 |
Richard Rumelt | |
|---|---|
 Rumelt in 2011 | |
| Born | November 10, 1942 |
| Alma mater | University of California, Berkeley Harvard Business School |
| Occupation | Academic |
| Employer | University of California, Los Angeles |
Richard Post Rumelt (born November 10, 1942) [1] is an American emeritus professor at the University of California, Los Angeles Anderson School of Management. He joined the school in 1976 from Harvard Business School. [2] [3] [4]
Richard Rumelt earned Bachelor's and Master's of Science degrees in Electrical Engineering from UC Berkeley. He worked as a systems design engineer at the Jet Propulsion Laboratory in 1963-65. He received his doctorate from the Harvard Business School in 1972 and joined the Harvard Business School faculty as an Assistant Professor. On leave from HBS, he helped found and teach at the Iran Center for Management Studies during 1972-74. In 1976 he joined the faculty of Management at the UCLA school of business. In 1993 he was appointed to the Harry and Elsa Kunin Chair in Business and Society. During 1993-96 he taught at INSEAD (France), where he received the Shell Chair in Management. Rumelt was a founding member of the Strategic Management Society and served as its president in 1995-98. [5] [6]
He is noted for having made several key contributions to the study of business and corporate strategy. His 1974 study of diversification strategy inaugurated a stream of work on the performance implications of diversification. His 1982 paper with Steven Lippman showed how classical industrial organization results—profitability being related to concentration and to market share—could arise under perfect competition if there was uncertainty in the sources of efficiency. This result was key in the development of the "resource-based view" of strategic success. Rumelt's 1991 empirical follow-on (How Much Does Industry Matter?) showed that most of the dispersion of profit rates in the economy was between business units rather than between industries. His 2011 book (Good Strategy Bad Strategy: The Difference and Why it Matters) redefined strategy as a form of problem solving. It was chosen one of six finalists for the Financial Times & Goldman Sachs Business Book of the Year award for 2011. His book The Crux: How Leaders Become Strategists was published in 2022 and was selected as one of the top business books of 2022 by the Financial Times and by the Globe & Mail.
Good Strategy Bad Strategy: The Difference and Why it Matters
Rumelt's 2011 book, Good Strategy Bad Strategy: The Difference and Why it Matters, outlines his views on the nature of effective strategy. He argues that good strategy involves identifying key facts and problems and then coordinating a focused response. Examples include the Battle of Cannae, where Hannibal used a large-scale troop maneuver to negate the Romans' numerical advantage, and Steve Jobs' second tenure as Apple CEO, where he streamlined product lines to position Apple as a niche computer provider while awaiting new opportunities. However, Rumelt cautions against coordination without purpose, as it can lead to reduced specialization. In contrast, he characterizes bad strategy as often consisting of fluff, excessively complex language, and the conflation of goal-setting with strategy.
Rumelt is married to Kate Rumelt; the couple enjoys hiking and skiing. [2] They live in Boise, Idaho.
Strategy is a general plan to achieve one or more long-term or overall goals under conditions of uncertainty. In the sense of the "art of the general", which included several subsets of skills including military tactics, siegecraft, logistics etc., the term came into use in the 6th century C.E. in Eastern Roman terminology, and was translated into Western vernacular languages only in the 18th century. From then until the 20th century, the word "strategy" came to denote "a comprehensive way to try to pursue political ends, including the threat or actual use of force, in a dialectic of wills" in a military conflict, in which both adversaries interact.
In the field of management, strategic management involves the formulation and implementation of the major goals and initiatives taken by an organization's managers on behalf of stakeholders, based on consideration of resources and an assessment of the internal and external environments in which the organization operates. Strategic management provides overall direction to an enterprise and involves specifying the organization's objectives, developing policies and plans to achieve those objectives, and then allocating resources to implement the plans. Academics and practicing managers have developed numerous models and frameworks to assist in strategic decision-making in the context of complex environments and competitive dynamics. Strategic management is not static in nature; the models can include a feedback loop to monitor execution and to inform the next round of planning.
The word ‘dynamics’ appears frequently in discussions and writing about strategy, and is used in two distinct, though equally important senses.
Michael Eugene Porter is an American businessman and professor at Harvard Business School. He was one of the founders of the consulting firm The Monitor Group and FSG, a social impact consultancy. He is credited with creating Porter's five forces analysis, which is instrumental in business strategy development at present. He is generally regarded as the father of the modern strategy field. He is also regarded as one of the world's most influential thinkers on management and competitiveness as well as one of the most influential business strategists. His work has been recognized by governments, non-governmental organizations and universities.
Strategic thinking is a mental or thinking process applied by an individual in the context of achieving a goal or set of goals. As a cognitive activity, it produces thought.
The resource-based view (RBV), often referred to as the "resource-based view of the firm", is a managerial framework used to determine the strategic resources a firm can exploit to achieve sustainable competitive advantage.
David John Teece is a New Zealand-born US-based organizational economist and the Professor in Global Business and director of the Tusher Center for the Management of Intellectual Capital at the Walter A. Haas School of Business at the University of California, Berkeley.
In organizational theory, dynamic capability is the capability of an organization to purposefully adapt an organization's resource base. The concept was defined by David Teece, Gary Pisano and Amy Shuen, in their 1997 paper Dynamic Capabilities and Strategic Management, as the firm’s ability to engage in adapting, integrating, and reconfiguring internal and external organizational skills, resources, and functional competences to match the requirements of a changing environment.
Richard A. D'Aveni is an American academic, thought leader, business consultant, bestselling author and the Bakala Professor of Strategy at the Tuck School of Business at Dartmouth College. He is best known for creating a new paradigm in business strategy and coining the term “hypercompetition” which led Fortune to liken him to a modern version of Sun Tzu.
Kenneth Richmond Andrews, was an American academic who, along with H. Igor Ansoff and Alfred D. Chandler, was credited with the foundational role in introducing and popularizing the concept of business strategy.
An operating model is both an abstract and visual representation (model) of how an organization delivers value to its customers or beneficiaries as well as how an organization actually runs itself.
Competitive heterogeneity is a concept from strategic management that examines why industries do not converge on one best way of doing things. In the view of strategic management scholars, the microeconomics of production and competition combine to predict that industries will be composed of identical firms offering identical products at identical prices. Deeper analyses of this topic were taken up in industrial organization economics by crossover economics/strategic-management scholars such as Harold Demsetz and Michael Porter. Demsetz argued that better-managed firms would make better products than their competitors. Such firms would translate better products or lower prices into higher levels of demand, which would lead to revenue growth. These firms would then be larger than the more poorly managed competitors.
Complementary assets are assets that when owned together increase the value of the combined assets. It is defined as “the total economic value added by combining certain complementary factors in a production system, exceeding the value that would be generated by applying these production factors in isolation.” Thus two assets are said to be complements when investment in one asset increases the marginal return on the other. On the contrary, assets are substitutes when investment in one does not affect the marginal return of the other.
Greg McKeown is an author, public speaker, leadership and business strategist.
In management, the relational view by Jeffrey H. Dyer and Harbir Singh is a theory for considering networks and dyads of firms as the unit of analysis to explain relational rents, i.e., superior individual firm performance generated within that network/dyad. This view has later been extended by Lavie (2006).
Shaker A. Zahra is the Robert E. Buuck Chair of Entrepreneurship and professor of strategy and entrepreneurship, Carlson School of Management, University of Minnesota. He is also the academic director of the Gary S. Holmes Entrepreneurship Center.
Yves Doz is a French academic. He is a professor of strategic management at INSEAD, where he holds the Solvay Chaired Professorship of Technological Innovation, and is a Fellow of CEDEP. His research interests focus on innovation, the strategy and organization of multinational corporations, strategic alliances, and on how business organizations can develop the capability to adapt quickly to changes in competitive environments. More recently, he has been working with a number of national governments on strategic adaptability and agility. He is the author of numerous books and articles, which include the first comprehensive book on strategic alliances, co-authored with Gary Hamel, and the Multinational Mission, co-authored with CK Prahalad.
Jay B. Barney is an American professor in strategic management at the University of Utah.
Strategy researchers want to understand differences in firm performance. For example, what can explain performance differences between Toyota’s cars business and Samsung’s mobile phones business? Studies show that just three effects account for most performance differences between such businesses: the industry to which a business belongs, the corporation it is part of, and the business itself.
Hart E. Posen is an academic, researcher, and business analyst. He is a Professor of Strategy and Entrepreneurship at Dartmouth College, Tuck School of Business.
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