Strategy pure and simple II : how winning companies dominate their competitors

Drawing on his 20 years of pioneering research and work with some 400 top companies, Robert offers today's executives guidance in strategy formulation, implementation, and deployment. Filled with examples drawn from the experiences of today's commercial leaders and interviews with CEOs of companies in a variety of industries, this updated edition of a revolutionary and inspiring best seller offers a sure-fire process of strategic thinking that's been tested and refined in the "war rooms" of America's most successful corporations.

Author Notes

Michel Robert is founder and president of Decision Processes International, Inc., a consulting firm headquartered in Westport, Connecticut which has 60 partners in 15 countries. His clients include such major companies as Caterpillar, 3M, and GATX. A noted lecturer and the author of six books including Product Innovation and Strategy Pure and Simple: How Winning Companies Outpace their Competitors, his writings have appeared in many business magazines and journals.

Preface	p. xi
1. A Winning Strategy Needs to Be Distinctive	p. 1
Examples of Companies That Have Changed the Rules	p. 6
The Moral of the Story	p. 12
Interview Don Fites, Chief Executive Officer Caterpillar: Why the Cat Landed on Its Feet	p. 14
2. What is Strategic Thinking?	p. 22
The CEO's Vision: The Starting Point for Strategic Thinking	p. 24
Strategy versus Operations	p. 25
Interview Kurt Wiedenhaupt, Chief Executive Officer American Precision Industries: Driving Growth by Thinking Strategically	p. 31
3. Obstacles to Strategic Thinking	p. 39
The Strategy Suffers from "Fuzzy Vision"	p. 39
Operational Thinking Dominates Management's Time	p. 40
Strategy Is Reactive, Not Proactive	p. 41
No Crisis ... No Strategy!	p. 42
Thinking Is Time-Related	p. 43
Planning Is Bottom-Up	p. 43
Thinking Is Quantitative, Not Qualitative	p. 44
Management Uses Rose-Colored Glasses	p. 45
Numbers Planning Discourages Risk Taking	p. 45
Reliance on Strategic Planning, Not Strategic Thinking	p. 46
The Process Itself Is an Obstacle	p. 47
Interview Rafael Decaluwe, Chief Executive Officer N.V. Bekaert, S.A.: Rewiring a Global Strategy	p. 50
4. Crafting the Future Profile of the Organization	p. 58
The Strategic Heartbeat of the Business: The Driving Force	p. 63
The Concept of Driving Force and/or Strategic Drive	p. 65
The Strategic Heartbeat of the Enterprise Determines What Kind of Company You Become	p. 71
Strategic Questions	p. 71
Interview Jim Glasser, Chief Executive Officer GATX: Trains, Planes, and Strategy	p. 73
5. Questions Often Asked about the Concept of Strategic Drive	p. 77
Seduced by Opportunities	p. 82
A Fundamental Concept of Business	p. 86
Interview Milt Honea, Chief Executive Officer NorAm Energy Corporation: Reenergizing after Deregulation	p. 88
6. Articulating the Business Concept of the Enterprise	p. 92
Meaningless Mission Statements	p. 93
The Need for a Concise Business Concept	p. 95
How to Construct a Meaningful Business Concept	p. 96
Examples of Strategic Business Concepts	p. 97
Turning the Business Concept into a Strategic Filter	p. 101
What Is the Strategic Quotient of Your Organization?	p. 103
Interview Jack Messman, Chief Executive Officer Union Pacific Resources: Bucking the Traditional Wisdom	p. 105
7. Nurturing Key Strategic Areas of Excellence	p. 109
Determining the Strategic Capabilities of the Business	p. 111
Importance of Areas of Excellence	p. 116
Interview Craig Smith, Chief Executive Officer Raytech Corporation: Creating Strategy with an Albatross Around Your Neck	p. 119
8. The Concept of Strategic Leverage	p. 123
The Link Between Business Unit Success and Corporate Competitiveness	p. 124
Leveraging Your Product Innovation Investment	p. 130
Strategic Leverage	p. 132
Interview Jim Mooney, Chief Executive Officer OMG Group: Winning the MandA Game	p. 135
9. The Ultimate Strategy: Control of the "Sandbox"	p. 143
To Compete or Not to Compete	p. 143
Rule 1 Control the "Sandbox"	p. 144
Rule 2 Identify Which Competitors Your Strategy Will Attract	p. 145
Rule 3 Anticipate Each Potential Competitor's Future Strategy	p. 145
Rule 4 Draw Competitive Profiles	p. 146
Rule 5 Manage the Competitor's Strategy	p. 148
Rule 6 Neutralize the Competitor's Strategy	p. 152
Rule 7 Choose Your Competitors; Do Not Let Your Competitors Choose You	p. 154
Changing the Rules of Play	p. 156
Interview Bob Burgess, Chief Executive Officer Pulte Corporation: Changing the Rules in a Chaotic Sandbox	p. 157
10. Strategy Deployment	p. 161
Why CEOs Have Difficulty Implementing their Strategy	p. 161
Identification of Critical Issues	p. 165
Structure	p. 165
Processes/Systems	p. 166
Skills/Competencies	p. 169
Compensation	p. 169
Closing the Loop	p. 170
The Operational Plan	p. 171
The Strategic Plan	p. 171
The Strategic Profile Is the Target for All Decisions	p. 171
Tools to Allocate Resources	p. 172
The Role of the CEO as Process Owner	p. 172
The Role of the Process Facilitator	p. 173
The Results	p. 173
Interview John Davis, Chief Executive Officer American Saw and Manufacturing Company: Strategy on the Cutting Edge	p. 178
11. Strategic Product Innovation: The Lifeblood of Corporate Longevity	p. 182
Strategic Product Innovation Is the Corporate Fountain of Youth	p. 183
The Seven Deadly Sins of Corporate Stagnation	p. 184
The Need for Strategic Fit	p. 192
Create Products for the Future, Not the Present	p. 193
Interview Jesus Catania, Chief Executive Officer FAGOR Electrodomesticos: Strategy for the New European Language	p. 195
12. Market Fragmentation: The Future of Successful New Product Innovation	p. 199
The Myth of Rapid Technological Change	p. 199
The Impact of Unnoticed Macro changes	p. 200
Macrochanges	p. 201
Push-to-Pull Economy	p. 201
Market Fragmentation versus Market Segmentation	p. 203
Differentiated versus Commodity Products	p. 206
Premium Price versus Low Price	p. 207
Short Runs versus Long Runs	p. 209
Production Efficiency versus Production Versatility	p. 210
Product versus Process Innovation	p. 212
High versus Low Brand Loyalty	p. 212
Changing Rules versus Fixed Rules	p. 213
Interview Michael Magsig, Chief Executive Officer Cologne Life Reinsurance Company: The Strategist as Weatherman	p. 215
13. Alliances and Acquisitions: The Pursuit of Phantom Synergies	p. 219
Don'ts	p. 220
Dos	p. 223
Profit Is No Replacement for Strategic Fit	p. 223
Conclusion	p. 226
Interview Ted Hutton, President and Chief Executive Officer, Waverly, Inc.: Strategy "Sans Tache"	p. 228
14. The Logistics of the Strategic Thinking Process	p. 231
The Mechanics of a Strategy Project	p. 231
Phase I Prework	p. 232
Phase II Three-Day Work Session	p. 233
Phase III One-Day Strategic Objectives	p. 233
Strategic versus Operational Objectives	p. 234
Phase IV Critical Issues Meeting	p. 235
Phase V Two-Day Review	p. 236
General Observations	p. 236
The Process: Phase II	p. 236
Notes and Sources	p. 252
Bibliography	p. 256
Index	p. 261

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Author Notes

Table of Contents