Strategy Chessboard (PowerPoint PPT Slide Deck)

This PPT slide presents the A.T. Kearney Strategy Chessboard, a strategic framework that organizes various approaches into 4 main umbrella strategies and sixteen specific strategic options. The structure is divided into a grid format, where the vertical axis represents the company's desire, need, and ability to shape the industry, while the horizontal axis indicates the level of analytical predictability regarding industry trends over a relevant time horizon.

The 4 umbrella strategies include Portfolio Strategy, which emphasizes the importance of pursuing global industry endgame consolidation and reconfiguring industry value chains. Each strategy is accompanied by specific options, such as creating "Blue Ocean" opportunities or deploying real options-based strategies, which suggest different paths for strategic growth and innovation.

The slide also highlights the need for companies to adapt within the industry by identifying and adapting to profit patterns and preparing for multiple scenarios. This adaptability is crucial in today’s fast-paced business environment, where traditional strategies may not suffice. The note at the bottom indicates that while the boxes suggest distinct strategies, they are not mutually exclusive, allowing for a more flexible approach to strategy formulation.

Overall, this slide serves as a comprehensive guide for executives looking to navigate complex strategic decisions. It emphasizes the interplay between shaping industry dynamics and the analytical predictability of various strategies, providing a clear visual representation of how companies can align their strategic options with their overarching goals. Understanding this framework can aid in making informed decisions that drive long-term success.

This PPT slide presents a structured approach to evaluating a company's foundational characteristics and the predictability of its industry using a point-scale model. This model is designed to assess 2 primary dimensions: Company DNA and Industry Predictability. Each dimension is broken down into specific criteria, allowing for a comprehensive scoring system.

For Company DNA, the assessment is divided into 2 main categories: Desire and Ability. Desire encompasses long-term motives, risk tolerance, and the capacity to identify opportunities that challenge the status quo. It has a maximum score of 35 points. Ability, which can score up to 45 points, includes factors such as market influence, financial strength, and the imagination to innovate. The total score for Company DNA can reach 100 points, reflecting a holistic view of the company's internal capabilities.

On the other hand, Industry Predictability is segmented into several areas: Environment, Competition, Demand, Suppliers, and Technology and Offerings. Each area has a designated maximum point value, with Competition being the most heavily weighted at 25 points. This section evaluates external factors that could impact the company's strategic positioning, including macroeconomic conditions and competitor behaviors.

The slide also visually represents how these scores can be plotted on a grid, indicating the company's ability to shape the industry versus adapt within it, based on analytical predictability. This framework not only aids in understanding the current state of the company and its market, but also serves as a tool for strategic planning and decision-making. The insights derived from this model can guide executives in identifying growth opportunities and addressing potential threats effectively.

This PPT slide presents a hypothetical utility company and illustrates how its various business units can be categorized within the Strategy Chessboard framework. This framework is crucial for understanding the distinct strategic needs of different units, particularly in complex industries. The slide is divided into 2 main sections: "Shape the industry" and "Adapt 'within' the industry," which reflect the dual focus on external and internal strategic considerations.

The left side emphasizes the importance of shaping the industry through strategic initiatives like "Wholesale and trading" and "Change industry conduct." These strategies suggest a proactive approach to influencing market dynamics and adapting to evolving conditions. The mention of specific authors and frameworks indicates a reliance on established strategic theories, which adds credibility to the proposed strategies.

On the right side, the focus shifts to adapting strategies within the industry. This includes areas such as "Domestic transportation" and "Pursue dynamic strategies," highlighting the need for flexibility in response to varying levels of analytical predictability. The categorization of business units based on their operational context—ranging from high to low analytical predictability—provides a clear visual representation of how different strategies may be required depending on the market environment.

The overall message is that a one-size-fits-all approach does not suffice for large organizations with diverse business units. Each unit may require tailored strategies based on its specific circumstances and the broader industry context. This nuanced understanding is essential for executives looking to optimize their strategic planning processes.

This PPT slide outlines a strategic framework titled "Redefine the Industry," which focuses on how organizations can reshape their industry to create mutual benefits. It emphasizes the importance of strategic and scenario analysis in identifying pathways for industry transformation. The overview suggests that the goal is to act as an "industry architect," guiding the sector's structure and performance towards favorable outcomes.

The slide presents 4 primary strategic options:

1. Pursue Global Industry Endgame Consolidation: This strategy aims to gain market share through mergers and acquisitions, starting on a regional level before expanding globally. The implication is that when one industry leader consolidates, it often prompts competitors to follow suit, leading to a ripple effect in the market.

2. Converge or Slice the Industry: This option involves exploring convergence opportunities or segmenting the industry into distinct verticals. The idea is to improve competitive positioning by strategically slicing the industry, which can trigger similar actions from other players.

3. Change Industry Conduct: This strategy focuses on altering how business is conducted within the industry. By employing Game Theory, companies can influence all stakeholders involved—players, value, rules, and tactics—to create a more beneficial environment for all parties.

4. Reconfigure Industry Value Chains: This approach involves redefining what is core and non-core to the organization. It opens the door for new entrants and encourages collaboration among competitors, fostering innovative competitive strategies.

Overall, the slide presents a comprehensive view of how strategic actions can reshape the industry landscape, encouraging organizations to consider these options for future growth and positioning.

This PPT slide presents a strategic framework aimed at navigating an unpredictable industry through the launch of significant initiatives alongside smaller, focused efforts. It highlights insights from prominent business theorists Gary Hamel and C.K. Prahalad, who argue that organizations must actively compete for future relevance by addressing 3 key areas.

First, the competition for intellectual leadership is emphasized. This involves envisioning the benefits that customers will seek in the future, thus requiring firms to innovate and anticipate market needs. Second, the management of migration paths is crucial. This aspect pertains to establishing industry standards that will guide the evolution of the market, ensuring that a company remains at the forefront of industry developments. Third, the competition for market share is discussed. Here, the focus shifts to how companies can position themselves based on value, cost, and service, which are critical in maintaining a strong market presence.

The slide also references Thomas Kratzer's concept of Preferred Futures, suggesting that organizations should proactively shape uncertain markets by steering their development towards a desired future state. This involves conducting scenario analyses to identify and pursue an attractive industry future.

Overall, the content encourages executives to think strategically about how to position their organizations in a rapidly changing environment. By launching bold initiatives while also focusing on smaller, targeted actions, companies can better navigate uncertainty and drive future growth. This framework serves as a guide for leaders looking to refine their strategic approach in a complex market landscape.

This PPT slide presents a modified version of the Strategy Chessboard, emphasizing the need to adapt strategic frameworks to better reflect industry dynamics. It begins by acknowledging that the default diagram serves as a foundational tool for strategy development. However, it highlights the necessity of customizing the quadrant boundaries to align with actual market conditions and trends.

The content is structured around 2 main axes: the company’s desire, need, and ability (DNA) to shape the industry, and the level of analytical predictability within that industry. The left side of the slide focuses on shaping the industry, suggesting strategies such as pursuing global industry consolidation and reconfiguring value chains. These actions aim to influence the broader market environment.

On the right side, the slide discusses adapting strategies within the industry. It suggests various approaches like growing in core areas, deploying battle strategies, and preparing for multiple scenarios. This dual focus on shaping and adapting reflects a comprehensive approach to strategic planning, acknowledging that companies must be proactive in influencing their markets while also being responsive to changes.

The slide concludes with a call to action, urging organizations to redesign the chessboard to fit their unique situations. This statement reinforces the idea that a one-size-fits-all approach is insufficient in today’s complex business landscape. The overall message is clear: effective strategy requires both a deep understanding of industry dynamics and a willingness to modify existing frameworks to meet specific organizational needs.

This PPT slide presents a framework for understanding 4 strategic options available under the concept of "Umbrella Strategies." Each option is positioned within a quadrant that reflects the company's desire and ability to shape the industry versus adapting within it. The vertical axis indicates the company's inclination to influence the industry, while the horizontal axis measures the predictability of the industry over a relevant time horizon.

The 4 strategies outlined are "Redefine the Industry," "Reinvent the Industry," "Position and Conquer," and "Maintain Foresight and Flexibility." Each strategy requires different levels of analytical predictability. For instance, "Redefine the Industry" and "Reinvent the Industry" are positioned in the upper quadrants, suggesting they are suited for scenarios where companies can actively shape the industry landscape. These strategies involve conducting detailed analyses to identify opportunities for innovation and transformation.

On the other hand, "Position and Conquer" and "Maintain Foresight and Flexibility" are located in the lower quadrants, indicating a focus on adapting to existing industry conditions. These strategies emphasize understanding the current market position and maintaining agility in response to changing circumstances.

The slide also hints at the necessity for organizations to possess the right capabilities to effectively implement these strategies. It suggests that not all companies have the requisite desire, culture, or resources to influence their industry's trajectory. This insight is crucial for decision-makers considering which strategic path to pursue, as it highlights the importance of aligning organizational capabilities with chosen strategies. Overall, this framework serves as a guide for executives to evaluate their strategic options based on their analytical capabilities and industry dynamics.

This PPT slide outlines the Strategy Chessboard Implementation process, structured into 3 distinct phases, each comprising several steps. This framework is designed to guide organizations through a comprehensive strategy development journey.

Phase 1, titled "Assess & Determine Situation," focuses on understanding the organization's foundational elements. The first step involves determining the company's DNA, which likely refers to its core values, mission, and unique capabilities. Next, the organization assesses its industry predictability, evaluating external market conditions and trends. The final step in this phase is to determine the appropriate strategic approach, setting the stage for the subsequent analysis.

Phase 2, "Analyze & Develop Strategy," delves deeper into strategic formulation. It begins with performing a strategic analysis and synthesis, where data is gathered and insights are derived. Following this, the development of strategic options occurs, allowing for various pathways to be considered. The phase concludes with the creation of an enriched industry perspective and options portfolio, which likely provides a broader context for decision-making.

Phase 3, "Recommend & Implement Strategy," is where actionable recommendations are made. This phase includes evaluating the strategic options against the company's DNA, ensuring alignment with the organization's core identity. Finalizing strategy recommendations is the next step, leading to the establishment of a governance model to oversee implementation.

This structured approach emphasizes clarity and thoroughness in strategy development, making it a valuable resource for organizations aiming to navigate complex environments effectively. The clear delineation of phases and steps aids in ensuring that all critical aspects are addressed systematically.

This PPT slide presents a framework for reconfiguring the industry value chain, emphasizing the importance of distinguishing between core and non-core activities within an organization. It references Value Chain Analysis, a concept originally developed by Michael Porter, which systematically organizes and evaluates the activities that contribute to a company's value creation.

The slide highlights that many industries are experiencing a shift towards "horizontalization." This trend is driven by advancements in IT, globalization, and deregulation. Organizations are increasingly focusing on their core competencies while outsourcing non-core functions to suppliers and partners. This strategic pivot not only allows for the entry of third parties into the market, but also fosters new collaborative opportunities with both competitors and customers.

Additionally, the slide introduces the concept of Value Networks, which differ from traditional value chains by mapping out interrelationships among activities without adhering to a strict sequential order. This approach can provide a more nuanced understanding of how various components of the business interact and contribute to overall performance.

The slide concludes by mentioning common strategies derived from Value Chain analysis, such as forward or backward integration and outsourcing. These strategies can be pivotal for organizations looking to enhance efficiency and adaptability in a rapidly changing market environment. Overall, the content encourages executives to rethink their operational frameworks and consider innovative approaches to value creation.

This PPT slide titled "Strategy Chessboard – Examples" presents a visual representation of various industry leaders and their strategic positioning based on 2 key dimensions: analytical predictability and the ability to shape or adapt within their respective industries. The layout is structured as a chessboard, where companies are categorized according to their strategic approaches and the predictability of their industry environments.

On the vertical axis, the slide differentiates between companies that aim to shape the industry versus those that adapt within it. This distinction highlights the varying levels of ambition and strategic intent among the companies listed. For instance, Arcelor Mittal is positioned in the "M&A rollup" category, indicating a proactive approach to shaping the industry through mergers and acquisitions. In contrast, companies like IKEA and Wal-Mart focus on innovation and discounting strategies, respectively, which suggest a more adaptive stance within their markets.

The horizontal axis measures industry predictability, ranging from high to low. Companies like Ryanair and Apple are placed in areas that reflect their strong analytical capabilities and strategic foresight. Ryanair's low-cost travel model and Apple's diverse product ecosystem showcase their ability to navigate and thrive in predictable environments. Conversely, firms like ZARA and Google are noted for their dynamic strategies, indicating a more flexible approach in less predictable contexts.

The slide effectively illustrates how different strategic options can lead to varied outcomes, emphasizing the importance of aligning a company's DNA with its strategic choices. This framework serves as a valuable tool for executives seeking to understand how industry leaders navigate their unique challenges and opportunities.