Writing a “playscript” is an incredibly powerful way to conduct a competitive business review, according to this Harvard Business Review article (subscription required). The article advocates writing a “playscript” using characters and character analysis to define your company and competitive landscape for use as a foundational element in corporate strategy development.
The article argues that “traditional” strategy tools like five forces maps and blue ocean thinking are outdated because they assume a static competitive environment as opposed to a rapidly evolving one. The article argues that by drafting a “playscript”, companies are in a much better position to map the landscape and anticipate emergent competitive forces.
In developing a playscript, the article suggests focusing on the following:
1) Draft a current playsript: Broadly describe the setting in which you operate by identifying the other characters, their motivations, what role your company plays, how this role is perceived by others; it’s important to view your role as critically as you can through the eyes of others (i.e., perception is reality); map the links among all the actors and the rules that govern them; give voice to the value your organization adds.
2) Rewrite your playscript: the goal here is to rewrite your playscript and, if possible, reinvent the playscript for an entire sector by answering such questions like “Can my organization attract new alliances to my sector where I can then leverage these alliances to add to an existing link or create a new link in a customer-centered value chain?”; determine where there’s a value need and fill this need (the article cites Intrawest as an example of a company that filled a value need by creating alliances with partners that deliver an exceptional destination living experience which has allowed Intrawest to emerge as a dominant player in managing experiential destination resorts, whereas before its focus was on developing these types of properties).
3) Future-proof your playscript: consider how changes in your customer needs will affect your company by finding the correlation between who your customers are, what they want, and how they get the things they want (the article cites IKEA as a company that’s done this well by foreseeing high volatility in the prices governing the wood it uses to make its products so it purchased forests in Poland and the Baltic states to help stabilize prices, thus allowing it to confidently focus on dominating the low cost segment of the “lifestyle furnishings” market).
Since 2005, we’ve seen many playscripts written and re-written in the real estate industry with the advent of Trulia, Zillow, Redfin, etc. Since 2007, we’ve seen new marketing and customer acquisition playscripts written and re-written via the explosion of social media and social networking. And currently we’re seeing playscripts written and re-written with the emergence of mobile applications and augmented reality. What’s your playscript that will allow you to position your firm as a dominate player in your market? How do you plan to adapt to the changing needs of your clients and customers, especially in terms of mobile solutions? Who are the dominate characters in your company, your competitors, and the industry at large? Who’d you cast as Othello, Brutas, Caesar, Puck, Mr. White, Mr. Pink, Mr. Blonde?