Better, Simpler Strategy by Felix Oberholzer-Gee

The book. Felix Oberholzer-Gee, Better, Simpler Strategy: A Value-Based Guide to Exceptional Performance, Harvard Business Review Press, 2021.

In a few words

With fast technological change and growing global competition, a company needs a business strategy that is effective and simple. Better, Simpler Strategy by Felix Oberholzer-Gee, a professor at Harvard Business School, offers a fresh approach to strategic planning that helps companies create the most value and get long-term results.

The core ideas.

The secret of successful companies

The book explores why some companies far outperform their competitors, and points to their secret: getting better results by doing less. Oberholzer-Gee shows how these companies adopt radically simplified strategies, focusing on a few key ideas that really make a difference. Successful companies also follow simple rules that help them pick the most promising initiatives.

The value stick as a strategic tool

One of the central ideas of Better, Simpler Strategy is the value stick, a simple tool any organization can use to make its strategy more effective and easier to carry out. Based on well-established financial mechanisms, the value stick helps executives decide where to focus and how to deepen their company’s competitive advantage.

The value stick works by measuring two basic forces behind value creation and financial success: customers’ willingness to pay (WTP) and the willingness to sell (WTS) of employees and suppliers. Oberholzer-Gee shows that winning companies create value for customers by raising their WTP, and offer value to employees and suppliers by lowering their WTS.

Putting Better, Simpler Strategy into practice

The book offers many examples and cases from different industries and countries, showing how companies can apply the principles of simpler strategy. Oberholzer-Gee stresses the importance of an approach that is based on data and can be applied across the whole organization. With this method, companies can keep assessing and improving their strategies and operations.

The long-term benefits of a simpler strategy

A simpler approach to business strategy can bring many long-term benefits. Companies that follow the principles of Better, Simpler Strategy can respond faster to market changes, cut costs, become more efficient and improve the satisfaction of customers and employees. A simpler strategy also makes the company’s goals easier to communicate and understand at every level of the organization.

Strengths

Better, Simpler Strategy by Felix Oberholzer-Gee has several strengths that make it a valued, useful read for anyone working on business strategy.
Among its main strengths:

A simpler approach
The book offers a simple, easy-to-grasp approach to business strategy, accessible to a wide range of readers, experts and newcomers to strategic management alike.

The value stick
The value stick is a practical, intuitive tool that lets managers assess and improve their strategy, focusing on creating value for customers and employees. It leads to more effective, more focused strategic decisions.

Real examples and cases
The book offers many examples and cases from different industries and countries, showing how companies can apply the principles of simpler strategy. That makes its content more tangible and applicable in real life.

Flexibility
Oberholzer-Gee’s approach can be adapted to different situations and businesses, so readers can tailor its principles and ideas to the specific needs of their own organization.

The author’s authority
Felix Oberholzer-Gee is a professor at Harvard Business School and a recognized expert in business strategy. His experience and academic knowledge give the book a solid theoretical base and authority.

Pragmatism
The book focuses on practical concepts that can be implemented, rather than on abstract, complex theory. That lets readers put its lessons into practice quickly and see concrete results.

Some criticism

Although Better, Simpler Strategy is widely appreciated for its fresh, simpler approach to business strategy, a few minor criticisms can be raised, subjective as any judgment is:

Universal applicability
Some readers may question whether the book’s ideas apply everywhere. Simplified strategies may not suit every company, especially in highly complex or regulated industries, where a more detailed and specific approach may be needed.

Oversimplification
Some ideas may be oversimplified. A simpler approach helps clarify strategic goals, but in some cases it may lead to overlooking nuances and details that affect whether the strategy succeeds.

Lack of depth
Some readers may find the book lacks depth in certain areas, concentrating on general concepts rather than specific details or theoretical analysis. That may leave some readers with unanswered questions or wanting more.

Limited cases
Although the book draws examples and cases from several industries and countries, some readers may want more detailed practical examples to understand how to apply the principles of simpler strategy to their own situation.

In my view, despite these legitimate points, Better, Simpler Strategy remains a useful and stimulating read for anyone who wants to improve their ability to make strategic decisions and lead an organization to success.

Who is it for?

The book uses plain language and ideas most people can grasp, but it still has a clear audience, for example:

Managers
People involved in setting and carrying out business strategy can benefit from its simpler approach and practical tools to improve value creation and long-term financial success.

Owners of small and mid-sized companies
Business owners can use the book’s principles to guide the growth of their companies, adapting the ideas to their own situation and context.

Consultants and strategy professionals
Consultants and strategy experts can draw on its ideas and practical tools to better support their clients in defining and carrying out effective strategies.

Business and management students
Students of business, management or strategy can use the book to broaden their understanding of strategic concepts and learn a different, simpler approach to planning and carrying out strategy.

Professionals changing careers
People preparing to move into management or strategy roles, or who want a better grasp of strategic principles, can find the book useful to build their skills and knowledge in this field.

In conclusion: a book for strategic decision-makers

Better, Simpler Strategy by Felix Oberholzer-Gee is a must for anyone involved in planning and carrying out business strategy. It offers a fresh, simpler approach to strategy, with concrete examples and practical tools such as the value stick. Applying its principles can help companies get better results by creating more value and long-term financial success. In short, it is an introductory but essential read for consultants, executives, managers and business owners who want to make better strategic decisions and help improve their own organization or their clients’.