#40: Art and Science of Strategy in Large Corporations with Phil Hornby
Feb 14, 2024
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Product Coach, Phil Hornby, shares his experience with product strategy in large corporations, discussing tips on gaining alignment, managing politics and dependencies, handling risk, and more. He emphasizes the importance of understanding organizational goals and effectively communicating choices. The podcast also explores the correlation between product strategy and overall company strategy, challenges of making big bets, and the significance of storytelling in strategy.
Aligning strategy with the goals and vision of the company is crucial for success in large corporations.
Understanding market trends and using analysis tools to inform strategic decision-making is essential in setting strategy for a business unit within a corporation.
Deep dives
The Importance of Aligning Strategy with Company Goals
In this podcast episode, the speaker emphasizes the significance of aligning strategy with the goals and vision of the company. They discuss how large organizations often make strategic decisions based on previous investments and component parts that they already have, which may not always lead to success. The speaker reflects on the importance of understanding the market, making choices, and effectively communicating those choices to the organization. They also highlight the need for trust and collaboration between product teams and leadership in order to ensure alignment and make informed decisions.
The Role of Context in Setting Strategy
The speaker shares their experience in setting strategy for a large business unit within a corporation. They emphasize the significance of understanding the market context and trends, and how it informs strategic decision-making. They discuss the use of analysis tools such as STEEPLE analysis to assess the social, technological, economic, ecological, ethical, political, and legislative factors impacting the market. The speaker also mentions the importance of considering organizational capabilities and aligning the strategy with the overall vision and mission of the company.
Challenges and Considerations in Strategy Execution
The podcast episode delves into the challenges and considerations in executing a strategy, particularly in the context of large corporations. The speaker highlights the need for coordination and collaboration across different teams and business units, which can result in tighter specifications and timelines. They stress the importance of prioritization and making strategic choices, even if it means taking risks or deviating from the initial plan. The speaker also mentions the role of gateways or decision points in reviewing and assessing progress, aligning with OKRs, and ensuring that the implementation is aligned with the overall strategy.
The Dynamics of Strategy in Startups and Large Corporations
The podcast explores the similarities and differences in strategy between startups and large corporations. The speaker notes that startups tend to take more risks and be less revenue-focused, while large corporations prioritize stability and protection of revenues. They discuss the importance of trust and storytelling skills in communicating and gaining support for strategy. The speaker also highlights the need for a team approach to strategy, with product teams contributing to and aligning with the overall company strategy.
While strategy is always difficult, large corporations add complexities into the mix: dependencies, politics, complex budgeting processes, and more.
In this episode, I spoke with Phil Hornby, a Product Coach with vast experience in different contexts, and we discussed his experience with the product strategy for a business unit within Continental, a large German automotive company.
Phil shared great examples and tips on how to gain alignment, deal with politics and dependencies, handle risk, and much more!