Playing to win: How strategy really works

by A.G. Lafley

A sample OGSM (objectives, goals, strategy, and measures) statement Objectives Strategy Measures Improve the lives of families by providing consumer-preferred paper products for kitchen and bathroom Be the operating TSR leader in North American tissue/towel and value creator for P&G Where to play: Win in North America Grow Bounty and Charmin margin of leadership Win in supermarket and mass discount channels Build performance, sensory, and value consumer segments How to win: Be lean Get plant/equipment capital spend to xx of sales Reduce inventory by x% Be the choice of consumers Superior base products, prices right Preferred product formats and designs Manage category growth Be the choice of retailers Improve shelf availability and service Develop differentiated shopping solutions Win with the winners Operating TSR progress Share and sales growth progress Profit growth progress Efficiency measures: Capital efficiency Inventory turns Consumer preference measures: Weighted purchase intent Trial, purchase, and loyalty Retailer feedback measures: Key business drivers (distribution, share of shelf, share of merchandising, etc.) Preferred vendor Goals Year-on-year operating TSR > x% x% annual share and sales growth x% annual gross and operating profit margin improvement x% return on capital investments in plant equipment and inventory