.

 Some Impressionistic takes from the book “Your Strategy Needs a Strategy” “How to Choose & Execute the Right
Approach” By Martin Reeves, Knut Haanes, Janmejaya Sinha by Ramki ramaddster@gmail.com
. 2. About the Authors Martin is a senior partner and managing director at BCG in New York. He has been with the firm for
more than 25 years and is the director of the BCG Strategy Institute. Martin researches, develops, and applies new ideas
for strategy and has published widely on the topic. Knut is a senior partner and managing director at BCG in Geneva. He
has been with BCG for almost ten years and is the global leader of BCG's Strategy practice. Knut has published more than
20 articles on strategy and sustainability in Harvard Business Review, MIT Sloan Management Review, and other
respected journals. Janmejaya is a senior partner and managing director at BCG in Mumbai. He has been with BCG for 17
years and serves as the chairman of BCG Asia-Pacific. Janmejaya is also a member of BCG's executive committee, writes
regularly for the Indian press, and speaks frequently in different industry forums.
. 3. Prelude For anyone Leading a Business or charged with developing a winning strategy, this book is for you. The world
of strategy is thick with ideas and frameworks; Your Strategy Needs a Strategy will help you cut through the noise and find
clarity regarding which approach, or combination of approaches, is your best bet. Strategy planning can be divided into
four styles according to how predictable your environment is and how much power you have to change it. Using this
framework, Corporate leaders can match their strategic style to the conditions of their industry, business function, or
geographic market. By following this approach, more companies can do what we have found that the most successful are
already doing—deploying their unique capabilities and resources to better capture the opportunities available to them.
. 4. Strategy Palette Five Different Strategy Applying Strategies Your Strategy Needs a Strategy Context

. 5. How to Select & Execute the Right approach to Strategy Strategy is a means to an end – favourable business
outcomes. Business environment – Today- Faster changing, Uncertain , Globalization, Rapid technological
changes, Economic interconnectedness Large Corporations – stretched , increasing number of environments rapidly
changing over time
. 6. Increasing diversity of Environments

. 7. Increasing gap between Winners & Losers for US co’s

. 8. Proliferation of Strategy frameworks

. 9. Idea in brief  Companies that correctly match their strategy making processes to their competitive circumstances
perform better than those that don’t.  But too many use approaches appropriate only to predictable environments—even
in highly volatile situations.  What executives in these cases need is a strategy for setting strategy.  The authors
present a framework for choosing one, which begins with two questions:  How unpredictable is your environment? and 
How much power do you or others have to change that environment?
. 10. The Answers – 4 Broad Strategic Styles Each one particularly suited to a distinct environment.  A classical strategy
(the one everyone learned in business school) works well for companies operating in predictable and immutable
environments.  An adaptive strategy is more flexible & experimental and works far better in immutable environments that
are unpredictable.  A shaping strategy is best in unpredictable environments that you have the power to change.  A
visionary strategy (the build it- and-they-will-come approach) is appropriate in predictable environments that you have the
power to change.
. 11. The Strategic Palette

. 12. Strategy

. 13. Problems With Strategy!!! “It’s not that we lack powerful ways to approach strategy; it’s that we lack a robust way to
select the right one for the right circumstances.”
. 14. Strategic Palette- Five approaches to Strategy The strategy palette proposes five distinct approaches to strategy,
helping leaders to match their approach to their business environment and execute effectively, to combine different
approaches.
. 15. Five Different Strategy Your Strategy Needs a Strategy

. 16. Classical – Be Big ( I can Predict it, but I can’t change it )

. 17.  The first segment of the strategy palette is the classical approach, which is used by companies in relatively stable
and predictable industries. These players win by positioning themselves optimally in attractive markets.  Companies
using the classical approach deploy extensive analysis to determine market attractiveness, the basis of competition within
a given market, and their own organizations’ current and potential competiveness.  They use the results to determine
their targeted positions and strategic direction. When companies apply the classical strategy correctly, they can create
durable and valuable leadership positions.  Companies should only apply the classical strategy in environments suited
for this approach.  Industries that are well established; see infrequent changes in competitive rankings; and have high
returns of scale, stable business models, strong brands, and modest growth rates are most likely to have the predictable
environments in which a classical strategy can thrive Classical – Be Big
. 18. The Classical strategy requires a 3-part process consisting of analysis, planning, and execution: 1. Analyze and
understand  In the analysis phase, leaders must delineate their markets, identify and understand industry segments, and
establish an objective view of which segments are attractive.  They must look at the relationship between market share
and profitability across all companies in the market and decide if their organizations will compete on scale, differentiation,
or capabilities. 2. Plan the strategic direction  In this phase, leaders must create plans that are insight-centered, tailored
to the specifics of their businesses, and flexible to changing circumstances.  Plans need to be made actionable by
incorporating milestones and metrics that detail the targets that must be met. 3. Execute thoroughly  Execution is key—
classical companies must focus every part of their organization son efficiently working toward well-defined goals Classical
– Be Big
. 19. Mars, Inc. – Winning Classically Founded by Frank Mars more than 100 years ago – Privately held company
Revenue in 2014 was US $ 34 billion- 11 brand worth more than $ 1 Billion  The company operates in relatively stable
environment  Chocolate bars introduced Milky way – 1923 , Snickers -1930 , The Mars Bar – 1932 M & M -1941 ,
Twix- 1971 The biggest selling candies in 2014 were –Snickers & M &M Market leader- Biggest & Best –Scale is
critical – Utilization, costs and value - Other businesses – Pet food , chewing gum. Guided by 5 principles which
permeate the culture of the company Quality Responsibility Mutuality Efficiency Freedom
. 20. Why Scale Matters- UPS & FedEx  UPS & FedEx freight and parcel market in the early 2000s is an excellent case
study of the merits of scale in the classical approach.  Market was dominated by two large players, UPS and FedEx, both
of which achieved sustainably lower costs and higher margins than did their smaller competitors DHL and TNT.  FedEx
and UPS were able to maintain their leadership because competitors would have to make prohibitively large cash
investments to replicate the scale of these incumbents.  When DHL entered the US market with its acquisition of local
player Airborne Inc., then a subscale competitor, DHL invested nearly $10 billion in the unit.  Even that was not enough
to buy the scale necessary to sustainably compete with the local giants, however.  In 2008, DHL closed its domestic
operations to focus on international delivery to and from the United States.  For industry leaders in classical
environments, size offers protection: because the industry is stable, they can continue to build incrementally on their scale
advantage.
. 21. Constant, small improvements in performance can accumulate into a significant & sustainable competitive advantage.

. 22. Classical Strategy – Go Big Or Go Home!!! WHAT Classical strategy is based on achieving sustainable competitive
advantage by positioning a firm optimally in an attractive market. Since the basis of competitive advantage in these
environments is known and nonmalleable, advantage can be based on superior scale, differentiation (or, equivalently,
scale within a narrower market segment), or superior capabilities. WHEN Classical strategy is based on achieving
sustainable competitive advantage by positioning a firm optimally in an attractive market. Since the basis of competitive
advantage in these environments is known and nonmalleable, advantage can be based on superior scale, differentiation
(or, equivalently, scale within a narrower market segment), or superior capabilities. HOW Classical strategy is based on
achieving sustainable competitive advantage by positioning a firm optimally in an attractive market. Since the basis of
competitive advantage in these environments is known and nonmalleable, advantage can be based on superior scale,
differentiation (or, equivalently, scale within a narrower market segment), or superior capabilities.
. 23. Adaptive – Be Fast ( I can’t Predict it, and I can’t change it )

. 24.  The second segment of the strategy palette is the adaptive approach, which is used by leaders in environments that
are unpredictable.  Leaders of adaptive firms must continually vary how they do business by creating new options,
selecting the most promising of those options, and exploiting the best option before repeating the cycle.  Leaders should
apply the adaptive approach when their companies are operating in environments that are hard to plan for and shape. 
To react to evolving change, leaders must capture the data that will generate new insights about changes in demand or
competition.  Then, three steps follow………. Adaptive- Be Fast
. 25. 1. First, they must run experiments to determine which projects or interest areas suggest the highest growth potential,
the biggest threats, or the most important blind spots. 2. Secondly, they should select business models that show the most
promising results while discontinuing the unsuccessful ones. 3. Lastly, they need to scale up successful experiments and
put resources to good use. This way, experiments that have shown promise can quickly evolve into full-blown businesses.
 Strategy emerges from the continuous repetition of this vary, select, scale up flow, rather than from the analysis,
prediction, and top-down mandate. Adaptive- Be Fast
. 26. Adaptive Strategy – Be Fast!!! WHAT Strategy rests on the idea of serial temporary advantage. In unpredictable and
nonmalleable environments, the emphasis is on continuous experimentation and real- time adjustment rather than on long-
term analysis and planning. Since advantage is temporary, the focus is on means, not ends. WHEN An adaptive approach
works when the business environment is hard to predict and to shape, and when advantage may be short-lived. Ongoing,
substantial changes in technologies, customer needs, competitive offerings, or industry structure may all signal the need
for an adaptive approach. HOW Strategizing in the adaptive context requires a process of watching and responding to
changes in the environment by capturing change signals and managing a portfolio of experiments. Adaptive firms
continuously vary the way they do business by trying many novel approaches and then scaling up and exploiting the most
promising before repeating the cycle
. 27. Visionary –Be First ( I can Predict it, and I can change it )

. 28.  The third segment of the strategy palette is the visionary approach.  In some environments, a single firm can
create or re-create an industry and, as a result of that power, create the future with some degree of predictability.  Under
those circumstances, a firm is in a position to employ a visionary approach.  Leaders employing a visionary approach to
strategy must do three things: 1. Envisage an opportunity by tapping into a megatrend early, applying a new technology, or
addressing customer dissatisfaction or a latent need. 2. Be the first to build the company or product. 3. Persist in pursuing
a fixed goal while being flexible about the means to overcome unforeseen obstacles Visionary- Be First
. 29. Companies should apply a visionary approach when they have the opportunity to create an industry singlehandedly.
They can do this by: 1. Identifying the opportunity- Companies must spot opportunities before anyone else acts upon
them. To find such opportunities, they should look for megatrends, individual breakthrough technologies, customer
dissatisfaction, and the activity of players at the fringes of the industry. 2. Formulating the vision- Companies must create
visions that address the above opportunities. 3. Sketching the plan- Leaders must define high-level milestones to keep
their organizations pointing in the right direction and moving quickly toward their end visions. 4. Communicating the vision
broadly- Visions will not be realized until they are accepted by a critical mass of customers and investors. Leaders must
communicate their visions to employees and customers so that both groups can become brand advocates.. Visionary- Be
First
. 30. Visionary circumstances can arise when you spot an emerging mega-trend before another firm spots or acts on it,
when technological change opens up the possibility to reshape an Industry.
. 31. Visionary Strategy – Be First!!! WHAT Rare but incredibly effective, it empowers a firm to create or re-create an
industry with some degree of predictability by seeing an opportunity and pursuing it single-mindedly. Being first confers the
advantage of superior size that comes with being ahead of rivals and allows a firm to set industry standards, influence
customer preferences, develop a superior cost position. WHEN Deploy a visionary strategy when there is an opportunity to
create or re-create an industry—when a firm sees the outcome as predictable and the environment as malleable, even if
others don't share that vision. Visionary circumstances can arise when a firm spots an emerging megatrend before
someone else sees or acts on it, HOW Timing is critical: successful visionary firms capitalize on gaps— among the
emergence of an opportunity, the recognition and acceptance of an idea, and the reaction by established players—by
envisaging, building, and persisting.
. 32. Shaping – Be the Orchestrator ( I can’t Predict it, but I can change it )

. 33. Sometimes, leaders face an opportunity to shape or reshape an industry at an early point in its development.
These leaders can use the fourth segment of the strategy palette, the shaping approach. Leaders utilizing this
approach must engage other stakeholders to create a shared vision at the right point in time, build platforms through which
 they can exercise influence, and evolve these platforms by scaling them and keeping them flexible. Shaping – Be the
Orchestrator
. 34.  To implement the shaping strategy, leaders must do the following:  Engage stakeholders. Leaders must develop a
collaborative shared vision to harness the resources and capabilities of diverse stakeholders. Their visions should outline
how the intended collaborators can solve problems, stimulate demand, build the necessary economic infrastructures, and
remove potential constraints.  Orchestrate. Leaders must orchestrate collaboration among many different stakeholders.
To do this successfully, they must build and operate platforms that facilitate interaction and monetization, lock in
stakeholders, and provide focal points for leaders to deploy their influence.  Evolve the ecosystem. Leaders must invest
in opportunities that will maximize network effects by either growing or scaling their platforms. Leaders must also keep
ecosystems flexible and diverse Shaping – Be the Orchestrator
. 35. Shaping Strategy – Be Orchestrator!!! WHAT Shaping firms mold or reshape an industry by influencing the
development of a market in its favor through coordination with other players. A shaping approach both permits and
requires a firm to collaborate with others in a diverse ecosystem that distributes risk, supplies complementary capabilities
and resources, and builds the market quickly through strength in numbers. WHEN Deploy a shaping strategy when there
is an opportunity to write or rewrite the rules of an industry at a nascent stage of its development. Highly fragmented,
young, dynamic industries; freshly disrupted industries; and emerging markets are all ripe for shaping. HOW Shaping firms
engage other stakeholders to create a shared vision at the right point in time, to build a platform through which they
influence and orchestrate collaboration, and, finally, to evolve the platform and ecosystem by scaling it and keeping it
flexible.
. 36. Renewal- Be Viable ( My resources are severally constrained )

. 37.  The fifth segment of the strategy palette is the renewal approach. This approach renews the vitality and
competiveness of an organization when it is operating in a difficult environment.  Such a challenge can be caused by a
protracted mismatch between the firm’s approach to strategy and its environment or by a shock, either inside or outside of
the company. The renewal approach is temporary and consists of three steps:  Reacting. Companies need to detect or
anticipate deteriorating environments as early as possible. This includes detecting signals of impending harshness. 
Planning to economize. Leaders must restore the financial viability of their companies and fund the road back to growth.
To do so, they must create plans that focus on core activities, reduce costs, and preserve capital.  Pivoting to growth.
Leaders must pivot to other approaches to ensure long-term growth. They then must invest in the strategic innovation to
support this growth. Renewal –Be Viable
. 38. You should deploy a renewal approach when your firm faces harsh circumstances, because of either a protracted
mismatch between your firm’s strategy and its environment, or because of internal or external shocks.
. 39. Renewal Strategy – Be Viable!!! WHAT It is the vitality and competitiveness of a firm when it is operating in a harsh
environment. When circumstances are so difficult that the current way of doing business cannot be sustained, changing
course to preserve and free up resources—and then later to redirect toward growth—is the only way to not merely survive
but to eventually thrive again. WHEN Harsh conditions can pose a threat to the survival of a firm. These conditions can
arise from a protracted mismatch between a firm's approach to strategy and its environment or by an external or internal
shock. HOW A company must first notice and react to the deteriorating environment as early as possible. Then, the firm
needs to economize to decisively address its immediate impediments to financial viability or even its very survival. To do
so, the company must focus the business, cut costs, and preserve capital while also freeing up resources to fund the next
journey.
. 40. Ambidexterity- Be Polychromatic

. 41.  Most large organizations operate in multiple business environments that change quickly, span increasingly diverse
geographies, and are supported by a wide range of enabling functions. Leaders of such organizations must be
ambidextrous, meaning they must be able to apply multiple approaches to strategy and execution in different parts of the
business. The following are the four main approaches to ambidexterity.  Separation. Leaders deliberately manage which
approach to strategy belongs in each subunit, and they apply the approaches independently of one another. Separation is
the simplest and most common approach to achieving ambidexterity and is typically used by businesses that are
moderately diverse but relatively stable over time. Ambidexterity- Be Polychromatic
. 42.  Switching. Leaders manage a common pool of resources, switching among approaches over time or mixing them
appropriately at a given moment. Switching can be difficult to manage because it requires both flexibility and effective
oversight.  Self-organization. Leaders allow units to self-organize and select their own best approaches to strategy. Self-
organization can be very challenging, as organizations potentially incur significant costs from duplication.  External
ecosystem. Leaders source different approaches to strategy externally through an ecosystem of players that self- select
the appropriate approach. External ecosystems are only appropriate in the most complex cases because of the high costs
and risks involved. Ambidexterity- Be Polychromatic
. 43. Applying Strategies Lesson for Leaders!!!

. 44. Lessons for Leaders- Be an Animator

. 45.  Organizations must be able to select, combine, and implement the appropriate combination of strategic approaches
and adjust dynamically as circumstances change.  Leaders must be the ones who animate this strategic collage across
their organizations. They must be able to read the external context to determine which approach to strategy should be
applied where.  Further, they must be able to put the right people in the right places to execute each approach.  Being
the animator of a dynamic combination of multiple approaches to strategy can be challenging. Leaders who successfully
accomplish this excel in the following eight roles:  Diagnostician. Leaders take an external perspective to diagnose the
degree of predictability, malleability, and harshness of each business environment. They then match it with the required
strategic approach for each part of their organizations. Be Animator
. 46.  Segmenter-Leaders structure their organizations to match strategic approaches to their environments at the right
level of granularity. They balance the trade-off between precision and complexity.  Disruptor- Leaders review the
diagnosis and segmentation on an ongoing basis to protect organizations from becoming too rigid.  Team coach-
Leaders select the right people to manage each unit based on their capabilities, and work to further develop the right
capabilities in employees.  Salesperson. Leaders advocate and communicate strategic choices in a clear and coherent
way to employees and investors.  Inquisitor- Leaders establish and refine the correct context for each particular strategic
approach by asking probing questions. They stimulate the critical thinking flow appropriate for each approach.  Antenna-
Leaders look outward and selectively amplify important signals to ensure that each unit stays in tune with the changing
external environment.  Accelerator- Leaders put weight behind select critical initiatives to speed up their implementation
Be Animator
. 47. Leaders and managers must build the skills needed to put their strategy palettes to work. They can do so in four ways:
 Deepening the understanding of the palette. Leaders must work on deepening their understanding of each of the
different approaches to strategy.  Applying the palette to business and life. Leaders must consider which strategy is best
for the challenges that they face. They must focus on using the correct mental disciplines and thought flows in their
problem solv- ing.  Diversifying the experience. Leaders must try to work in different types of businesses to gain hands-
on experience with each strategy.  Setting the context for others. Leaders must build their strategic leadership skills by
creating and managing teams to deploy each strategy. They must learn to identify the right individuals with the right skills
for each desired strategic approach. Personally Mastering the Strategy Palette
. 48. Roles of Leadership DIAGNOSTICIAN Continuously takes an external perspective to diagnose the degree of
predictability, malleability, and harshness of each business environment, and matches this with the required strategic
approach for each part of the firm. DISRUPTOR Reviews the diagnosis and segmentation on an ongoing basis, in line with
shifts in the environment, to protect the organization from becoming rigid and to modulate or change approaches when
necessary SEGMENTER Structures the firm to match the strategic approach to the environment at the right level of
granularity, balancing the trade-off between precision and complexity. TEAM COACH Selects the right people for the job
of managing each cell in the collage in line with their capabilities and helps to develop their understanding of the strategy
palette, both intellectually and experientially.
. 49. SALESPERSON Advocates and communicates the strategic choices as a whole, in a clear and coherent narrative, to
investors and employees. ANTENA Looks outward continuously and selectively amplifies important signals to ensure that
each unit stays in tune with the changing external environment. INQUISITOR Sets and retunes the correct context for
each particular strategic approach by asking probing questions—not dictating answers—to help stimulate the critical flow
of thought that is appropriate for, and characteristic of, each approach. ACCELERATOR Puts weight behind select critical
initiatives to speed up or bolster their implementation, especially when the required approach has changed, is unfamiliar,
or is likely to be resisted. Roles of Leadership
. 50. Leaders will learn how to use the strategy palette to choose the right approach to strategy and execution for their
organizations. The strategy palette consists of five approaches:  Classical- Leaders utilizing the classical approach
believe that the world is predictable, the basis of competition is stable, and advantage is sustainable.  Adaptive- Leaders
use the adaptive approach when their business environments are not predictable or malleable. Adaptive leaders
continually vary the way they do business to renew their advantage.  Visionary- Leaders using the visionary approach
believe that they can reliably create or re-create environments by themselves. When they see a clear opportunity for the
creation of a new market segment or the disruption of an existing one, they take action.  Shaping- Leaders utilizing the
shaping approach face a future that is unpredictable but malleable. These leaders engage other stakeholders to create
shared visions of the future, build platforms to orchestrate collaboration, and evolve platforms and stakeholder ecosystems
over time.  Renewal- Leaders using the renewal approach aim to restore the vitality and competitiveness of their
organizations when they are operating in harsh and unforgiving environments. Take away from the book
. 51. Determine the Right Strategic Approach

. 52. Happy Reading, Learning & Application Mail your comments to ramaddster@gmail.com