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© Copyright Cognosis Limited
Prepared by Cognosis
Competitor War GamingThat Works
Duncan Campbell (Cognosis) and Matt Pullen (AkzoNobel) recently spoke at the Chief Strategy Officer Summit in London.
They focused on a timely question: How do you manage competitive strategy to create real impact?
November 2016
95 Aldwych, London WC2B 4JF | +44(0)20 3206 0350 | [email protected] | www.cognosis.co.uk
For many, steering a business feels more like riding the rapids than taking a leisurely trip across a still, blue ocean. VUCA is an ugly acronym, but it’s become embedded in the management lexicon; the notion that markets are increasingly volatile, uncertain, complex and ambiguous. A recent survey of *CEO’s suggested that globally, just 18% of leaders are ‘fully capable’ of dealing with all four VUCA challenges. Of the four, the challenge they find most difficult is volatility. The main driver of volatility is increased competitor disruption, which is becoming more frequent, more intense and sustained. Few if any industries, sectors or businesses have proved themselves immune.
So what capabilities do leaders need to win in volatile environments? The Global CEO Study cited Strategic Thinking and Adaptability as the most critical capabilities. Businesses need strategists to be flexible, opportunistic and reactive to the challenging competitive context of the modern economy. This is why Competitive Strategy and War Gaming is becoming an increasingly important business tool, yet if executed incorrectly can be a complete waste of time for those involved.
1. Only use war gaming
when there is a
burning platform, a
critical competitor
threat or disruptive
strategic issue that
needs a specific plan
All too often war gaming is used as a general exploration of the market, competition, or as a exec bonding exercise. This tends to result in general output, little tangible action and a string of bad innovation ideas. War-gaming focused on a real and specific issue can result in:
• Deep competitor insight• Specific strategic actions and plans• Faster response and reaction• Greater leadership confidence and commitment
If war gaming is an option for your team, challenge yourself to focus on the most important competitive issue or competitor. Greater focus will result in more impactful output.
*PWC Global CEO study 2015
Find theBurning Platform
Create Deep, Focused insight
Walk inCompetitor Shoes
We’ve found 3 critical rules for initiating war gaming that actually works:
95 Aldwych, London WC2B 4JF | +44(0)20 3206 0350 | [email protected] | www.cognosis.co.uk
2. Profound insight is
fundamental in
order to explore
the bigger issues
The right insight is critical to making war gaming work. In order to make new discoveries and avoid trapping teams with flawed assumptions, it must be extracted from a variety of data sources and taken to a deeper level. Done correctly, it’s amazing what you can do. You can build clear views on many opaque issues like:
• Robust competitor P&Ls• Manufacturing capacity and strategy• Route to market plans• Pricing strategies• Team profiles and structure
Challenge your approach to competitor insight gathering. Don’t do war gaming unless you can bring new, robust insight to the table.
3. Force your team to
genuinely think like
your competitor
It’s not easy to genuinely think like a competitor. We usually bring years of baggage and assumptions to the table. To make it work, you have to change people’s perspectives. There are a range of methods and tools to jolt leadership teams into another reality without casting of your own organisation’s shadow onto it.
One approach we have pioneered with clients is a profiling methodology that helps identify how the competitor thinks and behaves. From there, it’s possible to profile your own team and identify those most likely to think and behave like the competitor, using those insights to challenge the team’s potentially biased behaviours and assumptions.
Make sure you do everything you can to help your teams walk in the shoes of your competitor. Go beyond lazy assumptions and bias.
Find theBurning Platform
Create Deep, Focused Insight
Walk inCompetitor Shoes
An effective war gaming programme can help you understand the competitor at a deeper level. A powerful combination of focused insight and disruptive techniques can truly help businesses
better prepare for competitive attacks. It helps build more robust, adaptable and ultimately successful strategies.
[email protected] +44 (0) 203 206 0362
95 Aldwych, London WC2B 4JF | +44(0)20 3206 0350 | [email protected] | www.cognosis.co.uk
WHAT WE DO
We help business and brands build strategies that ignite growth.
We believe real growth needs more than good strategy. Without the right leadership and genuine engagement from the teams who make it happen, even the best strategies fall short of their potential.
The magic happens when you bring it all together. That’s when your work has the opportunity to make real, exciting impact.
[email protected] +44 (0)20 3206 0350 95 Aldwych, London, WC2B 4JF