What Is Strategy? It’s a Lot Simpler Than You Think

Рет қаралды 958,526

Күн бұрын

To many people, strategy is a total mystery. But it’s really not complicated, says Harvard Business School’s Felix Oberholzer-Gee, author of "Better, Simpler Strategy".
00:00 To many people, strategy is a mystery.
00:25 Strategy does not start with a focus on profit.
00:52 It's about creating value.
01:00 There's a simple tool to help visualize the value you create: the value stick.
01:30 What is willingness-to-pay?
02:30 What is willingness-to-sell?
03:14 Remind me: Where does profit come in again?
03:48 How do I raise willingness-to-pay?
05:00 And how do I lower willingness-to-sell?
06:18 Real world example: Best Buy's dramatic turnaround
Companies should simplify and focus on two value drivers, he argues: customer satisfaction and employee satisfaction. By aligning strategic initiatives on these alone, leaders make their workers’ jobs less complicated and improve customer experiences.
Oberholzer-Gee is the author of the Harvard Business Review article “Eliminate Strategic Overload” (hbr.org/2021/05/eliminate-str...) as well as the book “Better, Simpler Strategy: A Value-Based Guide to Exceptional Performance” (www.amazon.com/Better-Simpler....
Produced and edited by Scott LaPierre
Video by Dave Di Iulio and Elie Honein
Animation by Alex Belser
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Пікірлер: 315

@Willbudi 6 ай бұрын

Strategy is a plan to create value. 1. Not focus on profit 2. About looking forward to planning for the future 3. Building value for customers, employers, and suppliers 4. Value = difference between willingness to pay (customer) and willingness to sell (supplier) 5. How do I raise willingness to pay? Product Quality, Product Complement, Network Effects 6. How do I lower the willingness to sell? Provide better working experience as a trade-off For e.g. Best Buy, increase WTP by offering customers with faster delivery directly from BB neighborhood stores, utilizing BB stores as warehouse

@PGERARD63 Ай бұрын

Where does all the value ends?

@peacebakare Жыл бұрын

This is a super complement of "A Plan is Not a Strategy" by Prof. Roger, that I just watched. I have learned so much about Strategy within 20mins I feel like I have some powers at my disposal right now. Looks like I'll like to have a MBA for structured and consolidated knowledge.

@srinic9319 Жыл бұрын

I was just about to post this 😅 a plan is not a strategy but a strategy is a plan - 😭

@peacebakare Жыл бұрын

@Huy Phạm Quốc Really? So sorry about that. How can I help?

@durgaprasadvadlamoodi1271 Жыл бұрын

i agree, i just watched and explained very well.

@Anurag_Saxena Жыл бұрын

@Huy Phạm Quốc me too. So I watched this video again and concluded that strategy is a "plan to create value". First Prof. Roger sounded incorrect to me. Then I re-watched Prof Roger and found his case study of Southwest explaining his points crystal clear.

@michaelwilliams2337 Жыл бұрын

Prof Martin's video is excellent and probably the only strategy video which really says what strategy is all about in under 10 mins. Felix Oberholzer-Gee's video breezes over the ferocity of competitive forces.

@burhani3071 2 жыл бұрын

Best content for a long time on youtube! Thank you for that HBR and Prof. Oberholzer-Gee.

@SiddharthSingh07 Жыл бұрын

Amazing job creating this content - Core concepts simplified under 10 mins Hoping to see more content in this format.

@carol7roberts Жыл бұрын

Excellently and succinctly explained. Please put Mr. Oberholzer-Gee in more videos! Also, excellent visuals here!! Bravo!!!🏆

@jwp363 8 ай бұрын

Felix, let me disagree, a strategy is not a plan. Strategy is about how-to achieve something - the story if you like. And a plan is about the what, where, and when - more like the chapters of a book.

@victorowino8588 12 күн бұрын

How to achieve something equals a plan

@dinethrathsara3246 8 күн бұрын

Plan is more like steps to achieve something@@victorowino8588

@meshangovender 2 жыл бұрын

Profound content. What a gift to be able to explain something so complex so simply. A true MBA in 10 mins

@ChengeerLee Жыл бұрын

Brilliant. And you are an amazing educator. Great work, kudos to the production team. Top notch work!

@PraveenKumar-ed3xt Жыл бұрын

Tons of value loaded video, It can't be simpler than this, so clear, with examples 🙏

@osama151189 Жыл бұрын

Thank you! I like how straightforwardly you educate.

@kumbukanikachingwe9919 Жыл бұрын

Thanks very much Havard, watching these videos really helps alot. It's kinda like we are on campus, i had to watch these episode 5 times to really get hold of WTP and WTS. Thanks.

@culturapoliticaycomputador9999 Жыл бұрын

This is a valuable video, it's a gift for all of us. Thank you Mr. Felix Oberholzer-Gee.

@stevenmalolo938 Жыл бұрын

I love how you broke it down so we can understand. Love the content!

@extedax 2 жыл бұрын

Excellent content! If you're looking for a 10min MBA, this the closest you could get to it.

@sergiomujica973 2 жыл бұрын

Exactly! I completely agree. It reminded me of some of my MBA classes.

@contemplore Жыл бұрын

Also #personalMBA by Josh Kauffman. Combine with HBR and Economist guides. For more in business today, learn Economics, Computer science CS50, web3, Mathematical thinking, lateral thinking, design thinking, systems thinking..... And lessons from your specialization specific books/pods/courses/journals...

@SalawuIbrahim 2 жыл бұрын

This is amazing! I feel a lot smarter on the topic of strategy. I'm also aware enough that I need to learn so much more to be able to take advantage of this body of knowledge I just acquired. Thank you Felix!

@abubalo 2 жыл бұрын

I am impressed by HBR consistency to release great video after great video👏

@alexisazria1169 2 жыл бұрын

This is an excellent explanation. Thank you.

@floydmunetsi 2 жыл бұрын

Really great video... Clear and concise lesson.

@adriendeotto7971 Жыл бұрын

Anyone who tries to grasp what strategy is should start with this video. A big thank you to Felix Oberholzer-Gee and the HBR channel for sharing such high-quality content and insights 🙏

@teezfeelz-1716 2 ай бұрын

Hi Adrienne, I found the piece a little confusing especially around willingness to sell. What Am I missing. Can you explain to me like you would a 10year old.

@Ms.T 9 ай бұрын

The anticipation of starting my dream job in a couple of weeks thrust me into this journey... I started with optimization of the Game theory in in my career, then I stumbled on "Planning is not a Strategy" to wit; a strategy is a plan that is based on logic that is simple & can be tweaked(with a pre-established tweaking mechanism) when it is not working... Full circle moment... 🎉

@moisestatis5418 Жыл бұрын

Great video, liked it so much. Thank you! Look forward to find more like this.

@nhungphuong2461 Жыл бұрын

This is high-value content! So impress. Thank Prof.

@samartharya5668 2 жыл бұрын

Beautiful video. Stick diagram makes it lot easier to understand. Example of Best Buy suits well too. Would love to read more.

@josephinebardot8403 Жыл бұрын

Thank you a lot for this video. This is very interesting and informative. Keep posting like those amazing videos, this is awesome.

@andessepta2535 2 жыл бұрын

Great and clear explanation. Thanks for sharing.

@abirahmed1292 2 жыл бұрын

Can we see this in real world" Wow, that question and answer really made the difference for me, you created a real value guys. Thanks

@Kakanato 2 жыл бұрын

Felix, you have just increased your value by increasing the willingness to pay and decreasing the willingness to sell! Awesome real life example!

@joaquinjackson7510 2 жыл бұрын

Very good explanation! Thank you

@HS-wd5mp 8 ай бұрын

Absolutely stunning! Thank you so much.

@oliverwills1750 2 жыл бұрын

Thank you for the explanation. Very much appreciated HBR.

@user-HRARTIST 6 ай бұрын

Fantastic explanation!!!!! Many thanks!!!!!

@PhirunKao 2 жыл бұрын

It's the best 10 mins about strategy!

@miguelsalazar1602 Жыл бұрын

Wow! The content of this video is really good. I wish there we're more professors and intelectuales that could talk about business like this, without the jargon and mambo jumbo that most business teachers use.

@monkichi1112005 Жыл бұрын

simply explanation and easy to understand

@swezin7125 9 ай бұрын

I learn a lot within 20 mins and thank you so much.

@pujadeshani2419 Жыл бұрын

Excellent explanation. Go straight to my brain. Thank you...............................🙏🙏🙏🙏

@gyanprakashgupta4629 Жыл бұрын

Amazing...could not have learnt more within 10 minutes

@somosagricultura Жыл бұрын

Interesting topic. It's great to learn about strategy because it's easy to get wrong about this concept.

@patriciatejado4334 2 жыл бұрын

Excelente explicación. Gracias!

@diklaakrat5413 2 жыл бұрын

Great video! Thanks for sharing your work!

@manojphatak763 2 жыл бұрын

OMG. That is the best damn explanation of strategy and value I have EVER heard !!!

@atogweoghieaga2205 Жыл бұрын

This is unbelievable. No one has ever strategy this way!

@avono5330 3 ай бұрын

its a plan to create value. the beginning phase to achieve a benefit (a measurable outcome). determining optimal customer willingness to pay/price. determining willingness to sell for employees/compensation. the middle between the opposing position reflects company success.

@herrysantoso2523 2 жыл бұрын

Very good sharing!. It is simple and powerful! thanks

@richardabbe799 2 жыл бұрын

Great discussion on this topic! Thanks!

@robinzhang6205 Жыл бұрын

Hi ROFESSOR OBERHOLZER-GEE,I'm just in "Business Strategy" class online, good to see you here

@matthew4031 2 ай бұрын

That was one of the most value pack videos I’ve ever watched

@rabinraj15 Жыл бұрын

Superb!! Thank you very much 👍🏽

@muteeburrehman7628 Жыл бұрын

So much insight really helpful and amazing

@gavincampion4961 2 жыл бұрын

Excellent video! Thanks for sharing.

@MohamadShurrab Жыл бұрын

Excellent! Strategy is a Plan to Creat Value. This is where I differ with Professor Roger piece on Strategic Planning where he completely disconnects both.

@melomelody91 2 жыл бұрын

Bravo!! I love how you made it so simple to understand the concepts!

@sakshisingh-nt8re 2 жыл бұрын

Thanks HBR for such helpful videos

@ranganatht.r.1417 2 жыл бұрын

… a very interesting, informative and impressive video. Thanks a lot.

@blurayism 8 ай бұрын

Simple & clear explanation😀

@socratesbleu Жыл бұрын

I want to take his class. I understood half of what he said but was engaged the whole way

@utsabsarkhel4026 Жыл бұрын

Thank you professor

@choupi0645 Жыл бұрын

Inspiring content! I am gonna use this concept into real life, thanks!

@MaxRuso Жыл бұрын

So insightful tnx

@romp39 Жыл бұрын

Product/Customer experience and employee experience are the two foundational factors. Sounds simple but as the layers of management there is more and more Vaseline on the lens when it comes to observing and measuring the quality of these experiences.

@joaonogueirasantos8211 Жыл бұрын

Amazing content. It's like being at Harvard Business School! This quality teaching should be accessible to everyone in the world! Thank Prof. Felix!

@ramcharankotari8980 Жыл бұрын

Thank you Felix

@DodaGarcia 11 ай бұрын

That's fantastic! One question I have is: in the example of decreasing willingness to sell by improving the job conditions, where does the financial investment get factored in? Because while not a one-to-one comparison to just increasing pay, it's still not free to implement.

@bayou__ 9 ай бұрын

I Love It, Unique selling Point. Customers believe the want to pay.

@ishushamit 2 жыл бұрын

This is brilliant

@sahanglp3i-271 27 күн бұрын

Thanks to Harvard Business Review for the amazing videos ...

@OwlofAsia Жыл бұрын

A lot to think about. Thank you

@nambokki 2 жыл бұрын

Big thank you!

@SafiullahWasiullah 2 жыл бұрын

Great content. Thanks HBR

@monicaviola5018 2 жыл бұрын

amazing video, though even more when you questioning about this for a whole month. Terima kasih 🙌

@johnklee3843 Жыл бұрын

This is a great video!! Pricing 101

@Hakimshafin Жыл бұрын

Thank you sir ❤️

@Anurag_Saxena Жыл бұрын

First, i watched prof Roger's video on strategy. Then, I watched this video twice and concluded that strategy is a "plan to create value" and Prof. Roger sounded incorrect to me. Then I re-watched Prof Roger and found his case study of Southwest explaining his points crystal clear. In plans, even deviations from goals are anticipated and there's plans in advance to fix them. In strategy, one isn't sure what sort of deviations come ahead and there's no plans in advance to fix them. One needs to twist and turn the strategy as and when the deviations arise.

@BayuHendra-wb2zx 3 ай бұрын

Thanks tricks and strategies for success, always good luck

@annemaxwell9975 Жыл бұрын

This commentary is far superior to the explanation offered by the other professor with whose language I took issue with. I still say Strategy is the why and the vital plan to achieve it's likely success or to optimise the desired outcome is the what, which, where, when, who and how.

@cara804 Жыл бұрын

i love this is in direct difference to strategy is not a plan via HBR...

@lotannaobika6153 Жыл бұрын

This is a superb content

@johenbalinton6534 2 жыл бұрын

Great content .. thanks for sharing this video...😁

@johnpinheiro6211 Жыл бұрын

Great vídeo,man, keep them coming🇵🇹🇵🇹🇵🇹🇵🇹😁

@Rach09_ Жыл бұрын

Thank u for sharing ☺️👌🏻

@user-js4ez2yz9b 2 жыл бұрын

Felix has always bern awesome!

@pradeepbhatnagar4848 9 күн бұрын

Excellent vdo lecture bt as a professional directing HRD efforts to goals nd Strategies of the organisation is quite important such as understanding nd claritying business goals of the organisation, understanding nd clarifying strategies planned by the organization to achieve goals, Clarifying the social objectives of the organization, contributing to the strategies to b adopted by the organization to achieve goals, shaping HR philosophy to suit the goals nd Strategies, providing inputs relating to people whenever strategic shifts r made, Developing HR plans to suite diversification nd other important decisions, Identifying sick,loss making or poor performance units or departments or sections ,nd conducting diagnostic exercises, working with the top mgmt.of these units or departments to improve their performance through human process interventions nd assisting top management in organizational revivals or renewals etc.in brief.Vry. inspiring lecture.Its a very Vast field and in my opinion it is a strong bonding chain correlated with each other in nut shell.Useful nd Informative Lecture.Thanx,👍

@drannoc100 Жыл бұрын

One’s think the more employees are engaged, the more they’ll be “willing to sell.” This phrase/concept of “willingness to sell go ‘down’” seems really about “enlarging” the portion/likelihood of willingness to sell instead of the actual level of willingness to sell. - Correct me if I am wrong.

@user-st7qh1wg8k 2 жыл бұрын

Thank you

@MontyCerf 3 ай бұрын

This is excellent.

@idrissakfalen8290 7 ай бұрын

The explanation is perfect. Understanding strategy starts with these foundations. I would just like to add something because I think welliness to sell doesn’t rely solely on compensation, it varies from a company to another. This could be entirely true if it’s a consulting firm where up to 60% of the revenue is spent on compensation but for other firms, like manufacturing firms, you just can’t apply the same logic cause the part of main costs are way higher than compensation and the perspective to create value decreasing wellinness to pay is comme merely different.

@vinatram9930 5 ай бұрын

you have a point.

@TrangQuynh-ll4gr 2 жыл бұрын

Excellent video!

@t1mmytiger 2 жыл бұрын

Very good video - well done

@AllofGodsWord Жыл бұрын

Great video and points made. The only thing I would change is the word choices of "willingness to sell". Most of the examples didn't align well; their "willingness to sell" didn't decrease in a logical sense, at least not with the visual being used. Perhaps flip it to "Reluctance to Sell". If the reluctance to sell decreases (goes down) and the willingness to buy increases (goes up), basically stretching out the line more, this signifies an increase in value. Similarly, if reluctance to sell increases (goes up) and willingness to buy decreases (goes down), basically compressing the line, this signifies a decrease in value.

@jehadabousalehanam2157 2 жыл бұрын

Excellent Video...

@MA-nm3rk Жыл бұрын

THANK YOU

@bgziauddin 2 жыл бұрын

Excellent

@Alejandro-ki8mr 2 жыл бұрын

Amazing video!

@dougr550 Жыл бұрын

A big part of strategy is a set of ideas that you are going to organize around to deliver value. Not surprisingly strategy is applied at many different levels, from the operating model and the way you organize, to individual initiatives. Project management vs Agile would be an example of two different strategies to solve at times the same problem. The problem with the very best strategies is that very few people seem to understand them ;)

@someonenamedbob Жыл бұрын

I"m curios what do you mean by agile?

@dougr550 Жыл бұрын

@@someonenamedbob Agile is a software development philosophy for addressing the uncertainty that exists in terms of what to do and how to do it when building software. This philosophy has also been adapted for use in other settings, but is at its heart rooted in Lean management.

@someonenamedbob Жыл бұрын

@@dougr550 Oh that I've heard about it before, don't know much about it though.

@TrangQuynh-ll4gr 2 жыл бұрын

Gracias!

@alphonsusraj8510 9 ай бұрын

As its core strategy is a plan of action designed to achieve some specific goals. It involves making decisions to allocate resources and navigate tasks and challenges in order to reach desired outcomes.

@innovationconnected6762 8 ай бұрын

Love the video but have a different opinion on one point: What customer value is. I see it from a customer's point of view: If I pay $100 for something, how much value will I realize over and above that inital investment? Buying something is a sunk cost, the value is in what I get out of the investment. What Prof Felix described to me (value stick) is really a price stick, the range in which a seller and buyer can potentially agree on a price.

@nakkashara3240 Жыл бұрын

Nice learning by this video 👍

@pau8727 2 жыл бұрын

Maybe I'd missed, but where is the influence of rest of the expenses apart from labour cost in the suggested model?

@harvardbusinessreview 2 жыл бұрын

Observant question. To keep the video under 10 minutes we focused on 2 out of the 3 value levers (customers and employees) but sidestepped suppliers (though they do get mentioned in the Best Buy example near the end). But you are right that they're a part of the model, along with other costs. Felix covers those in more detail in his book in the description, or you can start here where it's also well covered: hbr.org/2021/05/eliminate-strategic-overload. Thanks for watching!