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Make	
  the	
  right	
  choices	
  to	
  create	
  a	
  winning	
  strategy	
  
	
  	
  By	
  Kenneth	
  Mikkelsen	
  	
  
	
   	
  	
  8	
  April	
  2013	
  
	
  
	
  
What	
  makes	
  good	
  corporate	
  strategy?	
  Kenneth	
  Mikkelsen	
  interviews	
  Roger	
  Martin,	
  Dean	
  of	
  Rotman	
  School	
  
of	
  Management	
  about	
  his	
  book	
  Playing	
  to	
  Win:	
  How	
  Strategy	
  Really	
  Works.	
  
What	
  makes	
  good	
  corporate	
  strategy?	
  It’s	
  a	
  question	
  that	
  haunts	
  many	
  leaders.	
  This	
  article	
  explores	
  the	
  
five	
  strategic	
  choices	
  that	
  helped	
  the	
  multinational	
  consumer	
  goods	
  company	
  Procter	
  &	
  Gamble	
  turn	
  things	
  
around	
  after	
  a	
  serious	
  setback	
  in	
  2000.	
  I	
  interviewed	
  Roger	
  Martin,	
  the	
  dean	
  of	
  Rotman	
  School	
  of	
  
Management,	
  about	
  his	
  new	
  book	
  Playing	
  to	
  Win,	
  which	
  Martin	
  co-­‐authored	
  with	
  former	
  Procter	
  &	
  Gamble	
  
CEO	
  Alan	
  G.	
  Lafley.	
  
On	
  7	
  March	
  2000	
  Procter	
  &	
  Gamble	
  (P&G)	
  sent	
  shockwaves	
  through	
  the	
  business	
  world	
  when	
  it	
  announced	
  
that	
  it	
  would	
  not	
  meet	
  its	
  quarterly	
  earnings	
  targets.	
  On	
  what	
  came	
  to	
  be	
  known	
  as	
  ‘Tide	
  Tuesday’,	
  P&G	
  
lost	
  30	
  per	
  cent	
  of	
  its	
  share	
  value	
  in	
  one	
  day.	
  
In	
  fact,	
  this	
  was	
  just	
  the	
  first	
  leg	
  of	
  a	
  journey	
  that	
  would	
  send	
  P&G	
  into	
  a	
  downward	
  spiral	
  propelled	
  by	
  a	
  
growing	
  mistrust	
  among	
  investors.	
  In	
  June,	
  just	
  three	
  months	
  later,	
  things	
  got	
  worse	
  as	
  P&G	
  once	
  again	
  
missed	
  its	
  projected	
  earnings	
  target.	
  As	
  a	
  result	
  Durk	
  Jager,	
  the	
  head	
  of	
  the	
  company,	
  resigned	
  with	
  
immediate	
  effect.	
  Jager’s	
  replacement	
  was	
  Alan	
  G.	
  Lafley.	
  In	
  an	
  article	
  featured	
  in	
  Harvard	
  Business	
  Review	
  
in	
  May	
  2009,	
  Lafley	
  described	
  the	
  situation	
  he	
  faced	
  as	
  the	
  new	
  CEO	
  of	
  the	
  company:	
  
‘Our	
  biggest	
  problem	
  in	
  the	
  summer	
  of	
  2000	
  was	
  not	
  the	
  loss	
  of	
  $85	
  billion	
  in	
  market	
  capitalization.	
  It	
  was	
  a	
  
crisis	
  of	
  confidence.	
  Many	
  of	
  P&G’s	
  leaders	
  had	
  retreated	
  to	
  their	
  bunkers.	
  Business	
  units	
  were	
  blaming	
  
headquarters	
  for	
  poor	
  results,	
  and	
  headquarters	
  was	
  blaming	
  the	
  units.	
  Investors	
  and	
  financial	
  analysts	
  
were	
  surprised	
  and	
  angry.	
  Employees	
  were	
  calling	
  for	
  heads	
  to	
  roll.	
  Retirees,	
  whose	
  profit-­‐sharing	
  nest	
  eggs	
  
had	
  been	
  cut	
  in	
  half,	
  were	
  even	
  angrier.’	
  
Even	
  though	
  Lafley	
  would	
  rightfully	
  challenge	
  the	
  cliché	
  of	
  a	
  CEO	
  in	
  shining	
  armour	
  who	
  rides	
  in	
  and	
  turns	
  
things	
  around	
  all	
  by	
  himself,	
  the	
  numbers	
  clearly	
  speak	
  of	
  the	
  transformation	
  that	
  P&G	
  went	
  through	
  while	
  
Lafley	
  served	
  as	
  the	
  company’s	
  CEO.	
  
Under	
  Lafley’s	
  leadership	
  from	
  2000	
  till	
  2010,	
  P&G	
  sales	
  doubled,	
  profits	
  quadrupled,	
  market	
  value	
  
increased	
  by	
  more	
  than	
  $100	
  billion,	
  and	
  its	
  portfolio	
  of	
  billion-­‐dollar	
  brands	
  –	
  such	
  as	
  Pampers,	
  Olay,	
  and	
  
Gillette	
  –	
  grew	
  from	
  10	
  to	
  24	
  as	
  a	
  result	
  of	
  P&G’s	
  focus	
  on	
  winning	
  strategic	
  choices,	
  consumer-­‐driven	
  
innovation,	
  and	
  reliable,	
  sustainable	
  growth.	
  
Playing	
  to	
  win	
  
The	
  story	
  of	
  P&G’s	
  metamorphosis	
  is	
  intriguing.	
  It	
  is	
  a	
  prime	
  example	
  of	
  a	
  successful	
  turn-­‐around	
  realised	
  
through	
  a	
  set	
  of	
  strategic	
  choices.	
  But	
  P&G	
  was	
  not	
  alone	
  in	
  defining	
  these	
  choices.	
  The	
  company	
  drew	
  on	
  
the	
  expertise	
  of	
  some	
  of	
  the	
  world’s	
  leading	
  academic	
  thinkers,	
  among	
  them	
  the	
  father	
  of	
  modern	
  
management,	
  Peter	
  Drucker,	
  and	
  strategy	
  mastermind	
  Michael	
  Porter.	
  But	
  Lafley’s	
  day-­‐to-­‐day	
  strategy	
  
alter	
  ego	
  and	
  confidant	
  was	
  Roger	
  Martin,	
  then	
  a	
  consultant	
  at	
  Monitor	
  Group.	
  Today,	
  he	
  is	
  dean	
  of	
  
Rotman	
  School	
  of	
  Management	
  and	
  is	
  honoured	
  as	
  one	
  of	
  the	
  world’s	
  top	
  management	
  thinkers.	
  The	
  
relationship	
  between	
  the	
  two	
  men	
  stretches	
  back	
  25	
  years.	
  
Recently,	
  Lafley	
  and	
  Martin	
  wrote	
  the	
  book	
  Playing	
  to	
  Win,	
  which	
  tells	
  the	
  story	
  of	
  the	
  strategic	
  choices	
  
that	
  founded	
  P&G’s	
  transformation.	
  I	
  sat	
  down	
  with	
  Martin	
  and	
  asked	
  him	
  to	
  share	
  some	
  insights	
  about	
  the	
  
framework	
  that	
  transformed	
  P&G	
  and	
  made	
  strategy	
  a	
  part	
  of	
  the	
  culture	
  and	
  thinking	
  of	
  the	
  company.	
  
‘Many	
  people	
  think	
  of	
  strategy	
  as	
  a	
  very	
  complicated	
  thing.	
  That	
  it	
  is	
  sort	
  of	
  a	
  chore,	
  in	
  as	
  much	
  as	
  it	
  is	
  not	
  
very	
  enjoyable	
  or	
  useful.	
  The	
  purpose	
  of	
  our	
  book	
  is	
  to	
  make	
  strategy	
  simple,	
  fun,	
  and	
  effective.	
  I	
  don’t	
  
want	
  strategy	
  to	
  be	
  complicated,	
  and	
  that	
  is	
  why	
  you’ll	
  see	
  phrases	
  like	
  “Where	
  to	
  Play”	
  and	
  “How	
  to	
  Win.”	
  
They	
  are	
  not	
  convoluted	
  or	
  complicated	
  jargon;	
  they	
  are	
  simple.	
  By	
  making	
  it	
  about	
  choices	
  and	
  very	
  few	
  
choices,	
  I	
  think	
  you	
  can	
  make	
  it	
  fun	
  and	
  enjoyable	
  to	
  consider	
  those	
  choices,	
  and	
  if	
  you	
  answer	
  those	
  
choices,	
  you	
  can	
  have	
  a	
  great	
  and	
  effective	
  strategy.	
  In	
  doing	
  that,	
  what	
  we	
  wanted	
  to	
  do	
  is	
  hone	
  it	
  down;	
  if	
  
it	
  is	
  about	
  choices,	
  what	
  are	
  the	
  very	
  few	
  choices	
  that	
  really	
  matter?’	
  Martin	
  explains.	
  
In	
  Playing	
  to	
  Win	
  Lafley	
  and	
  Martin	
  talk	
  about	
  strategy	
  as	
  a	
  coordinated	
  and	
  integrated	
  set	
  of	
  five	
  choices:	
  
identifying	
  a	
  winning	
  aspiration,	
  deciding	
  where	
  to	
  play,	
  working	
  out	
  how	
  to	
  win,	
  defining	
  core	
  capabilities,	
  
and	
  recognising	
  what	
  management	
  systems	
  are	
  needed.	
  In	
  reality,	
  it	
  is	
  a	
  thought	
  pattern	
  that	
  people	
  can	
  
use	
  to	
  see	
  the	
  bigger	
  picture	
  and	
  ask	
  the	
  right	
  questions	
  as	
  they	
  focus	
  on	
  important	
  strategic	
  decisions.	
  
Strategy	
  is	
  an	
  integrated	
  cascade	
  of	
  choices	
  	
  
Smaller	
  companies	
  may	
  only	
  have	
  a	
  single	
  choice	
  cascade.	
  But	
  in	
  larger	
  companies,	
  there	
  are	
  multiple	
  levels	
  
of	
  choices	
  or	
  nested	
  choice	
  cascades	
  at	
  the	
  corporate-­‐level,	
  sector-­‐level,	
  and	
  individual	
  brand-­‐level	
  that	
  all	
  
interconnect	
  and	
  influence	
  each	
  other.	
  
‘Strategy	
  would	
  be	
  dead	
  easy	
  if	
  you	
  could	
  answer	
  those	
  questions	
  one	
  at	
  the	
  time	
  and	
  lock	
  and	
  load	
  each	
  
as	
  you	
  go.	
  The	
  only	
  tricky	
  thing	
  about	
  strategy	
  is	
  that	
  they	
  all	
  interrelate.	
  They	
  have	
  to	
  fit	
  and	
  you	
  have	
  to	
  
reinforce	
  them,	
  which	
  makes	
  strategy	
  less	
  of	
  a	
  lineal	
  project,	
  but	
  rather	
  an	
  iterate	
  one	
  that	
  you	
  have	
  to	
  be	
  
comfortable	
  with.	
  Put	
  up	
  a	
  winning	
  aspiration	
  and	
  say:	
  “This	
  is	
  what	
  we	
  think,	
  what	
  we	
  would	
  like	
  to	
  do”	
  –	
  
and	
  then	
  figure	
  out	
  where	
  to	
  play,	
  how	
  to	
  win,	
  and	
  how	
  to	
  make	
  that	
  happen.	
  If	
  there	
  isn’t	
  clarity,	
  modify	
  it	
  
and	
  keep	
  going	
  back	
  and	
  around,’	
  Martin	
  emphasises.	
  
The	
  notion	
  that	
  strategy	
  is	
  a	
  way	
  to	
  reduce	
  uncertainties	
  in	
  a	
  fast-­‐paced	
  world	
  doesn’t	
  rest	
  well	
  with	
  
Martin.	
  He	
  thinks	
  that	
  uncertainty	
  is	
  an	
  often-­‐used	
  excuse	
  among	
  executives	
  to	
  convince	
  themselves	
  that	
  
they	
  are	
  doing	
  the	
  right	
  things	
  by	
  not	
  making	
  the	
  necessary	
  choices.	
  
‘There	
  are	
  control-­‐oriented	
  people	
  who	
  really	
  want	
  it	
  to	
  be	
  true,	
  hope	
  that	
  it	
  is	
  true:	
  that	
  strategy	
  is	
  a	
  way	
  
to	
  reduce	
  uncertainty.	
  It	
  is	
  like	
  pushing	
  water	
  uphill	
  –	
  it	
  is	
  always	
  hard	
  to	
  keep	
  water	
  at	
  the	
  top	
  of	
  the	
  hill.	
  
So	
  go	
  with	
  the	
  flow,	
  instead	
  of	
  trying	
  to	
  get	
  rid	
  of	
  uncertainty,	
  understand	
  that	
  there	
  will	
  be	
  uncertainty.	
  
That,	
  I	
  think,	
  is	
  a	
  more	
  healthy	
  approach.’	
  
Winning	
  aspirations	
  
The	
  five	
  basic	
  questions	
  outlined	
  in	
  Playing	
  to	
  Win	
  were	
  used	
  rigorously	
  to	
  guide	
  P&G’s	
  strategy.	
  In	
  June	
  
2000,	
  when	
  Lafley	
  became	
  the	
  CEO,	
  the	
  company	
  was	
  over-­‐invested	
  and	
  overextended.	
  It	
  wasn’t	
  winning	
  
with	
  those	
  who	
  mattered	
  most	
  –	
  consumers	
  and	
  customers.	
  According	
  to	
  the	
  authors,	
  the	
  first	
  question	
  –	
  
What	
  is	
  our	
  winning	
  aspiration?	
  is	
  the	
  heart	
  of	
  any	
  strategy	
  and	
  sets	
  the	
  frame	
  for	
  all	
  the	
  other	
  choices.	
  A	
  
company	
  must	
  seek	
  to	
  win	
  in	
  a	
  particular	
  place	
  and	
  in	
  a	
  particular	
  way.	
  If	
  it	
  doesn’t	
  seek	
  to	
  win,	
  it’s	
  wasting	
  
its	
  resources.	
  But	
  to	
  be	
  most	
  helpful,	
  the	
  abstract	
  concept	
  of	
  winning	
  should	
  be	
  translated	
  into	
  defined	
  
aspirations:	
  statements	
  about	
  the	
  ideal	
  future.	
  
‘We	
  used	
  the	
  word	
  “winning”	
  because	
  we	
  really	
  feel	
  it	
  is	
  important	
  …	
  to	
  try	
  and	
  win.	
  Not	
  because	
  we	
  like	
  
the	
  idea	
  of	
  beating	
  other	
  people;	
  it	
  is	
  not	
  some	
  joy	
  of	
  grinding	
  other	
  people	
  into	
  dust,	
  but	
  winning	
  means	
  
that	
  for	
  the	
  customers	
  you	
  serve,	
  you	
  have	
  a	
  better	
  value	
  proposition	
  than	
  anybody	
  else.	
  That	
  doesn’t	
  
mean	
  you	
  are	
  going	
  to	
  crush	
  all	
  your	
  competitors.	
  There	
  will	
  be	
  competitors	
  that	
  will	
  have	
  other	
  customers,	
  
other	
  than	
  your	
  customers,	
  that	
  will	
  like	
  them	
  better	
  than	
  you.	
  And	
  that	
  is	
  absolutely	
  fine.	
  A	
  winning	
  
aspiration	
  is	
  not	
  just	
  to	
  play	
  better	
  than	
  we	
  used	
  to	
  play,’	
  Martin	
  explains.	
  
Playing	
  to	
  Win	
  tells	
  the	
  story	
  of	
  Olay,	
  a	
  skin-­‐care	
  brand	
  in	
  P&G’s	
  portfolio	
  that	
  was	
  struggling	
  in	
  the	
  late	
  
1990s.	
  It	
  experienced	
  a	
  declining	
  market	
  share	
  and	
  was	
  broadly	
  perceived	
  as	
  old-­‐fashioned	
  by	
  consumers	
  –	
  
until	
  P&G	
  decided	
  to	
  tweak	
  its	
  strategy.	
  For	
  Olay,	
  the	
  winning	
  aspirations	
  were	
  market-­‐share	
  leadership	
  in	
  
North	
  America,	
  $1billion	
  in	
  sales,	
  and	
  a	
  global	
  share	
  that	
  placed	
  it	
  among	
  the	
  market	
  leaders.	
  
Winning	
  aspiration	
  dos	
  and	
  don’ts	
  
• Do	
  play	
  to	
  win,	
  rather	
  than	
  simply	
  to	
  compete.	
  Define	
  winning	
  in	
  your	
  context,	
  
painting	
  a	
  picture	
  of	
  a	
  brilliant,	
  successful	
  future	
  for	
  the	
  organisation.	
  
• Do	
  craft	
  aspirations	
  that	
  will	
  be	
  meaningful	
  and	
  powerful	
  to	
  your	
  employees	
  and	
  to	
  
your	
  consumers;	
  it	
  isn’t	
  about	
  finding	
  the	
  perfect	
  language	
  or	
  the	
  consensus	
  view,	
  
but	
  is	
  about	
  connecting	
  to	
  a	
  deeper	
  idea	
  of	
  what	
  the	
  organisation	
  exists	
  to	
  do.	
  
• Do	
  start	
  with	
  consumers,	
  rather	
  than	
  products,	
  when	
  thinking	
  about	
  what	
  it	
  means	
  
to	
  win.	
  
• Do	
  set	
  winning	
  aspirations	
  (and	
  make	
  the	
  other	
  four	
  choices)	
  for	
  internal	
  functions	
  
and	
  outward-­‐facing	
  brands	
  and	
  business	
  lines.	
  Ask,	
  what	
  is	
  winning	
  for	
  this	
  
function?	
  Who	
  are	
  its	
  customers,	
  and	
  what	
  does	
  it	
  mean	
  to	
  win	
  with	
  them?	
  
• Do	
  think	
  about	
  winning	
  relative	
  to	
  competition.	
  Think	
  about	
  your	
  traditional	
  
competitors,	
  and	
  look	
  for	
  unexpected	
  ‘best’	
  competitors	
  too.	
  
• Don’t	
  stop	
  here.	
  Aspirations	
  aren’t	
  strategy;	
  they	
  are	
  merely	
  the	
  first	
  box	
  in	
  the	
  
choice	
  cascade.	
  
	
  
	
  
Where	
  to	
  play	
  
The	
  choice	
  of	
  ‘where	
  to	
  play’	
  defines	
  the	
  playing	
  field	
  for	
  a	
  company.	
  It	
  is	
  a	
  question	
  of	
  what	
  business	
  you	
  
are	
  really	
  in.	
  It	
  is	
  a	
  choice	
  about	
  where	
  to	
  compete	
  and	
  where	
  not	
  to	
  compete.	
  Basically,	
  it	
  is	
  about	
  
understanding	
  that	
  you	
  can’t	
  be	
  all	
  things	
  to	
  all	
  people	
  if	
  you	
  want	
  to	
  be	
  successful.	
  To	
  define	
  this	
  choice,	
  
leaders	
  must	
  look	
  for	
  answers	
  in	
  various	
  domains	
  such	
  as	
  geography,	
  specific	
  products	
  and	
  services,	
  
consumer	
  segments,	
  distribution	
  channels,	
  and	
  value	
  chains.	
  It	
  is	
  a	
  discipline	
  that	
  requires	
  a	
  steadfast	
  focus	
  
and	
  a	
  thorough	
  examination	
  of	
  the	
  market	
  playing	
  field.	
  
‘It	
  is	
  an	
  important	
  question	
  –	
  maybe	
  the	
  most	
  under-­‐recognised	
  question	
  in	
  strategy,	
  in	
  my	
  view.	
  Most	
  
companies	
  seem	
  to	
  view	
  “where	
  to	
  play”	
  as	
  sort	
  of	
  ordained	
  by	
  God.	
  Like,	
  “Everyone	
  in	
  the	
  industry	
  plays	
  
this	
  way,	
  therefore	
  we	
  shall	
  do	
  it	
  too”.	
  Many	
  of	
  the	
  cleverest	
  decisions	
  that	
  are	
  made	
  strategically	
  involve	
  
picking	
  a	
  “where	
  to	
  play”	
  that	
  is	
  different	
  from	
  others	
  –	
  and	
  by	
  being	
  different	
  you	
  can	
  win	
  there.	
  In	
  the	
  
case	
  of	
  Olay,	
  we	
  shifted	
  the	
  “where	
  to	
  play”	
  from	
  women	
  aged	
  50	
  and	
  above	
  seeking	
  a	
  wrinkle	
  treatment	
  
to	
  women	
  aged	
  35–50	
  fighting	
  the	
  first	
  seven	
  signs	
  of	
  skin	
  ageing.	
  And	
  that	
  made	
  all	
  the	
  difference	
  in	
  the	
  
world.	
  So,	
  those	
  “where	
  to	
  play”	
  choices	
  are	
  non-­‐trivial	
  and	
  can	
  make	
  a	
  big	
  difference,	
  and	
  they	
  are	
  subtle,’	
  
says	
  Martin.	
  
‘Where	
  to	
  play’	
  dos	
  and	
  don’ts	
  
• Do	
  choose	
  where	
  you	
  will	
  play	
  and	
  where	
  you	
  will	
  not	
  play.	
  Explicitly	
  choose	
  and	
  
prioritise	
  choices	
  across	
  all	
  relevant	
  where	
  dimensions	
  (i.e.,	
  geographies,	
  industry	
  
segments,	
  consumers,	
  customers,	
  products,	
  etc.).	
  
• Don’t	
  embark	
  on	
  a	
  strategy	
  without	
  specific	
  ‘where’	
  choices.	
  If	
  everything	
  is	
  a	
  
priority,	
  nothing	
  is.	
  There	
  is	
  no	
  point	
  in	
  trying	
  to	
  capture	
  all	
  segments.	
  You	
  can’t.	
  
Don’t	
  try.	
  
• Do	
  look	
  for	
  places	
  to	
  play	
  that	
  will	
  enable	
  you	
  to	
  attack	
  from	
  unexpected	
  directions,	
  
along	
  the	
  lines	
  of	
  least	
  resistance.	
  Don’t	
  attack	
  walled	
  cities	
  or	
  take	
  on	
  your	
  
strongest	
  competitors	
  head-­‐to-­‐head	
  if	
  you	
  can	
  help	
  it.	
  
• Don’t	
  start	
  wars	
  on	
  multiple	
  fronts	
  at	
  once.	
  Plan	
  for	
  your	
  competitors’	
  reactions	
  to	
  
your	
  initial	
  choices,	
  and	
  think	
  multiple	
  steps	
  ahead.	
  No	
  single	
  choice	
  needs	
  to	
  last	
  
forever,	
  but	
  it	
  should	
  last	
  long	
  enough	
  to	
  confer	
  the	
  advantage	
  you	
  seek.	
  
• Do	
  be	
  honest	
  about	
  the	
  allure	
  of	
  white	
  space.	
  It	
  is	
  tempting	
  to	
  be	
  the	
  first	
  mover	
  
into	
  unoccupied	
  white	
  space.	
  Unfortunately,	
  there	
  is	
  only	
  one	
  true	
  first	
  mover	
  (as	
  
there	
  is	
  only	
  one	
  low-­‐cost	
  player),	
  and	
  all	
  too	
  often,	
  the	
  imagined	
  white	
  space	
  is	
  
already	
  occupied	
  by	
  a	
  formidable	
  competitor	
  you	
  just	
  don’t	
  see	
  or	
  understand.	
  
	
  
	
  
How	
  to	
  win	
  
‘Where	
  to	
  play’	
  and	
  ‘how	
  to	
  win’	
  choices	
  complement	
  each	
  other	
  like	
  salt	
  and	
  pepper.	
  To	
  determine	
  ‘how	
  
to	
  win’,	
  any	
  organisation	
  must	
  decide	
  what	
  will	
  enable	
  it	
  to	
  create	
  unique	
  value	
  and	
  sustainably	
  deliver	
  that	
  
value	
  to	
  customers	
  in	
  a	
  way	
  that	
  is	
  distinct	
  from	
  its	
  competitors.	
  This	
  is	
  what	
  Michael	
  Porter	
  famously	
  
coined	
  as	
  a	
  company’s	
  competitive	
  advantage.	
  For	
  Olay,	
  this	
  resulted	
  in	
  a	
  complete	
  makeover.	
  The	
  ‘how	
  to	
  
win’	
  choices	
  were	
  to	
  formulate	
  genuinely	
  better	
  skincare	
  products	
  that	
  appear	
  to	
  fight	
  the	
  signs	
  of	
  ageing,	
  
and	
  to	
  create	
  a	
  powerful	
  marketing	
  campaign	
  that	
  clearly	
  established	
  Olay	
  as	
  the	
  best	
  product	
  on	
  the	
  
market.	
  This	
  also	
  involved	
  a	
  new	
  package	
  design	
  and	
  re-­‐calibrating	
  the	
  price	
  of	
  the	
  product.	
  
‘“How	
  to	
  win”	
  is	
  about	
  creating	
  a	
  superior	
  value	
  equation	
  for	
  the	
  customer.	
  In	
  the	
  case	
  of	
  Olay,	
  the	
  “how	
  to	
  
win”	
  was	
  to	
  create	
  a	
  masstige	
  experience	
  in	
  the	
  normal	
  mass	
  channel.	
  This	
  meant	
  creating	
  a	
  product	
  of	
  the	
  
sort	
  that	
  customers	
  would	
  buy	
  for	
  a	
  high	
  price	
  in	
  the	
  prestige	
  channel	
  –	
  with	
  the	
  quality,	
  the	
  packaging,	
  and	
  
shelf	
  presence	
  that	
  they	
  would	
  find	
  in	
  the	
  prestige	
  channel,	
  but	
  in	
  the	
  mass	
  channel,’	
  Martin	
  explains.	
  
The	
  masstige	
  experience	
  that	
  Martin	
  refers	
  to	
  was	
  P&G’s	
  strategy	
  to	
  bridge	
  the	
  mass	
  and	
  prestige	
  markets	
  
and	
  sell	
  Olay	
  in	
  discount	
  stores,	
  drugstores	
  and	
  grocery	
  stores,	
  rather	
  than	
  entering	
  the	
  prestige	
  market	
  
and	
  selling	
  through	
  department	
  and	
  specialty	
  stores.	
  
‘How	
  to	
  win’	
  dos	
  and	
  don’ts	
  
• Do	
  work	
  to	
  create	
  new	
  ‘how	
  to	
  win’	
  choices	
  where	
  none	
  currently	
  exist.	
  Just	
  
because	
  there	
  isn’t	
  an	
  obvious	
  ‘how	
  to	
  win’	
  choice	
  given	
  your	
  current	
  structure	
  
doesn’t	
  mean	
  it	
  is	
  impossible	
  to	
  create	
  one	
  (and	
  worth	
  it,	
  if	
  the	
  prize	
  is	
  big	
  enough).	
  
• But	
  don’t	
  kid	
  yourself	
  either.	
  If,	
  after	
  lots	
  of	
  searching,	
  you	
  can’t	
  create	
  a	
  credible	
  
‘how	
  to	
  win’	
  choice,	
  find	
  a	
  new	
  playing	
  field	
  or	
  get	
  out	
  of	
  the	
  game.	
  
• Do	
  consider	
  ‘how	
  to	
  win’	
  in	
  conjunction	
  with	
  ‘where	
  to	
  play’.	
  The	
  choices	
  should	
  be	
  
mutually	
  reinforcing,	
  creating	
  a	
  strong	
  strategic	
  core	
  for	
  the	
  company.	
  
• Don’t	
  assume	
  that	
  the	
  dynamics	
  of	
  an	
  industry	
  are	
  set	
  and	
  immutable.	
  The	
  choices	
  
of	
  the	
  players	
  within	
  those	
  industries	
  may	
  be	
  creating	
  the	
  dynamics.	
  Industry	
  
dynamics	
  might	
  be	
  changeable.	
  
• Don’t	
  reserve	
  questions	
  of	
  ‘where	
  to	
  play’	
  and	
  ‘how	
  to	
  win’	
  for	
  only	
  customer-­‐facing	
  
functions.	
  Internal	
  and	
  support	
  functions	
  can	
  and	
  should	
  be	
  making	
  these	
  choices	
  
too.	
  
• Do	
  set	
  the	
  rules	
  of	
  the	
  game	
  and	
  play	
  the	
  game	
  better	
  if	
  you’re	
  winning.	
  Change	
  the	
  
rules	
  of	
  the	
  game	
  if	
  you’re	
  not.	
  
	
  
Building	
  capabilities	
  
Capabilities	
  are	
  the	
  map	
  of	
  activities	
  and	
  competencies	
  that	
  critically	
  underpin	
  specific	
  ‘where	
  to	
  play’	
  and	
  
‘how	
  to	
  win’	
  choices.	
  Without	
  them	
  no	
  strategy	
  will	
  succeed.	
  In	
  the	
  case	
  of	
  Olay,	
  that	
  meant	
  putting	
  
together	
  a	
  team	
  of	
  people	
  from	
  both	
  inside	
  and	
  outside	
  the	
  company	
  with	
  cutting-­‐edge	
  expertise	
  in	
  
packaging	
  and	
  marketing.	
  This	
  also	
  involved	
  forming	
  partnerships	
  with	
  designers.	
  
‘This	
  question	
  relates	
  to	
  the	
  capabilities	
  P&G	
  needed	
  to	
  have	
  in	
  place	
  in	
  order	
  to	
  win	
  where	
  they	
  had	
  
chosen	
  to	
  play,	
  and	
  to	
  meet	
  their	
  winning	
  aspirations.	
  In	
  that	
  case	
  we	
  had	
  to	
  develop	
  some	
  capabilities	
  on	
  
producing	
  better	
  active	
  ingredients	
  that	
  allowed	
  us	
  to	
  compete	
  with	
  the	
  prestige	
  brands.	
  But	
  we	
  also	
  had	
  
to	
  develop	
  capabilities	
  to	
  work	
  with	
  the	
  retailers	
  to	
  create	
  a	
  masstige	
  type	
  of	
  experience	
  in	
  those	
  stores,’	
  
says	
  Martin.	
  
The	
  choice	
  of	
  bringing	
  in	
  people	
  from	
  outside	
  P&G	
  wasn’t	
  just	
  practised	
  in	
  the	
  case	
  of	
  Olay.	
  As	
  CEO,	
  Lafley	
  
challenged	
  the	
  company	
  to	
  reinvent	
  its	
  innovation	
  business	
  model	
  by	
  merging	
  P&G’s	
  internal	
  resources	
  
with	
  outside	
  open	
  innovation,	
  referred	
  to	
  as	
  Connect	
  +	
  Develop.	
  At	
  the	
  time	
  P&G	
  estimated	
  that	
  for	
  every	
  
P&G	
  researcher	
  there	
  were	
  200	
  scientists	
  or	
  engineers	
  elsewhere	
  in	
  the	
  world	
  who	
  were	
  just	
  as	
  good	
  –	
  a	
  
total	
  of	
  perhaps	
  1.5	
  million	
  people	
  whose	
  talents	
  they	
  could	
  potentially	
  tap	
  into.	
  P&G	
  didn’t	
  just	
  ‘do	
  the	
  
math’,	
  they	
  also	
  acted	
  on	
  it	
  when	
  Lafley	
  proclaimed	
  that	
  half	
  of	
  the	
  company’s	
  new	
  products	
  would	
  come	
  
from	
  P&G’s	
  own	
  labs,	
  and	
  half	
  would	
  come	
  through	
  them.	
  Implementing	
  that	
  approach	
  has	
  later	
  made	
  
P&G	
  a	
  well-­‐documented	
  archetype	
  for	
  open	
  innovation.	
  
‘What	
  Lafley	
  saw	
  in	
  that	
  capabilities	
  box	
  was:	
  “Wow,	
  do	
  we	
  ever	
  have	
  some	
  fantastic	
  capabilities,	
  but	
  we	
  
also	
  have	
  significant	
  voids.”	
  So	
  what	
  do	
  we	
  do?	
  Do	
  we	
  build	
  all	
  of	
  them	
  ourselves	
  or	
  do	
  we	
  connect	
  and	
  
develop	
  on	
  some	
  of	
  them?	
  Do	
  we	
  outsource	
  things?	
  That	
  really	
  was	
  an	
  obsession	
  about	
  him.	
  He	
  loves	
  P&G	
  
and	
  he	
  loves	
  P&G	
  people.	
  But	
  the	
  thing	
  he	
  loves	
  least	
  is	
  when	
  they	
  get	
  closed	
  in	
  on	
  thinking:	
  “We	
  are	
  the	
  
only	
  people	
  who	
  know	
  the	
  right	
  answer.”	
  He	
  can’t	
  stand	
  that	
  as	
  an	
  attitude,’	
  explains	
  Martin.	
  
Building	
  capabilities	
  dos	
  and	
  don’ts	
  
• Do	
  discuss,	
  debate,	
  and	
  refine	
  your	
  activity	
  system;	
  creating	
  an	
  activity	
  system	
  is	
  
hard	
  work	
  and	
  may	
  well	
  take	
  a	
  few	
  tries	
  to	
  capture	
  everything	
  in	
  a	
  meaningful	
  way.	
  
• Don’t	
  obsess	
  about	
  whether	
  something	
  is	
  a	
  core	
  capability	
  or	
  a	
  supporting	
  activity;	
  
try	
  your	
  best	
  to	
  capture	
  the	
  most	
  important	
  activities	
  required	
  to	
  deliver	
  on	
  your	
  
‘where	
  to	
  play’	
  and	
  ‘how	
  to	
  win’	
  choices.	
  
• Don’t	
  settle	
  for	
  a	
  generic	
  activity	
  system;	
  work	
  to	
  create	
  a	
  distinctive	
  system	
  that	
  
reflects	
  the	
  choices	
  you’ve	
  made.	
  
• Do	
  play	
  to	
  your	
  own,	
  unique	
  strengths.	
  Reverse	
  engineer	
  the	
  activity	
  systems	
  (and	
  
‘where	
  to	
  play’	
  and	
  ‘how	
  to	
  win’	
  choices)	
  of	
  your	
  best	
  competitors,	
  and	
  overlay	
  
them	
  with	
  yours.	
  Ask	
  how	
  to	
  make	
  yours	
  truly	
  distinctive	
  and	
  value-­‐creating.	
  
• Do	
  keep	
  the	
  whole	
  company	
  in	
  mind,	
  looking	
  for	
  reinforcing	
  rods	
  that	
  are	
  strong	
  
and	
  versatile	
  enough	
  to	
  run	
  through	
  multiple	
  layers	
  of	
  activity	
  systems	
  and	
  keep	
  the	
  
company	
  aligned.	
  
• Do	
  be	
  honest	
  about	
  the	
  state	
  of	
  your	
  capabilities,	
  asking	
  what	
  will	
  be	
  required	
  to	
  
keep	
  and	
  attain	
  the	
  capabilities	
  you	
  require.	
  
• Do	
  explicitly	
  test	
  for	
  feasibility,	
  distinctiveness,	
  and	
  defensibility.	
  Assess	
  the	
  extent	
  
to	
  which	
  your	
  activity	
  system	
  is	
  doable,	
  unique,	
  and	
  defendable	
  in	
  the	
  face	
  of	
  
competitive	
  reaction.	
  
• Do	
  start	
  building	
  activity	
  systems	
  with	
  the	
  lowest	
  indivisible	
  system.	
  For	
  all	
  levels	
  
above,	
  systems	
  should	
  be	
  geared	
  to	
  supporting	
  the	
  capabilities	
  required	
  to	
  win.	
  
	
  
	
  
Manage	
  what	
  matters	
  
Operating	
  a	
  strategy	
  without	
  established	
  management	
  systems	
  and	
  supporting	
  structures	
  is	
  a	
  guaranteed	
  
recipe	
  for	
  failure,	
  according	
  to	
  Martin	
  and	
  Lafley.	
  To	
  truly	
  win	
  in	
  the	
  marketplace,	
  a	
  company	
  needs	
  to	
  put	
  
in	
  place	
  a	
  robust	
  management	
  system	
  in	
  order	
  to	
  foster,	
  support,	
  and	
  measure	
  the	
  strategy.	
  These	
  
management	
  systems	
  are	
  needed	
  to	
  complete	
  the	
  strategic	
  choice	
  cascade	
  and	
  ensure	
  effective	
  action	
  
throughout	
  the	
  organisation.	
  Martin	
  often	
  experienced	
  that	
  the	
  aspects	
  of	
  capabilities	
  and	
  management	
  
systems	
  collide	
  with	
  the	
  positioning	
  strategy.	
  
‘In	
  the	
  world	
  of	
  strategy,	
  there	
  is	
  this	
  big	
  war	
  between	
  the	
  capabilities-­‐orientated	
  people,	
  who	
  have	
  a	
  
resourced-­‐based	
  view	
  of	
  a	
  firm,	
  and	
  the	
  positioning	
  people,	
  who	
  focus	
  more	
  on	
  the	
  “where	
  to	
  play”	
  and	
  
“how	
  to	
  win”.	
  I	
  think	
  what	
  manifests	
  in	
  our	
  model	
  of	
  thinking	
  about	
  strategy	
  is	
  that	
  it	
  is	
  obviously	
  both.	
  The	
  
fact	
  that	
  the	
  academic	
  world	
  spent	
  much	
  of	
  its	
  time	
  in	
  a	
  big	
  food	
  fight	
  over	
  which	
  it	
  is,	
  is	
  sort	
  of	
  indicative	
  
of	
  the	
  siloization	
  and	
  compartmentalisation	
  of	
  complex	
  problems.	
  In	
  my	
  mind	
  you	
  just	
  cannot	
  be	
  an	
  
intelligent	
  positioning	
  strategist	
  or	
  an	
  intelligent	
  capabilities-­‐based	
  viewer	
  of	
  strategy;	
  neither	
  of	
  those	
  are	
  
possible.	
  You	
  actually	
  have	
  to	
  have	
  both	
  sides	
  if	
  you	
  want	
  to	
  be	
  an	
  intelligent	
  strategist,’	
  Martin	
  argues.	
  
P&G	
  attacked	
  this	
  by	
  establishing	
  a	
  new	
  human	
  resources	
  approach	
  and	
  developed	
  detailed	
  tracking	
  
systems	
  to	
  determine	
  consumer	
  response.	
  At	
  the	
  same	
  time	
  a	
  tremendous	
  effort	
  was	
  made	
  to	
  simplify	
  the	
  
strategy	
  dialogue,	
  and	
  enhance	
  the	
  employees’	
  understanding	
  of	
  the	
  innovation	
  process.	
  This	
  involved	
  
fostering	
  an	
  assertive	
  inquiry	
  culture,	
  where	
  people	
  not	
  only	
  expressed	
  their	
  own	
  thinking,	
  but	
  also	
  
explored	
  the	
  thinking	
  of	
  others.	
  In	
  the	
  case	
  of	
  Olay,	
  the	
  five	
  choices	
  paid	
  off	
  as	
  it	
  grew	
  from	
  a	
  struggling	
  
$800	
  million	
  brand	
  into	
  a	
  $2.5	
  billion	
  brand.	
  
Management	
  systems	
  and	
  measures	
  dos	
  and	
  don’ts	
  
• Don’t	
  stop	
  at	
  capabilities;	
  ask	
  yourself	
  which	
  management	
  systems	
  are	
  needed	
  to	
  
foster	
  those	
  capabilities.	
  
• Do	
  continue	
  strategic	
  discussions	
  throughout	
  the	
  year,	
  building	
  an	
  internal	
  rhythm	
  
that	
  keeps	
  focus	
  on	
  the	
  choices	
  that	
  matter.	
  
• Do	
  think	
  about	
  clarity	
  and	
  simplicity	
  when	
  communicating	
  key	
  strategic	
  choices	
  to	
  
the	
  organisation.	
  To	
  get	
  at	
  the	
  core,	
  don’t	
  overcomplicate	
  things.	
  
• Do	
  build	
  systems	
  and	
  measures	
  that	
  support	
  both	
  enterprise-­‐wide	
  capabilities	
  and	
  
business-­‐specific	
  capabilities.	
  
• Do	
  define	
  measures	
  that	
  will	
  tell	
  you,	
  over	
  the	
  short-­‐	
  and	
  long-­‐run,	
  how	
  you	
  are	
  
performing	
  relative	
  to	
  your	
  strategic	
  choices.	
  
	
  
	
  
Leadership	
  lessons	
  from	
  P&G	
  
Having	
  worked	
  for	
  more	
  than	
  25	
  years	
  as	
  an	
  outside	
  strategy	
  consultant	
  for	
  P&G,	
  Martin	
  has	
  a	
  unique	
  
understanding	
  of	
  what	
  others	
  can	
  learn	
  from	
  the	
  company’s	
  quest	
  to	
  embed	
  strategy	
  as	
  an	
  integrated	
  part	
  
of	
  the	
  culture	
  and	
  way	
  of	
  thinking.	
  In	
  Martin’s	
  mind,	
  the	
  best	
  companies	
  constantly	
  focus	
  on	
  staying	
  
relevant	
  in	
  the	
  eyes	
  of	
  the	
  customers	
  and	
  keeping	
  things	
  simple.	
  
‘One	
  of	
  the	
  leadership	
  lessons	
  from	
  P&G	
  is	
  being	
  willing	
  to	
  tackle	
  things	
  in	
  a	
  holistic	
  fashion.	
  Locking	
  and	
  
loading	
  on	
  something	
  and	
  then	
  moving	
  to	
  the	
  next	
  thing	
  and	
  the	
  next	
  thing	
  rarely	
  gets	
  you	
  what	
  you	
  really	
  
want.	
  The	
  other	
  lesson	
  is	
  that	
  in	
  the	
  end	
  you	
  have	
  to	
  make	
  things	
  simple.	
  Organisations	
  do	
  not	
  win	
  on	
  the	
  
basis	
  of	
  complicated	
  strategies.	
  Yes,	
  it	
  takes	
  some	
  complicated	
  thinking	
  and	
  willingness	
  to	
  have	
  a	
  bunch	
  of	
  
balls	
  in	
  the	
  air	
  for	
  a	
  time.	
  But	
  in	
  the	
  end	
  if	
  things	
  aren’t	
  really	
  clear,	
  you	
  are	
  not	
  going	
  to	
  be	
  able	
  to	
  motivate	
  
a	
  large	
  organisation	
  to	
  do	
  something	
  useful.	
  Using	
  really	
  simplifying	
  kind	
  of	
  catch	
  phrases	
  like	
  “the	
  
consumer	
  is	
  boss”	
  and	
  “we	
  have	
  to	
  win	
  at	
  the	
  first	
  moment	
  of	
  truth”	
  along	
  with	
  “where	
  to	
  play”	
  and	
  “how	
  
to	
  win”	
  were	
  very	
  important	
  in	
  P&G.	
  I	
  think	
  a	
  leader	
  needs	
  to	
  think	
  about	
  how	
  you	
  get	
  things	
  down	
  to	
  that	
  
level	
  so	
  that	
  everybody	
  understands	
  the	
  consumer	
  is	
  boss	
  –	
  and	
  if	
  we’re	
  not	
  out	
  talking	
  to	
  her,	
  really	
  
understanding	
  her,	
  and	
  listening	
  to	
  her,	
  we	
  will	
  never	
  win,’	
  Martin	
  outlines.	
  
Challenging	
  the	
  way	
  leaders	
  think	
  is	
  a	
  common	
  thread	
  throughout	
  Playing	
  to	
  Win,	
  but	
  it	
  also	
  ties	
  in	
  with	
  
previous	
  books	
  that	
  Martin	
  has	
  written.	
  Good	
  management	
  is	
  about	
  nothing	
  if	
  not	
  good	
  decision	
  making,	
  
and	
  according	
  to	
  Martin	
  successful	
  business	
  people	
  engage	
  in	
  what	
  he	
  calls	
  integrative	
  thinking	
  –	
  the	
  ability	
  
to	
  use	
  deductive	
  reasoning	
  to	
  extract	
  the	
  best	
  aspects	
  from	
  two	
  conflicting	
  ideas	
  to	
  come	
  up	
  with	
  an	
  
alternative,	
  which	
  incorporates	
  the	
  strengths	
  of	
  both	
  ideas.	
  Integrative	
  thinking	
  is	
  a	
  prerequisite	
  for	
  making	
  
sound	
  choices	
  as	
  a	
  leader	
  and	
  figuring	
  out	
  the	
  right	
  strategy.	
  
‘There	
  is	
  a	
  theme	
  that	
  runs	
  through	
  all	
  my	
  books	
  –	
  in	
  Opposable	
  Mind,	
  The	
  Design	
  of	
  Business,	
  and	
  Playing	
  
to	
  Win	
  for	
  sure,	
  which	
  is	
  about	
  how	
  we	
  think.	
  Sadly,	
  most	
  of	
  us	
  spend	
  our	
  careers	
  being	
  taught	
  about	
  how	
  
to	
  problem-­‐solve	
  and	
  the	
  real	
  question	
  is	
  problem-­‐framing.	
  I	
  think	
  that	
  great	
  strategy	
  comes	
  out	
  of	
  people	
  
having	
  an	
  opposable	
  mind;	
  not	
  settling	
  for	
  the	
  either/or	
  that	
  everybody	
  else	
  does;	
  aiming	
  for	
  something	
  
high;	
  creating	
  something	
  that	
  does	
  not	
  now	
  exist;	
  and	
  understanding	
  that	
  their	
  job	
  is	
  not	
  just	
  to	
  choose	
  
among	
  existing	
  options.	
  Those	
  are	
  the	
  big	
  pieces	
  of	
  the	
  puzzle	
  for	
  a	
  successful	
  executive,’	
  Martin	
  finishes.	
  
	
  
	
  About	
  Roger	
  Martin	
  
	
  
Roger	
  Martin	
  has	
  served	
  as	
  dean	
  of	
  the	
  Rotman	
  School	
  of	
  Management	
  at	
  the	
  University	
  of	
  Toronto	
  since	
  
1998.	
  He	
  is	
  an	
  adviser	
  to	
  CEOs	
  of	
  several	
  major	
  global	
  corporations	
  on	
  strategy,	
  design,	
  innovation,	
  and	
  
integrative	
  thinking,	
  including	
  the	
  successful	
  Danish-­‐based	
  toy	
  company	
  Lego,	
  who	
  recently	
  announced	
  a	
  
record	
  result.	
  
He	
  has	
  published	
  numerous	
  books,	
  including:	
  Fixing	
  the	
  Game,	
  Bubbles,	
  Crashes,	
  and	
  What	
  Capitalism	
  Can	
  
Learn	
  From	
  the	
  NFL,	
  The	
  Design	
  of	
  Business:	
  Why	
  Design	
  Thinking	
  is	
  the	
  Next	
  Competitive	
  Advantage,	
  The	
  
Opposable	
  Mind:	
  How	
  Successful	
  Leaders	
  Win	
  Through	
  Integrative	
  Thinking,	
  The	
  Responsibility	
  Virus:	
  How	
  
Control	
  Freaks,	
  Shrinking	
  Violets	
  –and	
  The	
  Rest	
  Of	
  Us	
  –	
  Can	
  Harness	
  The	
  Power	
  Of	
  True	
  Partnership,	
  The	
  
Future	
  of	
  the	
  MBA:	
  Designing	
  the	
  Thinker	
  of	
  the	
  Future,	
  and	
  DiaMinds:	
  Decoding	
  the	
  Mental	
  Habits	
  of	
  
Successful	
  Thinkers.	
  
In	
  2013	
  Roger	
  Martin	
  placed	
  third	
  on	
  the	
  Thinkers50	
  list,	
  a	
  biannual	
  ranking	
  of	
  the	
  world’s	
  most	
  influential	
  
business	
  thinkers.	
  
You	
  can	
  download	
  a	
  free	
  chapter	
  of	
  Playing	
  to	
  Win	
  here.	
  
	
  
Further	
  information:	
  Roger	
  Martin’s	
  website.	
  

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internal analysis on strategic management
 

Make the right choices to create a winning strategy by Kenneth Mikkelsen

  • 1. Make  the  right  choices  to  create  a  winning  strategy      By  Kenneth  Mikkelsen          8  April  2013       What  makes  good  corporate  strategy?  Kenneth  Mikkelsen  interviews  Roger  Martin,  Dean  of  Rotman  School   of  Management  about  his  book  Playing  to  Win:  How  Strategy  Really  Works.   What  makes  good  corporate  strategy?  It’s  a  question  that  haunts  many  leaders.  This  article  explores  the   five  strategic  choices  that  helped  the  multinational  consumer  goods  company  Procter  &  Gamble  turn  things   around  after  a  serious  setback  in  2000.  I  interviewed  Roger  Martin,  the  dean  of  Rotman  School  of   Management,  about  his  new  book  Playing  to  Win,  which  Martin  co-­‐authored  with  former  Procter  &  Gamble   CEO  Alan  G.  Lafley.   On  7  March  2000  Procter  &  Gamble  (P&G)  sent  shockwaves  through  the  business  world  when  it  announced   that  it  would  not  meet  its  quarterly  earnings  targets.  On  what  came  to  be  known  as  ‘Tide  Tuesday’,  P&G   lost  30  per  cent  of  its  share  value  in  one  day.   In  fact,  this  was  just  the  first  leg  of  a  journey  that  would  send  P&G  into  a  downward  spiral  propelled  by  a   growing  mistrust  among  investors.  In  June,  just  three  months  later,  things  got  worse  as  P&G  once  again   missed  its  projected  earnings  target.  As  a  result  Durk  Jager,  the  head  of  the  company,  resigned  with   immediate  effect.  Jager’s  replacement  was  Alan  G.  Lafley.  In  an  article  featured  in  Harvard  Business  Review   in  May  2009,  Lafley  described  the  situation  he  faced  as  the  new  CEO  of  the  company:   ‘Our  biggest  problem  in  the  summer  of  2000  was  not  the  loss  of  $85  billion  in  market  capitalization.  It  was  a   crisis  of  confidence.  Many  of  P&G’s  leaders  had  retreated  to  their  bunkers.  Business  units  were  blaming   headquarters  for  poor  results,  and  headquarters  was  blaming  the  units.  Investors  and  financial  analysts   were  surprised  and  angry.  Employees  were  calling  for  heads  to  roll.  Retirees,  whose  profit-­‐sharing  nest  eggs   had  been  cut  in  half,  were  even  angrier.’   Even  though  Lafley  would  rightfully  challenge  the  cliché  of  a  CEO  in  shining  armour  who  rides  in  and  turns   things  around  all  by  himself,  the  numbers  clearly  speak  of  the  transformation  that  P&G  went  through  while   Lafley  served  as  the  company’s  CEO.   Under  Lafley’s  leadership  from  2000  till  2010,  P&G  sales  doubled,  profits  quadrupled,  market  value   increased  by  more  than  $100  billion,  and  its  portfolio  of  billion-­‐dollar  brands  –  such  as  Pampers,  Olay,  and   Gillette  –  grew  from  10  to  24  as  a  result  of  P&G’s  focus  on  winning  strategic  choices,  consumer-­‐driven   innovation,  and  reliable,  sustainable  growth.  
  • 2. Playing  to  win   The  story  of  P&G’s  metamorphosis  is  intriguing.  It  is  a  prime  example  of  a  successful  turn-­‐around  realised   through  a  set  of  strategic  choices.  But  P&G  was  not  alone  in  defining  these  choices.  The  company  drew  on   the  expertise  of  some  of  the  world’s  leading  academic  thinkers,  among  them  the  father  of  modern   management,  Peter  Drucker,  and  strategy  mastermind  Michael  Porter.  But  Lafley’s  day-­‐to-­‐day  strategy   alter  ego  and  confidant  was  Roger  Martin,  then  a  consultant  at  Monitor  Group.  Today,  he  is  dean  of   Rotman  School  of  Management  and  is  honoured  as  one  of  the  world’s  top  management  thinkers.  The   relationship  between  the  two  men  stretches  back  25  years.   Recently,  Lafley  and  Martin  wrote  the  book  Playing  to  Win,  which  tells  the  story  of  the  strategic  choices   that  founded  P&G’s  transformation.  I  sat  down  with  Martin  and  asked  him  to  share  some  insights  about  the   framework  that  transformed  P&G  and  made  strategy  a  part  of  the  culture  and  thinking  of  the  company.   ‘Many  people  think  of  strategy  as  a  very  complicated  thing.  That  it  is  sort  of  a  chore,  in  as  much  as  it  is  not   very  enjoyable  or  useful.  The  purpose  of  our  book  is  to  make  strategy  simple,  fun,  and  effective.  I  don’t   want  strategy  to  be  complicated,  and  that  is  why  you’ll  see  phrases  like  “Where  to  Play”  and  “How  to  Win.”   They  are  not  convoluted  or  complicated  jargon;  they  are  simple.  By  making  it  about  choices  and  very  few   choices,  I  think  you  can  make  it  fun  and  enjoyable  to  consider  those  choices,  and  if  you  answer  those   choices,  you  can  have  a  great  and  effective  strategy.  In  doing  that,  what  we  wanted  to  do  is  hone  it  down;  if   it  is  about  choices,  what  are  the  very  few  choices  that  really  matter?’  Martin  explains.   In  Playing  to  Win  Lafley  and  Martin  talk  about  strategy  as  a  coordinated  and  integrated  set  of  five  choices:   identifying  a  winning  aspiration,  deciding  where  to  play,  working  out  how  to  win,  defining  core  capabilities,   and  recognising  what  management  systems  are  needed.  In  reality,  it  is  a  thought  pattern  that  people  can   use  to  see  the  bigger  picture  and  ask  the  right  questions  as  they  focus  on  important  strategic  decisions.   Strategy  is  an  integrated  cascade  of  choices     Smaller  companies  may  only  have  a  single  choice  cascade.  But  in  larger  companies,  there  are  multiple  levels   of  choices  or  nested  choice  cascades  at  the  corporate-­‐level,  sector-­‐level,  and  individual  brand-­‐level  that  all   interconnect  and  influence  each  other.   ‘Strategy  would  be  dead  easy  if  you  could  answer  those  questions  one  at  the  time  and  lock  and  load  each   as  you  go.  The  only  tricky  thing  about  strategy  is  that  they  all  interrelate.  They  have  to  fit  and  you  have  to   reinforce  them,  which  makes  strategy  less  of  a  lineal  project,  but  rather  an  iterate  one  that  you  have  to  be   comfortable  with.  Put  up  a  winning  aspiration  and  say:  “This  is  what  we  think,  what  we  would  like  to  do”  –   and  then  figure  out  where  to  play,  how  to  win,  and  how  to  make  that  happen.  If  there  isn’t  clarity,  modify  it   and  keep  going  back  and  around,’  Martin  emphasises.   The  notion  that  strategy  is  a  way  to  reduce  uncertainties  in  a  fast-­‐paced  world  doesn’t  rest  well  with   Martin.  He  thinks  that  uncertainty  is  an  often-­‐used  excuse  among  executives  to  convince  themselves  that   they  are  doing  the  right  things  by  not  making  the  necessary  choices.   ‘There  are  control-­‐oriented  people  who  really  want  it  to  be  true,  hope  that  it  is  true:  that  strategy  is  a  way   to  reduce  uncertainty.  It  is  like  pushing  water  uphill  –  it  is  always  hard  to  keep  water  at  the  top  of  the  hill.   So  go  with  the  flow,  instead  of  trying  to  get  rid  of  uncertainty,  understand  that  there  will  be  uncertainty.  
  • 3. That,  I  think,  is  a  more  healthy  approach.’   Winning  aspirations   The  five  basic  questions  outlined  in  Playing  to  Win  were  used  rigorously  to  guide  P&G’s  strategy.  In  June   2000,  when  Lafley  became  the  CEO,  the  company  was  over-­‐invested  and  overextended.  It  wasn’t  winning   with  those  who  mattered  most  –  consumers  and  customers.  According  to  the  authors,  the  first  question  –   What  is  our  winning  aspiration?  is  the  heart  of  any  strategy  and  sets  the  frame  for  all  the  other  choices.  A   company  must  seek  to  win  in  a  particular  place  and  in  a  particular  way.  If  it  doesn’t  seek  to  win,  it’s  wasting   its  resources.  But  to  be  most  helpful,  the  abstract  concept  of  winning  should  be  translated  into  defined   aspirations:  statements  about  the  ideal  future.   ‘We  used  the  word  “winning”  because  we  really  feel  it  is  important  …  to  try  and  win.  Not  because  we  like   the  idea  of  beating  other  people;  it  is  not  some  joy  of  grinding  other  people  into  dust,  but  winning  means   that  for  the  customers  you  serve,  you  have  a  better  value  proposition  than  anybody  else.  That  doesn’t   mean  you  are  going  to  crush  all  your  competitors.  There  will  be  competitors  that  will  have  other  customers,   other  than  your  customers,  that  will  like  them  better  than  you.  And  that  is  absolutely  fine.  A  winning   aspiration  is  not  just  to  play  better  than  we  used  to  play,’  Martin  explains.   Playing  to  Win  tells  the  story  of  Olay,  a  skin-­‐care  brand  in  P&G’s  portfolio  that  was  struggling  in  the  late   1990s.  It  experienced  a  declining  market  share  and  was  broadly  perceived  as  old-­‐fashioned  by  consumers  –   until  P&G  decided  to  tweak  its  strategy.  For  Olay,  the  winning  aspirations  were  market-­‐share  leadership  in   North  America,  $1billion  in  sales,  and  a  global  share  that  placed  it  among  the  market  leaders.   Winning  aspiration  dos  and  don’ts   • Do  play  to  win,  rather  than  simply  to  compete.  Define  winning  in  your  context,   painting  a  picture  of  a  brilliant,  successful  future  for  the  organisation.   • Do  craft  aspirations  that  will  be  meaningful  and  powerful  to  your  employees  and  to   your  consumers;  it  isn’t  about  finding  the  perfect  language  or  the  consensus  view,   but  is  about  connecting  to  a  deeper  idea  of  what  the  organisation  exists  to  do.   • Do  start  with  consumers,  rather  than  products,  when  thinking  about  what  it  means   to  win.   • Do  set  winning  aspirations  (and  make  the  other  four  choices)  for  internal  functions   and  outward-­‐facing  brands  and  business  lines.  Ask,  what  is  winning  for  this   function?  Who  are  its  customers,  and  what  does  it  mean  to  win  with  them?   • Do  think  about  winning  relative  to  competition.  Think  about  your  traditional   competitors,  and  look  for  unexpected  ‘best’  competitors  too.   • Don’t  stop  here.  Aspirations  aren’t  strategy;  they  are  merely  the  first  box  in  the   choice  cascade.       Where  to  play   The  choice  of  ‘where  to  play’  defines  the  playing  field  for  a  company.  It  is  a  question  of  what  business  you   are  really  in.  It  is  a  choice  about  where  to  compete  and  where  not  to  compete.  Basically,  it  is  about   understanding  that  you  can’t  be  all  things  to  all  people  if  you  want  to  be  successful.  To  define  this  choice,   leaders  must  look  for  answers  in  various  domains  such  as  geography,  specific  products  and  services,  
  • 4. consumer  segments,  distribution  channels,  and  value  chains.  It  is  a  discipline  that  requires  a  steadfast  focus   and  a  thorough  examination  of  the  market  playing  field.   ‘It  is  an  important  question  –  maybe  the  most  under-­‐recognised  question  in  strategy,  in  my  view.  Most   companies  seem  to  view  “where  to  play”  as  sort  of  ordained  by  God.  Like,  “Everyone  in  the  industry  plays   this  way,  therefore  we  shall  do  it  too”.  Many  of  the  cleverest  decisions  that  are  made  strategically  involve   picking  a  “where  to  play”  that  is  different  from  others  –  and  by  being  different  you  can  win  there.  In  the   case  of  Olay,  we  shifted  the  “where  to  play”  from  women  aged  50  and  above  seeking  a  wrinkle  treatment   to  women  aged  35–50  fighting  the  first  seven  signs  of  skin  ageing.  And  that  made  all  the  difference  in  the   world.  So,  those  “where  to  play”  choices  are  non-­‐trivial  and  can  make  a  big  difference,  and  they  are  subtle,’   says  Martin.   ‘Where  to  play’  dos  and  don’ts   • Do  choose  where  you  will  play  and  where  you  will  not  play.  Explicitly  choose  and   prioritise  choices  across  all  relevant  where  dimensions  (i.e.,  geographies,  industry   segments,  consumers,  customers,  products,  etc.).   • Don’t  embark  on  a  strategy  without  specific  ‘where’  choices.  If  everything  is  a   priority,  nothing  is.  There  is  no  point  in  trying  to  capture  all  segments.  You  can’t.   Don’t  try.   • Do  look  for  places  to  play  that  will  enable  you  to  attack  from  unexpected  directions,   along  the  lines  of  least  resistance.  Don’t  attack  walled  cities  or  take  on  your   strongest  competitors  head-­‐to-­‐head  if  you  can  help  it.   • Don’t  start  wars  on  multiple  fronts  at  once.  Plan  for  your  competitors’  reactions  to   your  initial  choices,  and  think  multiple  steps  ahead.  No  single  choice  needs  to  last   forever,  but  it  should  last  long  enough  to  confer  the  advantage  you  seek.   • Do  be  honest  about  the  allure  of  white  space.  It  is  tempting  to  be  the  first  mover   into  unoccupied  white  space.  Unfortunately,  there  is  only  one  true  first  mover  (as   there  is  only  one  low-­‐cost  player),  and  all  too  often,  the  imagined  white  space  is   already  occupied  by  a  formidable  competitor  you  just  don’t  see  or  understand.       How  to  win   ‘Where  to  play’  and  ‘how  to  win’  choices  complement  each  other  like  salt  and  pepper.  To  determine  ‘how   to  win’,  any  organisation  must  decide  what  will  enable  it  to  create  unique  value  and  sustainably  deliver  that   value  to  customers  in  a  way  that  is  distinct  from  its  competitors.  This  is  what  Michael  Porter  famously   coined  as  a  company’s  competitive  advantage.  For  Olay,  this  resulted  in  a  complete  makeover.  The  ‘how  to   win’  choices  were  to  formulate  genuinely  better  skincare  products  that  appear  to  fight  the  signs  of  ageing,   and  to  create  a  powerful  marketing  campaign  that  clearly  established  Olay  as  the  best  product  on  the   market.  This  also  involved  a  new  package  design  and  re-­‐calibrating  the  price  of  the  product.   ‘“How  to  win”  is  about  creating  a  superior  value  equation  for  the  customer.  In  the  case  of  Olay,  the  “how  to   win”  was  to  create  a  masstige  experience  in  the  normal  mass  channel.  This  meant  creating  a  product  of  the   sort  that  customers  would  buy  for  a  high  price  in  the  prestige  channel  –  with  the  quality,  the  packaging,  and   shelf  presence  that  they  would  find  in  the  prestige  channel,  but  in  the  mass  channel,’  Martin  explains.  
  • 5. The  masstige  experience  that  Martin  refers  to  was  P&G’s  strategy  to  bridge  the  mass  and  prestige  markets   and  sell  Olay  in  discount  stores,  drugstores  and  grocery  stores,  rather  than  entering  the  prestige  market   and  selling  through  department  and  specialty  stores.   ‘How  to  win’  dos  and  don’ts   • Do  work  to  create  new  ‘how  to  win’  choices  where  none  currently  exist.  Just   because  there  isn’t  an  obvious  ‘how  to  win’  choice  given  your  current  structure   doesn’t  mean  it  is  impossible  to  create  one  (and  worth  it,  if  the  prize  is  big  enough).   • But  don’t  kid  yourself  either.  If,  after  lots  of  searching,  you  can’t  create  a  credible   ‘how  to  win’  choice,  find  a  new  playing  field  or  get  out  of  the  game.   • Do  consider  ‘how  to  win’  in  conjunction  with  ‘where  to  play’.  The  choices  should  be   mutually  reinforcing,  creating  a  strong  strategic  core  for  the  company.   • Don’t  assume  that  the  dynamics  of  an  industry  are  set  and  immutable.  The  choices   of  the  players  within  those  industries  may  be  creating  the  dynamics.  Industry   dynamics  might  be  changeable.   • Don’t  reserve  questions  of  ‘where  to  play’  and  ‘how  to  win’  for  only  customer-­‐facing   functions.  Internal  and  support  functions  can  and  should  be  making  these  choices   too.   • Do  set  the  rules  of  the  game  and  play  the  game  better  if  you’re  winning.  Change  the   rules  of  the  game  if  you’re  not.     Building  capabilities   Capabilities  are  the  map  of  activities  and  competencies  that  critically  underpin  specific  ‘where  to  play’  and   ‘how  to  win’  choices.  Without  them  no  strategy  will  succeed.  In  the  case  of  Olay,  that  meant  putting   together  a  team  of  people  from  both  inside  and  outside  the  company  with  cutting-­‐edge  expertise  in   packaging  and  marketing.  This  also  involved  forming  partnerships  with  designers.   ‘This  question  relates  to  the  capabilities  P&G  needed  to  have  in  place  in  order  to  win  where  they  had   chosen  to  play,  and  to  meet  their  winning  aspirations.  In  that  case  we  had  to  develop  some  capabilities  on   producing  better  active  ingredients  that  allowed  us  to  compete  with  the  prestige  brands.  But  we  also  had   to  develop  capabilities  to  work  with  the  retailers  to  create  a  masstige  type  of  experience  in  those  stores,’   says  Martin.   The  choice  of  bringing  in  people  from  outside  P&G  wasn’t  just  practised  in  the  case  of  Olay.  As  CEO,  Lafley   challenged  the  company  to  reinvent  its  innovation  business  model  by  merging  P&G’s  internal  resources   with  outside  open  innovation,  referred  to  as  Connect  +  Develop.  At  the  time  P&G  estimated  that  for  every   P&G  researcher  there  were  200  scientists  or  engineers  elsewhere  in  the  world  who  were  just  as  good  –  a   total  of  perhaps  1.5  million  people  whose  talents  they  could  potentially  tap  into.  P&G  didn’t  just  ‘do  the   math’,  they  also  acted  on  it  when  Lafley  proclaimed  that  half  of  the  company’s  new  products  would  come   from  P&G’s  own  labs,  and  half  would  come  through  them.  Implementing  that  approach  has  later  made   P&G  a  well-­‐documented  archetype  for  open  innovation.   ‘What  Lafley  saw  in  that  capabilities  box  was:  “Wow,  do  we  ever  have  some  fantastic  capabilities,  but  we   also  have  significant  voids.”  So  what  do  we  do?  Do  we  build  all  of  them  ourselves  or  do  we  connect  and  
  • 6. develop  on  some  of  them?  Do  we  outsource  things?  That  really  was  an  obsession  about  him.  He  loves  P&G   and  he  loves  P&G  people.  But  the  thing  he  loves  least  is  when  they  get  closed  in  on  thinking:  “We  are  the   only  people  who  know  the  right  answer.”  He  can’t  stand  that  as  an  attitude,’  explains  Martin.   Building  capabilities  dos  and  don’ts   • Do  discuss,  debate,  and  refine  your  activity  system;  creating  an  activity  system  is   hard  work  and  may  well  take  a  few  tries  to  capture  everything  in  a  meaningful  way.   • Don’t  obsess  about  whether  something  is  a  core  capability  or  a  supporting  activity;   try  your  best  to  capture  the  most  important  activities  required  to  deliver  on  your   ‘where  to  play’  and  ‘how  to  win’  choices.   • Don’t  settle  for  a  generic  activity  system;  work  to  create  a  distinctive  system  that   reflects  the  choices  you’ve  made.   • Do  play  to  your  own,  unique  strengths.  Reverse  engineer  the  activity  systems  (and   ‘where  to  play’  and  ‘how  to  win’  choices)  of  your  best  competitors,  and  overlay   them  with  yours.  Ask  how  to  make  yours  truly  distinctive  and  value-­‐creating.   • Do  keep  the  whole  company  in  mind,  looking  for  reinforcing  rods  that  are  strong   and  versatile  enough  to  run  through  multiple  layers  of  activity  systems  and  keep  the   company  aligned.   • Do  be  honest  about  the  state  of  your  capabilities,  asking  what  will  be  required  to   keep  and  attain  the  capabilities  you  require.   • Do  explicitly  test  for  feasibility,  distinctiveness,  and  defensibility.  Assess  the  extent   to  which  your  activity  system  is  doable,  unique,  and  defendable  in  the  face  of   competitive  reaction.   • Do  start  building  activity  systems  with  the  lowest  indivisible  system.  For  all  levels   above,  systems  should  be  geared  to  supporting  the  capabilities  required  to  win.       Manage  what  matters   Operating  a  strategy  without  established  management  systems  and  supporting  structures  is  a  guaranteed   recipe  for  failure,  according  to  Martin  and  Lafley.  To  truly  win  in  the  marketplace,  a  company  needs  to  put   in  place  a  robust  management  system  in  order  to  foster,  support,  and  measure  the  strategy.  These   management  systems  are  needed  to  complete  the  strategic  choice  cascade  and  ensure  effective  action   throughout  the  organisation.  Martin  often  experienced  that  the  aspects  of  capabilities  and  management   systems  collide  with  the  positioning  strategy.   ‘In  the  world  of  strategy,  there  is  this  big  war  between  the  capabilities-­‐orientated  people,  who  have  a   resourced-­‐based  view  of  a  firm,  and  the  positioning  people,  who  focus  more  on  the  “where  to  play”  and   “how  to  win”.  I  think  what  manifests  in  our  model  of  thinking  about  strategy  is  that  it  is  obviously  both.  The   fact  that  the  academic  world  spent  much  of  its  time  in  a  big  food  fight  over  which  it  is,  is  sort  of  indicative   of  the  siloization  and  compartmentalisation  of  complex  problems.  In  my  mind  you  just  cannot  be  an   intelligent  positioning  strategist  or  an  intelligent  capabilities-­‐based  viewer  of  strategy;  neither  of  those  are   possible.  You  actually  have  to  have  both  sides  if  you  want  to  be  an  intelligent  strategist,’  Martin  argues.   P&G  attacked  this  by  establishing  a  new  human  resources  approach  and  developed  detailed  tracking   systems  to  determine  consumer  response.  At  the  same  time  a  tremendous  effort  was  made  to  simplify  the   strategy  dialogue,  and  enhance  the  employees’  understanding  of  the  innovation  process.  This  involved  
  • 7. fostering  an  assertive  inquiry  culture,  where  people  not  only  expressed  their  own  thinking,  but  also   explored  the  thinking  of  others.  In  the  case  of  Olay,  the  five  choices  paid  off  as  it  grew  from  a  struggling   $800  million  brand  into  a  $2.5  billion  brand.   Management  systems  and  measures  dos  and  don’ts   • Don’t  stop  at  capabilities;  ask  yourself  which  management  systems  are  needed  to   foster  those  capabilities.   • Do  continue  strategic  discussions  throughout  the  year,  building  an  internal  rhythm   that  keeps  focus  on  the  choices  that  matter.   • Do  think  about  clarity  and  simplicity  when  communicating  key  strategic  choices  to   the  organisation.  To  get  at  the  core,  don’t  overcomplicate  things.   • Do  build  systems  and  measures  that  support  both  enterprise-­‐wide  capabilities  and   business-­‐specific  capabilities.   • Do  define  measures  that  will  tell  you,  over  the  short-­‐  and  long-­‐run,  how  you  are   performing  relative  to  your  strategic  choices.       Leadership  lessons  from  P&G   Having  worked  for  more  than  25  years  as  an  outside  strategy  consultant  for  P&G,  Martin  has  a  unique   understanding  of  what  others  can  learn  from  the  company’s  quest  to  embed  strategy  as  an  integrated  part   of  the  culture  and  way  of  thinking.  In  Martin’s  mind,  the  best  companies  constantly  focus  on  staying   relevant  in  the  eyes  of  the  customers  and  keeping  things  simple.   ‘One  of  the  leadership  lessons  from  P&G  is  being  willing  to  tackle  things  in  a  holistic  fashion.  Locking  and   loading  on  something  and  then  moving  to  the  next  thing  and  the  next  thing  rarely  gets  you  what  you  really   want.  The  other  lesson  is  that  in  the  end  you  have  to  make  things  simple.  Organisations  do  not  win  on  the   basis  of  complicated  strategies.  Yes,  it  takes  some  complicated  thinking  and  willingness  to  have  a  bunch  of   balls  in  the  air  for  a  time.  But  in  the  end  if  things  aren’t  really  clear,  you  are  not  going  to  be  able  to  motivate   a  large  organisation  to  do  something  useful.  Using  really  simplifying  kind  of  catch  phrases  like  “the   consumer  is  boss”  and  “we  have  to  win  at  the  first  moment  of  truth”  along  with  “where  to  play”  and  “how   to  win”  were  very  important  in  P&G.  I  think  a  leader  needs  to  think  about  how  you  get  things  down  to  that   level  so  that  everybody  understands  the  consumer  is  boss  –  and  if  we’re  not  out  talking  to  her,  really   understanding  her,  and  listening  to  her,  we  will  never  win,’  Martin  outlines.   Challenging  the  way  leaders  think  is  a  common  thread  throughout  Playing  to  Win,  but  it  also  ties  in  with   previous  books  that  Martin  has  written.  Good  management  is  about  nothing  if  not  good  decision  making,   and  according  to  Martin  successful  business  people  engage  in  what  he  calls  integrative  thinking  –  the  ability   to  use  deductive  reasoning  to  extract  the  best  aspects  from  two  conflicting  ideas  to  come  up  with  an   alternative,  which  incorporates  the  strengths  of  both  ideas.  Integrative  thinking  is  a  prerequisite  for  making   sound  choices  as  a  leader  and  figuring  out  the  right  strategy.   ‘There  is  a  theme  that  runs  through  all  my  books  –  in  Opposable  Mind,  The  Design  of  Business,  and  Playing   to  Win  for  sure,  which  is  about  how  we  think.  Sadly,  most  of  us  spend  our  careers  being  taught  about  how   to  problem-­‐solve  and  the  real  question  is  problem-­‐framing.  I  think  that  great  strategy  comes  out  of  people   having  an  opposable  mind;  not  settling  for  the  either/or  that  everybody  else  does;  aiming  for  something  
  • 8. high;  creating  something  that  does  not  now  exist;  and  understanding  that  their  job  is  not  just  to  choose   among  existing  options.  Those  are  the  big  pieces  of  the  puzzle  for  a  successful  executive,’  Martin  finishes.      About  Roger  Martin     Roger  Martin  has  served  as  dean  of  the  Rotman  School  of  Management  at  the  University  of  Toronto  since   1998.  He  is  an  adviser  to  CEOs  of  several  major  global  corporations  on  strategy,  design,  innovation,  and   integrative  thinking,  including  the  successful  Danish-­‐based  toy  company  Lego,  who  recently  announced  a   record  result.   He  has  published  numerous  books,  including:  Fixing  the  Game,  Bubbles,  Crashes,  and  What  Capitalism  Can   Learn  From  the  NFL,  The  Design  of  Business:  Why  Design  Thinking  is  the  Next  Competitive  Advantage,  The   Opposable  Mind:  How  Successful  Leaders  Win  Through  Integrative  Thinking,  The  Responsibility  Virus:  How   Control  Freaks,  Shrinking  Violets  –and  The  Rest  Of  Us  –  Can  Harness  The  Power  Of  True  Partnership,  The   Future  of  the  MBA:  Designing  the  Thinker  of  the  Future,  and  DiaMinds:  Decoding  the  Mental  Habits  of   Successful  Thinkers.   In  2013  Roger  Martin  placed  third  on  the  Thinkers50  list,  a  biannual  ranking  of  the  world’s  most  influential   business  thinkers.   You  can  download  a  free  chapter  of  Playing  to  Win  here.     Further  information:  Roger  Martin’s  website.