The Crux, Richard Rumelt, 2023

In The Crux, Richard Rumelt focuses on identifying the crux—a narrow attention to a critical issue that, when solved, makes other puzzle pieces fall into place. The book introduces challenge-based strategy, distinguishing between choice challenges (selecting from alternatives), engineering/design challenges (building to specification using models), and gnarly challenges (no alternatives, no models—must be designed). Good strategy isolates the crux, forms an embedded solvable problem, then solves it.

Top 3 Learnings:

1. Isolate the crux by collecting, clustering, and filtering challenges. The process matters because nobody will solve a problem they don’t understand and can’t hold in their head. Collect challenges, cluster them by breaking them down, then filter by sequencing (immediate first), rating importance and addressability. Important + hard to address is often the crux. Divide into subproblems, find similar problems others have faced, consult experts, identify what’s changing, find the keystone constraint that makes it addressable.

2. Design alternatives—don’t settle for the first solution. Critical is not being satisfied with the most obvious solution. Studies show the most obvious solution is often not the best or simplest. When designing alternatives, look for asymmetries in positioning and competition. Knowledge, resources, and decision rights should be in the same person. Avoid Bertrand markets where all participants have equal chances—never go into price competition, never invest in such markets.

3. Strategy foundry: small group of smart people, challenge-based approach, 3 days offsite. Less than 10 senior leaders, commit to challenge-based approach, offsite, 3 days. Prep: get up to speed on company, face-to-face interviews with each participant (90 min) plus key personnel, written questions and responses (in secret) to use anonymously in workshop. Day 1: collect challenges, arrange in 2D, focus on 10. Day 2: written responses, focus on 3, 2 groups create action plans. Day 3: key assumptions, “swearing in.”

Why and when to read it:

Read this when you’re facing complex, gnarly challenges that don’t have obvious solutions or when your strategy isn’t working. It’s especially valuable for leaders dealing with transformation, growth challenges, or strategic problems that resist conventional approaches. The book provides a structured process for identifying the crux and designing solutions, making it perfect for teams that need to break through stuck situations or develop strategy for difficult challenges.