Ag Lafley Quotes

The heart of strategy is the answer to two fundamental questions: where will you play, and how will you win there?

every line of business and function should have a strategy—one that aligns with the strategy of the company overall and decides where to play and how to win specifically for its context.

a strategy is a coordinated and integrated set of five choices: a winning aspiration, where to play, how to win, core capabilities, and management systems.

Strategy needn’t be mysterious. Conceptually, it is simple and straightforward. It requires clear and hard thinking, real creativity, courage, and personal leadership.

Where to play selects the playing field; how to win defines the choices for winning on that field. It is the recipe for success in the chosen segments, categories, channels, geographies, and so on. The how-to-win choice is intimately tied to the where-to-play choice. Remember, it is not how to win generally, but how to win within the chosen where-to-play domains.

When a company sets out to participate, rather than win, it will inevitably fail to make the tough choices and the significant investments that would make winning even a remote possibility.

Six Strategy Traps 1) The do-it-all strategy: failing to make choices, and making everything a priority. Remember, strategy is choice. 2) The Don Quixote strategy: attacking competitive "walled cities" or taking on the strongest competitor first, head-to-head. Remember, where to play is your choice. Pick somewhere you can have a choice to win. 3) The Waterloo Strategy: starting wars on multiple fronts with multiple competitors at the same time. No company can do everything well. If you try to do so, you will do everything weakly. 4) The something-for-everyone strategy: attempting to capture all consumer or channel or geographic or category segments at once. Remember, to create value, you have to choose to serve some constituents really well and not worry about the others. 5) The dreams-that-never-come-true strategy: developing high-level aspirations and mission statements that never get translated into concrete where-to-play and how-to-win choices, core capabilities, and management systems. Remember that aspirations are not strategy. Strategy is the answer to all five questions in the choice cascade. 6) The program-of-the-month strategy: settling for generic industry strategies, in which all competitors are chasing the same customers, geographies, and segments in the same way. The choice cascade and activity system that supports these choices should be distinctive. The more your choices look like those of your competitors, the less likely you will ever win.

Six Telltale Signs of a Winning Strategy 1) An activity system that looks different from any competitor's system. It means you are tempting to deliver value in a distinctive way. 2) Customers who absolutely adore you, and noncustomers who can't see why anybody would buy from you. This means you have been choiceful. 3) Competitors who make a good profit doing what they are doing. It means your strategy has left where-to-play and how-to-win choices for competitors, who don't need to attack the heart of your market to survive. 4) More resources to spend on an ongoing basis than competitors have. This means you are winning the value equation and have the biggest margin between price and costs and best capacity to add spending to take advantage of an opportunity to defend your turf. 5) Competitors who attack one another, not you. It means that you look like the hardest target in the (broadly defined) industry to attack. 6) Customers who look first to you for innovations, new products, and service enhancement to make their lives better. This means that your customers believe that you are uniquely positioned to create value for them.

Self-Management If you can read just one book on motivation—yours and others: Dan Pink, Drive If you can read just one book on building new habits: Charles Duhigg, The Power of Habit If you can read just one book on harnessing neuroscience for personal change: Dan Siegel, Mindsight If you can read just one book on deep personal change: Lisa Lahey and Bob Kegan, Immunity to Change If you can read just one book on resilience: Seth Godin, The Dip Organizational Change If you can read just one book on how organizational change really works: Chip and Dan Heath, Switch If you can read just two books on understanding that change is a complex system: Frederic Laloux, Reinventing Organizations Dan Pontefract, Flat Army Hear interviews with FREDERIC LALOUX, DAN PONTEFRACT, and JERRY STERNIN at the Great Work Podcast. If you can read just one book on using structure to change behaviours: Atul Gawande, The Checklist Manifesto If you can read just one book on how to amplify the good: Richard Pascale, Jerry Sternin and Monique Sternin, The Power of Positive Deviance If you can read just one book on increasing your impact within organizations: Peter Block, Flawless Consulting Other Cool Stuff If you can read just one book on being strategic: Roger Martin and A.G. Lafley, Playing to Win If you can read just one book on scaling up your impact: Bob Sutton and Huggy Rao, Scaling Up Excellence If you can read just one book on being more helpful: Edgar Schein, Helping Hear interviews with ROGER MARTIN, BOB SUTTON, and WARREN BERGER at the Great Work Podcast. If you can read just two books on the great questions: Warren Berger, A More Beautiful Question Dorothy Strachan, Making Questions Work If you can read just one book on creating learning that sticks: Peter Brown, Henry Roediger and Mark McDaniel, Make It Stick If you can read just one book on why you should appreciate and marvel at every day, every moment: Bill Bryson, A Short History of Nearly Everything If you can read just one book that saves lives while increasing impact: Michael Bungay Stanier, ed., End Malaria (All money goes to Malaria No More; about $400,000 has been raised so far.) IF THERE ARE NO STUPID QUESTIONS, THEN WHAT KIND OF QUESTIONS DO STUPID PEOPLE ASK?