STRATEGIC FRAMEWORKS

BCG Matrix

How should we allocate scarce resources over our business portfolio?

Market
Growth
High PROBLEM
STAR
CHILD

CASH
Low EXIT
COW

Low High
Market Share
 STRATEGIC FRAMEWORKS

Impact/Leadership

How should we prioritise strategic initiatives?

$9m
Bottom- FIRST
line PRIORITY
Impact
SECOND
PRIORITY
$3m
SELECTIVE

DON’T
DO
$1m
Triple Normal Third

Leadership Required
 STRATEGIC FRAMEWORKS

Make/Buy Grid

What should we do ourselves and what should we outsource?

Strategic
Importance
STRATEGIC INVEST IN
High SUPPLIER OWN
(Core) PARTNERSHIP CAPABILITY

CHOOSE
Low OUTSOURCE LOWEST
(Context)
COST

Disadvantaged Advantaged
Our capability
 STRATEGIC FRAMEWORKS

Porter’s 5 Forces Model

What are the forces underlying our industry’s current and future performance?

Regulation

Suppliers Competition Customers

Substitutes
 STRATEGIC FRAMEWORKS

McKinsey 7S Model

What aspects of our organisation need to fit together?

Structure

Systems Staff

Strategy

Shared
Skills
Values

Management
Style
 STRATEGIC FRAMEWORKS

Jim Collins Hedgehog Model

How can we create an enduring great company?

What are we
passionate about?

Enduring
Hedgehog
What can Concept What
we be the drives our
best in the economic
world at? engine?
 STRATEGIC FRAMEWORKS

Brand/Product Features

Where should we allocate resources to beat competition and where just to match them?

Importance
to customer
KEY KEY
High LIABILITIES DIFFERENTIATORS

IRRELEVENT OVER-
Low INVESTED

Disadvantaged Differentiated
Brand/Product Performance
 STRATEGIC FRAMEWORKS

Brand Awareness/Differentiation Matrix

What is the potential of our brand portfolio?

Brand
Awareness
POWER
High
BRANDS
“HAS-BEEN”

WEAK EMERGING
Low BRANDS STARS

Undifferentiated Highly Differentiated

Brand Differentiation
 STRATEGIC FRAMEWORKS

Product/Market Lifecycle

What is the stage of maturity for our markets and products?

Early Late
Majority Majority

Late
Adopter
Early
Adopters
Innovators

CHASM
 STRATEGIC FRAMEWORKS

Lewin Forces at Work

What is driving us forward and what is holding us back?

Driving Forces Restraining Forces

Internal Internal V
T
I
O
S
D
I
External A External
O
Y
N
 STRATEGIC FRAMEWORKS

Blue Ocean

How can we rethink our value proposition to side-step the competition?

What can we What can we

ELIMINATE? RAISE?

What can we What can we

REDUCE? CREATE?
 STRATEGIC FRAMEWORKS

Value Proposition

What are we offering our customers and how is it differentiated from competition?
Performance
10
9
8
7
6
5
4
3
2
1
0
Price Office Easy-to-use Screen Easy Lightweight
applications keyboard readability send/receive
What Customers Value
 STRATEGIC FRAMEWORKS

Strategy Pyramid

How do we craft a strategy?

THE FUTURE

•What Products?
(Customer Value Proposition)
•What Customers?
•Where?

Cause and
Core Competences Effect
Roadmap
(Action Plan) relationships
Designing the organisation
(Activity Map)

Learning Organisation
•Leadership
•Culture
TODAY •Dialogue
 STRATEGIC FRAMEWORKS

Price/Value curve

How can we map different competitive price/value trade-offs?

Price Line of stable

Losing market Brand market share
High share 4

Brand
3
Brand
2

Brand
1
Low
Gaining
market share

Low High
Value to customers
 STRATEGIC FRAMEWORKS

Ansoff Matrix

What is our primary growth avenue?

Products
NEW
PRODUCT
New BUSINESS
DEVELOPMENT
VENTURE

CAPTURE
Existing MARKET
SHARE
ENTRY

Existing New
Customers/Markets
 STRATEGIC FRAMEWORKS

Core/Context Matrix

What should be the objectives and management style

for different parts of our organisation?

Mission Critical
Failure creates
DEPLOY MANAGE
immediate and serious
risk

Non-Mission Critical
Everything else
INVENT OFFLOAD

Core Context
Create Differentiation Everything else
that wins customers
 STRATEGIC FRAMEWORKS

SWOT Analysis

How can I think through the situation?

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS
 STRATEGIC FRAMEWORKS

Corporate Parenting Matrix

Are we good parents for our business portfolio?

Low BALLAST HEARTLAND

MISFIT: Does the

parent have a good
‘feel’ for the critical
EDGE OF
success factors of
the business?
HEARTLAND

ALIEN VALUE
High TERRITORIES TRAP
Low High
FIT: Can the parent create value for the business?
 STRATEGIC FRAMEWORKS

Initiative Portfolio

Is our initiative portfolio balanced?

INITIATIVE
OBJECTIVE

Product/Service
improvement

Process
improvement

Organisation
improvement

Budget Medium term Long term

TIMING OF IMPACT
 STRATEGIC FRAMEWORKS

Solidarity/Sociability Matrix

What type of culture do we have?

Sociability

NETWORKED COMMUNAL High

FRAGMENTED MERCENARY Low

Negative

Positive
Low High
Solidarity