Playing to Win: How Strategy Really Works (Harvard Business Review Press, 2013)

Crafting Victory: Lessons from Playing to Win: How Strategy Really Works

In Playing to Win: How Strategy Really Works (Harvard Business Review Press, 2013), A.G. Lafley, former CEO of Procter & Gamble (P&G), and Roger L. Martin, Dean of the Rotman School of Management, demystify strategy, presenting it as a disciplined process of making integrated choices to achieve competitive advantage. Drawing on their collaboration during P&G’s transformative decade (2000–2009), where sales doubled and profits quadrupled, the authors offer a practical framework the strategic choice cascade that guided P&G’s success, including the revitalization of brands like Olay. This article distills ten key teachings from the book, each illustrated with P&G examples and supported by a quote from the authors, providing a clear, engaging guide for leaders across industries to develop and implement winning strategies.

1. Strategy Is About Making Tough Choices

Lafley and Martin define strategy as a deliberate set of choices designed to win in the marketplace, emphasizing that avoiding hard decisions leads to mediocrity. At P&G, the choice to reinvent Olay rather than acquire a new skin-care brand or extend another brand like Cover Girl was a bold move that required rejecting safer alternatives. This decision transformed Olay from a fading “Oil of Old Lady” into a $2.5 billion masstige brand. The authors stress that strategy demands clarity and courage to focus resources on a chosen path. “Strategy is about making specific choices to win in the marketplace. … In short, strategy is choice.”

2. Define a Clear Winning Aspiration

A winning aspiration sets the purpose and ambition for an organization, guiding all subsequent choices. For P&G, the aspiration was to become a leading player in the beauty industry, with skin care as a critical component. This drove the decision to target younger, more engaged consumers with Olay, aligning with P&G’s broader goal of sustainable growth. The authors argue that a compelling aspiration inspires action and ensures alignment across the organization. “Winning should be at the heart of any strategy. … A strategy is a coordinated and integrated set of five choices: a winning aspiration, where to play, how to win, core capabilities, and management systems.”

3. Choose Where to Play Strategically

Selecting the right market or segment “where to play” is critical for success. P&G chose to focus Olay on women aged 35-plus, who were beginning to notice aging signs and were willing to invest in skin care, rather than the older, wrinkle-focused segment targeted by competitors. This choice leveraged consumer insights to capture a growing market. The authors emphasize that where-to-play decisions must align with the organization’s strengths and market opportunities. “Where will you play? A playing field where you can achieve that aspiration.”

4. Determine How to Win

“How to win” defines the approach to achieving competitive advantage in the chosen market. P&G’s strategy for Olay was to create a masstige category, offering premium skin-care products at accessible prices in mass channels, bridging the gap between drugstores and department stores. By innovating with products like Olay Total Effects and setting a $18.99 price point, P&G attracted both mass and prestige shoppers. The authors highlight that winning requires a unique value proposition. “How will you win? The way you will win on the chosen playing field.”

5. Leverage Core Capabilities

Core capabilities are the strengths that enable a firm to execute its strategy. P&G’s R&D expertise, scale, and consumer insights allowed Olay to develop advanced products like VitaNiacin, which addressed multiple skin concerns. The company also built capabilities in packaging and marketing to reposition Olay as a premium brand. The authors stress that capabilities must be tailored to support the chosen strategy. “What capabilities must be in place? The set and configuration of capabilities required to win in the chosen way.”

6. Implement Robust Management Systems

Effective management systems, structures, processes, and metrics sustain strategic choices. At P&G, systems like consumer research, independent testing, and retailer partnerships ensured Olay’s strategy was executed consistently. The authors note that these systems reinforce the cascade of choices, enabling continuous improvement and alignment. For example, P&G’s pricing tests for Olay Total Effects ensured the $18.99 price point maximized consumer appeal. “What management systems are required? The systems and measures that enable the capabilities and support the choices.”

7. Avoid Common Strategy Pitfalls

The book identifies five ineffective approaches to strategy: treating it as a vision, a plan, a reaction to change, optimization of the status quo, or following best practices. P&G avoided these by rejecting the status quo for Olay and making bold choices to redefine the brand, rather than optimizing its declining model or mimicking competitors. The authors warn that these pitfalls stem from a reluctance to make hard choices, leading to strategic failure. “These ineffective approaches are driven by a misconception of what strategy really is and a reluctance to make truly hard choices.”

8. Use the Strategy Logic Flow for Analysis

To support strategic decision-making, the authors introduce the strategy logic flow, a tool to analyze market dynamics, customer needs, and competitive landscapes. P&G used this approach to understand the skin-care market, identifying the 35-plus segment’s needs and competitors’ focus on older consumers. This analysis informed Olay’s repositioning. The authors advocate for rigorous analysis to ground choices in data and insights. “In chapter 7, we will provide another tool the strategy logic flow, a framework designed to helpfully direct your thinking to the key analyses that inform your five strategy choices.”

9. Reverse Engineer for Collaborative Choices

When faced with conflicting strategic options, the authors propose reverse engineering—evaluating options against the desired outcomes to align teams. P&G’s Olay team debated options like acquisition or brand extension but chose reinvention after assessing each against the goal of beauty market leadership. This process fostered consensus and clarity. The authors emphasize that collaborative decision-making strengthens strategic commitment. “In chapter 8, we provide a specific methodology for making sense of conflicting strategic options, a process called reverse engineering for making strategic choices with others.”

10. Strategy Is an Ongoing Pursuit

No strategy is permanent; it must evolve with changing contexts. P&G’s success with Olay and other brands required continuous refinement, as competitors copied its approaches. The authors note P&G’s failures, like Folgers and Pringles, underscoring the need for adaptation. They encourage leaders to view strategy as a dynamic process of learning and adjustment to sustain competitive advantage. “No strategy lasts forever. Strategies need continual improvement and updating. … Winning through distinctive choices is the always-and-forever job of every strategist.”

Conclusion

Playing to Win offers a practical, choice-driven approach to strategy, illustrated through P&G’s remarkable transformation. Lafley and Martin’s framework centered on the strategic choice cascade, logic flow, and reverse engineering equips leaders to craft strategies that deliver sustainable success. By focusing on winning aspirations, strategic market selection, and robust execution, organizations can navigate complexity and achieve competitive advantage. As the authors conclude, “Strategy needn’t be mysterious. Conceptually, it is simple and straightforward. It requires clear and hard thinking, real creativity, courage, and personal leadership. But it can be done.” This book is a must-read for leaders seeking to turn ambition into victory.