Strategy

Springboard and Turning Point Groups

4 May 2021 - Shiv
I hope you have read the pre - read, that’s about the
models of strategy. You cannot apply any model
mechanically. I will discuss the softer aspects today.

ABG Strategy Discussion

Strategy is about ‘creating unique value’ in the eco
system. You have to share the value created.

There are two popular strategy quotes used by

everyone:

1. Michael Porter – “ Strategy is doing different

things or doing the same things differently”

2. AG Lafley Ex P&G – “Strategy is about

deciding where to play and how to win”

I believe eco system will play a key role, we will

see competition between eco systems in the
future.

ABG Strategy Discussion

Why do we need strategy?
▪ Competition is changing
▪ History and legacy are not enough
▪ Winning is getting more difficult
▪ When someone succeeds , someone fails
▪ In every sector there is room for 3 to 5
players. Monopolies and high market
shares don’t stand the test of time. # 3 in
most categories has a market share of
less than 10 pc.
ABG Strategy Discussion
Strategy is a mixture of rules of thumb and
creative methods. Know them.

Indian pan seller outside a restaurant

ABG Strategy Discussion

A good strategy balances thinking, planning
and doing. ‘Within an arms reach of desire”

ABG Strategy Discussion

Each activity is a tactic, a set of tactics becomes strategy,
copying someone’s old strategy doesn’t work.

The Indigo ramp, no one has copied so far

ABG Strategy Discussion

Strategy is about getting to ‘results’ with
available ‘resources’.

ABG Strategy Discussion

Over years Strategy models have been about..
▪ Control
▪ Capital allocation
▪ Process
▪ Capabilities
▪ Learning
▪ Seeking new opportunities
▪ Stakeholders
▪ Ecology
Don’t use a strategy model for the wrong reasons
ABG Strategy Discussion
No one model explains it, its always about
what’s working, what needs to change.

Vistara three tier seating strategy

ABG Strategy Discussion

 A Simple way of thinking about strategy
▪ How are we doing?

▪ How does it compare with competition?

▪ What do we want to achieve?

▪ How can we create what customers want and will pay

for?

▪ Who is the best globally and why?

▪ Does being first matter?

▪ Buy or build?
ABG Strategy Discussion
 Time frame of strategy

▪ News desk – by the hour

▪ Financial services - Daily
▪ Silicon Valley – Weekly
▪ Low disruption Industries – 3 to 7 years
▪ Hi capex industries – 20 years – Aircraft
manufacturing, Oil and Gas.

ABG Strategy Discussion

Risk
▪ Habit is opposite of risk
▪ Legacy is opposite of risk
▪ Risk is high when people are overconfident
▪ Professionals are not good at sensing risk,
entrepreneurs have impulsiveness and superior
pattern recognition skills.
▪ There is more risk inside the organization vs
outside it.
▪ Is associated with every opportunity
ABG Strategy Discussion
 What makes a good strategist?
▪ A good strategist has fluid thinking between results and
resources.
▪ A good strategist is a glutton for data, makes connections
between data, and more important looks for insights like
a needle in a haystack.
▪ A good strategist looks at trends inside and outside the
organization.
▪ A good strategist asks open questions
▪ A good strategist invests in research
▪ Strategy is the difference between a manager and a leader
▪ Ability to make decisions, some formal, some informal.
ABG Strategy Discussion
Knowledge doesn’t guarantee success but
lack of knowledge guarantees failure.

ABG Strategy Discussion

 The big picture

▪ Thinking about the past and why success,

failure happened is big picture
▪ Exploring the future is part of the big picture
▪ Things become strategic when scale and
time are involved, bigger and farther away in
time.

▪ What is opportunity vs Opportunism?

ABG Strategy Discussion

You cannot make perfect decisions , but you
can make smarter decisions.

ABG Strategy Discussion

Competition focused strategy - To overwhelm
a competitor requires a level of organization
that’s hard to achieve.

ABG Strategy Discussion

A global strategy needs
▪ Value chain efficiencies
▪ Local (national) responsiveness
▪ Need for innovation
▪ Talent that thinks broadly

ABG Strategy Discussion

 Execution
▪ Strategy must engage hearts and minds of
people through the year
▪ Every communication/e mail should sign off on
strategy key points
▪ All strategy is about some change
▪ Change happens when desire for change is >
desire for stability
▪ The core must be executed well
▪ Must be simple, can you put on a visiting card?
ABG Strategy Discussion
The essence of strategy is to change momentary
advantage to a perpetual advantage.

ABG Strategy Discussion

 Summary

ABG Strategy Discussion