Corporate War Games: Next-Level Survival Strategies
During a recent and very long overdue catch up with my friend Trina, I had one of those ‘Aha moments’. To be fair, as someone who spends a lot of time interviewing experts, these moments happen to me a lot, but this one was different. In the 20 years Trina and I have been friends, she’s developed marketing strategies for global brands including Coca Cola, Virgin Atlantic, Nestlé and IKEA . Impressive stuff, but it’s what she’s working on now that really got me thinking…
Taking inspiration from the military and politics, Trina and her business partners set up The Competitive Wargaming Team and now deliver secret, scenario-based ‘corporate war rooms’ for senior leaders designed to predict and outmaneuver competitor moves. My mind was blown, I loved it. When I asked Trina what led her into the (corporate) war business, she said, “It was my associate Ben who spotted the niche, and we all thought it was worth a shot! We all had lots of experience trying to land competitor strategy both in house for brands and either as consultants or (in my case) at advertising agencies… but it was Ben who realised that there was room in the market for a simple and straightforward solution to helping clients focus on beating their competition.”
Origins and Military Inspiration
Following my call, I did a quick Google search and fell down multiple rabbit holes. I discovered that the concept of a war room traces its roots back to military strategy, where such spaces were used for planning and executing operations in times of conflict. America’s 34th President, General Dwight Eisenhower actually held his base of operations deep within Gibraltar’s tunnel network during part of WW2. These war rooms were central hubs where military leaders would gather to strategise, make decisions, and plot the progress of their armed campaigns. The corporate adaptation of this concept translates these strategic planning and decision-making processes to the business environment, allowing companies to navigate the competitive landscape more effectively.
All Out (Corporate) War
At the heart of many global firms, corporate war rooms serve as nerve centres for strategic planning. These spaces are equipped with tools for data analysis, simulation, and real-time decision-making. Companies like McKinsey have highlighted the use of war games as a powerful tool in the corporate strategy arsenal. Through simulations, businesses can anticipate the moves of competitor firms, explore potential market scenarios, and plan their counter-strategies. This is all sounding pretty Machiavellian right? But I guess the higher the market cap the higher the stakes…
According to Trina, the success of a war game depends on how well it’s delivered; “Our process is designed to interrogate existing perceptions and help clients identify their key competitors. That might sound like a simple thing but it’s not always that clear! We do this by interrogating all of the available intelligence a client already has about their market competitors, or stuff that’s available in the public domain, interviewing key stakeholders, and combing through our own knowledge and experience. That process usually throws up several key ‘battlegrounds’ – e.g. areas where there’s a real asymmetry between the client and their competition, or areas that all organisations in that sector will need to give focus to.”
Simulated Scenarios
Once that insight becomes obvious, her team helps the client to create a clear and compelling narrative out of it and design an interactive workshop that lets participants from the client organisation role through a simulated scenario. “For example, we might start a war game with the assumption that a big tender has just been announced by one of the client’s pre-defined competitors” says Trina, “we get participants to address and answer a number of questions. What will the client organisation do to counter or respond? How do we think the competitor will react? The game is played out under time pressured conditions with participants playing roles against type, both within their own organisation and that of the competition.”
Following several intense rounds, participating teams are left with a clear picture of what opportunities they have and what threats they might face. For Trina, the final stage is the one that ensures her clients achieve a tangible outcome from the war game. “After the scenarios, participants usually have a number of ideas and strategies they can take back their business. It’s at this point where we ask participants to share and commit to an action that capitalises on market opportunities or diminishes the threats.”
Small Business Battleground
While the war games concept might seem suited only to the vast resources of global corporations, Trina assures me that small businesses can also apply this ‘big business’ strategic practice. “Although many of our clients are big brands, lots of business problems are pretty universal. We see the same competitor themes coming up again and again. Profit-sapping price wars, scrapping over the same geographies, how to deal with the cost of doing business, regulation change, Tech with a capital T, new entries to the market… which will all feel familiar to anyone in business. And in fact smaller businesses are even better poised in some respects to make change. They may not have the massive budgets or huge global clout of the big corporations, but they have agility and accountability and a sleeves-rolled-up attitude that some of their bigger cousins could do well to borrow!”
Run Your Own War Game
1:Define the Objective: Clearly articulate what you aim to achieve with your war room sessions. This could range from exploring new market opportunities to devising counter-strategies against a competitor’s moves.
2: Gather the Right Team: Having a skilled facilitator is key! Include individuals with diverse perspectives and expertise to ensure a comprehensive analysis of scenarios.
3: Use Available Tools: Leverage technology and data analytics tools to gather insights about market trends, competitor behaviour, and potential opportunities.
4: Stay Focused: This is where the facilitator’s role really comes into play. Ideally this could be someone who doesn’t work with or for you. They can keep discussions balanced and on track.
5: Simulate Scenarios: Conduct simulations or war games to explore different competitive strategies and their potential outcomes.
6: Develop Action Plan: Based on these simulations and the ideas they generate, develop actionable strategies that can be implemented to address identified challenges and opportunities.
This piece has opened my eyes and has got me feeling inspired. It seems the corporate war room offers a structured approach to strategic planning and competitive analysis. While global firms may have pioneered the practice, its principles are universally applicable and its methodology can be scaled to fit.
By adopting a tailored approach to the war room concept, companies can enhance their strategic agility, better understand their competitive landscape, and position themselves for success in today’s dynamic market environment.
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