Jack Welch’s 5 Questions to Create Real Strategy to Gain Sustainable Competitive Advantage
To create an actionable and effective strategy, Jack Welch advises that one first recognize strategy as dynamic and “living.” He advises using these 5 questions to design and implement effective strategy.
From Jack Welch:
WHAT DOES THE PLAYING FIELD LOOK LIKE NOW?
Who are the competitors in this business, large and small, new and old?
Who has what share, globally and in each market? Where do we fit in?
What are the strengths and weaknesses of each competitor? How good are their products? How much does each one spend on R&D? How big is each sales force? How performance-driven is each culture?
Who are this business’s main customers and how do they buy?
WHAT HAS THE COMPETITION BEEN UP TO?
What has each competitor done in the past year to change the playing field?
Has anyone introduced game-changing new products, new technologies, or a new distribution channel?
Are there any announced or potential new entrants, and what have they been up to in the past year?
WHAT HAVE YOU BEEN UP TO?
What have you done in the past year to change the competitive playing field?
Have you bought a company, introduced a new product, stolen a competitor’s key salesperson, or licensed a new technology from a start-up?
Have you lost any competitive advantages that you once had — a great salesperson, a special product, a proprietary technology?
WHAT’S AROUND THE CORNER?
What scares you most in the year ahead — what one or two things could a competitor do to nail you?
Is your top talent secure, and are you caring for them appropriately, with pay, perks, and a culture that inspires them?
What new products or technologies could your competitors launch that might change the game?
What M&A deals would knock you off your feet?
WHAT’S YOUR WINNING MOVE?
What can you do to change the playing field — is it an acquisition, a new product, globalization, or better talent?
What can you do to make customers stick to you more?