Check out our FREE Resources page – Download complimentary business frameworks, PowerPoint templates, whitepapers, and more.

Flevy Management Insights Q&A
How is the gig economy reshaping the application of the Boston Matrix for workforce and project management?

This article provides a detailed response to: How is the gig economy reshaping the application of the Boston Matrix for workforce and project management? For a comprehensive understanding of Boston Matrix, we also include relevant case studies for further reading and links to Boston Matrix best practice resources.

TLDR The gig economy is reshaping the Boston Matrix application in workforce and project management by necessitating more agile Strategic Planning and Resource Allocation to accommodate the dynamic nature of gig work.

Reading time: 4 minutes

The gig economy, characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs, is significantly reshaping the application of the Boston Matrix in workforce and project management. The Boston Matrix, also known as the Growth-Share Matrix, is a tool used by organizations to analyze their business units or product lines. It helps in allocating resources and is based on the categorization of products or services into four quadrants: Stars, Cash Cows, Question Marks, and Dogs. The gig economy introduces a dynamic workforce and project-based approach that necessitates a reevaluation of how these quadrants are applied, especially in terms of strategic planning and resource allocation.

Adapting the Boston Matrix for the Gig Economy

In the context of the gig economy, the traditional application of the Boston Matrix is evolving. The transient nature of gig work, with its emphasis on flexibility and scalability, requires organizations to view their workforce and projects through a lens of agility and adaptability. For instance, a project or team composed largely of gig workers might be considered a "Question Mark" due to its potential for high growth but uncertain return on investment. Organizations must therefore adapt their strategic planning to account for the fluidity of gig work, focusing on innovation and the rapid scaling of successful projects.

Moreover, the gig economy encourages organizations to reevaluate their definition of "Cash Cows." In a traditional sense, these are stable, reliable sources of income. However, in a gig economy, a project that efficiently leverages freelance talent for consistent quality output at a lower cost could also be classified as a Cash Cow, demonstrating the need for a more nuanced approach to categorizing projects and workforce strategies.

Finally, the gig economy impacts how "Dogs" are identified and managed within the matrix. Projects or teams that do not perform well, despite the flexibility and cost efficiency of gig workers, require swift decision-making to either pivot, innovate, or disband. This necessitates a more dynamic and responsive approach to performance management and resource allocation, underscoring the importance of agility in the gig economy.

Learn more about Strategic Planning Performance Management Boston Matrix Return on Investment

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Strategic Planning and Resource Allocation

Strategic Planning in the gig economy, influenced by the Boston Matrix, demands a more flexible and responsive approach. Organizations must continuously monitor the performance and potential of their gig-based projects and teams, reallocating resources quickly to capitalize on emerging opportunities or to mitigate risks. This might involve shifting gig workers from one project to another, scaling up successful initiatives rapidly, or cutting losses on underperforming ventures with greater speed than in traditional settings.

Resource Allocation becomes particularly challenging in the gig economy, as the traditional metrics and methods used to evaluate business units or products may not directly apply to projects staffed with gig workers. Organizations must develop new criteria for investment and divestment decisions, such as the speed of project execution, the innovation level, and the flexibility of the workforce. This could lead to a more dynamic allocation of capital and human resources, emphasizing projects that can quickly adapt to market changes and customer demands.

The gig economy also necessitates a rethinking of leadership and management practices within the framework of the Boston Matrix. Leaders must be adept at managing a fluid and often remote workforce, fostering a culture of innovation and agility. This includes the ability to quickly assemble and disband teams based on project needs and the strategic objectives of the organization, highlighting the importance of digital transformation and operational excellence in the gig economy.

Learn more about Digital Transformation Operational Excellence Human Resources Remote Work Leadership

Real-World Examples and Statistics

According to a report by McKinsey Global Institute, approximately 20% to 30% of the working-age population in the United States and the European Union engage in some form of independent work. This significant portion of the workforce participating in the gig economy underscores the need for organizations to adapt their strategic planning and resource allocation frameworks, such as the Boston Matrix, to remain competitive.

Companies like Uber and Airbnb are prime examples of organizations that have leveraged the gig economy to their advantage, creating business models that rely heavily on flexible, project-based workforces. These companies have demonstrated the ability to scale rapidly by effectively managing a mix of "Question Marks" and "Stars," proving the value of adapting the Boston Matrix to the dynamics of the gig economy.

In conclusion, the gig economy is reshaping the application of the Boston Matrix in workforce and project management. Organizations must adapt their strategic planning and resource allocation practices to thrive in this new environment, emphasizing flexibility, innovation, and agility. By reevaluating how projects and teams are categorized and managed within the matrix, organizations can leverage the gig economy to foster growth and maintain competitive advantage.

Learn more about Competitive Advantage Project Management

Best Practices in Boston Matrix

Here are best practices relevant to Boston Matrix from the Flevy Marketplace. View all our Boston Matrix materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: Boston Matrix

Boston Matrix Case Studies

For a practical understanding of Boston Matrix, take a look at these case studies.

BCG Matrix Analysis for Semiconductor Firm

Scenario: A semiconductor company operating globally is facing challenges in allocating resources efficiently across its diverse product portfolio.

Read Full Case Study

E-commerce Portfolio Rationalization for Online Retailer

Scenario: The organization in question operates within the e-commerce sector, managing a diverse portfolio of products across multiple categories.

Read Full Case Study

Strategic Portfolio Analysis for Retail Chain in Competitive Sector

Scenario: The organization is a retail chain operating in a highly competitive consumer market, with a diverse portfolio of products ranging from high-turnover items to niche, specialty goods.

Read Full Case Study

BCG Matrix Evaluation for Agritech Firm in Competitive Landscape

Scenario: An Agritech firm operating within a highly competitive sector is seeking to evaluate its product portfolio to better allocate resources and drive focused growth.

Read Full Case Study

BCG Matrix Analysis for Specialty Chemicals Manufacturer

Scenario: The organization in focus operates within the specialty chemicals sector, facing a pivotal moment in its strategic planning.

Read Full Case Study

Luxury Brand Portfolio Optimization in the High-End Fashion Sector

Scenario: A luxury fashion house is grappling with portfolio optimization amidst shifting consumer trends and market volatility.

Read Full Case Study

Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

Can the Boston Matrix be effectively applied in non-profit organizations, and if so, how?
The Boston Matrix can be adapted for non-profit organizations to evaluate programs based on potential impact and effectiveness, aiding in Strategic Planning, Resource Allocation, and Impact Maximization. [Read full explanation]
How does the Growth-Share Matrix align with agile methodologies in product development and management?
The Growth-Share Matrix and Agile methodologies complement each other in Strategic Planning, Resource Allocation, Market Responsiveness, Innovation, Performance Management, and Operational Excellence, enhancing decision-making in product development and management. [Read full explanation]
How can the Growth-Share Matrix be adapted for digital businesses, especially those operating on platform models?
Adapting the Growth-Share Matrix for digital platforms involves incorporating Network Effects, Data Monetization Potential, and Scalability, with examples like Spotify and Netflix illustrating the transition through quadrants via data utilization and customer-centric innovation. [Read full explanation]
What role does artificial intelligence play in optimizing the Growth-Share Matrix for predictive analytics and market trend forecasting?
AI transforms the Growth-Share Matrix into a dynamic tool for Strategic Planning, enabling precise market trend forecasting and optimized decision-making for sustainable growth. [Read full explanation]
Can the Growth-Share Matrix be integrated with customer lifetime value (CLV) models to enhance strategic decision-making?
Integrating the Growth-Share Matrix with Customer Lifetime Value models provides a comprehensive, customer-centric approach to Strategic Planning, optimizing resource allocation and long-term profitability. [Read full explanation]
How can the BCG Growth-Share Matrix be used to evaluate and prioritize investments in emerging technologies?
The BCG Growth-Share Matrix is a Strategic Planning tool that helps companies prioritize investments in emerging technologies by classifying them into Stars, Question Marks, Cash Cows, and Dogs based on market growth and share. [Read full explanation]

Source: Executive Q&A: Boston Matrix Questions, Flevy Management Insights, 2024

Flevy is the world's largest knowledge base of best practices.

Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.

Read Customer Testimonials

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more.