Better, Simpler Strategy
New Book by our Program Speaker and Advisory Board Member, Harvard prof. Félix Oberholzer
“Why are mall owners so generous to Apple? As figure 3 illustrates, malls have a particularly low WTS in their relationship with Apple; this is because the company increases foot traffic by about 10 percent for all the other stores in the mall. And, as the figure suggests, a busier mall allows owners to increase the rent for all the other stores to about 15 percent of sales”
“Every company that I studied for the book has many talented individuals with interesting-sounding ideas. There are dozens and dozens of proposals for projects. Value-based strategy teaches how to select among these ideas and projects. The most successful firms are very strict: Unless an idea creates value for customers, employees, or suppliers, they do not touch it. It might be fun to do. It might be interesting to explore, but it’s not going to create the kind of value that ultimately gets translated into financial success”
“In his new book, Félix Oberholzer-Gee shows how even the most innovative companies adhere to one basic principle: the creation of VALUE. In this interview published on the Harvard Business Working Knowledge, Oberholzer-Gee shares some insights on creating value with Danielle Kost (editor in-chief of HBSWK). The article also shares some figures on creating value, sharing it with customers, employees and suppliers, and an example of Apple, who benefits from raising and having a high WTP (Willingness To Pay) and low WTS (Willingness To Sell), thanks to their engaging work that creates value.
About the Book
Get to a 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. “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.