Starts with people rather than money—what does it mean to win with our customers?
Has a competitive dimension. Who are we winning against?
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
HOW WILL WE WIN?
What is our competitive advantage?
Do we compete on low cost or differentiation?
Low cost: Seek systemic understanding of cost drivers, Relentlessly drive costs down, Sacrifice nonconforming customers, Offer standard product or service
Differentiation: Strive for deep understanding of customers’ needs, offer products that customers adore, guard customers jealously
WHAT 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.
What specific capabilities support our competitive advantage?
What do we need to be really great at doing?
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.
How do we measure the success of our strategy?
Lafley, AG. (2013). Playing to Win: How Strategy Really Works. Harvard Business Review Press.
Connections
This is essentially a Darwinian business specification to survive and thriving in a competitive environment. History and Biology: