2022 Book Report #5 - Playing to Win (Roger Martin and A.G. Lafley)
5/12 — Playing to Win by Roger Martin and A.G. Lafley (Harvard Business Review)
How strategy really works
Understanding what strategy is not and common misconceptions on strategy can help us gain a better understanding on what is strategy.
Strategy is not a vision and it is not a plan.
Strategy is an integrated set of 5 choices that uniquely positions the firm in its industry so as to create a sustainable advantage and superior value relative to the competition
Strategy is about:
Making choices
Increasing the odds of success (there is no such thing as a perfect strategy)
Combining both rigor and creativity
There are two fundamental ways to win:
Low cost
Differentiation
Strategy is the answer to these five interrelated questions:
1. What is our winning aspiration?
2. Where will we play?
3. How will we win?
4. What capabilities must be in place?
5. What management systems are required?
Ultimately, there are 4 dimensions you need to think about:
1. Industry — what is the structure?
2. Customers — what do your customers value?
3. Relative position — How does your company fare, relative to your competition?
4. Competition — What will your competition do?
A winning strategy is time-dependent. Its keys for success become less potent as time passes due to shifting dynamics and evolving competitive landscapes. The important thing for an organizational leader is to “build up strategic thinking capability within your organization.”
Understanding end consumers is challenging, but essential. Henry Ford famously said that if he'd ask consumers what they wanted, they would have said, 'a faster horse.'
You need to engage with them beyond quantitative surveys.
Only through this deep user understanding can you hope to generate insights about where to play and how to win
Every line of business and function, internal or external, should have a strategy—one that aligns with the strategy of the company overall and decides where to play and how to win specifically for its context.
Other “book reports” from 2022:
