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Friday, September 30, 2011

Good Strategy-Bad Strategy: Post #4--Bad Strategy

Bad Strategy. Rumelt uses the Iraq invasion under the leadership of George W. Bush as an example of bad strategy. Note that Rumelt could have just as easily used Lyndon Johnson’s entrance into Vietnam as an example. Thus, this is not a disease of any one political party. But having followed faulty, under-vetted intelligence in both cases (Iraq and Vietnam), the U.S. ran headlong into two wars without a coherent policy. The results of such a lack of coherence cost both physical and psychological wounds, as well as a king’s fortune to wage two unnecessary wars. The costs of both wars in terms of death, pain, suffering, loss of national stature and economics have been staggering. Rumelt discusses a number of factors that can lead to such short sightedness and misdirection: Fluff, using indefinite language and strategic buzzwords; failure to face the challenge by not properly identifying real obstacles; mistaking goals for strategy by focusing on numbers, not real challenges; bad strategic objectives based on a disconnect between goals and strategies. On the other hand, a good strategy leverages a company’s strengths to overcome an obstacle to get to its vision.

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