Strategy as Simple Rules

Pieofitability GROWTH STRATEGY HBR ® As SMPLE Performance Goal: Long-term Dominance Strategic Guestion: Where should we be? What should we be? HOW SHOULD WE PROCEED? JANUARY 2001 Strategic Logic: Establish Position Levegage Resoupces PURSUE OPPORTUNITIES Works best in: Slowly changing, well-stauctuped magkets Moderately changing, well-stauctuped magkets RAPIDLY CHANGING, AMOIGUOUS MARKETS RULES| Eisenhardt Sull Us Complicatedu TRANSLATE STRATEGY To SIMPLE RULES :Cost Pressure new When busineşs was simple, companies could afford need to simplify. Smart companies have done that with a new approach. A few straightfoRward, hard + fast RULĖS that define direction without The Good old Days new entrants. technology Co-opetition talent ODO 300 000 legacy syštems + process Customers suppliers Confining it. shifting business models Customer demands Competing PriOritieš Spell out key features of how a process is executed - what makes our process unique? staff must consist of technical gurus, every question must be answered on the first call or email, and RtD staff must Rotate through customer service How-to-RULES Akamai's Customer Service Rule DONT MAKE THEM TOO BROAD. "we encourage flex- ibility + innovation" Won't do it. You have to provide CONCRETE guidance focus managers on Which opportunitiěs to puRsue + which are outside the pale Companies to be acquired must have no more than 15 employ- ees, 15% of them must be engineers Boundary-alles CISCO's acquisition Rule help managers rank the accépted opportunities manufacturing capacity allocation is based on a product's gross margin (intel)'s capacity allocation Rule PRiority-RULES synchronize manageRs with the pace of emerging op- portunities Within other parts of the company Project teams must know when a PRoduct must be delivered to a leading customer to Win, and the development time must be less than 18 months DON't Make THEM Too VAGUE Timing-ales NORTEL's Product Development Rule "ALl investments must deliver an RO" Won't do it. It does not sort Priorities help managers decide when to pull out of yesterday's opportunities If a key team member - man- ager or not - chooses to leave the project for another within the company, the project is killed EXit-elLES - oticon's Stop Rule DONT let them go STALE Once a rule no longer WoRks, get rid of it DONT MAKE There are unwRitten Rules in cultures that THEM MINDLESS destroy value. "everyone has a say" can slow you down. Root out the mindless, unwritten rules SKETCHNOTES - STRATEGY AS SIMPLE RULES © 2011 fassforward Consulting Group Source: STRATEGY AS SIMPLE RULES, Eisenhardt, Sull, Harvard Business Review January 2001 Pieofitability GROWTH STRATEGY HBR ® As SMPLE Performance Goal: Long-term Dominance Strategic Guestion: Where should we be? What should we be? HOW SHOULD WE PROCEED? JANUARY 2001 Strategic Logic: Establish Position Levegage Resoupces PURSUE OPPORTUNITIES Works best in: Slowly changing, well-stauctuped magkets Moderately changing, well-stauctuped magkets RAPIDLY CHANGING, AMOIGUOUS MARKETS RULES| Eisenhardt Sull Us Complicatedu TRANSLATE STRATEGY To SIMPLE RULES :Cost Pressure new When busineşs was simple, companies could afford need to simplify. Smart companies have done that with a new approach. A few straightfoRward, hard + fast RULĖS that define direction without The Good old Days new entrants. technology Co-opetition talent ODO 300 000 legacy syštems + process Customers suppliers Confining it. shifting business models Customer demands Competing PriOritieš Spell out key features of how a process is executed - what makes our process unique? staff must consist of technical gurus, every question must be answered on the first call or email, and RtD staff must Rotate through customer service How-to-RULES Akamai's Customer Service Rule DONT MAKE THEM TOO BROAD. "we encourage flex- ibility + innovation" Won't do it. You have to provide CONCRETE guidance focus managers on Which opportunitiěs to puRsue + which are outside the pale Companies to be acquired must have no more than 15 employ- ees, 15% of them must be engineers Boundary-alles CISCO's acquisition Rule help managers rank the accépted opportunities manufacturing capacity allocation is based on a product's gross margin (intel)'s capacity allocation Rule PRiority-RULES synchronize manageRs with the pace of emerging op- portunities Within other parts of the company Project teams must know when a PRoduct must be delivered to a leading customer to Win, and the development time must be less than 18 months DON't Make THEM Too VAGUE Timing-ales NORTEL's Product Development Rule "ALl investments must deliver an RO" Won't do it. It does not sort Priorities help managers decide when to pull out of yesterday's opportunities If a key team member - man- ager or not - chooses to leave the project for another within the company, the project is killed EXit-elLES - oticon's Stop Rule DONT let them go STALE Once a rule no longer WoRks, get rid of it DONT MAKE There are unwRitten Rules in cultures that THEM MINDLESS destroy value. "everyone has a say" can slow you down. Root out the mindless, unwritten rules SKETCHNOTES - STRATEGY AS SIMPLE RULES © 2011 fassforward Consulting Group Source: STRATEGY AS SIMPLE RULES, Eisenhardt, Sull, Harvard Business Review January 2001 Pieofitability GROWTH STRATEGY HBR ® As SMPLE Performance Goal: Long-term Dominance Strategic Guestion: Where should we be? What should we be? HOW SHOULD WE PROCEED? JANUARY 2001 Strategic Logic: Establish Position Levegage Resoupces PURSUE OPPORTUNITIES Works best in: Slowly changing, well-stauctuped magkets Moderately changing, well-stauctuped magkets RAPIDLY CHANGING, AMOIGUOUS MARKETS RULES| Eisenhardt Sull Us Complicatedu TRANSLATE STRATEGY To SIMPLE RULES :Cost Pressure new When busineşs was simple, companies could afford need to simplify. Smart companies have done that with a new approach. A few straightfoRward, hard + fast RULĖS that define direction without The Good old Days new entrants. technology Co-opetition talent ODO 300 000 legacy syštems + process Customers suppliers Confining it. shifting business models Customer demands Competing PriOritieš Spell out key features of how a process is executed - what makes our process unique? staff must consist of technical gurus, every question must be answered on the first call or email, and RtD staff must Rotate through customer service How-to-RULES Akamai's Customer Service Rule DONT MAKE THEM TOO BROAD. "we encourage flex- ibility + innovation" Won't do it. You have to provide CONCRETE guidance focus managers on Which opportunitiěs to puRsue + which are outside the pale Companies to be acquired must have no more than 15 employ- ees, 15% of them must be engineers Boundary-alles CISCO's acquisition Rule help managers rank the accépted opportunities manufacturing capacity allocation is based on a product's gross margin (intel)'s capacity allocation Rule PRiority-RULES synchronize manageRs with the pace of emerging op- portunities Within other parts of the company Project teams must know when a PRoduct must be delivered to a leading customer to Win, and the development time must be less than 18 months DON't Make THEM Too VAGUE Timing-ales NORTEL's Product Development Rule "ALl investments must deliver an RO" Won't do it. It does not sort Priorities help managers decide when to pull out of yesterday's opportunities If a key team member - man- ager or not - chooses to leave the project for another within the company, the project is killed EXit-elLES - oticon's Stop Rule DONT let them go STALE Once a rule no longer WoRks, get rid of it DONT MAKE There are unwRitten Rules in cultures that THEM MINDLESS destroy value. "everyone has a say" can slow you down. Root out the mindless, unwritten rules SKETCHNOTES - STRATEGY AS SIMPLE RULES © 2011 fassforward Consulting Group Source: STRATEGY AS SIMPLE RULES, Eisenhardt, Sull, Harvard Business Review January 2001 Pieofitability GROWTH STRATEGY HBR ® As SMPLE Performance Goal: Long-term Dominance Strategic Guestion: Where should we be? What should we be? HOW SHOULD WE PROCEED? JANUARY 2001 Strategic Logic: Establish Position Levegage Resoupces PURSUE OPPORTUNITIES Works best in: Slowly changing, well-stauctuped magkets Moderately changing, well-stauctuped magkets RAPIDLY CHANGING, AMOIGUOUS MARKETS RULES| Eisenhardt Sull Us Complicatedu TRANSLATE STRATEGY To SIMPLE RULES :Cost Pressure new When busineşs was simple, companies could afford need to simplify. Smart companies have done that with a new approach. A few straightfoRward, hard + fast RULĖS that define direction without The Good old Days new entrants. technology Co-opetition talent ODO 300 000 legacy syštems + process Customers suppliers Confining it. shifting business models Customer demands Competing PriOritieš Spell out key features of how a process is executed - what makes our process unique? staff must consist of technical gurus, every question must be answered on the first call or email, and RtD staff must Rotate through customer service How-to-RULES Akamai's Customer Service Rule DONT MAKE THEM TOO BROAD. "we encourage flex- ibility + innovation" Won't do it. You have to provide CONCRETE guidance focus managers on Which opportunitiěs to puRsue + which are outside the pale Companies to be acquired must have no more than 15 employ- ees, 15% of them must be engineers Boundary-alles CISCO's acquisition Rule help managers rank the accépted opportunities manufacturing capacity allocation is based on a product's gross margin (intel)'s capacity allocation Rule PRiority-RULES synchronize manageRs with the pace of emerging op- portunities Within other parts of the company Project teams must know when a PRoduct must be delivered to a leading customer to Win, and the development time must be less than 18 months DON't Make THEM Too VAGUE Timing-ales NORTEL's Product Development Rule "ALl investments must deliver an RO" Won't do it. It does not sort Priorities help managers decide when to pull out of yesterday's opportunities If a key team member - man- ager or not - chooses to leave the project for another within the company, the project is killed EXit-elLES - oticon's Stop Rule DONT let them go STALE Once a rule no longer WoRks, get rid of it DONT MAKE There are unwRitten Rules in cultures that THEM MINDLESS destroy value. "everyone has a say" can slow you down. Root out the mindless, unwritten rules SKETCHNOTES - STRATEGY AS SIMPLE RULES © 2011 fassforward Consulting Group Source: STRATEGY AS SIMPLE RULES, Eisenhardt, Sull, Harvard Business Review January 2001 Pieofitability GROWTH STRATEGY HBR ® As SMPLE Performance Goal: Long-term Dominance Strategic Guestion: Where should we be? What should we be? HOW SHOULD WE PROCEED? JANUARY 2001 Strategic Logic: Establish Position Levegage Resoupces PURSUE OPPORTUNITIES Works best in: Slowly changing, well-stauctuped magkets Moderately changing, well-stauctuped magkets RAPIDLY CHANGING, AMOIGUOUS MARKETS RULES| Eisenhardt Sull Us Complicatedu TRANSLATE STRATEGY To SIMPLE RULES :Cost Pressure new When busineşs was simple, companies could afford need to simplify. Smart companies have done that with a new approach. A few straightfoRward, hard + fast RULĖS that define direction without The Good old Days new entrants. technology Co-opetition talent ODO 300 000 legacy syštems + process Customers suppliers Confining it. shifting business models Customer demands Competing PriOritieš Spell out key features of how a process is executed - what makes our process unique? staff must consist of technical gurus, every question must be answered on the first call or email, and RtD staff must Rotate through customer service How-to-RULES Akamai's Customer Service Rule DONT MAKE THEM TOO BROAD. "we encourage flex- ibility + innovation" Won't do it. You have to provide CONCRETE guidance focus managers on Which opportunitiěs to puRsue + which are outside the pale Companies to be acquired must have no more than 15 employ- ees, 15% of them must be engineers Boundary-alles CISCO's acquisition Rule help managers rank the accépted opportunities manufacturing capacity allocation is based on a product's gross margin (intel)'s capacity allocation Rule PRiority-RULES synchronize manageRs with the pace of emerging op- portunities Within other parts of the company Project teams must know when a PRoduct must be delivered to a leading customer to Win, and the development time must be less than 18 months DON't Make THEM Too VAGUE Timing-ales NORTEL's Product Development Rule "ALl investments must deliver an RO" Won't do it. It does not sort Priorities help managers decide when to pull out of yesterday's opportunities If a key team member - man- ager or not - chooses to leave the project for another within the company, the project is killed EXit-elLES - oticon's Stop Rule DONT let them go STALE Once a rule no longer WoRks, get rid of it DONT MAKE There are unwRitten Rules in cultures that THEM MINDLESS destroy value. "everyone has a say" can slow you down. Root out the mindless, unwritten rules SKETCHNOTES - STRATEGY AS SIMPLE RULES © 2011 fassforward Consulting Group Source: STRATEGY AS SIMPLE RULES, Eisenhardt, Sull, Harvard Business Review January 2001 Pieofitability GROWTH STRATEGY HBR ® As SMPLE Performance Goal: Long-term Dominance Strategic Guestion: Where should we be? What should we be? HOW SHOULD WE PROCEED? JANUARY 2001 Strategic Logic: Establish Position Levegage Resoupces PURSUE OPPORTUNITIES Works best in: Slowly changing, well-stauctuped magkets Moderately changing, well-stauctuped magkets RAPIDLY CHANGING, AMOIGUOUS MARKETS RULES| Eisenhardt Sull Us Complicatedu TRANSLATE STRATEGY To SIMPLE RULES :Cost Pressure new When busineşs was simple, companies could afford need to simplify. Smart companies have done that with a new approach. A few straightfoRward, hard + fast RULĖS that define direction without The Good old Days new entrants. technology Co-opetition talent ODO 300 000 legacy syštems + process Customers suppliers Confining it. shifting business models Customer demands Competing PriOritieš Spell out key features of how a process is executed - what makes our process unique? staff must consist of technical gurus, every question must be answered on the first call or email, and RtD staff must Rotate through customer service How-to-RULES Akamai's Customer Service Rule DONT MAKE THEM TOO BROAD. "we encourage flex- ibility + innovation" Won't do it. You have to provide CONCRETE guidance focus managers on Which opportunitiěs to puRsue + which are outside the pale Companies to be acquired must have no more than 15 employ- ees, 15% of them must be engineers Boundary-alles CISCO's acquisition Rule help managers rank the accépted opportunities manufacturing capacity allocation is based on a product's gross margin (intel)'s capacity allocation Rule PRiority-RULES synchronize manageRs with the pace of emerging op- portunities Within other parts of the company Project teams must know when a PRoduct must be delivered to a leading customer to Win, and the development time must be less than 18 months DON't Make THEM Too VAGUE Timing-ales NORTEL's Product Development Rule "ALl investments must deliver an RO" Won't do it. It does not sort Priorities help managers decide when to pull out of yesterday's opportunities If a key team member - man- ager or not - chooses to leave the project for another within the company, the project is killed EXit-elLES - oticon's Stop Rule DONT let them go STALE Once a rule no longer WoRks, get rid of it DONT MAKE There are unwRitten Rules in cultures that THEM MINDLESS destroy value. "everyone has a say" can slow you down. Root out the mindless, unwritten rules SKETCHNOTES - STRATEGY AS SIMPLE RULES © 2011 fassforward Consulting Group Source: STRATEGY AS SIMPLE RULES, Eisenhardt, Sull, Harvard Business Review January 2001 Pieofitability GROWTH STRATEGY HBR ® As SMPLE Performance Goal: Long-term Dominance Strategic Guestion: Where should we be? What should we be? HOW SHOULD WE PROCEED? JANUARY 2001 Strategic Logic: Establish Position Levegage Resoupces PURSUE OPPORTUNITIES Works best in: Slowly changing, well-stauctuped magkets Moderately changing, well-stauctuped magkets RAPIDLY CHANGING, AMOIGUOUS MARKETS RULES| Eisenhardt Sull Us Complicatedu TRANSLATE STRATEGY To SIMPLE RULES :Cost Pressure new When busineşs was simple, companies could afford need to simplify. Smart companies have done that with a new approach. A few straightfoRward, hard + fast RULĖS that define direction without The Good old Days new entrants. technology Co-opetition talent ODO 300 000 legacy syštems + process Customers suppliers Confining it. shifting business models Customer demands Competing PriOritieš Spell out key features of how a process is executed - what makes our process unique? staff must consist of technical gurus, every question must be answered on the first call or email, and RtD staff must Rotate through customer service How-to-RULES Akamai's Customer Service Rule DONT MAKE THEM TOO BROAD. "we encourage flex- ibility + innovation" Won't do it. You have to provide CONCRETE guidance focus managers on Which opportunitiěs to puRsue + which are outside the pale Companies to be acquired must have no more than 15 employ- ees, 15% of them must be engineers Boundary-alles CISCO's acquisition Rule help managers rank the accépted opportunities manufacturing capacity allocation is based on a product's gross margin (intel)'s capacity allocation Rule PRiority-RULES synchronize manageRs with the pace of emerging op- portunities Within other parts of the company Project teams must know when a PRoduct must be delivered to a leading customer to Win, and the development time must be less than 18 months DON't Make THEM Too VAGUE Timing-ales NORTEL's Product Development Rule "ALl investments must deliver an RO" Won't do it. It does not sort Priorities help managers decide when to pull out of yesterday's opportunities If a key team member - man- ager or not - chooses to leave the project for another within the company, the project is killed EXit-elLES - oticon's Stop Rule DONT let them go STALE Once a rule no longer WoRks, get rid of it DONT MAKE There are unwRitten Rules in cultures that THEM MINDLESS destroy value. "everyone has a say" can slow you down. Root out the mindless, unwritten rules SKETCHNOTES - STRATEGY AS SIMPLE RULES © 2011 fassforward Consulting Group Source: STRATEGY AS SIMPLE RULES, Eisenhardt, Sull, Harvard Business Review January 2001