28 Mar HBR’s 10 Must Reads: On Strategy
This book compiles ten essential articles from Harvard Business Review on the topic of strategy development and execution. It offers insights from renowned thought leaders and covers a wide range of strategic concepts. Here’s a breakdown of the key ideas and takeaways from each article:
Article 1: “What Is Strategy?” by Michael Porter
● Key Takeaway:
Companies achieve sustainable competitive advantage through strategic positioning. This involves either performing different activities from rivals or performing the same activities differently. Strategic positioning requires making trade-offs and ensuring alignment among a company’s activities. (e.g., Mercedes prioritizes high-end service offerings and doesn’t compete on price)
Article 2: “The Five Competitive Forces That Shape Strategy” by Michael E. Porter
● Key Takeaway: Five forces determine industry profitability: bargaining power of buyers and suppliers, threat of new entrants and substitutes, and rivalry among existing competitors. Understanding these forces helps companies develop strategies to navigate the competitive landscape. (e.g., platform-based companies might disrupt traditional supply-chain models)
Article 3: “Building Your Company’s Vision” by James C. Collins and Jerry I. Porras
● Key Takeaway: Enduringly successful companies have a core ideology (core values and purpose) that remains constant, while adapting their business strategies to changing circumstances. A lasting vision includes a “Big Hairy Audacious Goal” (BHAG) that serves as a unifying and motivating target. (e.g., Sony’s vision included innovation and quality, with a BHAG to become a brand signifying these values)
Article 4: “Reinventing Your Business Model” by Clayton M. Christensen and Michael E. Raynor
● Key Takeaway: Business model innovation is crucial for sustained success. Companies should assess their current model and consider reinvention if it no longer fulfills customer needs effectively. This might involve focusing on underserved customer segments, leveraging new technologies, or simplifying existing products/services. (e.g., focusing on customer job-to-be-done might reveal opportunities)
Article 5: “Blue Ocean Strategy” by W. Chan Kim and Renee Mauborgne
● Key Takeaway: Companies should strive to create “Blue Oceans” – new markets with minimal competition and high profit potential. This involves looking beyond existing markets and creating value propositions that address unmet customer needs or offer a compelling alternative to existing solutions. (e.g., focusing on innovation and value creation over fierce competition)
Article 6: “The Secrets to Successful Strategy Execution” by Gary L. Neilson, Karla L. Martin, and Elisabeth Powers
● Key Takeaway: Effective strategy execution requires clear decision rights and ensuring information flows to the right people. Research highlights the importance of these factors over major organizational restructuring for successful strategy implementation.
Article 7: “Using the Balanced Scorecard as a Management System” by Robert S. Kaplan and David P. Norton
● Key Takeaway: Companies need a comprehensive approach to translating strategy into action. The Balanced Scorecard framework goes beyond financial metrics and integrates customer, internal process, and learning & growth perspectives, ensuring a holistic view of strategy execution.
Article 8: “Transforming Corner-Office Strategy into Frontline Action” by Orit Gadiesh and James L. Gilbert
● Key Takeaway: A well-crafted “Strategic Principle” can bridge the gap between centralized strategy and decentralized decision-making. This principle guides managers at various levels, empowering them to make decisions aligned with the overall strategy while remaining adaptable to local market conditions. (e.g., Netflix’s emphasis on independent decision-making aligns with this approach)
Article 9: “Turning Great Strategy Into Great Performance” by Michael C. Mankins and Richard Steele
● Key Takeaway: Delivering on strategic plans requires a focus on execution. This involves keeping the strategy simple, challenging assumptions, aligning stakeholders, prioritizing resource allocation, monitoring performance, and developing execution capabilities. (e.g., clear and actionable strategies are easier to execute)
Article 10: “Who Has The D?” How clear decisions enhance organisational performance by Paul Rogers and Marcia Blenko
● Key Takeaway: Clear decision-making processes are essential for organizational effectiveness. The authors identify common bottlenecks hindering efficient execution and propose the “RAPID” framework to assign roles and responsibilities for various stages of the decision-making process. (e.g., establishing clear “who does what” ensures efficient execution)
Overall, this book offers valuable insights for businesses of all sizes and across industries. By understanding different strategic approaches and best practices for execution, companies can increase their chances of achieving long-term success.
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