In this episode, we hear from Richard Rumelt. Richard has been called, “A giant in the field of strategy.” He is the Harry and Elsa Kunin Chair Emeritus at the UCLA Anderson School of Management and a founding member and former president of the Strategic Management Society.



He is also the author of Good Strategy/Bad Strategy: The Difference and Why it Matters, and in this episode he’ll explain how to circumvent what he calls, “the contagion of bad strategy.” His reflections are based on his latest book, The Crux: How Leaders Become Strategists.



Richard is joined by our communications director, Sean Brown, and Yuval Atsmon, a senior partner based in our London office. 



Learn more about Richard’s book:
 https://thecruxbook.com/ 



Join our LinkedIn community: 
https://www.linkedin.com/showcase/mckinsey-strategy-&-corporate-finance 



Explore more Inside the Strategy Room podcast episode transcripts:
 https://www.mckinsey.com/itsr 

In this episode, we hear from Richard Rumelt. Richard has been called, “A giant in the field of strategy.” He is the Harry and Elsa Kunin Chair Emeritus at the UCLA Anderson School of Management and a founding member and former president of the Strategic Management Society.

He is also the author of Good Strategy/Bad Strategy: The Difference and Why it Matters, and in this episode he’ll explain how to circumvent what he calls, “the contagion of bad strategy.” His reflections are based on his latest book, The Crux: How Leaders Become Strategists.

Richard is joined by our communications director, Sean Brown, and Yuval Atsmon, a senior partner based in our London office. 

Learn more about Richard’s book: https://thecruxbook.com/ 

Join our LinkedIn community: https://www.linkedin.com/showcase/mckinsey-strategy-&-corporate-finance 

Explore more Inside the Strategy Room podcast episode transcripts: https://www.mckinsey.com/itsr

We talk with McKinsey partners and corporate executives on the challenges they face creating lasting strategies in a fast-changing world. We also examine the different ways these executives approach these challenges and the new and innovative ways they think of creating a vision for their enterprises.

What does it take to survive in a world of constant change? More than ever, enterprises need to create strategies that can meet current needs but also adapt to future demand. A regular series of interviews with McKinsey partners and corporate executives.

Inside the Strategy Room

The world is moving faster, and as upheaval becomes the norm, vast business opportunities will be within the grasp of the extraordinary few.  But it takes bold people and courageous approaches to seize those opportunities and create value.

In each episode of our weekly podcast, we interview the world’s highest-performing CEOs, CFOs, innovators, and McKinsey experts and discuss how they build the courage, clarity, conviction, and cohesion that allow their businesses to win by moving faster than the world around them. 

The world is moving faster, and as upheaval becomes the norm, vast business opportunities will be within the grasp of the extraordinary few. &nbsp;But it takes bold people and courageous approaches to seize those opportunities and create value.
In each episode of our weekly podcast, we interview the world&rsquo;s highest-performing CEOs, CFOs, innovators, and McKinsey experts and discuss how they build the courage, clarity, conviction, and cohesion that allow their businesses to win by moving faster than the world around them.&nbsp;

Good strategy is more than achieving certain results. But why do so many get it wrong?

134. Richard Rumelt on what separates good strategy from bad

After a long period of uncertainty, the fog has lifted, and while private equity rebounded in 2025, the clearer visibility has also revealed a more complex and demanding landscape.

In this episode, the authors of our 2026 Global Private Markets Report unpack the structural shifts reshaping the industry—from elevated multiples and longer hold periods to the growing importance of scale, specialization, and alternative capital. They also explore how artificial intelligence is emerging as a core driver of competitive advantage, with early adopters embedding AI into pricing, productivity, and portfolio strategy to create structural alpha.

As private equity continues to mature, dispersion between leaders and laggards is set to widen. The question for dealmakers, operators, fundraisers, and LPs alike: who is equipped to best navigate this new terrain?


Related insights 

Global Private Markets Report 2026 Private equity: Clearer view, tougher terrain

After a long period of uncertainty, the fog has lifted, and while private equity rebounded in 2025, the clearer visibility has also revealed a more complex and demanding landscape.
In this episode, the authors of our 2026 Global Private Markets Report unpack the structural shifts reshaping the industry&mdash;from elevated multiples and longer hold periods to the growing importance of scale, specialization, and alternative capital. They also explore how artificial intelligence is emerging as a core driver of competitive advantage, with early adopters embedding AI into pricing, productivity, and portfolio strategy to create structural alpha.
As private equity continues to mature, dispersion between leaders and laggards is set to widen. The question for dealmakers, operators, fundraisers, and LPs alike: who is equipped to best navigate this new terrain?
 Related insights&nbsp;
<a href="https://www.mckinsey.com/industries/private-capital/our-insights/global-private-markets-report">Global Private Markets Report 2026 Private equity: Clearer view, tougher terrain</a>

293. Private equity 2026 outlook: Clearer view, tougher terrain

Top dealmakers entered 2025 expecting to overcome continued challenges, but few anticipated how sharply trade and geopolitical pressures would intensify. In this episode, Jake Henry and Mieke Van Oostende, the global co-leaders of our M&A Practice, share key themes from our annual M&A report. They reflect on how dealmakers maintained focus, adjusted portfolios, and capitalized on shifting sector dynamics to drive substantial growth in 2025. They also share their perspectives on the five trends driving M&A in 2026.

Related Insights

Read the full report on McKinsey.com: 2026 M&A trends: Navigating a rapidly rebounding market

Top dealmakers entered 2025 expecting to overcome continued challenges, but few anticipated how sharply trade and geopolitical pressures would intensify. In this episode, <a href="https://www.mckinsey.com/our-people/jake-henry">Jake Henry</a> and <a href="https://www.mckinsey.com/our-people/mieke-van-oostende">Mieke Van Oostende</a>, the global co-leaders of our M&amp;A Practice, share key themes from our annual M&amp;A report. They reflect on how dealmakers maintained focus, adjusted portfolios, and capitalized on shifting sector dynamics to drive substantial growth in 2025. They also share their perspectives on the five trends driving M&amp;A in 2026.
Related Insights
Read the full report on McKinsey.com: <a href="https://www.mckinsey.com/capabilities/m-and-a/our-insights/top-m-and-a-trends">2026 M&amp;A trends: Navigating a rapidly rebounding market</a>

292. 2026 M&A Trends: Navigating a rapidly rebounding market

Jane Fraser, Chair and CEO of Citi, talks with McKinsey Senior Partner and North America Managing Partner Eric Kutcher. After becoming CEO in March 2021, Jane launched a multi-year strategy to transform, simplify, and modernize the bank for the digital age – leveraging Citi’s unique global context to reset where and how it competes. Jane speaks about what the last five years have looked like for Citi and the role AI and blockchain technologies are playing, as well as what she’s learned along the way about talent, intent, and resilience. She also shares the global trends she is seeing as one of the world’s most well-travelled CEOs.

Related Insights

‘You’ve got to be willing to “do,” as opposed to getting disrupted by somebody else’: A conversation with IBM CEO Arvind Krishna

‘Saying “I don’t know” is one of the hardest things a leader can do’: A conversation with Delta CEO Ed Bastian

Jane Fraser, Chair and CEO of Citi, talks with McKinsey Senior Partner and North America Managing Partner Eric Kutcher. After becoming CEO in March 2021, Jane launched a multi-year strategy to transform, simplify, and modernize the bank for the digital age &ndash; leveraging Citi&rsquo;s unique global context to reset where and how it competes. Jane speaks about what the last five years have looked like for Citi and the role AI and blockchain technologies are playing, as well as what she&rsquo;s learned along the way about talent, intent, and resilience. She also shares the global trends she is seeing as one of the world&rsquo;s most well-travelled CEOs.
Related Insights
<a href="https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/youve-got-to-be-willing-to-do-as-opposed-to-getting-disrupted-by-somebody-else-a-conversation-with-ibm-ceo-arvind-krishna">&lsquo;You&rsquo;ve got to be willing to &ldquo;do,&rdquo; as opposed to getting disrupted by somebody else&rsquo;: A conversation with IBM CEO Arvind Krishna</a>
<a href="https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/saying-i-dont-know-is-one-of-the-hardest-things-a-leader-can-do-a-conversation-with-delta-ceo-ed-bastian">&lsquo;Saying &ldquo;I don&rsquo;t know&rdquo; is one of the hardest things a leader can do&rsquo;: A conversation with Delta CEO Ed Bastian</a>

134. Richard Rumelt on what separates good strategy from bad

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