The Soul of Strategy

A powerful and original new take on business strategy—with the customer at the center of it—designed to generate enduring competitive advantage When setting strategy, organizations typically spend too much time thinking about the competition and resources within the firm and not enough time on the customer—the soul of any organization. Such an approach is reflected in the fact that most popular theories of business strategy have focused on resource- and capability-based perspectives of the firm. Real-world businesses embracing and applying these intuitively attractive theories have struggled to compete, however, exactly because those theories fail to adequately account for the most important actor in all commercial transactions: the customer. In The Soul of Strategy, two veteran strategists and academics deliver a straightforward new approach to business strategy—one that builds and expands on the classic work of Peter Drucker—recognizing the inescapable reality, faced by every organization, that a firm's primary job is to create and keep customers. The book offers a comprehensive customer-centric strategy framework, a set of fresh perspectives and tools, and step-by-step guides to implementing the leadership styles, governance structures, and technology that companies require to outcompete their rivals in attracting and retaining customers. The book brings to life these key principles by using case studies and examples of organizations in a variety of industries. You'll find: A clear description of the concept of customer centricity and its value to the organization. A new consumer behavior framework that will enable you to ask the right questions to elicit unique, actionable customer insights A “Customer Choice Cascade” that details how to select, prioritize, and deliver value for both customers and the firm. A balanced perspective on how to both find sources of innovation and systematically abandon activities, products, structures and systems that no longer add value to customers. The key role that customer insight data play in setting customer-centered strategy. Expansions on Drucker's proven strategic insights and ideas that go beyond well-worn frameworks like Porter's Five Forces. Perfect for managers, executives, board members, and other business leaders, The Soul of Strategy is also a can't-miss resource for strategy consultants and advisors and anyone else interested in effective new ways of thinking about difficult and long-standing strategic problems.

Preface ix Part I The History of Strategy 1 Chapter 1 The Soul of Strategy 3 Chapter 2 The Evolution of Strategic Thinking 15 Chapter 3 Reemergence of the Customer 37 Part II the Nature of Customer Centricity 55 Chapter 4 Customer Centricity 59 Chapter 5 The Customer Choice Cascade: Activating Customer Centricity 77 Chapter 6 Customer Behavior Framework 107 Part III Building a Customer-centered Organization 133 Chapter 7 Leadership and Customer Centricity 137 Chapter 8 Structure and Systems 157 Chapter 9 Customer Intelligence and Insights 179 Chapter 10 Innovation and Abandonment 201 Part IV The Purpose-Led Organization 225 Chapter 11 The Purpose of Organizations 227 Epilogue 243 About the Authors 247 Acknowledgments 251 Notes 255 Index 281