1 2 Your 3 4 5 StrategY 6 7 8 NeedS a 9 10 11 StrategY 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 FM.indd 1 3/23/15 11:33 AM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 FM.indd 2 3/23/15 11:33 AM 1 2 Your 3 4 5 6 StrategY 7 8 9 10 NeedS a 11 12 13 14 StrategY 15 16 17 18 19 How to 20 21 Choose and Execute 22 23 the Right Approach 24 25 26 27 28 29 MartiN reeveS : KNut HaaNæS : JaNMeJaYa SiNHa 30 31 32 33 Harvard BuSiNeSS review PreSS 34 BoStoN, MaSSacHuSettS FM.indd 3 3/23/15 11:33 AM 1 2 3 4 5 6 7 8 9 10 11 12 13 HBR Press Quantity Sales Discounts 14 Harvard Business Review Press titles are available at significant quantity discounts when purchased in bulk for client gifts, sales promotions, and premiums. Special editions, 15 including books with corporate logos, customized covers, and letters from the company or 16 CEO printed in the front matter, as well as excerpts of existing books, can also be created in large quantities for special needs. 17 For details and discount information for both print and 18 ebook formats, contact [email protected], 19 tel. 800-988-0886, or www.hbr.org/bulksales. 20 21 Copyright 2015 The Boston Consulting Group, Inc. 22 All rights reserved 23 10 9 8 7 6 5 4 3 2 1 24 No part of this publication may be reproduced, stored in or introduced into a retrieval 25 system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for 26 permission should be directed to [email protected], or mailed to Permissions, 27 Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163. 28 The web addresses referenced in this book were live and correct at the time of the book’s publication but may be subject to change. 29 Cataloging-in-Publication data is forthcoming. 30 31 eISBN: 978-1-62527-587-5 32 33 34 FM.indd 4 3/23/15 11:33 AM 1 coNteNtS 2 3 4 cHaPter 1 5 Introduction 1 6 7 cHaPter 2 8 Classical: Be Big 25 9 cHaPter 3 10 Adaptive: Be Fast 57 11 12 cHaPter 4 13 Visionary: Be First 87 14 cHaPter 5 15 Shaping: Be the Orchestrator 113 16 17 cHaPter 6 18 Renewal: Be Viable 141 19 cHaPter 7 20 Ambidexterity: Be Polychromatic 173 21 22 cHaPter 8 23 Lessons for Leaders: Be the Animator 193 24 ePilogue 25 Personally Mastering the Strategy Palette 211 26 27 Appendix A: Self-Assessment: What Is Your Approach to Strategy? 215 28 Appendix B: Further Reading 219 29 Appendix C: Multi-Armed Bandit (MAB) Simulation Model 223 30 Notes 227 31 Index 247 32 Acknowledgments 265 33 About the Authors 269 34 FM.indd 5 3/23/15 11:33 AM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 FM.indd 6 3/23/15 11:33 AM 1 2 Your 3 4 5 StrategY 6 7 8 NeedS a 9 10 11 StrategY 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 FM.indd 7 3/23/15 11:33 AM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 FM.indd 8 3/23/15 11:33 AM 1 Chapter 1 2 3 4 5 IntroduCtIon 6 7 Your Strategy Needs a Strategy 8 9 10 11 12 13 How to Select and Execute the 14 Right Approach to Strategy 15 16 Strategy is a means to an end: favorable business outcomes. When we think 17 about strategy, we tend to think about planning: study your situation, define 18 a goal, and draw up a step-by-step path to get there. For a long time, plan- 19 ning was the dominant approach in business strategy—in both the board- 20 room and the classroom. But effective business strategy has never really 21 consisted of just this one approach. The multidecade plans that oil compa- 22 nies make would feel inappropriate to the CEO of a software firm that faces 23 new products and competitors every day and that therefore adopts a more 24 fluid and opportunistic approach to strategy. Neither would such long-term 25 plans feel natural to an entrepreneur creating and bringing a new product or 26 business model to market. What is this broader set of ways in which we can 27 approach strategy, and which approach is the most effective in which situa- 28 tion? That is the central question of this book, and we will show that getting 29 the answer right can deliver demonstrable, significant value. 30 Today, we face a business environment that is faster changing and more 31 uncertain than ever because of, among other factors, globalization, rapid tech- 32 nological change, and economic interconnectedness. Perhaps less well known 33 is that the diversity and range of business environments that we face have also 34 Chapter_01.indd 1 3/23/15 11:48 AM