4 Schools of Strategy (PowerPoint PPTX Slide Deck)

STRATEGY FRAMEWORKS PPT DESCRIPTION

Explore the 4 Schools of Strategy framework by ex-McKinsey consultants. Gain insights on competitive strategy, operational excellence, and core competencies. 4 Schools of Strategy is a 28-slide PPT PowerPoint presentation slide deck (PPTX) available for immediate download upon purchase.

Explore Slides inside the Deck:

Axes of Strategy: Authorship and Time Orientation Mapping Strategic Models across Four Schools Maximizing Strategy through Capabilities-Driven Framework

There are countless business frameworks on Corporate and Business Strategy that have developed over the years. The frameworks can be categorized into 4 schools of thought—i.e. 4 Schools of Strategy:

1. Position School, which focuses on Competitive Strategy
2. Execution School, which focuses on Operational Excellence
3. Adaption School, which focuses on Organizational Learning and Experimentation
4. Concentration School, which focuses on Core Competencies and Strategic Intent

A successful strategy blends takeaways from all 4 schools—one that has strong coherence among its market strategy, core capabilities, and portfolio of offerings.

This framework discusses each school in depth. As part of these discussions, we also review some established frameworks, like the BCG Experience Curve, Porter's Five Forces, and Capabilities-Driven Strategy (CDS).

Additional topics touched upon include Tension in Strategy, Corporate Identity, Continuous Improvement, and others.

This deck also includes slides you can use in your own business presentations.

The PPT provides a comprehensive analysis of the Position School, emphasizing the importance of selecting favorable markets through external forces and analyses. It delves into the BCG Experience Curve, illustrating how experience can lead to cost reductions and competitive advantages. The Execution School is explored with a focus on aligning people and processes for operational excellence, leveraging methodologies like Six Sigma and Lean Management.

The Adaption School highlights the significance of organizational learning and the ability to respond quickly to changes. It references key strategic thinkers like Henry Mintzberg and Tom Peters. The Concentration School underscores the need to focus on core competencies and strategic intent, drawing on insights from Gary Hamel and C.K. Prahalad. This deck is an essential resource for executives seeking to integrate diverse strategic frameworks into a cohesive strategy.

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STRATEGY FRAMEWORKS PPT SLIDES

Axes of Strategy: Authorship and Time Orientation

This PPT slide presents a framework for strategic decision-making based on 2 axes: "Point of View on Authorship" and "Time Orientation." The x-axis ranges from collective input, emphasizing inclusivity and diverse perspectives, to top-down strategy development led by senior executives. The y-axis differentiates between future-oriented strategies, which focus on long-term goals and innovation, and present-oriented strategies, which evolve from existing conditions. Organizations often shift between these strategic approaches, highlighting the need for leaders to adapt their frameworks in response to changing environments. Understanding these axes enables a nuanced strategy that aligns with organizational culture and market demands.

Mapping Strategic Models across Four Schools

This PPT slide categorizes strategic models into 4 schools of thought: Adaptation, Execution, Position, and Concentration. The Adaptation quadrant features Henry Mintzberg's "The Rise and Fall of Strategic Planning" and Tom Peters & Robert Waterman's "In Search of Excellence," emphasizing flexibility in strategy formulation. The Execution quadrant includes W. Edwards Deming's "Out of the Crisis" and Ram Charan & Larry Bossidy's "Execution," focusing on operational effectiveness. In the Position quadrant, Michael Porter’s "Competitive Strategy" and W. Chan Kim & Renée Mauborgne's "Blue Ocean Strategy" highlight market positioning and differentiation. The Concentration quadrant showcases Gary Hamel & C.K. Prahalad's "Competing for the Future" and Chris Zook's "Profit from the Core," advocating for a focused strategic approach. A balanced integration of these schools enhances strategic effectiveness and informs contemporary business applications.

Maximizing Strategy through Capabilities-Driven Framework

This PPT slide presents the Capabilities-Driven Strategy (CDS), which enhances core competencies by focusing on sustainable capabilities essential for attracting primary customers. CDS is outward-looking, centered on customer needs. Three core components drive this strategy: Value Creation, Product and Service Fit, and the Capabilities System. Value Creation requires understanding how the company generates value for customers, aligning organizational efforts with customer expectations. The Capabilities System, consisting of 3 to 6 distinctive capabilities, acts as the engine of Value Creation, enabling effective delivery of the value proposition. A cyclical relationship exists among Value Creation, Competitive Advantage, and Product and Service Fit, suggesting that coherence in capabilities strengthens market position and contributes to sustained competitive advantage.

Core Tension in Strategic Business Realities

This PPT slide presents a framework addressing the tension in strategy between 2 conflicting business realities. The first reality is that competitive advantages are transient, with organizations facing vulnerabilities from technological disruptions, capital flow shifts, and regulatory changes. This volatility can lead to the failure of established companies and rapid success for startups. The second reality highlights the slow and challenging nature of corporate identity change, defined as the composite of culture, operational processes, and stakeholder relationships. Changing this identity requires leadership recognition of the need for adaptation. Together, these realities illustrate the balance organizations must strike between leveraging transient advantages and evolving their core identity in response to external pressures.

Framework for Achieving Operational Excellence through Execution

The Execution School within Operational Excellence emphasizes an internal focus, contrasting with the external orientation of the Position School. Profitability is driven by developing and deploying better practices, processes, technologies, human capital, and products. Key components for achieving Operational Excellence include Strategy Deployment, Performance Management, Process Excellence, and High Performance Work Teams, forming an integrated Business Execution System. This systematic approach aligns resources for continuous improvement. Operational Excellence is linked to management philosophies like Six Sigma and Lean Management, prioritizing Continuous Improvement by focusing on customer needs, empowering employees, and optimizing processes for efficiency and sustainable growth. Influential thought leaders, such as W. Edwards Deming and Ram Charan, support the Execution School's principles, reinforcing the credibility of these concepts.

Evaluating Industry Dynamics with Porter's Five Forces

This PPT slide provides an overview of Porter’s Five Forces framework, a strategic tool for assessing competitive dynamics within an industry. The framework identifies 5 critical elements influencing a business's competitiveness: Threat of New Entrants, Supplier Power, Internal Rivalry, Buyer Power, and Threat of Substitution. Each force shapes the competitive landscape; for example, the Threat of New Entrants evaluates barriers to entry, while Supplier Power examines the influence of suppliers on pricing. Utilizing Porter’s Five Forces alongside a SWOT analysis offers a comprehensive view of a business's position, aiding in strategic decision-making by identifying strengths, weaknesses, opportunities, and threats.

Understanding Cost Reductions through Experience Curve

This PPT slide presents the BCG Experience Curve, illustrating the relationship between accumulated production experience and unit production costs. For every doubling of experience, costs typically decrease by 20% to 30%. As production volume increases, organizations benefit from reduced costs due to efficiencies gained through experience, particularly in stable, competitive, and production-intensive industries. The graphical representation shows a downward slope where marginal costs decrease as cumulative volume increases, indicating that higher production volumes lead to lower costs per unit. Companies with significant market share can leverage this experience to maintain a cost advantage over competitors, impacting long-term growth and market positioning.

Embracing Adaptation: The Learning School Overview

The Adaption School emphasizes organizational learning for effective results through quick, creative responses to change. Rooted in Professor Henry Mintzberg's work, it advocates for a shift from traditional analysis to an experimental decision-making style. Mintzberg encourages executives to explore diverse strategic options, likening this to letting a thousand flowers bloom, which fosters innovation over rigid analytical techniques. However, this approach can be inefficient and costly, with the risk of resource depletion from pursuing too many initiatives. Continuous improvement is essential, requiring organizations to test new directions, discard ineffective strategies, and refine efforts. Key works in strategic thinking, such as Mintzberg's "The Rise and Fall of Strategic Planning" and "In Search of Excellence" by Tom Peters and Robert Waterman, provide context for the Adaption School's principles and applications.

Source: Best Practices in Strategy Development, Strategic Planning, Operational Excellence PowerPoint Slides: 4 Schools of Strategy PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting