- Prepare quantifyiable objectives.
- Asses conditions of the company internal and external.
- Evaluate strategy in terms on ROI, value creation and simialr measures.
- Make an operational plan. Break down strategies into actionable items short, medium and long term.
Aka Grow Share Matrix or BCG Matrix. Creates a cycle of using money from cash cow to invest more into problem child and until it become a star. Over time, star becomes a cash cow. Avoid dogs. An effective strategy according to BCG Matrix is to ensure initiaitves are moving in sequence along 3 strategies. Market share plays significant role in the strategy. High market share serves as cash cow which funds new initiatives for future growth. Initiatives takes market share and dominates it but it cannot stay forever and will eventually decline.
- Dog
- Cash Cow
- Star
- Problem Child / Question
Sample
- https://www.edrawmax.com/article/guide-to-understand-the-growth-share-matrix.html
- https://en.wikipedia.org/wiki/Growth%E2%80%93share_matrix
- https://strategicmanagementinsight.com/tools/bcg-matrix-growth-share/
- https://www.youtube.com/watch?v=Uuuxs9gO8C0
Represents tha relationship of cost to number of units produced. It means the cost of item gets cheaper as more product is produced becaue we gain experience and efficiency over time. It suggests to be first and fast in reaching high volume if we are to stay ahead of rivals. Being first and early marke take extreme measure and could be best source of sustainable advantage over competition. The matrix is too simplistic and does not represent the full extent and complexity of running the business.
Sample
https://en.wikipedia.org/wiki/Experience_curve_effects
- Avoid too much attention on external environment, focus on internal operations and capabilities
- Avoid intensive upfront planning before executing an action, it doesnt have to be complete
- Accept the fact that good strategy ideas could come from distributed organizations and not just from elite groups
- Avoid approaches that is process heavy and scripted that is hard to tune to know knowledge
- Avoid approaches that is very technical and mathematical that leads you to thinking everything is predictable and certain
This can be very rational and objective in front end but wasnt successful in the backend
- The Origin of Strategy / https://www.strategyskills.com/Articles/Documents/origin_strategy.pdf
- http://www.forbes.com/sites/stevedenning/2012/11/20/what-killed-michael-porters-monitor-group-the-one-force-that-really-matters/
- https://www.forbes.com/sites/karlmoore/2011/06/21/emergent-strategy-demands-emergent-learning/
- https://www.forbes.com/sites/stevedenning/2011/04/08/mintzberg-on-management/