Playing to Win

Startups often begin in a state of organised chaos, rapidly testing hypotheses to find their footing. This frenetic exploration is an important phase, but an unsustainable one. As a company matures, it must transition from this initial scramble to a more deliberate approach. They need to start looking at strategy as more than just a buzzword.

Where to Play and How to Win

Enter the “Where to Play and How to Win” framework. Popularised by Roger Martin, it sounds deceptively simple. But don’t let its simplicity fool you - this framework can be incredibly powerful when applied correctly.

“Where to Play” is about choosing your battleground. It’s how you define your niche, who you view as you competition, and how you win, not just participate. This could be creating a completely new category or it could be a subset of an existing category. Niching down is key.

“How to Win” is how you’re making sure you’re not just participating. It’s how you leverage your unique capabilities (or build new ones) to ensure you win on your chosen battleground. Note though that it’s not as much about beating the competition as it is getting them to want to play elsewhere.

Airbnb

Let’s break it down with a real-world example:

Airbnb’s initial “Where to Play” wasn’t just “people who need a place to stay.” They specifically targeted young, budget-conscious travelers and homeowners in popular urban areas who had spare rooms. They focused on major events in cities where hotel capacity was limited, like the 2008 Democratic National Convention in Denver. This specificity allowed them to tailor their marketing, product features, and customer experience to this particular segment.

Airbnb’s “How to Win” strategy involved creating a platform that was more than just a listing service. They focused on building trust through user reviews, professional photography services for hosts, and a robust support system. They also emphasised the unique, local experiences that staying in someone’s home could provide - something traditional hotels couldn’t match. This combination of trust-building and unique value proposition set them apart in their chosen market.

Notice how Airbnb’s statements interweave these two aspects seamlessly. You only arrive there by answering both questions at the same time, rather than first selecting a “Where to Play” and then scramble to figure out “How to Win” within that space. Framing your strategy as a one sentence answer to the statement “How might we…” is a good way to broaden your view.

Defining it for myself

To illustrate how this framework can be applied in practice, let me share how I’ve used it in my own business, Nyblom-as-a-Service. This example represents my current strategic thinking, but it’s important to note that it’s not set in stone - it evolves as I test assumptions and gather new insights.

First Where to Play: I am helping founders building early stage and scale-up app businesses who have recently raised money and want to transition from a consulting team to an in-house team. I help with hiring and retaining top talent, while setting a process that will scale with the team. I am industry agnostic, with the exception that I don’t do e-commerce. My experience is that e-com is run slightly different from other app businesses, with a different set of metrics.

Next How to Win: I will deliver a service based on clearly defined frameworks and best practices. I will share my knowledge about these publicly to build trust and credibility with potential customers (and potential recruits!) long before I’ve even met them. I will also build the team in such a way that they will succeed without me. My business is built on reputation, so my clients success is my success.

These statements are the result of several iterations, each refined through testing key assumptions. For instance, I initially assumed that my offer could cover all types of startups. But from speaking with a number of potential clients I realised that there are people far more suited to taking the same role in, for example, a transaction heavy fintech startup. This led me to narrow my focus, allowing me to deliver more specialised value to my target market.

Another assumption I’m currently testing is whether public knowledge sharing truly builds credibility and attracts clients. I’m tracking how many leads come from my content versus other sources, and I’m prepared to adjust my approach based on the results.

There is of course a lot more that goes into this but should give you a pretty good idea of how I think about it.

Wrap up

Crafting a winning strategy is not a one-time event, but an ongoing journey of creation and refinement. The “Where to Play and How to Win” framework offers a powerful starting point, guiding you to make intentional choices about your market and your unique value proposition. But remember, don’t go overboard dedicating six months to developing the perfect strategy for your business.

Start small, act now. Take 45 minutes with your management team once a month and just try to define your Where to Win and How to Play, and find assumptions to test. As you navigate this process, you’ll find that strategy isn’t just about planning for success - it’s about building the muscle to consistently identify opportunities and overcome challenges in your specific context.

In the end, the most effective strategy is one that evolves with your business, your market, and your ambitions. So, where will you play, and how will you win? The answer may change, but the question will always be relevant. Embrace it, and let it drive your business forward.