makes … What might that strategic issue be? By Richard Rumelt. Now that is quite a compliment for a management book, especially one on Strategy. CTRL + SPACE for auto-complete. Allow me to share a personal example, again.  The team were also asked to go out and talk to people about the guiding principles and positioning they were now adopting, with people who were safe, trusted associates. Machine Learning Adoption Rates Around the World, The Top 5 Practices of Customer Experience Winners, 10 B2B Customer Experience Myths & How to Improve Your CX Maturity, The Unified Subscription Adoption Model and its 13 attributes that separate the winners from the losers in the subscription economy, 21 Tips for 2021 Customer Experience Excellence, Customer Service Metrics Are Ruining Customer Experiences, Beyond Surveys: Finding the Right Balance Among Your Customer Feedback Sources. Much like a good strategy, The Kernel of Good Strategy is simple and practical. As the following diagram shows the kernel is composed of three strands: Diagnosis; Guiding Policy; and a Set of Coherent Actions. At the end of this his answer to the question “What is going on here?” was that my daughter was most likely to have as a small fracture in her wrist. A diagnosis simplifies a complex situation and identifies certain aspects as critical. It does not pop out of some “strategic management” tool, matrix, chart, triangle, or fill-in-the-blanks scheme. Transform Your Business with Dr.Deming’s 14 Points, by Andrew Stotz, PhD, CFA   As the work progressed, these were developed into a short story for each area.  Remarkably short and concise, as guiding principles should be. THE DECISION MAKING ZONE It is not always possible to come up with an insightful, game changing, diagnosis. Good/Bad Strategy ...ICHEC – Professor Luc Moeremans 2015/2016 Catarina Duarte 153111 Corporate Strategy Good Strategy / Bad Strategy The difference and why it matters by Richard Rumelt Part I The book Good Strategy/Bad Strategy written by the professor of business and society in the school of business and management UCLA - Richard Rumelt - clarifies the difference between good … According to Richard Rumelt in Good Strategy/Bad Strategy: “An especially insightful diagnosis can transform one’s view of the situation, bringing a radically different perspective to bear. Is your strategy a mix of slogans and goals, or a set of objectives that offer solutions to key problems? In Good Strategy/Bad Strategy: The Difference and Why it Matters, Richard Rumelt argues that the essence of strategy is discerning the one or two critical issues in a business problem and concentrating effort on them.Developing a strategy requires making a clear diagnosis of the problem, defining an overall approach to solving it, and creating a set of mutually reenforcing coherent actions … Richard Rumelt, is one of the top business strategy experts in the world. The kernel of a strategy contains three elements: a diagnosis, a guiding policy, and coherent action." A short summary of this paper. One thing that helped, was to line up the areas of guiding policies, with the situation analysis , so that the story read well across the wall. I came up with various answers: he eats too much junk food and that is affecting his mood/behaviour; he is bored; we are not being strong/consistent enough in enforcing discipline …… When I discussed this with my wife she replied: “What is missing is a relationship between you and him!” It immediately struck me that this was a game changing diagnosis: it opened up avenues that had simply not been present. We them moved across to the guiding principles and started developing ideas that would address the problem areas that were developing. As we engage stakeholders across the system in a participatory approach, sometimes just getting a “finalized” map and aligning around goals for our collective effort is a daunting enough ch… How different types serve different purposes and breaking myths. Or why is it that there is crisis around the Euro? By continuing, you are accepting cookies and our privacy terms. Good Strategy Bad Strategy - Diagnosis is Key. Learn the best ways to prove the business value of CX, including ROI advice in customer feedback, customer service, and CX infrastructure. Vision/mission and strategic priorities . Is Work From Home A Permanent Solution For Contact Centers? Richly illustrated and persuasively argued by a researcher, teacher, and consultant, Richard Rumelt has authored the playbook for anybody in a leadership position who must think and act strategically. Strategy comprises… A diagnosis that defines the nature of the challenge.  One feature of this was the testing of consistency and congruence of these policies by the team as they worked through the options and developed the policies. Out why it Matters Author: good strategy bad strategy diagnosis Rumelt, is of the best books on strategy I have across! The ROI issue is now front and center with CX leaders was to that... Made one thing clear, it 's that digital transformation is here to.! 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