No one would deny the high mortality rate of startups as well as the rising mortality rate of former giants such as Kodak, Borders, and Blockbuster. Blackberry is on its sick bed. Six years ago, Wall Street experienced a "financial tsunami" with once revered financial institutions being swept into oblivion. Yet, there is no agreement on why organizations fail. This author posits that all organizations including startups and established businesses fail because of what Richard Rumelt's call "BAD STRATEGY." In his book, "Good Strategy, Bad Strategy," Rumelt presents the 4 major hallmarks of Bad Strategy. In this presentation, the 4 hallmarks or features of a Bad Strategy are illustrated on the Dramatic Story Canvas. In practice, Bad Strategy reflects inadequate problem solving at 3 levels: Visionary Level, Strategic Level, and Operation Level. Benefits of the above presentation include rapid recognition and understanding of the 4 features of a Bad Strategy and how to avoid them in businesses, non-profit organizations, and personal lives. http://goo.gl/fG7a5v

1. Every
UNDERPERFORMING
OR
FAILING
ORGANIZATION
(business)
is
accidentally
and/or
deliberately
using
a
BAD
STRATEGY

2. 4
Faces
of
a
“BAD
STRATEGY”
Source:
Based
on
Rumelt,
R.P.
(2011)
Good
Strategy.
Bad
Strategy.
Crown
Business:
New
York.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hSp://businessmodels.ning.com
&
hSp://twiSer.com/RodKuhnKing
Problem
Pain:
(Un)Known
RED
OCEAN
BLUE
OCEAN
SoluXon
Gain:
(Un)Known
Business
Model
Business
Model
CHALLENGE
DIAGNOSIS
POLICY
ACTION
PLAN
(TO
DO)
Before
AEer
Strategic
Problem
Solving
ExecuXon
FLUFF
q Mission?
q Vision?
q Values?
q “Sunday
Words”
1
Targets
(Metrics)
Job
To
Get
Done/Experience
(Journey:
Strategy/ExecuCon)

3. 4
Faces
of
a
“BAD
STRATEGY”
Source:
Based
on
Rumelt,
R.P.
(2011)
Good
Strategy.
Bad
Strategy.
Crown
Business:
New
York.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hSp://businessmodels.ning.com
&
hSp://twiSer.com/RodKuhnKing
Problem
Pain:
(Un)Known
RED
OCEAN
BLUE
OCEAN
SoluXon
Gain:
(Un)Known
Business
Model
Business
Model
CHALLENGE
DIAGNOSIS
POLICY
ACTION
PLAN
(TO
DO)
Before
AEer
Strategic
Problem
Solving
ExecuXon
2
PROBLEM
(CHALLENGE)
Blindness:
Failure
to
face
problem
or
challenge
FLUFF
q Mission?
q Vision?
q Values?
q “Sunday
Words”
1
Targets
(Metrics)
Job
To
Get
Done/Experience
(Journey:
Strategy/ExecuCon)

4. 4
Faces
of
a
“BAD
STRATEGY”
Source:
Based
on
Rumelt,
R.P.
(2011)
Good
Strategy.
Bad
Strategy.
Crown
Business:
New
York.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hSp://businessmodels.ning.com
&
hSp://twiSer.com/RodKuhnKing
Problem
Pain:
(Un)Known
RED
OCEAN
BLUE
OCEAN
SoluXon
Gain:
(Un)Known
Business
Model
Business
Model
CHALLENGE
DIAGNOSIS
POLICY
ACTION
PLAN
(TO
DO)
Before
AEer
Strategic
Problem
Solving
ExecuXon
GOALS
AS
STRATEGY:
PresentaCon
of
goals
or
statements
of
desire
as
strategy
32
PROBLEM
(CHALLENGE)
Blindness:
Failure
to
face
problem
or
challenge
FLUFF
q Mission?
q Vision?
q Values?
q “Sunday
Words”
1
Targets
(Metrics)
Job
To
Get
Done/Experience
(Journey:
Strategy/ExecuCon)

5. 4
Faces
of
a
“BAD
STRATEGY”
Source:
Based
on
Rumelt,
R.P.
(2011)
Good
Strategy.
Bad
Strategy.
Crown
Business:
New
York.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hSp://businessmodels.ning.com
&
hSp://twiSer.com/RodKuhnKing
Problem
Pain:
(Un)Known
RED
OCEAN
BLUE
OCEAN
SoluXon
Gain:
(Un)Known
Business
Model
Business
Model
CHALLENGE
DIAGNOSIS
POLICY
ACTION
PLAN
(TO
DO)
Before
AEer
Strategic
Problem
Solving
ExecuXon
FLUFF
q Mission?
q Vision?
q Values?
q “Sunday
Words”
1
3
4
BAD
STRATEGIC
OBJECTIVES:
Failure
to
coherently
address
criCcal
issues
or
causes
as
in
a
set
of
“Dog’s
Dinner
ObjecCves”
2
PROBLEM
(CHALLENGE)
Blindness:
Failure
to
face
problem
or
challenge
GOALS
AS
STRATEGY:
PresentaCon
of
goals
or
statements
of
desire
as
strategy
Targets
(Metrics)
Job
To
Get
Done/Experience
(Journey:
Strategy/ExecuCon)

6. “Bad
Strategy
is
Long
on
Goals
And
Short
on
Policy
or
AcXon”
Richard
P.
Rumelt

8. How
to
Develop
and
Manage
A
Good
Strategy

9. DRAMATIC
STORY
CANVAS
for
FormulaXng
and
ExecuXng
“Good
Strategy”
HolisGcally
Document,
Present,
and
Manage
OrganizaGonal
Success
(Failure)
in
Business
and
Life
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hSp://businessmodels.ning.com
&
hSp://twiSer.com/RodKuhnKing
Problem
Pain:
(Un)Known
RED
OCEAN
BLUE
OCEAN
SoluXon
Gain:
(Un)Known
Business
Model
Business
Model
CHALLENGE:
Short/Medium/Long-­‐term
(Problems:
Constraints/Obstacles)
DIAGNOSIS:
HolisXc
Business
Model
(Causes/Insights:
Ext./Int.
Resources)
POLICY
(SoluCons:
Goals/ObjecCves/Strategy)
q C:
Collect
info
(on
business
model)
q D:
Define
customer
challenge,
pain,
unacceptable
trade-­‐off,
conflict,
or
Minimum
Viable
Problem
(MVP)
q M:
Measure
challenge,
pain,
trade-­‐off,
conflict,
or
problem
q A:
Analyze,
qualitaCvely
and
quanCtaCvely,
core
(80/20)
causes
or
simulate
business
model
drivers
especially
at
level
of
system,
environment,
and
supersystem;
use
analogies,
if
necessary
q G:
Generate
disrupCve
ideas
and
select
best
alternaCve
(MAXIMIZE
VALUE
OR
HAPPINESS:
Minimize
Cost,
Pain,
and/or
Waste;
Minimize
Weaknesses
and
Threats
Maximize
Revenue,
Delight,
Benefit
and/or
DifferenGaGon;
Maximize
Strengths
&
Opportuni.)
ACTION
PLAN
(TO
DO)
-­‐
Core
TacCcs/Coherent
AcCons:
Do-­‐Measure-­‐Learn
(DML)
Cycle
q E:
Eliminate
–
Waste
(Defects)
q R:
Reduce
–
Cost
(Pain),
e.g.,
size/cost;
complexity;
inaccessibility
(inconvenience);
Gme
(delay)
q I:
Increase
–
Revenue
(Delight),
e.g.,
funcGonality/performance;
quality;
status
(brand);
customizaGon/interacGon
q C:
Create
–
DifferenCaCon
(Awesome
Customer
Experience)
Before
AEer
“Good
Strategy”
Canvas:
9
Steps
of
Problem-­‐Based
Strategy
(CDMAG-­‐ERIC)
Strategic
Problem
Solving
ExecuXon
Targets
(Metrics)
Job
To
Get
Done/Experience
(Journey:
Strategy/ExecuCon)

10. DRAMATIC
STORY
CANVAS
for
FormulaXng
and
ExecuXng
“Good
Strategy”
Source:
Based
on
Rumelt,
R.P.
(2011)
Good
Strategy.
Bad
Strategy.
Crown
Business:
New
York.
#4ROD.
Dr.
Rod
King.
rodkuhnhking@gmail.com
&
hSp://businessmodels.ning.com
&
hSp://twiSer.com/RodKuhnKing
Problem
Pain:
(Un)Known
RED
OCEAN
BLUE
OCEAN
SoluXon
Gain:
(Un)Known
Business
Model
Business
Model
CHALLENGE
DIAGNOSIS
POLICY
ACTION
PLAN
(TO
DO)
Before
AEer
“Good
Strategy”
Canvas
Strategic
Problem
Solving
Targets
(Metrics)
ExecuXon
Job
To
Get
Done/Experience
(Journey:
Strategy/ExecuCon)