strategy without the b.s

Strategy without the BS Hillary Miller 2.22.13

Welcome!

Logistics &

Introductions

•  Only child •  Moved 10 times before 8th grade •  Went to college to be Medieval/

Renaissance History Professor •  6 jobs before Wunderman •  Been to all 50 states and their

capitals by 17 (OK, all the Canadian Provinces too)

•  I’ve been described as: –  “Doggedly optimistic” –  “Broadband” –  “Iron fist, velvet glove”

About me

Introductions § Me § You – Format: –  name (duh) – What you do (e.g. company, role) – Fun fact

Shared Context § How would you define the term Strategy?

Strategy without the BS Hillary Miller 2.22.13

THANK YOU!

Start with your destination

A few disclaimers

Transparency

Apologies

Ask. Interrupt. Challenge.

Today 1.  Introductions 2.  Why we need Strategy (don’t we?) 3.  Definitions: Strategy, Insight 4.  Guest Speaker: Creative & Strategy 5.  Tools for Finding Insights 6.  Making Strategy Actionable 7.  Flavors of Strategy

What you’ll get out of today (hopefully) § How do define a Strategy – How to generate them

§ How to define an Insight – How to find them

§ How to use these in the real world § A little networking on the side

Strategy in context: § Objective: what you are trying to accomplish

§ Strategy: an evidence-based approach to achieving your objective that is based on an understanding of opportunities and obstacles (social, attitudinal, systems-based)

§ Tactics: the activities to be undertaken that are a manifestation of the strategy

§ Outputs: measurable accomplishment of tactics § Outcomes: measurable accomplishment of your

objective

Another way of framing

Goal A marketing goal is defined as a desired result or specific and measurable achievement

Objective A marketing objective is a mission or purpose in which all marketing plans will be based upon, broader in scope than goals

Strategy A marketing strategy is defined as your game plan to achieve your objectives

Tactic Tactics are defined as specific and discrete actions (implementation steps) that will be taken in support of the strategies

Why do we need strategy in the first place? 2.

Did you ever notice… § There is no antonym for Strategy

There are many strategies to get your destination

A few tenets on Strategy

Look before you leap

Ask hard questions

Ask “really?” a lot

Asking why before what

Connect the dots

Translate complexity into simplicity

Be tenacious

Defining Strategy and Insights

3.

/ˈstratəәjē/

Origin of Strategy

"στρατηγία" (strategia) office of general, command, generalship

“στρατηγός" (strategos) leader or commander of an army, general

"στρατός" (stratos) + "ἀγός" (agos) army, host leader, chief

What is strategy?

"All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved." Sun Tzu, ‘The Art of War’

Strategies

In military usage § Strategy is the utilization of all of a nation's forces through large-scale, long-range planning and development, to ensure security or victory.

Tactics

Therefore… § Tactics deal with the use and deployment of troops in actual combat.

War §  Goal:

–  Win the war.

§  Strategy:

–  “Divide and conquer.” (vs. “Nuke ‘Em.”)

§  Tactics: –  CIA spies gather intelligence. –  Navy Seals knock out enemy communications while paratroopers

secure the airports. –  Armored Divisions race in and divide the opposing army’s forces. –  Drone attacks take out the enemy leadership. –  An overwhelming force of infantry invade.

Source: http://www.brandinsightblog.com/2009/11/01/marketing-strategy-vs-tactics/

Think of it this way § A strategy is an idea… A conceptualization of how the goal could be achieved. § Therefore a strategy is conceptual. – A tactic isn’t. Usually.

Another way to think of it § Strategy is – WHAT you are going to do

§ Tactics are – HOW you are going to do it

An example § Goal: Increase lagging Baking Soda sales.

§ Strategy: Devise new reasons for their current customers to pick up that yellow box at the supermarket. Specifically, sell Arm & Hammer as a deodorizer for the fridge, use it in your cat litter, and my favorite – dump it down the sink to ‘sweeten the drain’ after it’s been in the fridge.

§ Tactics: TV advertising. Magazine ads. Infomercials. Retail promotions. Website and user-generated content.

strategy & goals are not synonymous § Here are a few examples of misguided strategies: – “Create awareness” – “Overcome objections” – “Boost consumer confidence”

§ These are NOT strategies, they’re goals. (And not even very good goals.) Remember, it’s not a strategy unless there’s an idea behind it.

Strategy should come from Strategies § There is always more than one right answer § HBR:“Bringing Science to the Art of Strategy”: – “generate possibilities” – Status quo can be one of those – Three to five distinct choices

In short… § A tactic is an action you take to execute the strategy.

What is our definition of a Strategy?

“Our Game Plan to achieve our Objectives”

Strategy in context: § Objective: what you are trying to accomplish

§ Strategy: an evidence-based approach to achieving your objective that is based on an understanding of opportunities and obstacles (social, attitudinal, systems-based)

§ Tactics: the activities to be undertaken that are a manifestation of the strategy

§ Outputs: measurable accomplishment of tactics § Outcomes: measurable accomplishment of objective

Where Strategy fits





T-Mobile example…





Improve customer perception of T-Mobile

Improve perception of T-Mobile’s network coverage as measured in customer satisfaction tracking by 2 percentage points

Establish a new conversation by sidestepping the map and statistics wars, focusing on continuous network innovation and value

• Create a coverage hub on website

• Communicate network updates via email newsletter

• Dropped call submission tool

How do I know it’s a strategy? § Litmus test – Go back to definitions – Is it a goal, objective or tactic

disguised as a Strategy?

The “What-if We”Test § “What if we came up with a bunch of new uses for baking soda?” – That’s a strategy.

§ “What if we search engine” doesn’t make sense. – Must be a tactic.

§ “What if we increase market share?” – No idea, must be a goal.

Exercise! § Practice makes better – (nobody’s perfect)

§ Deconstruct these ads – What’s the: – Objective – Goal – Strategy – Tactic

Practice: Apple 1984

Practice:Chromebook

Practice: Surface

Discuss § Hard? § What was obvious? § What surprised you?

/ˈinˌsīt/

Where Insights fit

INSIGHT

Facts

Observations

Opinions

IDEA

Where did ‘Insight’ come from? § c.1200 – innsihht – “sight with the eyes of the mind”

§ "mental vision" – Get it? in + sight

§ By 1580s: – "penetrating understanding into character or hidden nature"

What is our definition of an Insight?

“A truth hiding in plain sight”

Examples of Insights § Old Spice –body wash is a product women buy for men but never discuss with them § Folgers – coffee’s smell (not taste) wakes people up first § Jif – moms worry they’re inadequate § Milk – no one appreciates milk until there’s none around

Insights can be based on: § Real or perceived weakness in competitive product performance or value § Attitudinal or perceived barrier in the minds of customers § Untapped or compelling belief or practice

Insights are most effective when they are: § Unexpected § Create a disequilibrium § Change momentum § Exploited via a benefit or point of difference that your brand can deliver

How to judge an Insight IS ISN’T

§ Based on a simple human truth § Specific to an Audience § Simple § Evocative § Inextricable

§ Obvious § Universal § Complicated § Something a consumer would say (too obvious)

§ Arbitrary

Judging your Insight Will people ‘get it’?

Is it something new?

Is it simple enough?

Can you support it?

Will it effect change?

Exercise (again)! § Practice makes better – (again)

§ Deconstruct this ad – What was the insight?

I hate Mondays

That’s crazy

Asking Amy

Here’s to taste

Brotherhood

Discuss § Was there more than one insight? § No insight, just tactics?

LUNCH! Phone, emails, etc.

Chris Elliott 4. Guest Speaker

Why Strategy Matters to Creatives

Insights – how to find them 5. Tools that don’t cost six figures

How do you find Insights? 1.  Research Roadmap 2.  Qualitative Tools & Methods 3.  Quantitative Tools

Start at the beginning

INSIGHT

Facts

Observations

Opinions

IDEA

Look before you leap

What do you already know?

Create Your Wish List

Is it common sense?

MUST KNOW NICE TO KNOW

Decide – which is it?

What kind of research should you do?

What’s the difference? Qualitative Quantitative

•  Deals with descriptions •  Data can be observed

but not measured •  Colors, textures, smells,

tastes, appearance, beauty

•  Qualitative → Quality

•  Deals with numbers •  Data which can be measured •  Length, height, area, volume,

weight, speed, time, temperature, humidity, sound levels, cost, members, ages

•  Quantitative → Quantity

Example: UW freshmen class Qualitative Quantitative

§  friendly demeanors § civic minded § Environmentalists § positive school spirit

§ 672 students § 394 women, 278 men § 68% on honor roll § 150 students accelerated

mathematics

QUALITATIVE

Typical Qualitative Methods § In-Depth-Interviews (IDIs) § Man on the Street § Focus Groups

Qualitative § Imagine a free tool that you could talk to hundreds of your target audience – any target! – and either observe them without interference or interact with them!

Free Social Tools

Addictomatic

SocialMention

TweetChat

Twassup

Boardreader

HootSuite

Uses:

Social Media Monitoring Wiki

Survey Monkey

QUANTITATIVE

Google Trends

Google Real Time Insights

What Do You Love?

Iconoculture

Trendwatching

The Futures Company

JWTIntelligence

BizStats

Experian

Compete

Nielsen

Summary: The best insights § Come from a mix of both § Typically Quantitative first – Know who, what, how many?

§ Fine tune with Qualitative – Why?

Making Strategy Actionable 6.

Strategic Tools 1.  60 Minute Strategic Plan 2.  Input Brief

The 60 Minute Strategic Plan § One way of putting plan to paper § Can be distilled in one hour on one page § Works for any size of project § ‘Franchise-able’ – teachable & scalable

The 60 Minute Strategic Plan

Strategic Tactical

1.  Issue 2.  Assumptions 3.  Values 4.  Vision 5.  Customer

Benefits 6.  Beneficiaries

7.  Obstacles 8.  Vital Signs 9.  SWO(t) 10. Strategies 11. Actions 12. Name it

Six strategic steps

1) Identify the Issue § An opportunity for, or obstacle to, growth – Choose the issue of highest priority

or where you will see the most impact.

Issue thought-starters: §  If I were a competitor, how would I put myself out of business? §  What changes would obsolete our products/services? §  If a good customer were to leave, what would be their reasons? §  How would we cope with losing several key employees? §  How could we double industry financial norms? §  If I had a magic wand and could change something in my

organization, what would it be? §  Where am I personally holding the company back?

2) Create Assumptions Reasons why the issue is important § Every strategic plan is built on a set of assumptions:

those things you believe to be true. § Worst-and best-case scenarios if issue is unsolved or

solved. § Declare your reasons to finish regardless of obstacles. § Also need to make an assumption about how the issue

will impact your revenue to rationalize ROI for plan.

3) Identify Values Beliefs/behaviors that drive success § Specific to your issue. Not all your values. § Pick the one that can be relied upon to successfully

implement your strategy. § Don’t attempt something that is counter to culture.

§ Examples: integrity, adaptability, initiative, accountability or teamwork.

§ Test: what are the values your people will need to resolve this particular issue?

4) Define a Vision Best imaginable outcome for issue § Establishes frame of reference for entire plan. § Create AB FAB BHAGS (Absolutely Fabulous Big Hairy

Audacious Goals) with no thought as to how you will accomplish them.

§  ‘the best imaginable outcomes for the issue selected’ § A good vision creates ‘strategic tension’ § Attach metrics – quantification clarifies the interpretation of your

visionary intentions

A Vague Vision is a Weak Vision Vague

Specific & Quantifiable

1.  Have happy employees

2.  Reduce expenses

3.  Increase revenue

1.  Reduce employee turnover by 50% within two years

2.  Reduce fixed costs by 15% in one year and reduce variable costs 20% in two years

3.  Double sales force productivity in three years from $200K to $400K, gross margin no lower than 50%

5) Identify Customer Benefits Payoff from the vision § You do not make money, you provide products and

services; the customer supplies the money. §  In effect, the customer is the venture capitalist for your

vision. § Your vision must address customers’ needs. § Quantify the benefit – Examples: – Internet ordering saves 15% in customers’ admin

costs – Just in time delivery saves an average of $25K in

customers’ inventory cost

Customer Benefit thought-starters § How do my customers make and lose money and how do

we contribute to both sides of that equation? § What aspect of my customers’ lives will be improved by

my product or service? § How do the outcomes measurably contribute to my

customers’ success?

6) Identify Beneficiaries Others who will benefit from your vision § You will need help from others to implement your vision. § Could include employees, vendors, alliance partners,

family, elves. § Think ‘WII-FM’ – What’s In It For Me? § List either by name, department or category. § Quantify how they will benefit.

Beneficiaries examples § Employees will add one new verifiable skill within 18

months qualifying them for a 10% bonus § Shareholders will see their financial equity increased by

20% § Vendors will increase the volume of business they do

with us on average 35% per year at 50% higher margins

Six tactical steps

7) Identify Obstacles Obstructions to the vision § By definition, vision is currently impossible; otherwise,

you’d be doing it. § When you created your vision, you created a

performance gap. The gap is the distance from current reality to the vision and is full of obstacles.

§ You must identify and examine all of your obstacles so you know what is facing you and what is needed to overcome these obstacles.

§ Phrase obstacles in “How to” (or H2) statements to make them challenges instead of problems.

The power of H2 Obstacle H2

§ Lack of urgency

§ Risk averse § Inadequate sales & marketing

§ H2 create a sense of urgency

§ H2 reduce fear of failure

§ H2 stimulate customer demand

8) Create Vital Signs Measurements to track and adjust your plan § This step is about identifying what key indicators you will

measure. § Measure two each from Values, Vision, Customer

Benefits, and Other Beneficiaries (steps 3, 4, 5, and 6). § The measurements that matter most are those that

reinforce the accomplishment of the vision for the issue.

9) Identify S, W & O What you have going for and against the issue § Strengths you can build on. § Weaknesses you need to correct or finesse. § Opportunities you can leverage.

10) Create your Strategies Performance gaps that need to be closed § Here is where you decide which performance gaps to

attack with strategy. § Select up to three gaps to close from Obstacles and

Weaknesses. § For each gap, describe strategic transition from current

state to desired state (that is, from “as-is” to “want to be.”)

11) List the Actions Activities necessary to close the performance gaps § Describe all of the actions needed to accomplish your

vision to go from current status (From) to desired status (To).

§ Prioritize actions.

12) Name that Plan Distill the Vision into 3 to 5 words § Gives the project identity. § Makes it easier to communicate about the plan. §  Is a rallying cry.

§ Examples: – Acquired in 2 years – 6 million sq. ft. by 2014 – Same-day turnaround

Why Strategic Plans Fail § Tactics trump strategy § The tyranny of the urgent § Just not getting it done – Inaction – Indecision – Infighting

The Input Document

Why we need an Input Brief

We love paperwork? We need to cover our asses?

We like to add to your workload?

Why we need an Input Brief

Better work Judge the work easier

Save time and money

• Ensures alignment with objectives

• More effective • More “creative”

• Lack of a brief or incomplete briefs are faster, but only in the short term

• Removes subjectivity

What the brief is

§ The brief is a working document – For the marketing owner to define his needs and his

thought process – For the agency to better meet the needs and

expectations of the marketing owner

What the brief is

§ The Brief is the very first creative step of a campaign – This is where the agency will understand the level of

ambition that is given to the campaign by the marketing owner

What the brief is

§ To Brief means to choose, engage, take a risk – The brief formalizes the reasons why they want to

communicate and the results they want to achieve – The brief reflects strong directions that will lead to the

creation of: – a strong message – a single goal – a clear audience – the expected results

What the brief is not

§ A Specifications list – It is not a detailed description of the actions to

achieve, but a document with a business issue

§ An exhaustive information bible – The brief is not a library of information about a

product, but a document that shows a selection of the information that the Marketing owner wants to highlight

What the brief is not

§ A document reusable for each campaign – Each campaign addresses a specific problem: the

brief should provide the understanding of this issue

§ A piece of Administrative proceedings – The brief is not a contractual document, but a

document that gives a comprehensive understanding of the campaign

A good input brief 1.  Focuses on ONE clearly defined communications goal, one that

is clearly tied to a strategic business objective

2.  Is “brief”

3.  Is not the longest or most detailed, it’s the one with clarity and

focus

4.  Flows logically, leading from one section to the next, building a

framework

5.  Is not cut and paste from other documents

6.  Does not tell the agency what to do, but can tell us why

7.  Clearly indicates what success is and how it will be measured

key components of the input brief

The key components of the input brief

The target & their insights

The product & offer

The context

The value proposition

The market & competition

The constraints The budget

The Unique Selling

Proposition

The objectives

The Context § Gives the agency a clear understanding of its

mission, the reasons for the briefing, the need and the ambition

§ Traps to avoid – Information unrelated to the operation – Too many details

The Objectives § Define the expected results in a explicit & clear way – Be as factual as possible and detailed with figures – Be consistent with the available budget – avoid "I have 8k$ to create brand awareness“

– they can be strategic (product launch, install a brand, generate leads ...), tactical (develop a campaign, follow a time to market, adapt an international campaign ...) or even personal (to sell an idea to my direction, find an innovative idea ...)

§  It should not be a description of how to implement or a list

of deliverables

The Budget

§ This is key information for the agency when recommending the best communication strategy and the associated means and deliverables

$

The Product and Offer § Must be described in factual terms (characteristics, features) § Also essential to describe it in terms of consumer benefits § Highlight the benefits which constitute strategic advantage

The Target § The cohesive group of people we want to target in order to change their opinion and behavior – Behavioral / attitudinal descriptions – Don’t only give a factual description – Rather describe their mindset, or behavioral and attitudinal aspects – Don’t undermine or caricature

The Target’s Insights § The insight is an opinion, a belief, a thought, an expectation or an experience of the target

§ The goal is not to create needs through communication but to prove that the brand meets an existing and relevant need or concern – It is useless to rely on an insight which the product does not answer

§ It is as much coming from psychology as from marketing research.

The Value Proposition § The value proposition is the raw material for

the creative concept. § It is how the communication is going to echo

the needs of the target with a relevant and attractive response.

§ To write it, try to find the best pair of Insight to product benefit among all possible combinations.

Write the Value Proposition § The value proposition reflects a strong strategic

direction –  It selects one or more product benefits to a single

resonance insight, so it needs to be carefully selected, otherwise the communication will be irrelevant and will sound false.

§ The value proposition should be written as much as possible in close partnership between the agency and the client: –  The marketing owner knows his product, its benefits on the

market and its target, the agency brings him a new way to think about it.

–  A value proposition jointly written creates a consensus ahead of the creation presentation

Write the Unique Selling Prop § The USP is adapted from the value proposition §  It enriches the value proposition in order to inspire the

creative teams and help them find the idea §  It is not a slogan or a signature, don’t try to give an

advertising tone

Value Proposition Example: Xerox § The fastest copier in terms of copies per minute

§ What they hate is when employees lose time doing useless stuff

§ Value Proposition: –  The new Xerox copier will allow your employees to work faster

The USP Example: Xerox

§ USP : –  With the new Xerox, your employees will not spend

anymore time waiting at the photocopier

PRODUCT BENEFIT

TARGET

INSIGHT

VALUE PROPOSITIO

N

USP

London is the capital city of showbiz

25-35 adults, living in Paris, who loves city life

With Eurostar, you can access the capital of showbiz for an unbeatable price

Eurostar is the fastest and

cheapest solution from Paris to

London

Eurostar Example

Accessing the capital of showbiz with Eurostar is so cheap that you will ask yourself if it’s true!

London discounted. Paris-London return ticket: 75 €

The work

"Literal interpretations produce stereotypes, creative interpretations produce surprises"

G.B. Shaw

Flavors of Strategist 7.

How many?

What I look for in a Strategist

Q&A and Wrap-up

THANK YOU!!!

Sources & Resources

Souces: § The difference between Strategy and Tactics

TED § http://www.ted.com/talks/lang/en/eric_berlow_how_complexity_leads_to_simplicity.html

Resouces: § Free Research from Sapient Nitro § Inspiration from Visual.ly § Tom Fishburne cartoons § Word clouds § Prezi § Creative Commons

Who we are and how The Seattle Wunderman Network

We create action

1Digital Agency Network in the World # 193 | Seattle Wunderman Network: Who we are

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Since 2005 the Seattle Wunderman Network has been connecting products and services to consumers around the world.

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shares


We create action By being direct And using the industry fundamentals established by our founder.


Lots of impact….

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Our actions create measurable impact

4X 8M 119 %

Actions that build relationships

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We convert consumers into customers for some of the world’s leading brands.


Evolving relationships between customers and some of the region’s most customer-facing brands.


Finding connections where conversations can begin.


CLAIRE

Each solution is unique And starts where our clients’ customers are. Campaigns, websites, apps, events, print, search, data, retail …


Thank you.


Worksheet





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