April 28, 2012
How to Think Strategically
If you don’t know where you are going, you will wind up somewhere else. Yogi Berra
After 20 years of managing marketing teams, I’ve seen hundreds if not thousands of marketers–some classically trained CPG and some with just good instincts. While 100% of them would proclaim of themselves “I’m a strategic thinker”, in reality only about 15-20% were actually strategic. Yet, even some of the best implementers I know still want to be strategic. I don’t get it. Why? I want someone to just finally say “I’m a really good tactical thinker and not really that good at strategy”. I have finally started to ask some of my friends who are great implementers: “Why do you want to be strategic?” I finally got an answer that made sense. “Strategic people get paid more”.
Are you sure you are Strategic?
To me, the difference between a strategic thinker and a non-strategic thinker is whether you see questions first or answers first. Strategic Thinkers see “what if” questions before they see solutions. They map out a range of decision trees that intersect and connect by imagining how events will play out. They reflect and plan before they act. They are thinkers and planning who can see connections. Non Strategic Thinkers see answers before questions. They get to answers quickly, and will get frustrated in the delays of thinking. They think doing something is better than doing nothing at all. They opt for action over thinking. They are impulsive and doers who see tasks. They are frustrated by strategic thinkers. Aren’t we all.
But to be a great marketer, you must be a bit of a chameleon. While pure strategy people make great consultants, I wouldn’t want them running my brand. They’d keep analyzing things to death, without ever taking action. And while tactical people get stuff done, it might not be the stuff we need done. I want someone running my brand who is both strategic and non-strategic, almost equally so. You must be able to talk with both types, at one minute debating investment choices and then be at a voice recording deciding on option A or B. You need to make tough choices but you also have to inspire all those non-strategic thinkers to be great on your brand instead of being great on someone else’s brand.
OK, then you can’t just one day wake up and be strategic. You need more discipline in the way you think. Here’s some thoughts on how to force yourself to be strategic. Here’s HOW TO THINK MORE STRATEGICALLY.
Focus, Early Win, Leverage, Gateway
So Let’s see if there is a model that can help people be better at strategy. When I teach people this model, I tell them it will force them to structure their thinking at first, but then it should just start to flow easily. It’s like driving a car in England, it feels different at first, but then natural very soon after.
A simple way is to break it down into the 4 elements of a good strategy: there is usually a good Focus of resources on what has the biggest potential return, an Early Win that allows you to confidently keep going, a Leverage point you can twist and turn and finally a Gateway to something even bigger. Here’s how the 4 stages of thinking works:
- FOCUS all your energy to a particular strategic point or purpose. Match up your brand assets to pressure points you can break through, maximizing your limited resources—either financial resources or effort. Make tough choices and opt be loved by the few rather than tolerated by the many.
- You want that EARLY WIN, to kick-start of some momentum. Early Wins are about slicing off parts of the business or population where you can build further. Without the early win, you’ll likely seek out some new strategy even a sub-optimal one. Or someone in management will say “it’s not working”. You don’t want either of those–so the early win helps keep people moving towards the big win.
- LEVERAGE everything to gain positional advantage or power that helps exert even greater pressure and gains the tipping point of the business that helps lead to something bigger. This is where strategy provides that return–you get more than the effort you’re doing from it.
- Seeing beyond the early win, there has to be a GATEWAY point, which is the entrance or a means of access to something even bigger. It could be getting to the masses, changing opinions or behaviours. Return on Investment or Effort.
Looking at using “Focus, Early Win, Leverage, Gateway” in Real Situations
Lots of explanations on strategy use war analogies, so let’s look at D-Day and see how it matches up. While Germany was fighting a war on two fronts (Russia and Britain), the Allied Forces planned D-Day for 2 years and joined in full force to focus all their attention on one beach, on one day. The surprise attack gave them an early win, and momentum which they could then leverage into a bigger victory then just one beach. Getting on mainland Europe gave the allied forces the gateway they needed to steamroll through on a town by town basis and defeat the Germans. The allied forces had been on the defensive for years, but landing on D-Day gave them one victory and the tipping point to winning the war. For those who struggle with focus, imagine that if the Allied Forces decided to place one soldier every 15 feet from Denmark all the way around Europe to Greece. Would it have been successful? Not a chance.
If you were to write the brand plan for D-Day, it might look like this:
- Vision: Win World War II
- Goals: Re-claim Europe, remove Hitler, minimize losses
- Key Issue: How do we turn the tide in the war effort in Europe?
- Strategy: Focused Pin Pointed Attack to gain a positional power on Continental Europe.
- Tactic: D-Day, take all our troops and attack the Beaches of Normandy to get back on mainland Europe and battle Germany on an equal footing.
While war analogies put some heightened sense of intelligence into marketing, let’s look at an example using Avril Lavigne and see if it still works. If it does, then maybe it’s still a good model. In 2005, Avril’s career was flat, a normal path for young musicians. To kick off her album, she did a series of free mall concerts—and was criticized as desperate. She was desperate and no one really understood the logic. But think about it: mall’s are exactly where her target (11-17 female) hangs out, allowing her to focus all her energy on her core target. She attracted 5k screaming 13 year olds per mall—creating an early win among her most loyal of fans: those who loved and adored her. She was able to leverage the good will and energy to get these loyal fans to go buy her album in the mall record stores which helped her album debut at #1 on the charts. And everyone knows the charts are the gateway to the bigger mass audience–more radio play, more itunes downloads and more talk value. The comeback complete. Madonna has done the same strategy, except she seeded her songs into dance clubs for the last 20 years.
- Vision: Recording Super Star
- Goals: New Album Sales, increase popularity, new recording contract
- Key Issue: How do we drive album sales for a slumping Avril?
- Strategy: Reconnect with core teen fans to create momentum to trigger album sales
- Tactic: Free Mall tour to get most loyal fans to reconnect and buy the new album.
Avril Lavigne Wows Thousands At Free Indy Concert
INDIANAPOLIS — Pop singer Avril Lavigne serenaded more than 2,000 fans during a free concert at a shopping mall. “You guys are awesome,” the 19-year-old Lavigne told the enthusiastic crowd Thursday at Glendale Mall. Some people waited several hours to see the singer perform songs from her upcoming CD and 2002 hits “Complicated” and “Sk8er Boi.” The half-hour acoustic concert was part of a 21-date “Live and By Surprise Tour” promoting her new CD, “Under My Skin.” People started lining up at the mall early in the afternoon for a chance to see Avril Lavigne up close and personal.
Starbucks experienced tremendous growth through the 80s and 90s, mainly because of the their coffee. Starbucks quickly become a life ritual in the morning to wake you up. The focus shifted to build a broader portfolio of products around these two time slots. The early win were a series of new products that made Starbucks seem big on innovation. Sandwiches, Wraps, pastries, cookies. All high quality. The leverage point was turning a coffee routine into a breakfast/lunch routine. The gateway is expanding the life ritual of Starbucks so that it’s now a broad-based place for breakfast and a light lunch, but still connected with coffee. No longer are they just for coffee. Recently, Starbucks has been giving incentives through their “treat receipt” program to get people to come into the store after 2pm.
If you were to write the Starbucks, here’s how it might look;
- Vision: Cherished meeting place for all your quick service food needs
- Goals: Increase Same store sales, greater share of requirements from Starbucks loyalists
- Key Issue: How do we drive significant growth of same store sales?
- Strategy: Move Starbucks loyalists to lunch with an expanded lunch menu.
- Tactic: Light lunch menu, increase desert offerings.
Most Marketers Struggle with Strategic Thinking
However, even though all these marketers are saying they are strategic, strategy actually runs counter intuitive to many marketers. You mean by focusing on something so small, I can get something big. That makes no sense. I better keep trying to do everything to everyone. But that’s exactly how a fulcrum works to give you leverage. Next time you’re taking off your tire on your car, try getting 6 really strong guys to lift your car or just get a tiny little car jack. This is the same model for brand strategy. Focus on your strengths, focus on those consumers who will most love you and focus on the one potential action point you can actually get them to do.
Many marketers always struggle with the idea of focus and always try to do it all. And for everyone. They worry they’ll pick a potential target too tight and alienate others, focus on one message and forget to tell all they know and miss a crucial fact or focus too tight on one part of the business and forget the others. I saw a brief describe their target was “18-65, current customers, potential customers and employees”. I said “all you’ve eliminated is prisoners and tourists.” I get it that it can feel scary to focus. But it should feel even more scary not focusing, just in case you’re wrong. You always operate with limited resources no matter how big of a brand: financial, people, partnering, time. Trying to do everything spreads your limited resources and your message so that everything you do is “ok” and nothing is “great”. In a crowded and fast economy, “ok” never breaks through so you’ll never get the early win to gain that tipping point that opens up the gateway. When you focus, three things happen: 1) you actually become very good at what you do 2) people perceive you to be very good at what you do since that is the only thing you do 3) you can defend the positioning territory
Many times, Marketers fall in love with the best ideas—not always the best strategies. This is where they tactical and they end up chasing down a path with a hollow gateway. It’s crucial you always start with the best strategies and then find the best ideas that fit with those strategies, not the other way around. What you need to do, is try to map out all the potential wins, try to understand what’s behind that win, and if there is something bigger then go for it, but if there isn’t, then you should reject this path. There has to be a large gateway behind those cool ideas, so you love what the idea does more so than just loving the idea.
Strategic Thinking: Focus, Early Win and Leverage should lead to a gateway to Something even Bigger
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