FORCES AT WORK

Unit of measure

New

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entrant

Suppliers Industry competitors Buyers

Printed
Substitutes

* Footnote
Source: Source 1
2S-5S
Unit of measure The people in the
organization, considered
in terms of corporate
demographics, not
The process individual personalities The way
and procedures managers

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through which collectively
things get done Staff behave with
A coherent set from day to day respect to use
of actions Systems Style of time,
aimed at attention, and
gaining a Strategy Skills symbolic
sustainable actions
advantage over Capabilities

Printed
Shared
competition possessed by the Structure
Values
organization as a
whole as distinct
from the The organization chart Those ideas of what is
individuals. Some and accompanying right and desirable (in
companies perform baggage that show corporate and/or
extraordinary feats who reports to whom individual behavior) which
with ordinary and how tasks are both are typical of the
people divided up and organization and common
integrated to most of its members
* Footnote
Source: Source 2
3Cs TRIANGLE
Unit of measure

Customer

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Distributors

Printed
Clients Competitors

Suppliers

* Footnote
Source: Source 3
3S-4S
Unit of measure
The organization chart
and accompanying
baggage that show who
reports to whom and how
tasks are both divided up
A coherent set of

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and integrated
actions aimed at
gaining a sustainable The people in the
advantage over organization considered
Structure
competition in terms of corporate
Capabilities possessed demographics, not
by the organization as individual personalities
a whole as distinct from Strategy
the individuals. Some

Printed
Skills Staff Style
companies perform
extraordinary feats with Shared
values
ordinary people The way managers collectively
behave with respect to use of
Those ideas of what is right time, attention and symbolic
Systems
and desirable (in corporate actions
and/or individual behavior)
which are typical of the The processes and procedures
organization and common through which things get done
to most of its members from day-to-day
* Footnote
Source: Source 4
7S
Unit of measure
The way managers
collectively behave with Capabilities possessed by the
respect to use of time, organization as a whole as
attention and symbolic distinct from the individuals.
actions Some companies perform

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A coherent set of extraordinary feats with
actions aimed at Style ordinary people
gaining a sustainable
advantage over Those ideas of what is right
Strategy Skills
competition and desirable (in corporate
Shared and/or individual behavior)
values which are typical of the
The people in the

Printed
organization and common
organization, Staff Systems to most of its members
considered in terms
of corporate The processes and procedures
demographics, not Structure through which things get done
individual from day-to-day
personalities The organization chart and
accompanying baggage that
show who reports to whom
and how tasks are both
* Footnote divided up and integrated
Source: Source 5
BUSS PORTFOLIO
Unit of measure

High

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Competitive position

Medium

Printed
Low

Low Medium High

Product/market attractiveness
* Footnote
Source: Source 6
CHANGE BOARD
Unit of measure

Commitment Capability
Change

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vision Individual Enabling
Conviction Courage
activity devices

Chief
Executive

Leadership
groups

Printed
Down the
line

External
constitution

* Footnote
Source: Source 7
DELTA P
Unit of measure
• Accurate measurement
of action and results
• Clear accountabilities
• Early wins
• Flow of 2-way communications
• People’s understanding, belief,
and contribution to act on
vision and action plans

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• Visible demonstration • Implementation or
of new vision and near implementation
values by client of required structure
Performance
leadership Communications and systems
Measurement

Vision and Organizational

Leadership
P Infrastructure

Printed
Delta
Problem
People
• Action plans sufficient Solving • Client managers
Development
to achieve goals Process (particularly middle
• Agreement on management) have
objectives by line skill to lead program
management implementation
• Management of high- • Change in actual
involvement process behavior
* Footnote
Source: Source 8
MACS
Unit of measure

• Industry attractiveness
• Competitive position
• Restructuring/rationalization opportunities

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Value-creation potential in business unit

High Medium Low

Relative ability to extract value

• Corporate Retain and Retain and Retain and

Natural
center skills give top give priority manage for
owner
• Business unit priority code or

Printed
linkages liquidate
• Taxation/valu
ation Probably Divest Divest or
“One of the

differences divest liquidate

pack”

* Footnote
Source: Source 9
PRICE BENEFIT
Unit of measure

Benefit

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Competitive
advantage

Printed
Competitive
disadvantage

Price

* Footnote
Source: Source 10
SMILE CHART
Unit of measure

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Appraise performance Bottom up
and prospects action programs
1 8
Develop
strategy 2
3 7 Top down
action programs

Printed
4 6
Redesign Assess change
pivotal jobs 5 readiness
Design the skill
building process

* Footnote
Source: Source 11
VALUE SOURCES
Unit of measure

Corporate Industry restructure

center skills Internal controller

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Shared resources
Linkages
between Transfer of capability
business units Vertical integration
Client’s relative
ability to extract
value
Differences in tax position

Printed
Real
Existence of non-cases objectives
Financial
ownership fit Inefficiencies in financial markets
Perceived
Difference in valuation technique

* Footnote
Source: Source 12
STRAT GAMEBOARD
Unit of measure

3.
Create and

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pursue a unique
2. advantage 4.
Resegment the Exploit unique
market to create a advantage
niche 1. industrywide
When to
Do more and
compete
better of the

Printed
same

* Footnote
Source: Source 13
STRAT MANAGE
Unit of measure

Stage 4

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Stage 3

Stage 2
Stage 1

Forecast Externally Strategic

Printed
Budget based orientated manage-
planning planning planning ment

Meet Predict the Think Create the

budget and future strategically future
schedule

Value system

* Footnote
Source: Source 14
TREE PRODUCTIVITY
Unit of measure
Selling margin
Contribution
Effectiveness Sales
Contribution

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Selling rate
Available selling time
Sales
Available selling time

Productivity Utilization
Contribution Available selling time

Printed
Total selling costs Total sales time

Effectiveness Support leverage

Contribution Total sales time
Available selling time Support costs

Support intensity
Support costs
Total selling costs
* Footnote
Source: Source 15
VALUE CREATION
Unit of measure

Improve core
Redeploy
business

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assets
performance

Maximize
shareholder
value

Printed
Adopt sound Grow through
financing acquisition
approach and/or merger
Grow
through
cultural
initiative

* Footnote
Source: Source 16