A senior executive posed a simple yet profound question: “Are we winning?” It sparked an intense discussion… What does winning mean to us? Are we using the right scorecard to measure and manage progress? Which strategic factors are constraining our success?
Darrell Rigby & Zach First, Bain & Company
Takeaways of Note:
7 essential elements of strategy to achieve strategic fit…
1. The Mental Model – a most basic understanding of how the business really works and can capitalize on changing market conditions – simple enough to guide daily decisions
2. Purpose & Ambitions –
- Purpose is the reason the organization exists and what it aims to achieve for others
- Ambitions are what the organization hopes to accomplish – both financial & operational goals
- Look at actions, not merely words
3. Stakeholder Value Creation – align with the needs & values of targeted stakeholders; ensure every action taken by the company enhances mutual benefits and supports strategic goals
- distinguish from mere do-goodism—charitable activities that drain company resources without truly benefiting stakeholders
4. Macro Forces – factors outside a company that can significantly affect its performance; they are inherently unstable and outside the direct control of companies
- monitor them and adapt strategy to emerging opps rather than struggle against unfavorable trends
5. Markets & Products – constantly consider where you will, and will not, do business
6. Competitive Advantages – unique attributes or capabilities that enable a company to outperform competitors
- operational effectiveness, culture, and loyalty can be competitive advantages
7. The Operating Model – the engine that unleashes the power of people and fuels value creation
- The organization’s structure and accountabilities, governance processes and metrics, leadership and culture, talent and performance management, business processes, and technology and data.