book.chapter Defining your purpose

To develop a winning strategy, the first step is to clarify the purpose and mission of your organization. Defining what winning looks like for you is crucial, as it can mean different things to different people. While most companies have lofty vision statements, these are often too vague for strategy development. To create a winning strategy, you need to precisely describe your desired future state. Thoroughly detailing what winning entails is essential before developing a robust strategy. Envisioning a brilliant future for your company is the starting point. Starting with customers and working backwards can be helpful. Articulate the problems you aim to solve for them in engaging language. State what winning means to your clients, as satisfying customers is the ultimate goal. This is where you can have ambitious, noble aspirations. After describing the winning vision, it is important to identify where you can achieve it. No company can be everything to everyone and succeed, so narrowing your focus by choosing target markets, segments, channels, etc. is necessary to win. Remember, strategy is about playing to win, not just competing. To have a truly effective strategy, you must prevail with key customers and outperform rivals. Instead of focusing solely on products, your strategy should detail how you will improve customers' lives. For example, Procter & Gamble's business services unit provides IT, facilities, and HR services to other P&G units. President Filippo Passerini brought in world-class partners to manage facilities, IT, and employees, rather than just outsourcing to the cheapest vendor. This approach signaled that the unit was there to win. The five interlocking choices of a strong strategy can be mapped on one page, serving as a strategy guide. First, define your winning aspiration in detail and envision the future you want to create for customers and your organization. Next, identify the playing field where you can achieve that vision by focusing on target markets, segments, channels, etc. Third, determine your way to play - how you will win in your chosen field, including your value proposition, brand strategy, and differentiators. Fourth, establish the key capabilities needed to deliver your value proposition profitably and sustainably, identifying strengths to leverage and gaps to address. Finally, choose your management systems to support your choices, including structure, processes, incentives, and culture. With a clear winning aspiration, strategic playing field, differentiated value delivery, solid capabilities, and aligned management systems, you have a concise yet powerful strategy map to drive success.