A rumelt perspective strategy and smarter conquers better some non-business examples

899 views
745 views

Published on

Good strategy as a source of competitive advantage

Published in: Education, Sports, News & Politics
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
899
On SlideShare
0
From Embeds
0
Number of Embeds
11
Actions
Shares
0
Downloads
59
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

A rumelt perspective strategy and smarter conquers better some non-business examples

  1. 1. Strategy: Smarter Conquers Better By Dr. Michael McDermott mcdermottm1@nku.edu
  2. 2. But business success is simply about being better. Isn’t it? 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 2
  3. 3. The “Being Better” Argument • In order to succeed, it’s true you do need to possess at least one advantage: • Better • Cheaper • Faster • Richer • Stronger 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 3
  4. 4. The “Being Better” Argument • But simply ‘being better’ provides only shortlived success • The ‘better’ is based only on operations 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 4
  5. 5. Three Questions 1. What biblical story do you most associate with an underdog defying expectations to beat a more impressive opponent? 2. Who is the greatest boxer of all time, and indeed considered the greatest sportsman of the 20th century? 3. Who are considered the greatest ever football (i.e. soccer) team? 4. Greatest band of all time? 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 5
  6. 6. 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 6
  7. 7. What explains their success? Their success was based upon Genuine Strategy 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 7
  8. 8. Example 1: David vs Goliath David • Youthful • Inexperienced in hand-tohand conflict • Physically weak • No protection 1/16/2014 Goliath • Mature • Experienced in hand-tohand conflict • Physically strong • Heavily protected © Michael McDermott, 2014; mcdermottm1@nku.edu 8
  9. 9. Example 1: David vs Goliath • If David is to win, he only had one option…and his insight enabled him to identify that fact • Goliath – classic case of ‘brawn and no brain’ 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 9
  10. 10. Lessons from David vs Goliath Smarter can beat better • Good strategy comes from fresh insight into strengths and weaknesses, and opportunities and threats 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 10
  11. 11. Facing ‘Goliath’ • So developing a strategy to topple the ‘invincible’ is not easy • Do you try and copy the best – but the core competence of the best is always hard to imitate • Or do you have to invent a superior solution? 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 11
  12. 12. Example 2: Ali vs Foreman World Heavyweight Championship Fight, Zaire, October 1974 1/16/2014 The Challenger 32 years of age © Michael McDermott, 2014; mcdermottm1@nku.edu The Defending World Champion 25 years of age 12
  13. 13. Ali vs Foreman: Comparison Based Upon the ‘Better’ argument Ali Foreman • Former World Champion • Past success was based on being ‘better’ • Past his peak in terms of being ‘better’ • 32 years of age • Making a comeback after years without competitive fights • Defending World Champion • Present success was based on being better • At his peak • 25 years of age • Getting better with each fight 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 13
  14. 14. Who is Going to Win? 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 14
  15. 15. What’s Missing? We have not identified a crucial difference! Only one boxer had a genuine strategy 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 15
  16. 16. Ali vs Foreman: Comparison of Strategy 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 16
  17. 17. Ali vs Foreman • • • • • Two boxers One, the defending world champion The other, the former, older champion One Common goal Two Different Strategies – Ali – Good Strategy – Foreman – Bad Strategy 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 17
  18. 18. Ali vs Foreman Ali Practiced Good Strategy • diagnosed his critical problem • He could no longer “float like a butterfly, sting like a bee” over 15 rounds against a younger opponent George relied on Bad Strategy • The 3D Effect • So he developed an action plan to overcome his critical weakness • “Rope-a-dope” 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 18
  19. 19. Rope a Dope Ali Wins by a Knockout in Round 8. Foreman had run out of steam. 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 19
  20. 20. Ali Interview • http://youtu.be/AY3yIIxXvy4 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 20
  21. 21. Two Vital Lessons from Ali vs Foreman 1. Even the very best are eventually overtaken; 2. If they are to continue winning, they need genuine strategy 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 21
  22. 22. Lessons from “Rope-a-dope” • Exhaust your rival’s resources through suckering them into constant expenditure of ineffective yet debilitating effort 1/16/2014 • When you look at the market for some products, do we see that the market leader is employing the “ropea-dope”? © Michael McDermott, 2014; mcdermottm1@nku.edu 22
  23. 23. Example 3: Barcelona’s Dominance of World Soccer • The present Barcelona side, Spanish and European champions, are considered the greatest team of all time; • It features Lionel Messi (born 24 June 1987), the World Footballer of the Year (2009, 2010) • Spain, current European and World Champions, is heavily dependent upon Barca players 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 23
  24. 24. Example 3: Barcelona and Spain’s Dominance of World Soccer This example shows that this success is based upon a genuine strategy that was developed 40 years ago 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 24
  25. 25. Example 3: Barcelona and The Dutch Legacy • In the early 1970s, Barcelona was managed by Dutch coach, Rinus Michels • He bought the player Johan Cruyff – ‘the Messi’ of his generation • Cruyff managed Barcelona in the late 1980s-mid 1990s • One of his key players was Josep Guardiola, manager of Barcelona since 2008 • Today the present Barca team are hailed as the greatest ever side 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 25
  26. 26. Example 3: Barcelona and The Dutch Legacy • In 1970 Brazil beat Italy 4-1 in the soccer World Cup final in Mexico • The Brazilian team was considered invincible • The next World Cup was in Germany in 1974 • But how could anyone beat Brazil? 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 26
  27. 27. Example 3: The Dutch Influence on Soccer • Rinus Michels, the coach of the Dutch national team, concluded that no one could match Brazil • So a radical new approach was required • He invented ‘total football’ • At the heart of this new system was the player Johan Cruyff 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 27
  28. 28. Total Football Defined • In Total Football, a player who moves out of his position is replaced by another from his team, thus retaining the team's intended organisational structure. In this fluid system, no outfield player is fixed in a nominal role; anyone can be successively an attacker, a midfielder and a defender. The only player fixed in a nominal position is the goalkeeper. 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 28
  29. 29. The Immediate Outcome • In 1974 Holland beat Brazil but were beaten in the final 2-1 by the host country Germany • In 1978 Holland was again beaten in the final by the host nation Argentina 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 29
  30. 30. Barcelona F.C: The Lasting Legacy • Michels introduced ‘total football’ to Barcelona • The commitment to ‘total football’ continued under Cruyff • Cruyff recognized the exceptional ability required to implement ‘total football’ • He thus established in 1978 “La Masia”, the youth academy to train young players in the system from an early age 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 30
  31. 31. Barcelona F.C: The Lasting Legacy • One of the first graduate from ‘‘La Masia” was Guardiola, exceptional player and manager; • Today’s current midfield of Xavi, Iniesta and Fabregas are all graduates of “La Masia”; • Messi is also a product of the youth academy 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 31
  32. 32. Barcelona F.C: The Lasting Legacy Barcelona F.C. • When Barca won the European Champions League in 2009, 8 of the 11 players were graduates from the youth system 1/16/2014 Spanish National Side • When Spain won the 2010 World Cup the 22 man squad included 8 Barca players and 6 were in the starting 11 for the final © Michael McDermott, 2014; mcdermottm1@nku.edu 32
  33. 33. The Lasting Legacy: From Total Football to Tiki-taka Tiki-taka has been variously described as • "a style of play based on making your way to the back of the net through short passing and movement" • a "short passing style in which the ball is worked carefully through various channels, and • a "short passing, patience and possession". • The style involves roaming movement and positional interchange amongst midfielders, moving the ball in intricate patterns, and sharp, one or two-touch passing. 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 33
  34. 34. The Lasting Legacy: From Total Football to Tiki-taka • One of the weaknesses of Spanish sides and the national team was that their players were often much smaller and less physical than players from other nations (e.g. Northern Europe, Africa); • Tiki-taka focuses on movement, possession and skill • Some of the best players for Barcelona and Spain are physically small 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 34
  35. 35. Barcelona and Competitive Advantage Differentiation • Barcelona competes through innovation – it has developed a unique style or brand of football Low Costs • The youth academy enables Barcelona to produce the world’s best players at low costs; • This reduces the club’s need to spend in excess of $50m per player 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 35
  36. 36. Barcelona and Competitive Advantage Competition: • competitors have so far failed to overcome the Barcelona system; • This is despite the fact that arch-rivals, Real Madrid have: • acquired the world’s most expensive player ($132m); • the world’s highest paid soccer manager (about $20m) 1/16/2014 Customers: • Barcelona is the world’s most popular club as its style is uniquely entertaining; • It has 20m ‘likes’ on facebook, narrowly beating Real Madrid © Michael McDermott, 2014; mcdermottm1@nku.edu 36
  37. 37. Barca Has Clear Core Competencies • “Core competencies • It can be leveraged are the most significant widely value creating skills • It’s hard for rivals to within your corporation imitate and key areas of • It’s of great value to expertise which are customers distinctive to your company and critical to the company's long term growth”. 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 37
  38. 38. Multiple Lessons from Barca and its Genuine Strategy 1. It arose from a foreign idea (i.e developed in Holland) 2. It involved honest internal analysis and identification of weakness; 3. Indeed the essence of the new strategy is to render weaknesses that cannot be overcome obsolete; 4. It has received constant commitment over 40 years – even in ‘difficult’ times; 5. It is now delivering the best ever results as the original business model (i.e. total football) evolved to ‘ticki-tacka’; 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 38
  39. 39. Multiple Lessons from Barca and its Genuine Strategy 6. It is centered upon differentiation (i.e. innovation); 7. The commitment to innovation compelled a focus upon New Product Development (i.e. the youth academy) 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 39
  40. 40. Multiple Lessons from Barca and its Genuine Strategy 8. New superstar brands (i.e. players) are developed at low cost and sourced locally and internationally; 9. Costly acquisitions are seldom required – and even when they are they are graduates of La Masia who were allowed to join other clubs 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 40
  41. 41. Multiple Lessons from Barca and its Genuine Strategy 10.Even when Barca is briefly overtaken by a ‘better’ team, it is without equal strategically, so the strategy is a constant that ultimately prevails 11.Barca may not always win, but its strategy always delivers exceptional value to its growing number of customers globally 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 41
  42. 42. Barca vs Real Madrid Barca Real Madrid Genuine strategy Commitment to core values Consistency Succession planning Relies primarily upon organic growth (i.e. development of players and managers) • Continuity is key • Genuine Strategy – or all about goals; • Lacking core values • Inconsistency • Absence of succession planning • Relies primarily upon external growth (i.e. acquisitions of players and managers) • Change is key • • • • • 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 42
  43. 43. Apple: the corporate Equivalent to Barca • Apple has a genuine strategy; • At one time it struggled badly yet remained totally consistent to its strategy; • It seized opportunity (i.e. the iPod) and has refined its original strategy with each successive product and/or service 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 43
  44. 44. Apple: the corporate Equivalent to Barca • Apple can/should expect to be overtaken briefly in some areas; • But by applying its genuine strategy it can expect to once again come out tops 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 44
  45. 45. Conclusions 1. Strategy is not defining growth objectives 2. Strategy is about problem-solving 3. Strategy demands identification of the key problem 4. Strategy develops a well-conceived action plan to address the problem 1/16/2014 © Michael McDermott, 2014; mcdermottm1@nku.edu 45

×