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Strategy Process Map

Contact: Ron Kermisch

March 2000
Copyright© 1998 Bain & Company, Inc.
Strategy Process Map
Agenda

• High Level Process Map

• Phase I - Assess the Business Environment

• Phase II - Develop and Select Alternative(s)

• Phase III - Define Strategy and Set Targets

• Phase IV - Communicate and Implement

Core Process Redesign Toolkit

BOS STRATEGYDEVEL 2
OPMENT
Strategy Process Map Phases I - IV
High Level Process Map
Assess the
Develop & Select Define Strategy Communicate &
Business
Alternative (s) & Set Targets Implement
Environment
Develop Factbase
Monitor

Determine the Set

Company’s Identify Targets
Strategic and
Prioritized Manage
Position
Implications/ Develop Portfolio
Identify Key High Evaluate & Plan &
Issues Strategic Level Select Communicate
Alternatives Business Alternative
• hypothesis Case Develop Strategy
Construct of business Key
“Picture” of the definitions/ Strategy
Future boundaries Elements
Develop &
Implement
Action Plans
& Budgets

Agree on
Agree on Agree on targets, Establish
key issues/
opportunitie
recommended portfolio Monitoring
alternatives and System
s
? strategy?

Address
Perform Pre-Planning Necessary
- Calendar Organizational
- Identify investment units Changes
- Major themes
- Strategy development plan in
light of available resources

Core Process Redesign Toolkit

BOS STRATEGYDEVEL 3
OPMENT
 Strategy Process Map Phase I
Assess the Business Environment

Competitor/ Develop Factbase

Existing
Customer
Strategies
Information I. Gather Market Trend
Information
• Market assessment Assess Company’s
• size Strategic Position
• growth rates Identify Company’s
Corporate •
• attractive Customer capabilities and gaps
(Technology, Suggested
M&A, segments • Competitors based on current Revisions to
Regulatory • profitability • Costs position Current
Trends) • Target segment needs • Capabilities Vision and
• Value chain and profit Strategic
pool analysis Imperatives
• Competitor trends
• Channel shifts
Market • Technology trends Determine
Segmentation Overall
• Supply chain and prioritized Prioritized
supplier trends
Implications/ Implication/
• M&A activity Issues
Issues/ Are the right
II. Collect Company’s Opportunities issues/
Financial Performance opportunities
Information identified and
Regional III. Gather Macro Trend do we have a
Develop shared Hypothesis of
Input Information assumption
• Economic hypothesis of Business
base?
Business Definition/
• Demographics Definition/ Boundaries
• Regulatory Linkages/
Boundaries

Discuss Potential Construct “Picture of

Develop a shared
Discontinuities the Future”
assumption base Picture of the
-future scenarios
Future

Core Process Redesign Toolkit

BOS STRATEGYDEVEL 4
OPMENT
 Strategy Process Map Phase II
Develop and Select Alternative(s)
Current
Visions and
Missions Review/
assign
ownership to
base
Financial business
Expectations and to key
issues/
initiatives

Existing
Objectives
and
Strategies
Draft
Financials
Assess
Segmentation Internal
Scheme Options
to Fill
Identify Core For Each
Identify Key Gaps
Capabilities Does an Are Alternative, Weight & Evaluate
Strategic attractive Yes remaining Yes Do we Yes Selected
Leveraged & Develop or Prioritize Strategic
Overall Alternatives option alternatives agree on Alternative
Capability exist to sufficient in Modify Selection Alternative alternative?
Prioritized for each (s)
Implications/ Gaps for each fill gap? number? Business Criteria and select
issue
Issues Alternative Assess Cases
External No No No
Options Business
to Fill Document
Hypothesis of Cases for
and Drop
Business Gaps Alternatives
Definition/ Not
From Phase I

Boundaries Selected

Picture of the
Future

Current
Capabilities
Assessment
Base Business Case Development

Core Process Redesign Toolkit

BOS STRATEGYDEVEL 5
OPMENT
Strategy Process Map Phase III
Define Strategy and Set Targets

Vision Mission
& Objectives
(including
financial
targets)
Manage
Portfolio and
Set Targets
for Strategy
Businesses Documents
(including
Assign Owners financials)
to
Recommended
Initiatives

Contingency
Existing Plan
Strategies

Develop
Contingency
Develop Other Key Strategy Plan
Elements, Including:
• Capability Creation Owners
Assigned to
• Integrating Themes
Initiatives
• Functional Requirements
• Draft Financials

Selected
Alternative (s)

Core Process Redesign Toolkit

BOS STRATEGYDEVEL 6
OPMENT
Strategy Process Map Phase IV
Communicate and Implement

Prepare
Communicate Strategy,
Communications Action Plans & Targets Communications
Plan

Owners Assigned
to Initiatives
Develop Detailed Develop Detailed Detailed Action
Action Plans Budgets Plans & Budgets

Establish Monitoring
Metrics
System and Metrics
Strategy
(Including
Financials)

Address Necessary Proposed

Organizational Charts
Organization
and Migration Plan
Changes

Core Process Redesign Toolkit

BOS STRATEGYDEVEL 7
OPMENT