STRATEGIC FRAMEWORKS
BCG Matrix
How should we allocate scarce resources over our business portfolio?
Market
Growth
High
PROBLEM
CHILD
STAR
Low
EXIT
CASH
COW
Low
High
Market Share
STRATEGIC FRAMEWORKS
Impact/Leadership
How should we prioritise strategic initiatives?
$9m
FIRST
PRIORITY
Bottomline
Impact
SECOND
PRIORITY
$3m
SELECTIVE
DON’T
DO
$1m
Triple
Normal
Leadership Required
Third
STRATEGIC FRAMEWORKS
Make/Buy Grid
What should we do ourselves and what should we outsource?
Strategic
Importance
High
(Core)
Low
(Context)
STRATEGIC
SUPPLIER
PARTNERSHIP
INVEST IN
OWN
CAPABILITY
OUTSOURCE
CHOOSE
LOWEST
COST
Disadvantaged
Our capability
Advantaged
STRATEGIC FRAMEWORKS
Porter’s 5 Forces Model
What are the forces underlying our industry’s current and future performance?
Regulation
Suppliers
Competition
Substitutes
Customers
STRATEGIC FRAMEWORKS
McKinsey 7S Model
What aspects of our organisation need to fit together?
Structure
Staff
Systems
Strategy
Shared
Values
Skills
Management
Style
STRATEGIC FRAMEWORKS
Jim Collins Hedgehog Model
How can we create an enduring great company?
What are we
passionate about?
What can
we be the
best in the
world at?
Enduring
Hedgehog
Concept
What
drives our
economic
engine?
STRATEGIC FRAMEWORKS
Brand/Product Features
Where should we allocate resources to beat competition and where just to match them?
Importance
to customer
High
KEY
LIABILITIES
KEY
DIFFERENTIATORS
IRRELEVENT
OVERINVESTED
Disadvantaged
Differentiated
Low
Brand/Product Performance
STRATEGIC FRAMEWORKS
Brand Awareness/Differentiation Matrix
What is the potential of our brand portfolio?
Brand
Awareness
High
POWER
BRANDS
“HAS-BEEN”
Low
WEAK
BRANDS
EMERGING
STARS
Undifferentiated Highly Differentiated
Brand Differentiation
STRATEGIC FRAMEWORKS
Product/Market Lifecycle
What is the stage of maturity for our markets and products?
Early
Majority
Late
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
Internal
External
Restraining Forces
T
O
D
A
Y
Internal
External
V
I
S
I
O
N
STRATEGIC FRAMEWORKS
Blue Ocean
How can we rethink our value proposition to side-step the competition?
What can we What can we
RAISE?
ELIMINATE?
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
applications
Easy-to-use
keyboard
Screen
readability
What Customers Value
Easy
send/receive
Lightweight
STRATEGIC FRAMEWORKS
Strategy Pyramid
How do we craft a strategy?
THE FUTURE
•What Products?
(Customer Value Proposition)
•What Customers?
•Where?
Roadmap
(Action Plan)
Core Competences
Designing the organisation
(Activity Map)
TODAY
Learning Organisation
•Leadership
•Culture
•Dialogue
Cause and
Effect
relationships
STRATEGIC FRAMEWORKS
Price/Value curve
How can we map different competitive price/value trade-offs?
Price
High
Losing market
share
Line of stable
market share
Brand
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
Existing
PRODUCT
DEVELOPMENT
CAPTURE
SHARE
Existing
NEW
BUSINESS
VENTURE
MARKET
ENTRY
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
immediate and serious
risk
Non-Mission Critical
Everything else
DEPLOY
MANAGE
INVENT
OFFLOAD
Core
Create Differentiation
that wins customers
Context
Everything else
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
MISFIT: Does the
parent have a good
‘feel’ for the critical
success factors of
the business?
HEARTLAND
EDGE OF
HEARTLAND
ALIEN
High TERRITORIES
VALUE
TRAP
Low
High
FIT: Can the parent create value for the business?
STRATEGIC FRAMEWORKS
Initiative Portfolio
INITIATIVE
OBJECTIVE
Is our initiative portfolio balanced?
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
Negative
Positive
NETWORKED
COMMUNAL
High
FRAGMENTED
MERCENARY
Low
Low
High
Solidarity