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born 1942 United States
Richard Post Rumelt (born November 10, 1942) is an American organizational theorist, and Emeritus Professor at the UCLA Anderson School of Management, known for his work in the field of strategy, strategic planning, strategic management, and strategy dynamics.
United States Academics Business theorists Engineers Sociologists Also known as: Richard P. Rumelt, Richard Post Rumelt
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Changes don't come along in nice annual packages, so the need for strategy work is episodic, not necessarily annual.
A leader’s most important job is creating and constantly adjusting this strategic bridge between goals and objectives.
A major advancement in the strategy field is the development of models where firm heterogeneity is an endogenous creation of economic actors.
Ambiguity as to what factors are responsible for superior (or inferior) performance acts as a powerful block on both imitation and factor mobility.
The kernel of a strategy contains three elements: a diagnosis, a guiding policy, and coherent action.
A strategy coordinates action to address a specific challenge. It is not defined by the pay grade of the person authorizing the action.
It is commonly accepted that successful performance of a firm hinges on restricting activities to cultivating a related and familiar range rather than 'bold moves into uncharted'.
Strategy, structure, and economic performance (1974)
For Schumpeter the most important firms are those that serve as the vehicles for action of the real drivers of the system — the innovating entrepreneurs.
The enhanced ability to obtain external funding and ... capacity to deploy capital internally to the most promising of a wide range of divisional ventures.
Strategy, structure, and economic performance (1974)
The kernel of strategy contains three elements
[In related businesses] common skill, market or resource applies to each.
Strategy, structure, and economic performance (1974)
Good strategy requires leaders who are willing and able to say no to a wide variety of actions and interests. Strategy is at least as much about what an organization does not do as it is about what it does.
In summary, uncertain imitability obtains shen creation of new production functions is inherently uncertain and when either causal ambiguity or property rights in unique resources impede imitation and factor mobility.
When organizations are unable to make new strategies — when people evade the work of choosing among different paths in the future — then you get vague mom-and-apple-pie goals everyone can agree on. Such goals are direct evidence of leadership’s insufficient will or political power to make or enforce hard choices.
Despite the roar of voices wanting to equate strategy with ambition, leadership, “vision,” planning, or the economic logic of competition, strategy is none of these. The core of strategy work is always the same: discovering the critical factors in a situation and designing a way of coordinating and focusing actions to deal with those factors.
[ Diversification strategy is] a firm’s commitment to diversity per se, together with the strengths, skills or purposes that span this diversity, shown by the way in which business activities are related one to another.
Strategy, structure, and economic performance (1974)
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