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Playing to Win: How Strategy Really Works
Download Playing to Win: How Strategy Really Works
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Audible Audiobook
Listening Length: 7 hours and 9 minutes
Program Type: Audiobook
Version: Unabridged
Publisher: Audible Studios
Audible.com Release Date: November 19, 2013
Whispersync for Voice: Ready
Language: English, English
ASIN: B00GRMUSOS
Amazon Best Sellers Rank:
I'm a little late to the party for this review, and I'm not going to duplicate what others have written.I found that this book accomplishes exactly what it's authors set out to do: define what strategy is -- at least in the area of brand competition -- and give examples of strategy formulation and execution. I would recommend this to any business student or business person who aspires to be a corporate strategist.The fun part of this book for me is that it raised my awareness of the tremendous, world-wide, and continual competition among the various brands of products that I take for granted, like razor blades, or don't even think about, like skin cream or makeup. In this book I learned how Proctor and Gamble made their brands successful.The only downside is that even with all these stories of how Proctor and Gamble strategized to make their brands successful, the reading became a bit of a slog. There was something rather dry about the writing style. Of course, playing to win is not about reading for fun.
I’m always in for a good business book, specially when one of the protagonists was your professor.Filippo Passerini was one of the main executives for P&G. He lead the M&A with Gillette and brought new IT capabilities to the company. During the classes at the MBA, he used to talk about this VUCA world (vulnerable, unpredictable, chaotic and ambiguous). Several times he talked about Playing to Win and he told us this book was a longer version of his classes; that;s why I picked it up, 2 years after graduating, but as hungry as usual.Playing to win discusses the way P&G and its brands approach strategy. And what’s unique about them? Well, the title says it all.P&G has 5 questions or areas when it comes to clarify the way to move forwardWhat is our winning aspiration?Determine a particular place and a determined way to win. And winning is translated about clear statements about an ideal future.Where will we play?This are the sets of choices that narrow your competitive field. In which market, to which customers, through which channels, in which product categories and at which vertical stage.How will we win where we have chosen to play?What will enable the company to create unique value to customers in a way that is distinct from competition.What capabilities must be in place to win?(1) What core capabilities must be in place to win; range and quality and activities that will enable company to win (2) what management systems are required to support this strategic choices?;And what are core capabilities?(a) Deep consumer understanding (b) Innovation (c ) Brand Building (d) Go-to-Market ability (e) Global scaleWhat management systems are required to ensure the capabilities are in place?Foster, support and measure the strategy.Each category has depth and several layers. Is not as easy as it seems.Moreover, the network the company has is complex and simple at the same time.At the heart of this network, there’s consumer understanding, brand building, innovation, go-to-market capabilities and scale. All of them make a lot of sense when you are P&G, but also they make sense when you are a small company just trying to meet each month.So, what's important about where to play and how to win? What should be the framework?The industry, attractiveness of segments.Customers, what do they value?Relative position, how does your company fare regarding competition?Competition, what competition will do once you have chosen your course of actionThe strategy logic flowFirst you need to understand the industry attractiveness, this means segmentation and how attractive is each segment.Then we move to customer value analysis: whether it is as a cost leader or differentiator, the company needs to understand what the customer values.Once we have a deep understanding of our customer we need to capture our relative position. What capabilities do we have in house and most importantly, how our costs looks like? Now we go to Competitors analysis, is all about anticipating competitors reactions once we have started our strategy deployment. Last but not least, our strategic choice. At some point, the book states that a big part of a strategy is about saying “no†and this last part is all about where to play and how to win.The book closes with many questions (my favorite sort of book, open for you to sort it).Have you define winning and your winning inspirations?Have you decided where can you play to win?Have you determined how will you win?Have you built your core capabilities to compete?Do your management systems and KPI's are ready to support the precious 4 pillars?
Great companies do not become great by accident; they become great through the strategic choices they make. Great companies do not remain great by inertia; they remain great through the strategic choices they make. Procter and Gamble (P&G) is a great company by any measure. In 2012, it recorded $83.68 billion dollars in sales and Fortune magazine ranked the company the fifth most admired in the world.Lafley was the Chairman and CEO of (P&G) through one of the most challenging periods in its history. When he took over the leadership position P&G was no longer delivering the outstanding returns. P&G was considered too big to continue being a growth stock. With Lafley at the helm, it achieved the near impossible, growth at a pace rarely associated with mature, enormous firms.This book is about how a strong commitment to strategy, at every level, and in every part of the organization made this possible. In P&G's case, this was not a commitment to the board’s strategy, (a surprisingly rare event anywhere,) but a strong commitment to thinking about one’s division, department or business unit using a strategy method.Strategy is one of the most misused and misunderstood concepts in business. Lafley cites ideas often mistaken for strategy. ‘Strategy’ is often misunderstood as ‘a vision,’ which offers no guidance “to productive action and no explicit road map to the desired future.â€Strategy is not a plan or a set of tactics; those are only elements of strategy. Strategy is certainly not leaving control to chance and watching what emerges. Strategy is not following best practices -sameness is not strategy, it is a recipe for mediocrity.Strongly committed to some of the principles espoused by Michael Porter and to using his terminology, Lafley and co-author, Professor Roger Martin, describe their playbook: Five Choices, One Framework, One Process.The title “Playing to Win†is a central theme of Lafley’s approach. “Winning should be at the heart of any strategy,†in fact, it would make no sense to Lafley to aspire to anything less than winning.In order to beat the competition, two key questions need to be answered. They are – “where to play,†and “how to win.†The strategic decisions made for P&G products are used to illustrate the application of this method.The skincare product, Oil of Olay, was getting “tired†and sales were declining, but brand recognition was still strong, and it was still profitable. People were calling Oil of Olay, “Oil of Old Lady.†Applying the question, where should it play, they identified that the existing customers were price sensitive and only minimally invested in skin care. However, they also identified a new set of customers, who had real growth potential, the thirty-five-plus age cohort that was beginning to notice their first lines and wrinkles.To win, P & G scientists went to work on sourcing and developing better and more effective compounds. This would create a skin-care product that could dramatically outperform existing products in the market. Olay fits in a product category where price is an indicator of value, but P&G was designed for mass markets, and so they developed an additional category, “masstige†a mass-market prestige version of their product. Priced high enough to give substantial margins, indicate value, and appeal to the upper end of the mass market, they revitalise the brand, attracted a younger consumer, and expanded their offering.They had answered the strategic question, “where to play,†and “how to win.†These strategic questions were followed by the operationalization of the answers in the form of two other questions: What capabilities must be in place and what management systems would be required to ensure successful implementation.Strategic thinking using the five principles was not the preserve of the board - rather it was a process to be followed everywhere in the organization.Using the same strategy process, the marketing department reformulated their mandate. An essential element in P&G’s company strategy is the classification of the customer as “the Boss†whose needs must be understood accurately and satisfied better than expected.To this end, marketing defined where they should play as the conducting of innovative market research using edgy techniques. All conventional research, such as surveys and focus groups, would be outsourced. They could have chosen to play in the conventional research field and outsourced the edgy techniques, but chose not to in order to serve their customer more effectively than an external provider could.Strategy is all about making choices.This is not a ‘how-to’ book on strategy according to Porter. Porter, an industrial economist turned strategist, was in his prime in the 80s. His thinking is still relevant to behemoths in manufacturing, with some important modifications. He is certainly not applicable to many other businesses without modification and manipulation.This extremely valuable book is a testament to the importance of instituting thinking strategically throughout an organization to deliver a sustainable competitive advantage. This is the first comprehensive account of this means I have ever come across, and what a powerful example at that. P&G has had an outstanding record during some of the most difficult years in business and has succeeded.Take this seriously. Very seriously.Readability Light --+-- SeriousInsights High -+--- LowPractical High -+--- Low Ian Mann of Gateways consults internationally on leadership and strategy
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