Introduction
“Strategy That Works” addresses a perennial challenge in the field of corporate strategy: bridging the gap between planning and execution. The authors, Paul Leinwand and Cesare R. Mainardi, explore how leading companies achieve this by adhering to a cohesive and consistent set of actions. The book offers practical insights and actionable recommendations grounded in real-world examples.

Five Key Principles

Description:
Successful companies have a clear, coherent identity that aligns with their core capabilities and market position. They understand who they are and what they do better than anyone else.

Example:
LEGO redefined its identity by focusing on its core competencies in creativity and innovation rather than diversifying into unrelated areas.

Action:
Identify your company’s unique strengths and carve out a distinct market position based on these capabilities. Regularly evaluate and ensure your strategic initiatives align with your core identity.

Description:
Companies that excel at strategy execution make sure that their daily activities reflect their strategic goals. This alignment ensures consistency and drives progress towards long-term objectives.

Example:
Apple integrates its strategy into its everyday operations, from product design to store layout, ensuring that every facet of its business reinforces its overarching goals.

Action:
Map out how your company’s daily activities and decisions contribute to its strategic goals. Develop routine processes that encourage employees to integrate the strategy into their day-to-day tasks.

Description:
Leveraging and nurturing the existing corporate culture can be a powerful enabler of strategic success. A strong, consistent culture can significantly bolster execution.

Example:
Southwest Airlines fosters a unique culture of customer service and employee satisfaction, which in turn supports its competitive strategy in the low-cost airline sector.

Action:
Conduct a cultural assessment to understand the strengths and potential of your company’s culture. Develop initiatives to harness and align cultural strengths with strategic goals.

Description:
Cutting costs should not merely be about reducing expenses indiscriminately but about making strategic decisions that strengthen the company’s core capabilities.

Example:
Procter & Gamble streamlined its product portfolio and optimized its supply chain to reallocate resources to its high-growth potential areas.

Action:
Perform a thorough cost analysis to identify areas where resources can be redirected to enhance core capabilities without impacting strategic objectives. Focus on efficiency improvements that bolster your strengths.

Description:
A proactive approach to strategy helps companies anticipate and shape their future rather than reacting to changes. This forward-looking stance often involves calculated risks and innovation.

Example:
Amazon constantly innovates and expands its capabilities – from cloud computing with AWS to logistics – positioning itself to shape market dynamics.

Action:
Encourage a culture of innovation by investing in R&D, staying agile, and empowering employees to experiment with new ideas. Establish a strategic foresight team to identify and capitalize on emerging trends and opportunities.

Case Studies and Concrete Examples

1. LEGO’s Renaissance:

Identity Commitment:
When LEGO faced a crisis in the early 2000s, it revisited its core identity centered on creativity and play. This strategic refocus led to the introduction of successful product lines like LEGO Mindstorms and LEGO Friends.

Concrete Action:
Regularly benchmark your products and services against your identity to ensure coherence. Prioritize innovation within your strengths to reinvigorate your market presence.

2. Apple’s Seamless Integration:

Strategy in Everyday Operations:
Apple’s synergy of hardware, software, and services ensures a seamless user experience, reflecting its strategic goals of simplicity and user-centric design.

Concrete Action:
Implement synchronization mechanisms between different departments to ensure that all units work towards the same strategic goals. Develop cross-functional teams to innovate and problem-solve.

3. Southwest Airlines’ Cultural Leveraging:

Culture Integration:
Southwest Airlines leverages its employee-centric culture to deliver exceptional customer service. This culture fuels its competitive edge in the low-cost carrier market.

Concrete Action:
Empower employees with a sense of ownership and embed company values in recruitment, training, and performance evaluation to strengthen strategic alignment.

4. P&G’s Strategic Cost Management:

Cost Cutting for Growth:
Procter & Gamble’s portfolio simplification and operational excellence initiatives allowed it to focus on high-growth segments, driving profitability and market share.

Concrete Action:
Regularly conduct portfolio reviews and operational audits to identify non-core activities. Reallocate resources towards initiatives that bolster strategic growth areas.

5. Amazon’s Innovation and Forward Thinking:

Proactive Strategy Shaping:
Amazon’s ventures into new domains like voice recognition (Alexa) and AI exemplify its strategy of shaping future markets and creating new business opportunities.

Concrete Action:
Develop a strategic innovation fund to explore emerging technologies and business models. Foster partnerships with startups and research institutions to stay ahead of industry trends.

Implementation Framework

Conclusion

“Strategy That Works” provides a comprehensive blueprint for closing the strategy-to-execution gap, a critical determinant of sustainable success. By committing to a clear identity, translating strategy into everyday operations, leveraging culture, strategically managing costs, and proactively shaping the future, companies can achieve a cohesive and impactful strategic execution. The actionable insights and real-world examples illustrate how theory can be effectively converted into practice, guiding organizations towards their strategic aspirations.