Matthew Clark's Key Ideas from Better, Simpler Strategy
by Felix Oberholzer-Gee

Focus on increasing willingness to pay (WTP), not just sales.

Go beyond quality and branding to leverage complements that raise WTP.

Like Amazon selling Kindle e-readers and ebooks together.

• Identify and double down on the few key value drivers that influence customer purchase decisions.
• Eliminate unnecessary features that don't move WTP.
• Value for customers creates competitive advantage.

Reduce willingness to sell (WTS) of talent and suppliers. Compensation shifts value, better working conditions create value. Improve collaboration to reduce supplier costs.

• Fear of uneven benefit sharing limits potential.
• Share gains to encourage win-wins.
• Lowering WTS increases commitment and flexibility.

• Boost productivity through scale, learning and management basics.
• The best firms are far more productive than laggards. Management tools like goal setting and feedback are powerful but underused.
• Scale and learning effects can also substantially lower costs.
• First mover advantage only lasts if learning is at an optimal pace.

Cascade strategy with value maps that link value concepts to projects and KPIs. Illustrate how each activity raises WTP or lowers WTS. Connect strategic objectives to operational drivers.

This alignment empowers the organization to create value.

Value must be the core, not profit. Business reputation suffers when value is neglected. Creativity applied to value benefits all.

Make life better for customers, employees and partners. This purpose leads to exceptional performance.

When value drives decisions, profits follow. Vexing problems can be solved with value creation imagination. Business can raise standards of living when value sits at its core.

This is the path to broad prosperity.