1. Strategy as Simple Rules
Kathleen Eisenhardt, Donald Sull
Harvard Business Review
January, 2001

2. Lecture and slides draw upon Strategy as Simple Rules,
Word Association
What are the connotations of the word “define”
Are these primarily positive or negative?
What are the connotations of the word “confine”
Lecture and slides draw upon Strategy as Simple Rules,
Kathleen M. Eisenhardt, Donald N. Sull, Harvard Business Review, January 2001

3. Lecture and slides draw upon Strategy as Simple Rules,
Strategy as Simple Rules Kathleen M. Eisenhardt, Donald Sull Harvard Business Review, 2001
Strategies are encouraged to emerge within deliberately designed rules which “define without confining” direction
Environment is made up of opportunities, (rather than products, markets, channels)
Strategy is opportunism (not position)
Strategy is built on processes
Intended for “high velocity” environments
Intended for high velocity markets
Lecture and slides draw upon Strategy as Simple Rules,
Kathleen M. Eisenhardt, Donald N. Sull, Harvard Business Review, January 2001

4. A connection to Mintzberg
“…define direction without confining it.”
Strategy as Simple Rules, page 2
Too much of a strategy’s benefits can lead to missed opportunities and an inability to adapt.
Mintzberg, The Strategy Concept II
Another Look at Why Organizations Need Strategies
California Management Review, Vol.XXX, No.1, Fall 1987
Lecture and slides draw upon Strategy as Simple Rules,
Kathleen M. Eisenhardt, Donald N. Sull, Harvard Business Review, January 2001

5. Types of “Simple Rules”
How-to rules
Boundary rules
Priority rules
Timing rules
Exit rules
Lecture and slides draw upon Strategy as Simple Rules,
Kathleen M. Eisenhardt, Donald N. Sull, Harvard Business Review, January 2001

6. Lecture and slides draw upon Strategy as Simple Rules,
How-to Rules
How do we go about pursuing opportunities?
What is distinctive about these processes?
Lecture and slides draw upon Strategy as Simple Rules,
Kathleen M. Eisenhardt, Donald N. Sull, Harvard Business Review, January 2001

7. Lecture and slides draw upon Strategy as Simple Rules,
A connection to Porter
How-to rules: How we go about pursuing opportunities
What is distinctive about these processes?
“Strategy rests on unique activities.”
Michael Porter, What is Strategy?
Harvard Business Review, July 1996
Lecture and slides draw upon Strategy as Simple Rules,
Kathleen M. Eisenhardt, Donald N. Sull, Harvard Business Review, January 2001

8. Lecture and slides draw upon Strategy as Simple Rules,
Boundary Rules
What kind of opportunities will we even consider pursuing?
What kind of opportunities will we ignore!
Lecture and slides draw upon Strategy as Simple Rules,
Kathleen M. Eisenhardt, Donald N. Sull, Harvard Business Review, January 2001

9. Lecture and slides draw upon Strategy as Simple Rules,
A connection to Porter
Boundary rules determine what kind of opportunities we will even consider … and by implication, those that we will ignore!
“Strategy is also about what not to do.”
Michael Porter, What is Strategy?
Harvard Business Review, July 1996
Lecture and slides draw upon Strategy as Simple Rules,
Kathleen M. Eisenhardt, Donald N. Sull, Harvard Business Review, January 2001

10. Lecture and slides draw upon Strategy as Simple Rules,
Priority Rules
How will we establish (possibly shifting) priorities among the opportunities within our boundaries?
These priorities will probably not be static
Lecture and slides draw upon Strategy as Simple Rules,
Kathleen M. Eisenhardt, Donald N. Sull, Harvard Business Review, January 2001

11. Lecture and slides draw upon Strategy as Simple Rules,
Timing Rules
What is the “pace” of our strategic initiatives?
How often do we initiate something new?
Within what time frame do we expect an initiative to come to fruition?
Lecture and slides draw upon Strategy as Simple Rules,
Kathleen M. Eisenhardt, Donald N. Sull, Harvard Business Review, January 2001

12. Lecture and slides draw upon Strategy as Simple Rules,
Exit Rules
How do we know when it is time to quit and move on to other opportunities?
Lecture and slides draw upon Strategy as Simple Rules,
Kathleen M. Eisenhardt, Donald N. Sull, Harvard Business Review, January 2001

13. Issues with Simple Rules
How many is the right number?
How specific should they be?
How should they be established?
Often this is based on experience
A connection to Mintzberg
When should they be changed?
Lecture and slides draw upon Strategy as Simple Rules,
Kathleen M. Eisenhardt, Donald N. Sull, Harvard Business Review, January 2001

14. Lecture and slides draw upon Strategy as Simple Rules,
Strategy as Simple Rules Kathleen M. Eisenhardt, Donald Sull Harvard Business Review, 2001
“Strategy-space” is made up of opportunities; strategy is opportunism
Simple rules “define without confining” direction
A very fluid approach to strategy for a dynamic fast-paced environment
Lecture and slides draw upon Strategy as Simple Rules,
Kathleen M. Eisenhardt, Donald N. Sull, Harvard Business Review, January 2001

15. Reflection and Reconciliation
Emergent Strategy as Process (Mintzberg)
Deliberate Strategy as Position (Porter)
Resource-based View (Barney et al.)
Strategy as Simple Rules (Eisenhardt, Sull)
Which concept of strategy, or hybrid of conceptions, is most convincing to you?