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 Sponsored by Questions? To ask a question … click on the “question icon” in the lower-right corner of your screen. OCTOBER 17, 2012 Presentation Download Link Click on the double links icon here to download the presentation materials. OCTOBER 17, 2012 Follow the Conversation on Twitter Use #HBRwebinar @HBRExchange NOVEMBER 25, 2014 Playing to Win: How Strategy Really Works 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. NOVEMBER 25, 2014 @HBRExchange | #HBRwebinar The Playing to Win Strategy Toolkit Everything You Need for a Winning Strategy NOVEMBER 25, 2014 Download Today: https://hbr.org/product/playing‐to‐win‐ strategy‐toolkit/PTWTL1‐KND‐ENG How Strategy Really Works Harvard Business Review Webinar Roger L. Martin November 25, 2014 Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 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. Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 8 #1 Strategy Is About Making Choices To win, a company must choose to do some things and not others. Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 9 #2 Strategy Is About Increasing the Odds of Success There is no such thing as a PERFECT strategy. Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 10 #3 Successful Strategy Making Combines Rigor and Creativity 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. 11 Strategy Choice Making Problem Possibility 1 Possibility 2 Possibility 3 Specify Conditions Test Choose Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 12 Strategy Is the Answer to Five Questions What is our winning aspiration? Where will we play? How will we win? What capabilities must we have? What management systems do we need? Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 13 The Strategy Cascade What is our winning aspiration? What does it mean to win in our business? Where will we play? How will we win? What capabilities must we have? What management systems do we need? Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 14 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? Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 15 Playing to Win versus Playing to Play PLAYING TO WIN PLAYING TO PLAY • Starts with people rather than money—what does it mean to win with our customers? • Doesn’t have a winning element but focuses on simply serving a customer segment • Has a competitive dimension—who are we winning against? • Is focused on an internal metric, such as “We’ll sell 25% more than we did last year” Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 16 The Strategy Cascade What is our winning aspiration? Where do we compete? Where will we play? Which customer segments, channels, product categories, and geographies do we serve? How will we win? What capabilities must we have? What management systems do we need? Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 17 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. Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 18 The Strategy Cascade What is our winning aspiration? Where will we play? How will we win? What is our competitive advantage? What capabilities must we have? Do we compete on low cost or differentiation? Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. What management systems do we need? 19 How Will We Win? This choice is about how we will win on the playing field we’ve chosen. What is our competitive advantage? Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 20 The Two Fundamental Ways to Win LOW COST • Seek systemic understanding of cost drivers • Relentlessly drive costs down • Sacrifice nonconforming customers Sustainable Competitive Advantage DIFFERENTIATION • Strive for deep understanding of customers’ needs • Offer products that customers adore • Guard customers jealously • Offer standard product or service Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 21 The Strategy Cascade What is our winning aspiration? Where will we play? How will we win? What specific capabilities support our competitive advantage? What capabilities must we have? What do we need to be really great at doing? Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. What management systems do we need? 22 Which Capabilities Must We Have? Capabilities are the activities that enable our organization to bring the where-to-play and how-to-win choices to life. Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 23 The Strategy Cascade What is our winning aspiration? Where will we play? How will we win? What systems support our capabilities? What capabilities must we have? How do we measure the success of our strategy? Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. What management systems do we need? 24 What Management Systems Do We Need? Management systems are the processes, structures, and rules that build our capabilities and that reinforce and measure our organization’s strategic choices. Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 25 The Strategy Cascade What is our winning aspiration? Where will we play? How will we win? What capabilities must we have? What management systems do we need? Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 26 EXAMPLE FROM P&G Oil of Olay Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 27 OIL OF OLAY Old Strategy: Playing to Play What is our winning aspiration? • To play in the global skin-care category • To turn from a shrinking position to a growing one, improving from $750 million in sales Where will we play? • 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 How will we win? • Leverage scale behind an array of products, widely available • “Classic” brand positioning What capabilities must we have? What management systems do we need? • Product-based innovation (development of line extensions) • Strong retail relationships • Measures of market share, in-store presence, in-stock positions • Product R&D systems Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 28 OIL OF OLAY New Strategy: Playing to Win What is our winning aspiration? • Win convincingly in skin-care segment • Build a pillar for the beauty-care business Where will we play? • • • • How will we 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 What capabilities must we have? What management systems do we need? • • • • Innovation (in product, distribution, packaging) Consumer understanding Go-to-market approaches Partnering • Partnering systems • Channel and consumer metrics Copyright 2014 A.G. Lafley, Roger L. Martin, and Jennifer Riel. Copying or posting is an infringement of copyright. 29 Questions? To ask a question … click on the “question icon” in the lower-right corner of your screen. OCTOBER 17, 2012 @HBRExchange | #HBRwebinar Thank you for joining us! The Play to Win presentation was made possible by the generous support of Tidemark.com NOVEMBER 25, 2014 Sponsored by
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