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May p2w Slides 071614
May p2w Slides 071614
Matthew E. May
founder, EDIT Innovation
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About
Gemba
Academy
• Producers
of
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&
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Based
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&
Six
Sigma
Training
Matthew E. May
founder, EDIT Innovation
Agenda
What
management
systems do we
need?
What
management
systems do we
need?
Where will
we play? Key Idea #1
How will
Strategy is about making choices.
we win? To win, you must choose to do some
things and not do others.
What capabilities
must we have?
What
management
systems do we
need?
Where will
we play? Key Idea #2
How will
Strategy is about increasing
we win?
the odds of success.
There is no such thing as a perfect
What capabilities
must we have? strategy.
What
management
systems do we
need?
Where will
we play? Key Idea #3
How will
Successful strategy-making
we win?
combines logic and creativity.
Strategy should be creative and scientific
What capabilities
must we have? – it involves generating and testing
hypotheses.
What
management
systems do we
need?
Where will
we play?
How will
we win?
What capabilities
must we have?
What
management
systems do we
need?
PLAYING to WIN
PLAYING to PLAY
• Starts with people rather than • Doesn’t have a winning
money—what does it mean to element but focuses on simply
win with our customers?
serving a customer segment
• Has a competitive dimension • Is focused on an internal
— who are we winning metric, such as “Sell 25% more
against?
than we did last year”
Where will
we play?
Specific spaces where you will and will NOT compete: customer segments,
distribution channels, product/service, geography, stage of production, etc.
How will
we win?
What capabilities
must we have?
What
management
systems do we
need?
Where will
we play?
Specific spaces where you will and will NOT compete: customer segments,
distribution channels, product/service, geography, stage of production, etc.
How will
we win?
Competitive advantage on the chosen playing field. At the highest
level, the choice is between low cost (not price) and differentiation.
What capabilities
must we have?
What
management
systems do we
need?
Sustainable
Low Cost
Competitive Differentiation
Advantage
• Systemic understanding • Deep understanding of
of cost drivers
customers’ needs
• Relentlessly drive costs • Offer products and
down
services that customers
• Sacrifice nonconforming adore
customers
• Guard customers jealously
• Offer standard product
or service
Where will
we play?
Specific spaces where you will and will NOT compete: customer segments,
distribution channels, product/service, geography, stage of production, etc.
How will
we win?
Competitive advantage on the chosen playing field. At the highest
level, the choice is between low cost (not price) and differentiation.
What capabilities
must we have?
Current AND future activities that enable your organization
to bring the where-to-play and how-to-win choices to life.
What
management
systems do we
need?
Where will
we play?
Specific spaces where you will and will NOT compete: customer segments,
distribution channels, product/service, geography, stage of production, etc.
How will
we win?
Competitive advantage on the chosen playing field. At the highest
level, the choice is between low cost (not price) and differentiation.
What capabilities
must we have?
Current AND future activities that enable your organization
to bring the where-to-play and how-to-win choices to life.
What
management Processes, structures, and rules that build your capabilities,
systems do we
need? reinforce and measure your organization’s strategic choices.
Source: Playing to Win, A.G. Lafley, Roger L. Martin
Reverse Engineering
Strategy’s magic question: WHAT MUST BE TRUE?
What must be What must be What must be What must be What must be What must be
true about the true about true about true about our true about our true about
size and what our what our end- capabilities and costs and how how our
attractiveness channels and users truly how they they compare competitors
of our chosen partners truly value?
compare to to those of our will react?
segments?
value?
those of our competitors?
competitors?
Multiple Cascades
Corporate Winning
Aspiration
Level
Where to
Play
Capabilities
Management
Systems
Strategic
Problem
The Play-to-Win Process
3. Frame the problem as two distinct choices
Winning Where We How We Core Management
Aspiration
Play
Win
Capabilities
Systems
CHOICE 1
Strategic
Problem
CHOICE 2
The Play-to-Win Process
4. Brainstorm initial where-to-play/how-to-win possibilities
Winning Where We How We Core Management
Aspiration
Play
Win
Capabilities
Systems
Possibility
Possibility
Possibility
CHOICE 1
Possibility
Possibility
Strategic
Possibility
Problem
Possibility
Possibility
Possibility
CHOICE 2
Possibility
Possibility
Possibility
The Play-to-Win Process
5. Cluster and cull possibilities by theme
Winning Where We How We Core Management
Aspiration
Play
Win
Capabilities
Systems
Possibility
Possibility
Possibility
CHOICE 1
Possibility
Possibility
Strategic Possibility
Problem
Possibility
Possibility
Possibility
CHOICE 2
Possibility
Possibility
Possibility
The Play-to-Win Process
6. Develop a cascade for each theme & status quo, then reverse engineer each
Winning Where We How We Core Management
Aspiration
Play
Win
Capabilities
Systems
Possibility
Possibility
Possibility
CHOICE 1
Possibility
Possibility
Strategic Possibility
Cascade & reverse engineer
Problem
Possibility
Possibility
Possibility
CHOICE 2
Possibility
Possibility
Possibility
INITIAL
possibility
INITIAL
possibility
INITIAL
possibility
INITIAL
possibility
INITIAL
possibility
INITIAL
possibility
INITIAL
possibility
INITIAL
possibility
INITIAL
possibility
INITIAL
possibility
INITIAL
possibility
INITIAL
possibility
INITIAL
possibility
Hypothetical Example: AlphaPharma
1. Draft the current strategy cascade
winning
• To extend patients’ lives and increase their quality of life
aspiration • To be a global biopharma company delivering safe, effective medicines
• To be the top player in our chosen therapeutic areas
Failure
to
innovate
effec9vely
and
a
weak
pipeline
Hypothetical Example: AlphaPharma
3. Frame the problem as two distinct choices
Broaden
focus
Failure
to
innovate
effec9vely
and
a
weak
pipeline
Narrow
focus
Hypothetical Example: AlphaPharma
4. Brainstorm initial where-to-play/how-to-win possibilities
Expand beyond three therapeutic areas to a
broad array of acute and chronic conditions
Create comprehensive treatment regimens
rather than drugs
Possibility
Expand to medical devices
Become a fast follower, move into generics
Expand to over-the-counter
Win on the basis of the best science
Failure
to
Broaden
focus
Win on the basis of brand building and
Possibility
innovate
relationships
Refocus on the patient as customer
effec9vely
Focus on chronic diseases
and
a
weak
Focus on most pervasive diseases
diabetics
Diabetes
educators
Pharma-cists
Prescript-ion
protocol
Diabetes
devises
Developed
world
china
Third world
Global leader Global leader Improve
quality of life Extend lives of
in diabetes in diabetes Cure diabetes
diabetics
“Diabetes experts” research treatment for diabetics
diabetics
Diabetes
devises Primary care
physicians
china
Pharma-cists
Prescript-ion
protocol
Endocrin-
ologists
Developed
world
Diabetes
educators
Third world
Global leader Global leader Improve
quality of life Extend lives of
in diabetes in diabetes Cure diabetes
diabetics
“Diabetes experts” research treatment for diabetics
Diabetes
educators
Third world
Global leader Global leader Improve
quality of life Extend lives of
in diabetes in diabetes Cure diabetes
diabetics
“Diabetes experts” research treatment for diabetics
Deep under-
standing of
clinicians
Create trust
w/other
diabetes
Sell-thru to experts
patients &
Drug clinicians
develop-
ment
prowess
Ads &
Hi profile market-ing
sponsor-
ships rebrand
Nati’l Affiliat-
ions
Global leader Global leader Improve
quality of life Extend lives of
in diabetes in diabetes Cure diabetes
diabetics
“Diabetes experts” research treatment for diabetics
Create trust
Sell-thru to Deep under-
w/other
patients & standing of
diabetes
clinicians clinicians
experts
Drug
develop-
ment
rebrand prowess
Ads &
market-ing
Hi profile
sponsor-
ships
Nati’l Affiliat-
ions
Global leader Global leader Improve
quality of life Extend lives of
in diabetes in diabetes Cure diabetes
diabetics
“Diabetes experts” research treatment for diabetics
rebrand
Ads &
market-ing
Hi profile
sponsor-
ships
Nati’l Affiliat-
ions
Global leader Global leader Improve
quality of life Extend lives of
in diabetes in diabetes Cure diabetes
diabetics
“Diabetes experts” research treatment for diabetics
diabetes
remains China
wide-spread diabetes
China allows diabetes
large & rates
foreign co’s increase
in growing
therapy area
Global leader Global leader Improve
quality of life Extend lives of
in diabetes in diabetes Cure diabetes
diabetics
“Diabetes experts” research treatment for diabetics
Patients pay
for on-patent
diabetes drugs
remains China
wide-spread diabetes
China allows diabetes
large & rates
foreign co’s increase
in growing
therapy area
Global leader Global leader Improve
quality of life Extend lives of
in diabetes in diabetes Cure diabetes
diabetics
“Diabetes experts” research treatment for diabetics
We can
Patients pay
manage drug
for on-patent
approval in
drugs
china
Patients
value having No all-out
voice in turf war
regimen
Global leader Global leader Improve
quality of life Extend lives of
in diabetes in diabetes Cure diabetes
diabetics
“Diabetes experts” research treatment for diabetics
We can
Patients pay
manage drug No all-out
for on-patent
approval in turf war
drugs
china
Patients
value having No all-out
voice in turf war
regimen
Global leader Global leader Improve
quality of life Extend lives of
in diabetes in diabetes Cure diabetes
diabetics
“Diabetes experts” research treatment for diabetics
We can
Patients pay
manage drug No all-out
for on-patent
approval in turf war
drugs
china
Patients
value having No all-out
voice in turf war
regimen
Global leader Global leader Improve
quality of life Extend lives of
in diabetes in diabetes Cure diabetes
diabetics
“Diabetes experts” research treatment for diabetics
We can
Patients pay
manage drug No all-out
for on-patent
approval in turf war
drugs
china
Patients Limited
value having No all-out industry
voice in turf war press
regiment release
Global leader Global leader Improve
quality of life Extend lives of
in diabetes in diabetes Cure diabetes
diabetics
“Diabetes experts” research treatment for diabetics
We can
Patients pay
manage drug No all-out Compet-itive
for on-patent
approval in turf war reaction
drugs
china
Patients Limited
value having No all-out industry
voice in turf war press
regimen release
Global leader Global leader Improve
quality of life Extend lives of
in diabetes in diabetes Cure diabetes
diabetics
“Diabetes experts” research treatment for diabetics
We can
Patients pay
manage drug No all-out Compet-itive
for on-patent
approval in turf war reaction
drugs
china
Patients Limited
value having No all-out industry
voice in turf war press
regimen release
Global leader Global leader Improve
quality of life Extend lives of
in diabetes in diabetes Cure diabetes
diabetics
“Diabetes experts” research treatment for diabetics
We can
Patients pay
manage drug No all-out Compet-itive
for on-patent
approval in turf war reaction
drugs
china
Patients Limited
value having No all-out industry “radio
voice in turf war press silence”
regimen release
Global leader Global leader Improve
quality of life Extend lives of
in diabetes in diabetes Cure diabetes
diabetics
“Diabetes experts” research treatment for diabetics
We can
Patients pay
manage drug No all-out Compet-itive
for on-patent
approval in turf war reaction
drugs
china
Patients Limited
value having No all-out industry “radio
voice in turf war press silence”
regiment release
FDA
R&D stage-
approval CRM
gate process
process
questions
?
thank you
@matthewemay matt.may@editinnovation.com
!