STRATEGIC FRAMEWORKS BCG Matrix How should we allocate scarce resources over our business portfolio? Market Share Market Growth Low High Low High EXIT STAR PROBLEM CHILD CASH COW

Leadership Required Bottom- line Impact Third $9m Normal SECOND PRIORITY SELECTIVE $3m $1m Triple DON’T DO FIRST PRIORITY STRATEGIC FRAMEWORKS Impact/Leadership How should we prioritise strategic initiatives?

Our capability Strategic Importance Disadvantaged High (Core) Low (Context) Advantaged OUTSOURCE INVEST IN OWN CAPABILITY STRATEGIC SUPPLIER PARTNERSHIP CHOOSE LOWEST COST STRATEGIC FRAMEWORKS Make/Buy Grid What should we do ourselves and what should we outsource?

Substitutes Competition Customers Suppliers Regulation STRATEGIC FRAMEWORKS Porter’s 5 Forces Model What are the forces underlying our industry’s current and future performance?

Strategy Systems Staff Management Style Shared Values Skills Structure STRATEGIC FRAMEWORKS McKinsey 7S Model What aspects of our organisation need to fit together?

STRATEGIC FRAMEWORKS Jim Collins Hedgehog Model How can we create an enduring great company? What can we be the best in the world at? What are we passionate about? What drives our economic engine? Enduring Hedgehog Concept

Brand/Product Performance Importance to customer Disadvantaged High Low Differentiated IRRELEVENT KEY DIFFERENTIATORS KEY LIABILITIES OVER- INVESTED STRATEGIC FRAMEWORKS Brand/Product Features Where should we allocate resources to beat competition and where just to match them?

Brand Differentiation Brand Awareness Undifferentiated High Low Highly Differentiated WEAK BRANDS POWER BRANDS “HAS-BEEN” EMERGING STARS STRATEGIC FRAMEWORKS Brand Awareness/Differentiation Matrix What is the potential of our brand portfolio?

Innovators Early Adopters Early Majority Late Majority Late Adopter CHASM STRATEGIC FRAMEWORKS Product/Market Lifecycle What is the stage of maturity for our markets and products?

V I S I O N T O D A Y Driving Forces Restraining Forces Internal External Internal External STRATEGIC FRAMEWORKS Lewin Forces at Work What is driving us forward and what is holding us back?

What can we ELIMINATE? What can we REDUCE? What can we CREATE? What can we RAISE? STRATEGIC FRAMEWORKS Blue Ocean How can we rethink our value proposition to side-step the competition?

What Customers Value Performance STRATEGIC FRAMEWORKS Value Proposition What are we offering our customers and how is it differentiated from competition?

THE FUTURE TODAY Learning Organisation Leadership Culture Dialogue Designing the organisation (Activity Map) Roadmap (Action Plan) Cause and Effect relationships Core Competences What Products? (Customer Value Proposition) What Customers? Where? STRATEGIC FRAMEWORKS Strategy Pyramid How do we craft a strategy?

Value to customers Price Gaining market share Losing market share Low High Low High Line of stable market share Brand 1 Brand 4 Brand 3 Brand 2 STRATEGIC FRAMEWORKS Price/Value curve How can we map different competitive price/value trade-offs?

Customers/Markets Products Existing New Existing New CAPTURE SHARE NEW BUSINESS VENTURE PRODUCT DEVELOPMENT MARKET ENTRY STRATEGIC FRAMEWORKS Ansoff Matrix What is our primary growth avenue?

Mission Critical Failure creates immediate and serious risk INVENT MANAGEDEPLOY OFFLOAD Non-Mission Critical Everything else Context Everything else Core Create Differentiation that wins customers STRATEGIC FRAMEWORKS Core/Context Matrix What should be the objectives and management style for different parts of our organisation?

STRENGTHS OPPORTUNITIESTHREATS WEAKNESSES STRATEGIC FRAMEWORKS SWOT Analysis How can I think through the situation?

BALLAST ALIEN TERRITORIES VALUE TRAP STRATEGIC FRAMEWORKS Corporate Parenting Matrix Are we good parents for our business portfolio? HEARTLAND EDGE OF HEARTLAND Low High LowHigh FIT: Can the parent create value for the business? MISFIT: Does the parent have a good ‘feel’ for the critical success factors of the business?

TIMING OF IMPACT STRATEGIC FRAMEWORKS Initiative Portfolio Is our initiative portfolio balanced? INITIATIVE OBJECTIVE BudgetMedium termLong term Product/Service improvement Process improvement Organisation improvement

STRATEGIC FRAMEWORKS Solidarity/Sociability Matrix What type of culture do we have? Solidarity Sociability LowHigh FRAGMENTED COMMUNALNETWORKED MERCENARY High Low Positive Negative