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War Gaming and Product Positioning

By Tom Stovall & Dustin Grainger

In any highly competitive marketplace, those who are destined for success are the ones who take the approach presented by the ancient Chinese General and Strategist Sun Tzu when he wrote over 2,500 years ago: "The great strategist first wins the victory in the temple rehearsal of the battle, and then enters the competition. Those destined for defeat first enter the competition and then seek victory."

So what is this "temple rehearsal of the battle," and how can the teachings of military strategists be applied to selling in the healthcare marketplace? The purpose of this article is to examine the Art of War Gaming and its application to preparing for any competitive situation. Our focus is not on battling but on achieving your objectives without attacking your competition.

We will examine a process used at the Air Staff and Command College to prepare US Airforce leaders for competition. It is our belief that through teaching the application of these practices, your sales and marketing organization will improve its strategic focus and achieve organizational objectives effectively and efficiently.

Strategic War Gaming
One can be assured that Colin Powell and Norman Schwarzkopf considered every potential scenario before committing their resources to the battle in the Persian Gulf When Schwarzkopf presented his strategy for successfully achieving his objectives in the Gulf War, he demonstrated a keen awareness of the current situation.

This SWOT analysis included a clear picture of the strengths and weaknesses of the United Nations Forces, the invading troops of Iraq, and the terrain in which the conflict was taking place. After thorough analysis, the US military leaders uncovered the Iraqi's key weakness-the inability to "see" due to a lack of reconnaissance. Schwarzkopf built his strategy on this and was very successful.

However, General Schwarzkopf did not take his competition lightly. In the "temple rehearsal" the military leaders considered every potential competitive move and determined how they would handle these moves should they occur. This included the "nightmare scenario." What would be the most difficult situations that might arise and what could be done proactively to address those situations?

The temple rehearsal of the battle includes war gaming. War games, in the context of this article, are used to investigate the sales and marketing process. They provide the incentive and inspiration needed to gain facts and to structure process into competitive analysis and product strategy.

Part of the power of teaching the application of war gaming concepts to your sales process, is that learning occurs during each phase of research, development, presentation, and the final, or "hot wash-up" step.

Components of War Gaming
So how can we teach medical equipment, pharmaceutical and biotech sales managers to recreate the "temple rehearsal" for their troops? We will begin by examining the steps taken in military war gaming and see their application for training your sales team.

What is the general scenario?
This involves developing a sales situation that is relevant and challenging for everyone involved. It should capture a current opportunity where the decision is imminent and the competitive challenge is strong.

As the facilitator, your initial step is to make certain that the manager or team leader has clearly defined where the opportunity is and that the opportunity is account- specific. The timeline for the opportunity should be within a year. The time allotment for the war-gaming activity should be approximately 2 weeks with a team meeting serving as the last activity. Decide on your product focus.

Next, divide your sales team into two groups with one supporting your product and the other representing the competitive product. Instruct each team that their first step is to do research on the following:

  • Learn as much as you can about your product.
  • Use whatever research methods you have at your disposal.
  • Use the same methods to gain a thorough understanding of the "other" product.
  • Research the opportunity and the account.

It is also imperative that you instruct the manager to do his or her own research. Our recommendation is that the research be focused on an account or opportunity specified by the manager and the general issues facing influencers within such accounts. For example, you should direct the manager to do some Internet research on the account and on broad healthcare related issues.

This information should be parceled out to both teams throughout the two-week research phase of the event. You will want to see how they use this information in developing their approach to achieving their objectives.

What is the objective?
Be very clear on the objective. It must be specific, measurable, and time bound. For most situations this will mean market share, units, or dollar volume.

Determine the potential strategies.
Once each team has completed step 1, they should discuss what they might rely upon to win. What will they focus on to achieve their objectives? For example, in the Gulf War, Schwarzkopf knew that his major competitive advantage was his air force superiority. That was a key strategy for victory. Your two teams must decide what they think gives the greatest opportunity for victory against the competitor.

What tactics will be employed?
The next step is to consider what must be done to execute the plan or the strategic position. These are the specific actions that are to be taken. For example, if I am relying on the spectrum of activity of my antibiotic in treating postsurgical infections, what will I use to support this strategy? What sales visuals, clinical reports, speakers, in-service programs, etc., are available?
In the highly competitive environment of pharmaceutical sales, overcoming resistance is a critical skill.
Each team's tactical plan should also consider the "nightmare scenario." That is, what is the worst thing that could happen to you from a competitive standpoint? In other words, each teams competitive research must have considered the strengths of the competition.
If, for example, the competitor has a less complicated dosing regimen, how will you handle that issue without directly attacking the competitor? What will you use, tactically, to address first the closing issue, and then, refocus the customer on your product's identified strength?

The "Temple Rehearsal"
Once these planning steps are taken, convene your two teams to make their presentations. Have the competitive team present their plan first. This should include an examination of how they handled each step in the analysis. Let the competitive team use slides, flip charts, handouts, overheads, or any presentation materials they may want.
From the other team, allow only questions regarding the process and at this point stay away from comments regarding how they would have reacted. This is a time to listen and learn. Next, have the home team present their approach in the same manner as was done from the competitive product team.

The Hot Wash-Ups
After a war game, military leaders apply what they have learned to the real world. Once the competitive team has presented, everyone takes on the role of the home team product. You will want to facilitate a discussion regarding what changes might need to be made in the product strategy for your product.
You will also make adjustments to the tactics employed to support the product strategy and to address potential customer concerns or any "nightmare scenarios" that could present themselves. The next step is execution of the plan and application of this same process to other key opportunities.

Final Words
As a manager or trainer, your challenge is to facilitate, do your homework to support the "intelligence" you send out during the first two weeks of the activity, and stay out of it!
The war-gaming process has been around for centuries, but its application to competition in sales and marketing is thin. A key to success with this process is to make it interesting enough and interactive enough to allow each team to suspend their own disbelief and take on the challenge as a learning process. Your scenario must be realistic enough to ensure that the learning that takes place is informative and not misleading.
The interaction and energy you will see among the teams is one characteristic that makes such activities so powerful. And the application of this process to each person's key sales opportunities will be a result well worth the effort and time involved in the "temple rehearsal of the battle."

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