What Is Strategy? It’s a Lot Simpler Than You Think

Uploaded 23-02-22

23 Feb 2022

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To many people, strategy is a total mystery. But it’s really not complicated, says Harvard Business School’s Felix Oberholzer-Gee, author of "Better, Simpler Strategy".

To many people, strategy is a mystery.
Strategy does not start with a focus on profit.
It's about creating value.
There's a simple tool to help visualize the value you create: the value stick.
What is willingness-to-pay?
What is willingness-to-sell?
Remind me: Where does profit come in again?
How do I raise willingness-to-pay?
And how do I lower willingness-to-sell?
Real world example: Best Buy's dramatic turnaround

Companies should simplify and focus on two value drivers, he argues: customer satisfaction and employee satisfaction. By aligning strategic initiatives on these alone, leaders make their workers’ jobs less complicated and improve customer experiences.

Oberholzer-Gee is the author of the Harvard Business Review article “Eliminate Strategic Overload” (hbr.org/2021/05/eliminate-strategic-overload) as well as the book “Better, Simpler Strategy: A Value-Based Guide to Exceptional Performance” (amazon.com/Better-Simpler-Strategy-Value-Based…).

Produced and edited by Scott LaPierre
Video by Dave Di Iulio and Elie Honein
Animation by Alex Belser

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What Is Strategy? It’s a Lot Simpler Than You Think

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