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Ebook About Get to better, more effective strategy.In nearly every business segment and corner of the world economy, the most successful companies dramatically outperform their rivals. What is their secret? In Better, Simpler Strategy, Harvard Business School professor Felix Oberholzer-Gee shows how these companies achieve more by doing less. At a time when rapid technological change and global competition conspire to upend traditional ways of doing business, these companies pursue radically simplified strategies. At a time when many managers struggle not to drown in vast seas of projects and initiatives, these businesses follow simple rules that help them select the few ideas that truly make a difference.Better, Simpler Strategy provides readers with a simple tool, the value stick, which every organization can use to make its strategy more effective and easier to execute. Based on proven financial mechanics, the value stick helps executives decide where to focus their attention and how to deepen the competitive advantage of their business.How does the value stick work? It provides a way of measuring the two fundamental forces that lead to value creation and increased financial success—the customer's willingness-to-pay and the employee's willingness-to-sell their services to the business. Companies that win, Oberholzer-Gee shows, create value for customers by raising their willingness-to-pay, and they provide value for talent by lowering their willingness-to-sell. The approach, proven in practice, is entirely data driven and uniquely suited to be cascaded throughout the organization.With many useful visuals and examples across industries and geographies, Better, Simpler Strategy explains how these two key measures enable firms to gauge and improve their strategies and operations. Based on the author's sought-after strategy course, this book is your must-have guide for making better strategic decisions.Book Better, Simpler Strategy: A Value-Based Guide to Exceptional Performance Review :
This is an excellent book and a great contribution to the field of strategic management in my view.Felix elaborates nicely on the concept of the Value Stick. This notion was presented first to my knowledge in the 1980s by a Pankaj Ghemewat, then a faculty member at the Harvard Business School. I have had intermittent stints as a strategy professor and used the concept in my MBA strategy course starting in the early 2000s. But it was a concept that I felt needed further elaboration. And I did not feel competent enough to do it for reasons below.Enter Felix's new book. It explodes and elaborates the notion that value is created when the "wedge" or the difference between Customer Willingness to Pay and Supplier Willingness to Supply is made larger than a firms competitors' spreads. This is the, at one level, simple notion that is greatly expanded in the book.One of the key strengths of Felix' book is the use of many company examples. And by exploding this simple concept Felix discusses, among many other things, substitution, compliments, and network effects. He does this by first focusing on the upper portion of the Value Stick - Customer Willingness to Pay. Then proceeds to discuss the bottom of the Value Stick- Supplier Willingness to Supply. All of this while discussing the Value that can be Created by strategic and tactical moves and then how to actually Capture the Value that your firm has created to monetize it.One thing I would like to highlight. I and many other Commenters have said the notion of the Value Stick is "simple". It is in one sense. But the concept of Value in my view, and I think in Felix' view, can only be fully realized when we view the world as a "canvas of differences" (I made this phrase up and will own up to any deficiencies). Value only makes sense when we compare it to others' offerings or to the notion of opportunity cost. I have noticed the ability to continually think in differences is not widely found in U.S executives and managers. Felix' book will help greatly with honing this skill.I won't go into detail here as one needs to read the book in Felix' words. Every strategy professional should read this book. If there is one ‘business’ book you should read this year - or perhaps for the next ten years - it should be this one.Part of my job requires reading and reviewing 2-4 books and papers a week. Most business books tend to be merely a collection of success stories cherry-picked to prove a thesis. Few deal with the actual challenges of implementation: working with systems, people, and the realities of context, history, and trade-offs. The papers that offer nuance tend to be academic papers that few have the patience to read.This book deftly manages to sidestep all that. The ideas it presents are simple but not simplistic. The questions it raises challenge its own propositions; the conclusions often counterintuitive and therefore insightful. There are examples of firms that succeeded, firms that failed, and what we can learn from such systematic ('general equilibrium') thinking. Entire chapters on trade-offs and execution issues bring it back to experiences of leaders and managers in the real world. It is a book that challenges you with the highest of ideals, and yet offers practical suggestions for concrete next steps.This is, of course, not just because the author Felix Oberholzer is an award-winning teacher - he's earned some of the highest teaching awards granted by Wharton and Harvard - whose research has been published in the very best academic journals in multiple fields. Those are outcomes. It is because the author is a Renaissance man and humanist in the highest sense: he brings insatiable curiosity and a sharp mind, asking questions about what seems obvious, deriving new insights and making new connections. Not just about abstract concepts in economics and management - but about how it plays out in the real world. The chapter on complementors alone - drawing from economic thinking about substitutes and complements - can be the subject for an entire semester's course. Have many people asked the question of "why supply chains are people too"? How many business book chapters start with the link between Lady Gaga and Lipitor?I particularly adored several chapters pushing the reader to think about what NOT to do, and where firms should UNDER-invest. While startups often face natural constraints and make decisions about trade-offs, larger companies tend to want to try to do everything - or at least be good at everything you put up on Post-It notes during 'annual brainstorming sessions.' But what would truly add value to customers, suppliers, employees? And what should be deprioritized?I am torn between writing even more about this book, and leaving you to be delighted with its insights as you read through it yourself.I cannot recommend this book highly enough. It is not just about 'business and strategy.' It is a compass, a Socratic gadfly that will prompt you to ask questions about what 'adding value' means, whether it be for work, your personal life, or anything in between. Read it. Linger. Reread it. Learn. 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