For many people, strategy is a complete mystery. But it is not that complicated, says Felix Oberholzer-Gee of Harvard Business School, author of "Better, Simpler Strategy."

00:00 For many people, strategy is a mystery.
00:25 Strategy does not begin with focusing on profit.
00:52 It's about creating value.
01:00 There is a simple tool that helps you visualize the value you create: the Value Stick.
01:30 What is willingness to pay?
02:30 What is willingness to sell?
03:14 Remind me: where does the profit come from again?
03:48 How do I increase willingness to pay?
05:00 And how do I reduce the willingness to sell?
06:18 Real-life example: Best Buy's dramatic turnaround

Companies should simplify their work and focus on two value drivers, he argues: customer satisfaction and employee satisfaction. By focusing strategic initiatives on these two factors alone, leaders simplify their employees' work and improve the customer experience.

Oberholzer-Gee is the author of the Harvard Business Review article “Eliminate Strategic Overload” (https://hbr.org/2021/05/eliminate-strategic-overload) and the book “Better, Simpler Strategy: A Value-Based Guide to Exceptional Performance” (https://www.amazon.com/Better-Simpler-Strategy-Value-Based-Exceptional/dp/1633699692/).

Produced and edited by Scott LaPierre
Video by Dave Di Iulio and Elie Honein
Animation by Alex Belser

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