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We think there are three key questions to ask:
1. Where can you win in the market?
Identify the one or two material areas of the business where you are really meeting customer needs, beating the competition and making good money, and focus on those. Ask hard questions about other things that you do.
2. How can you be different?
Identify the key things that make you stand out from the competition and focus on those, building your market position around them and getting even better at them. In changing markets, identify the key thing that you will need to be significantly better at than the competition in order to win and build that capability. Then look at all your other capabilities which don't bring differentiation and question why you are investing in them, or whether you should be doing them at all.
3. How can you get a step change in performance?
Start from big, challenging strategic questions that focus on sustainable competitive advantage. For example, how do you cut the cost base in half, how do you double market share, or how do you become the leader in a key market? Develop your views on the answers quickly and simply through analysing the key sensitivities in the market. Test and learn through controlled implementation so your views are grounded in commercial reality. Then go for it like you mean to win, be fast to market and focused.
Chris Molloy is a Partner at Credo.
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