Business Strategy Development

Today's episode will make you better at developing a strategy, and evaluating other people's strategies. Roger Martin is one of the world’s most sought-after experts on strategy, and the author of "Playing to Win", one of the most popular (and most actionable) books on learning the art of strategy. He’s written extensively for the Harvard Business Review; consulted for dozens of Fortune 500 companies, including P&G, Lego, and Ford; and written 11 other books on strategy, leadership, and clear thinking. In our conversation, we cover: 🔸 The five key questions you need to answer to develop an effective strategy 🔸 How most companies get strategy wrong 🔸 How to avoid “playing to play” instead of playing to win 🔸 Real-world strategy examples from Figma, Lego, Procter & Gamble, and Southwest Airlines 🔸 Why you need to either differentiate or be the lowest cost 🔸 Shortcomings of current strategy education 🔸 Much more Listen now 👇 - YouTube: https://lnkd.in/gTyPQZus - Spotify: https://lnkd.in/gKWWm-Fp - Apple: https://lnkd.in/gCing92Q Some key takeaways: 1. Strategy is an integrated set of choices that compels a desired customer action. 2. Great strategists aren’t born; they’re made through practice. Even if you see yourself as more operational than strategic, remember that strategy is a skill that anyone can develop over time. Just like any skill, it improves with practice. 3. To win in business, you must be either a low-cost provider or differentiated. If you’re neither, competitors can “bully” you and take market share. Two questions can help you figure out whether you’re winning in these ways. First, could you match competitor price decreases and remain more profitable than them? If not, you’re not a low-cost provider. Second, could customers essentially flip a coin between you and a competitor? If so, you’re not differentiated enough. 4. Use the Strategy Choice Cascade to define and implement effective business strategies. This framework consists of five essential questions: a. What is our winning aspiration? Clarify what you aim to achieve with your strategy. This guides all subsequent decisions and actions toward a clear objective. b. Where will we play? Select specific markets, segments, or niches where you will compete. Focus is crucial; trying to be everywhere can dilute effectiveness. c. How will we win? Determine your competitive advantage. You must either offer customers superior value or operate at a lower cost than competitors in your chosen areas. d. What capabilities must be in place to win? Identify and build capabilities that are critical for executing your chosen strategy effectively. These should be distinctive strengths that set you apart from competitors. e. What management systems are required to ensure the capabilities are in place?

Business strategy is, usually, about building better businesses. Companies sometimes rely on committees and marketing experts to develop mission statements and elaborate plans, spending millions and months on research to create a polished growth strategy. In a turnaround (and I would argue in all businesses), time and resources are limited. You don’t have the luxury of waiting months to develop a plan, and speed becomes your greatest competitive advantage. You need clarity, alignment, and fast execution. Moreover, a strategy has to inspire and be distinctively unique to your company and situation. If we go back to basics, strategy is about understanding the choices in front of you – what to do and what not to do – then allocating resources to the activities that will most likely achieve the outcome you want. What I’ve learned in my career is: strategy doesn’t need to be complex; it needs to be based in fact, it needs to be clear and it must be translated in to definitive resource allocation. It needs to be designed for your employees, and your board. Simple, distinctive and clear nearly always beats complex, generic and vague. At Frontier our purpose is to Build Gigabit America and we distilled our strategy down to four fundamentals: 1. Build fiber 2. Sell fiber 3. Improve customer service 4. Operate more efficiently That’s it – four things that our company must do every day to succeed. The simplicity of it made sure everyone, from leadership to the front lines, understood how their work contributed to our bigger goal. What to do, and as importantly, what not to do. And because we are all aligned, we have moved fast. In under four years, we have gone from a company that had never built a strand of fiber to becoming the largest pure-play fiber internet provider in the United States. The lesson: A complex strategy won’t guarantee success. A purpose that inspires and a simple strategy, clearly communicated and relentlessly executed, just might.

Most business strategies are built for a predictable world. But we don’t live in a predictable world. Markets shift. Customer needs evolve. Technology disrupts. Yet, too many leaders rely on static plans instead of adaptive strategies, so they struggle when the unexpected happens. Here’s how to rethink your business strategy for uncertainty: 1. Shift from Planning to Experimenting Traditional strategy says: “Here’s the 5-year plan.” Entrepreneurial strategy asks: “What’s the next best experiment?” Test. Learn. Iterate. The best insights come from action, not analysis. 2. Follow Value, Not Just Vision Vision matters. But value creation drives growth. Customers don’t care about your internal goals. They care about solutions to their problems. Listen, adapt, and evolve based on what creates the most value in real time. 3. Build a Culture of Reorientation Companies fail not because they lack resources but because they fail to reorient when the world changes. ✅ Reward adaptability. ✅ Encourage questioning. ✅ Treat strategy as a living, breathing process — not a static document. In an uncertain world, the best strategy isn’t a plan. It’s an ongoing process of adaptation. #Entrepreneurship #Strategy #BusinessGrowth #Adaptation

A practical, step-by-step guide to corporate strategy. Start by breaking it down into steps and deliverables. A well-structured approach helps ensure alignment, focus, and momentum. Below is how leading organizations typically approach corporate strategy development, from analysis to execution. 1. Analyze – Gather Insights Start by building a robust understanding of the business environment and internal capabilities. External Focus: Examine market trends, competitive landscape, regulatory shifts, and evolving customer or stakeholder expectations. Internal Focus: Evaluate current business performance, financial strength, organizational capabilities, and portfolio positioning. Key Inputs: Industry research, data analytics, competitive benchmarking, and expert interviews. Outcome: A comprehensive, evidence-based foundation that informs all strategic decisions moving forward. 2. Design – Define Strategic Priorities Translate insights into focused strategic choices through collaborative sessions. Use strategy workshops, leadership alignment sessions, and scenario planning to clarify long-term goals and competitive positioning. Key Inputs: Insight synthesis, strategy frameworks (e.g., SWOT, Porter’s Five Forces), and vision-setting exercises. Outcome: A strategic blueprint that outlines core objectives, growth priorities, and guiding principles for the future. 3. Plan – Translate Strategy into Action Operationalize the strategy by aligning it with planning and resource allocation. Prioritize initiatives, define success metrics, assign ownership, and develop supporting budgets and resource plans. Key Inputs: Strategic roadmap, financial modeling, and operational planning tools. Outcome: A clear, actionable implementation plan that bridges strategic intent with day-to-day execution. 4. Approve – Secure Leadership Buy-in Formalize the strategy through leadership and governance processes. Present the finalized strategy and supporting financial plans to the executive team and Board for feedback, endorsement, and approval. Emphasize clarity, alignment with vision, and readiness for execution. 5. Execute – Drive Results Move from planning to action with disciplined execution and continuous oversight. Launch key initiatives, track performance against goals, and provide consistent updates to leadership and stakeholders. Adapt and course-correct as needed based on performance data and external shifts. Outcome: Measurable impact, organizational alignment, and forward momentum. Why It Matters: A clearly defined and rigorously implemented strategy keeps teams focused, improves resource utilization, drives accountability, and positions the organization for long-term success. Follow me, Tim Vipond, FMVA® and Corporate Finance Institute® (CFI) for deeper insights into strategy and finance.

Adapting your business strategy is no longer optional—it's essential for survival and long-term success. Why does strategy adaptation matter so much? ↳ Businesses face constant changes in market trends, customer expectations, regulations, and technology. Companies must remain agile and adjust their strategies based on real-time feedback to stay competitive. ↳ But here's the challenge: adapting too frequently or without structure can lead to strategic drift—a slow, dangerous departure from your original vision that undermines your competitive edge. Strategic drift happens when: ↳Companies react impulsively to external changes without a transparent, data-backed process. ↳Short-term pressures take priority over long-term goals. ↳Small, incremental changes add up, diluting the core strategy. How do you strike the right balance between adaptation and alignment? ↳ You should regularly stress-test your strategy through scenario planning to ensure it remains relevant under different conditions. ↳ Separate strategy reviews from operational meetings to maintain long-term focus. ↳ Secure leadership commitment to ensure every adaptation aligns with the company’s core goals. ↳ Use lead and lag indicators to track progress and spot early signs of strategic drift. A disciplined yet flexible approach is the key to staying competitive while preserving your strategic direction. P.S. If you like content like this, please follow me. 😊

𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲 𝐢𝐬 𝐧𝐨 𝐥𝐨𝐧𝐠𝐞𝐫 𝐚 𝐨𝐧𝐞-𝐭𝐢𝐦𝐞 𝐭𝐚𝐬𝐤; 𝐢𝐭'𝐬 𝐚𝐧 𝐚𝐥𝐰𝐚𝐲𝐬 𝐨𝐧 𝐚𝐜𝐭𝐢𝐯𝐢𝐭𝐲. In the past, strategy was often an annual activity. Companies would plan a 3- to 5-year roadmap, review it annually, and create annual plans. This approach worked well back then. But in today’s digital and disruptive business environment, a one-time strategy is no longer sufficient. The impact of COVID-19 added another layer—resilience, which is now crucial for survival. 𝐓𝐨 𝐭𝐡𝐫𝐢𝐯𝐞, 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲 𝐦𝐮𝐬𝐭 𝐨𝐩𝐞𝐫𝐚𝐭𝐞 𝐨𝐧 𝐭𝐡𝐫𝐞𝐞 𝐝𝐢𝐬𝐭𝐢𝐧𝐜𝐭 𝐥𝐞𝐯𝐞𝐥𝐬: 1. 𝐌𝐚𝐱𝐢𝐦𝐢𝐳𝐞 𝐭𝐡𝐞 𝐞𝐱𝐢𝐬𝐭𝐢𝐧𝐠 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬: This involves focusing on penetrating or expanding current markets. Strategy here tweaks the value proposition and go-to-market (GTM) approach to maximize client engagement and financial performance. 2 𝐂𝐫𝐞𝐚𝐭𝐞 𝐭𝐡𝐞 𝐟𝐮𝐭𝐮𝐫𝐞, 𝐒𝐭𝐚𝐲 𝐚𝐡𝐞𝐚𝐝 𝐢𝐧 𝐭𝐡𝐞 𝐠𝐚𝐦𝐞: The most crucial aspect is ensuring the business remains relevant by adapting to changing customer preferences, new offerings, and evolving technologies. This requires discovering new markets, identifying customer needs—even those they aren't yet aware of—and creating unique value propositions that set your business apart. 3.𝐓𝐫𝐚𝐧𝐬𝐢𝐭𝐢𝐨𝐧 𝐭𝐨 𝐧𝐞𝐰 𝐦𝐨𝐝𝐞𝐥𝐬: This involves shifting to new business and operating models, requiring different talent, skills, capabilities, and structures. It’s what we often call business and digital transformation.   𝐖𝐡𝐞𝐫𝐞 𝐭𝐨 𝐛𝐞𝐠𝐢𝐧?  First, understand that the game has changed. You must revisit and rethink your strategies. While growing your existing business (Level 1) may seem static, responding to market changes with evolving tactics is essential. However, Levels 2 and 3 demand an "always on" approach: 1. Continuously sense new markets, opportunities, and threats. 2. Monitor market competition and customer needs. 3. Stay updated with and adopt new technologies and models.   𝐓𝐰𝐨 𝐠𝐮𝐢𝐝𝐢𝐧𝐠 𝐩𝐫𝐢𝐧𝐜𝐢𝐩𝐥𝐞𝐬: 𝐑𝐮𝐥𝐞 𝐨𝐟 18: Every 18 months, new technologies and models become mainstream. In the next 18 months, serious business use cases and commercialization emerge, and in the following 18 months, they become commoditized. So, every 18 months, you should launch new, unique offerings and transition to a new business model, all while maximizing revenue and profit from your current business. 𝐑𝐮𝐥𝐞 𝐨𝐟 50-30-20: Allocate 50% of your organizational focus to innovations, 30% to transformation (including new partnerships and ecosystem play with technology), and 20% to running and growing the existing business. Yes, it's easier said than done if your strategies are static and one-time. But it’s possible if you start today and transition to "always on" strategies within the next six months. Ready to think and act differently? Let’s start the conversation. #strategy #businesstransformation #digitaltransformation #futureofbusiness #success

Strategy creation isn't a one-day task. It’s a continuous exercise that allows you to understand where you are, where you want to go, and how you’ll get there. It involves identifying problems, setting goals, and experimenting with solutions. If you're in the C-Suite, getting this right is key to help your organization succeed. At its core, strategy takes you from your current state to your vision. First, envision where you want to be. Then, identify obstacles and experiment your way through them. This method, inspired by Toyota's Improvement Kata, is a continuous loop of planning, executing, learning, and iterating. The Product Kata follows the same principles: ↳ Understand the context ↳ Set clear goals ↳ Run experiments ↳ Learn and adjust The result is a living strategy that drives outcomes, not just outputs. Strategy should reach every level of your organization. That way, everyone, from product managers to engineers, understands how daily work connects to larger business goals. Clear, consistent communication is what makes this possible. Leaders must outline the vision, set boundaries, and empower teams to innovate within those parameters. Remember that a great strategy should also evolve with new insights and market changes. So keep testing assumptions, listening to feedback, and be ready to pivot when needed. How do you ensure your strategy stays relevant and engaging for your teams? Share your thoughts below! 👇

Most strategies fail before they even start. Because what people think strategy is, isn’t what strategy actually is. I’ve watched brilliant founders build 100-slide decks filled with buzzwords, goals, and vision statements. They talk about beating the competition and dominating the market. Six months later? Nothing has changed. Here’s the truth about real strategy: 🔸 What strategy isn’t: • A pretty deck that sits on a shelf • Copying what competitors do (but “better”) • Big goals without hard trade-offs • Trying to be everything to everyone 🔸 What strategy actually is: • Choosing what not to do • Being different, not just better • Making trade-offs that make you uncomfortable • Solving problems others don’t even see yet The best strategy I’ve ever seen? A founder shut down three profitable product lines to focus on one. Everyone thought he was making a mistake. The board questioned it, the team panicked, even his family doubted it. But he understood something most leaders miss: Strategy is about going all in, not spreading yourself thin. Eighteen months later, that one product line outperformed the other three — tenfold. Here’s how you know if your strategy is real: ✅ Your newest employee can explain it in 30 seconds ✅ It forces you to say no to good opportunities ✅ It builds rules your competition can’t copy If it doesn’t do that, you don’t have a strategy, you have a wish list. Strategy isn’t supposed to be comfortable. It’s supposed to be clear, focused, and bold enough to make you a little nervous. What’s one thing your company needs to stop doing to start winning? ——— ♻️ REPOST if this resonated with you! ➡️ FOLLOW Rheanne Razo for more B2B growth strategies, client success, and real-world business insights.