Playing to Win: How Strategy Really Works - Limelight …krm.vo.llnwd.net/o43/u/hbs0011408/22067/220671.pdf · Playing to Win: How Strategy Really Works Featuring Roger Martin, Director

Playing to Win: How Strategy Really Works

Featuring Roger Martin, Director of the Martin Prosperity Institute at the Rotman School of Management and co-author of Playing to Win: How Strategy Really Works and the Playing to Win Strategy Toolkit.

NOVEMBER 25, 2014

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NOVEMBER 25, 2014

Today’s Speaker

Roger Martin, Director of the Martin Prosperity Institute at the Rotman School of Management and co-author of Playing to Win: How Strategy Really Works and the Playing to Win Strategy Toolkit.

Playing to Win: How Strategy Really Works

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NOVEMBER 25, 2014

The Playing to Win Strategy Toolkit

NOVEMBER 25, 2014

Everything You Need for a Winning Strategy

Download Today: https://hbr.org/product/playing‐to‐win‐strategy‐toolkit/PTWTL1‐KND‐ENG

Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright.

How Strategy Really WorksHarvard Business Review Webinar

Roger L. MartinNovember 25, 2014


Overview of Playing to Win

#1 Strategy is about making choices.

#2 Strategy is about increasing our odds of success, not guaranteeing it.

#3 Strategy making combines rigor and creativity.

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#1Strategy Is About Making ChoicesTo win, a company must choose to do some things and not others.

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#2Strategy Is About Increasing the Odds of Success

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There is no such thing as a PERFECT strategy.


#3Successful Strategy Making Combines Rigor and Creativity

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Strategy should be creative and scientific—it involves generating and testing hypotheses.

Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 12

Strategy Choice MakingProblemProblem

Possibility 1Possibility 1 Possibility 2Possibility 2 Possibility 3Possibility 3

Specify ConditionsSpecify Conditions

TestTest

ChooseChoose


Strategy Is the Answer to Five Questions

How willwe win?How willwe win?

What management systems do we need?


What is our winning aspiration?


What capabilities must we have?


Where will we play?Where will we play?

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The Strategy Cascade









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What does it mean to win in our business?


What Is Our Winning Aspiration?

A winning aspiration is a future-oriented statement about the guiding purpose of the organization: • What does our organization exist to do?• What does winning mean for us?

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Playing to Win versus Playing to Play

• Starts with people rather than money—what does it mean to win with our customers?

• Has a competitive dimension—who are we winning against?

• Doesn’t have a winning element but focuses on simply serving a customer segment

• Is focused on an internal metric, such as “We’ll sell 25% more than we did last year”

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PLAYING TO WINPLAYING TO WIN PLAYING TO PLAYPLAYING TO PLAY











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Where do we compete?

Which customer segments, channels, product categories, and geographies do we serve?


Where Will We Play?

This choice defines the playing field on which we choose to compete: • Customer segment

• Distribution channel

• Product or service

• Geography

• Stage of production

It is also about where NOT to play.

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What is our competitive advantage?

Do we compete on low cost or differentiation?


How Will We Win?

This choice is about how we will win on the playing field we’ve chosen. What is our competitive advantage?

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The Two Fundamental Ways to Win

• Seek systemic understanding of cost drivers

• Relentlessly drive costs down

• Sacrifice nonconforming customers

• Offer standard product or service

• Strive for deep understanding of customers’ needs

• Offer products that customers adore

• Guard customers jealously

LOW COSTLOW COST DIFFERENTIATIONDIFFERENTIATIONSustainable Competitive Advantage

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What specific capabilities support our competitive advantage?

What do we need to be really great at doing?


Which Capabilities Must We Have?

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Capabilities are the activities that enable our organization to bring the where-to-play and how-to-win choices to life.











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What systems support our capabilities?

How do we measure the success of our strategy?


What Management Systems Do We Need?

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Management systems are the processes, structures, and rules that build our capabilities and that reinforce and measure our organization’s strategic choices.











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EXAMPLE FROM P&G

Oil of Olay

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OIL OF OLAY

Old Strategy: Playing to Play

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• Customers: Women ages 50 and older• Channel: Sold through discount retailers, grocery, and drugstores• Product: Low-price skin-care products (cleanser, moisturizer, etc.) • Geography: Different brands and products by country/region

• Leverage scale behind an array of products, widely available• “Classic” brand positioning

• To play in the global skin-care category• To turn from a shrinking position to a growing one, improving from

$750 million in sales

• Product-based innovation (development of line extensions)

• Strong retail relationships

• Measures of market share, in-store presence, in-stock positions

• Product R&D systems




How will we win?How will we win?





Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 29

OIL OF OLAY

New Strategy: Playing to Win

• Customers: Target younger women just noticing the first signs of aging• Channel: Sell through mass channels (best customers)• Product: New products and formulations that fight multiple signs of aging• Geography: Consistent global brand

• Move upmarket in product, price, and promotion• Establish “masstige” channel presence

• Win convincingly in skin-care segment • Build a pillar for the beauty-care business

• Innovation (in product, distribution, packaging)• Consumer understanding• Go-to-market approaches• Partnering

• Partnering systems• Channel and consumer metrics




How will we win?How will we win?





Questions?

OCTOBER 17, 2012

To ask a question … click on the “question icon” in the lower-right corner of your screen.

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Thank you for joining us!

The Play to Win presentation was made possible by the generous support of Tidemark.com

Sponsored by

NOVEMBER 25, 2014

Documents

Playing to Win: How Strategy Really Works - Limelight …krm.vo.llnwd.net/o43/u/hbs0011408/22067/220671.pdf · Playing to Win: How Strategy Really Works Featuring Roger Martin, Director