Enhancing Strategy with Key Questions

Dec 11, 2024

Asking Great Strategy Questions - Roger Martin

Introduction

  • Roger Martin frequently receives inquiries about the essential questions to ask during strategy evaluation.
  • This article is part of the "Playing to Win/Practitioner Insights" series focusing on strategy questions.
  • Martin categorizes strategy questions into three areas: Logic, Fit, and Distinctiveness.

Three Categories of Questions

1. Logic

  • WWHTBT (What Would Have to Be True): Central question for evaluating strategy logic.
    • Pertains to customers, capabilities, costs, and competitors.
    • Questions:
      • What assumptions about customer needs must be true for the strategy to work?
      • What capabilities are needed, and how do they compare to competitors?
      • What must be true about cost structures compared to competitors?
      • How will competitors respond to the strategy, and can it withstand their responses?
  • Identify "heroic" assumptions and consider adjustments to make them more realistic.

2. Fit

  • Ensures elements in the choice cascade align well.
  • How-to-Win (HTW) and Where-to-Play (WTP):
    • Evaluate if WTP is optimal for HTW.
    • Consider narrowing or broadening WTP.
  • Must-Have Capabilities (MHC):
    • Assess if current capabilities match the strategy needs.
    • Adjust HTW if capabilities are insufficient.
  • Enabling Management Systems (EMS):
    • Evaluate EMS support for MHC.
    • Adjust HTW according to EMS capabilities.
  • Winning Aspiration (WA):
    • Ensure WA aligns and inspires stakeholders.

3. Distinctiveness

  • A strategy needs distinctiveness beyond fit and logic.
  • Opposite is Stupid Test:
    • A choice should be distinct if the opposite is not obviously stupid.
    • Example: A Swiss bank choosing to serve wealthy customers lacks distinctiveness.
  • Can't/Won't Test:
    • Determine if competitors cannot or will not replicate the strategy.
    • Distinctiveness is more likely if competitors can't match the strategy due to lacking capabilities or unwillingness.

Practitioner Insights

  • Strategy isn't about perfection but increasing odds of success.
  • Refining logic, fit, and distinctiveness reduces the likelihood of failure.
  • Encourage external viewpoints for strategy evaluation to identify unseen improvements.

By focusing on these three categories, strategists can enhance the potential success of their strategies through better logic, fit, and distinctiveness.