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Ken Favaro - The Executive Guide to Strategy

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Book:
The Executive Guide to Strategy
Author:
Ken Favaro / Kasturi Rangan / Evan Hirsh / Cesare Mainardi / Paul Leinwand / Art Kleiner / Steffen Lauster / Deniz Caglar / Jaya Pandrangi / John Plansky
Publisher:
PwC Strategy & LLC
Genre:
Books / Business
Year:
2013
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5 / 5
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Although it is fundamental to business success, the discipline of strategy remains elusive to many of us. Indeed, if asked to provide a simple definition of the term, many experienced business leaders may not have it at their fingertips. But finding the right strategythe formula for ongoing success that differentiates your firm and unlocks your capacity to create valueis well worth the effort.
This collection, originally published by Booz & Company, contains essential strategy articles from strategy+business. Although these works range from pragmatic on a day-to-day level to quite high-minded, all share at least one trait. Each stands to make a substantial contribution to your understanding of strategy and your ability to create and implement the right strategy for your organization.

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A strategy+business Electronic Book
Published by Booz & Company

No reproduction is permitted in whole or part without written permission from Booz & Company. For permission requests, email Bevan Ruland.

Visit Booz & Company online Visit strategy+business online

Design: Opto Design

Cover illustration: Otto Steininger

strategy+business Books
Editor-in-Chief: Art Kleiner Executive Editor: Paul Michelman

Managing Editor: Elizabeth Johnson

Senior Editor: Laura Geller

Deputy Managing Editor: Jen Swetzoff

Associate Editor: Christie Rizk

Art Directors: John Klotnia and Ron Louie, Opto Design

Publisher: Gretchen Hall

Marketing & PR Manager: Charity Delich

Editor, Digital: Melanie Rodier Permissions: Bevan Ruland

Booz & Company

Chairman: Joe Saddi

Chief Executive Officer: Cesare Mainardi

Marketing Director, Client Centricity: Joachim Rotering

Chief Marketing and Knowledge Officer: Thomas A. Stewart

Knowledge and Marketing Advisory Council: Paul Leinwand, Fernando Fernandes, Rolf Fricker, Hilal Halaoui, Barry Jaruzelski

Contents

by Paul Michelman
by Ken Favaro with Kasturi Rangan and Evan Hirsh
by Ken Favaro with Kasturi Rangan and Evan Hirsh
by Cesare Mainardi, Paul Leinwand, and Steffen Lauster
by Cesare Mainardi with Art Kleiner
by Deniz Caglar, Jaya Pandrangi, and John Plansky
by Ken Favaro
by Ken Favaro
by Ken Favaro and Art Kleiner
by Ram Charan and Michael Sisk
by Donald Sull
by Walter Kiechel III
by Art Kleiner
by Sanjay Khosla and Mohanbir Sawhney

Introduction:
A Strategic Imperative

Although it is fundamental to business success, the discipline of strategy remains elusive to many of us. Indeed, if asked to provide a simple definition of the term, many experienced business leaders may not have it at their fingertipsor even agree with descriptions provided by their colleagues. Perhaps thats one reason so many companies operate without well-articulated strategies or at least without strategies that are widely understood and embraced across their organizations.

But finding the right strategythe formula for ongoing success that differentiates your firm and unlocks your capacity to create valueis well worth the effort.

And with that lofty, yet essential, aspiration in mind, we offer this collection of strategy+business articles, videos, and columns representing the best of our thinking about strategy. Although these works range from pragmatic on a day-to-day level to quite high-minded, all share at least one trait. Each stands to make a substantial contribution to your understanding of strategy and your ability to create and implement the right strategy for your organization.

Paul Michelman
Executive Editor
strategy+business

Executive Summaries

Strategy: An Executives Definition

by Ken Favaro with Kasturi Rangan and Evan Hirsh

Its much simpler to identify what strategy isnt than what it isbut in this article, Ken Favaro, a senior partner at Booz & Company, does both. Having a vision, drafting a mission statement, setting benchmarks, and establishing priorities are not the same as creating a tactical blueprint. A true business strategy should guide decision makers in identifying core customers and target markets, and differentiate the business model from those of competitors.

Strategy or Execution: Which Is More Important?
by Ken Favaro with Kasturi Rangan and Evan Hirsh

Companies often blame their missteps on subpar execution. But drawing on the experiences of Toyota and Southwest Airlines, the authors demonstrate that firms fundamental choices about where to play and how to win precede any lapses or leaps in execution. Only firms with a strong strategic foundation succeed in the long term.

How to Win with a Capabilities-Driven Strategy

by Cesare Mainardi, Paul Leinwand, and Steffen Lauster

When faced with a changing or uncertain business landscape, companies cant settle for playing by the same rules as their competitors. Instead, they should fundamentally change the way they approach their markets by developing strategies based on what they do better than anyone else. A fresh, outward focus is the key, especially when it comes to meeting the needs of existing customers and attracting new ones. Using examples from the automobile, financial-services, and healthcare industries, a team of Booz & Company experts describe how companies that deploy a portfolio of complementary, supporting capabilities win out over their competitors.

The Right to Win

by Cesare Mainardi with Art Kleiner

Declaring that you have a right to win might seem arrogantunless you can deliver. Thats what successful companies do by consistently engaging in those markets where they have the best chance of success. Few of these companies ever reinvent themselves all at once. Rather, they define a coherent strategy through the way they distinguish themselves from their competitors. This article takes you inside a boardroom to see how these conversations play out, and then on a guided tour of the four main schools of strategy, and their implications for executive decisions. With a clear understanding of your own theories of success, you can make more pragmatic choices about which products and services to offer, which customers to target, and how best to earn the right to win.

Is Your Company Fit for Growth?

by Deniz Cagar, Jaya Pandrangi, and John Plansky

Throughout the Great Recession, many companies endured lengthy periods of cost containment: trimming budgets, reducing headcount, and eschewing large-scale initiatives. But as the economy bounces back, many firms may suddenly find themselves strategically and financially out of shape. Having concentrated for so long on survival, some companies have lost their ability to seize opportunities and expand. To get back in the game, firms need to enter new markets, innovate, and attract a fresh crop of customers. Having a forward-thinking mind-set is not enough. Based on the Booz & Company Fit for Growth framework, this article recommends a corporate fitness regimen designed to help companies set clear strategic aims, invest in the right infrastructure, optimize costs, and reorganize for growth.

How Leaders Mistake Execution for Strategy (and Why That Damages Both)

by Ken Favaro

When reflecting on your strategic aims, which are the right questions to ask? Ken Favaro writes that most executives fall back on the corporate line of introspection focusing on broad issues such as purpose and plans. But as IBMs turnaround in the 1990s illustrates, solving the five essential strategic problemswhich address the nuts and bolts of how a company should best apply its resources and engage with customersprovides a better way forward.

The Two Levels of Strategy

by Ken Favaro

Dont confuse corporate strategy, which represents the big-picture outlook of the organization, with business strategy: the tactical decisions made by sub-units of the company. Corporate strategy must be coherent, enabling different businesses to operate under the same umbrella (or in some cases articulating why they might be better off breaking away). This column outlines questions for executives at both strategic levels that will ensure the two levels are in sync.

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