Mckinsey-Style: Strategy Diagrams

McKinsey-style
Structure
Strategy
Skills Staff Style

Shared
values
Strategy
Systems
Diagrams
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2S-5S
Unit of measure
The people in the organization,

considered in terms of corporate
demographics, not individual
personalities
The processes and Staff

procedures through
which things get done The way managers
from day to day Systems Style collectively behave
with respect to use of
time, attention and
Strategy Skills symbolic actions
A coherent set of Capabilities possessed

actions aimed at by the organization as a
gaining a whole as distinct from Shared
Structure
sustainable the individuals. Some Values
advantage over companies perform Those ideas of what is right
competition extraordinary feats with and desirable (in corporate
ordinary people and/or individual behavior)
The organization chart and which are typical of the
accompanying baggage that organization and common to
show who reports to whom and most of its members
how tasks are both divided up
and integrated
* Footnote
Source: Sources
1
3Cs TRIANGLE
Unit of measure
Customer
Distributors
Clients Competitors
Suppliers
* Footnote
Source: Sources
2
3S-4S
Unit of measure The organization chart and
accompanying baggage that show
who reports to whom and how tasks
are both divided up and integrated
A coherent set of
actions aimed at
gaining a sustainable
Structure The people in the
advantage over
organization, considered in
competition
terms of corporate
Capabilities demographics, not
possessed by the individual personalities
organization as a Strategy
whole as distinct
from the individuals. The way managers
Skills Staff Style
Some companies collectively behave
perform Shared with respect to use
extraordinary feats values of time, attention
with ordinary people and symbolic
actions
Those ideas of what is right
and desirable (in corporate The processes and
and/or individual behavior) Systems procedures through
which are typical of the which things get done
organization and common to from day to day
* Footnote most of its members
Source: Sources
3
7S
Unit of measure
The way managers collectively

behave with respect to use of Capabilities possessed by the
time, attention and symbolic organization as a whole as
actions distinct from the individuals.
Some companies perform
Style extraordinary feats with ordinary
people
A coherent set of actions
aimed at gaining a
Strategy Skills
sustainable advantage over
competition Those ideas of what is right
Shared and desirable (in corporate
values and/or individual behavior)
The people in the which are typical of the
organization, considered in Staff Systems organization and common to
terms of corporate most of its members
demographics, not individual
The processes and
personalities
Structure procedures through which
things get done from day
The organization chart and to day
accompanying baggage that show
who reports to whom and how tasks
are both divided up and integrated
* Footnote
Source: Sources
4
BUSS PORTFOLIO
Unit of measure
High
Competitive position
Medium
Low
Low Medium High
Product/market attractiveness
* Footnote
Source: Sources
5
CHANGE BOARD
Unit of measure
Commitment Capability
Change
vision Individual Enabling
Conviction Courage
activity devices
Chief
executive
Leadership
groups
Down the
line
External
constituents
* Footnote
Source: Sources
6
MACS
Unit of measure
• Industry attractiveness
• Competitive position
• Restructuring/rationalization
opportunities
Value-creation potential in business unit

High Medium Low
Relative ability to extract value
“One of the pack” Natural owner
• Corporate Retain Retain and Retain and

center and give priority manage
skills give top for
priority code or
• Business liquidate
unit
linkages Probably Divest Divest
divest or
• Taxation/
liquidate
valuation
differences
* Footnote
Source: Sources
7
MANUFACTURING STRATEGY
Unit of measure
Business Strategy
Manufacturing Strategy
Configuration Research
Systems Focus
Organization Labor
Policy
Make
vs.
Buy
Process Product
Design Design
* Footnote
Source: Sources
8
PENTAGON
Unit of measure
2 5
Restructuring
framework
3 4
* Footnote
Source: Sources
9
PRICE BENEFIT
Unit of measure
Benefit Competitive
advantage
Competitive
disadvantage
Price
* Footnote
Source: Sources
10
SCP SHOCK
Unit of measure
INDUSTRY PRODUCERS
Changes in Changes in Changes in
External
shocks S Structure C Conduct P Performance
Feedback
* Footnote
Source: Sources
11
VALUE CREATION
Unit of measure
Improve core
Re deploy
business
assets
performance
Maximize
shareholder
value
Adopt sound Grow through

financing acquisition
approach and/or merger
Grow through
cultural
initiative
* Footnote
Source: Sources
12
TREE PRODUCTIVITY
Unit of measure
Selling margin
Contribution
Effectiveness Sales
Contribution
Available selling time Selling rate
Sales
Available selling time
Productivity
Contribution Utilization
Total selling costs Available selling time
Total sales time
Efficiency Support leverage

Available selling time Total sales time
Total selling costs Support costs
Support intensity
Support costs
Total selling costs
* Footnote
Source: Sources
13
STRAT MANAGE
Unit of measure
Stage 4
Stage 3
Stage 2
Stage 1
Forecast Externally Strategic

Budget based oriented manage-
planning planning planning ment
Meet Predict Think Create

budget and the future strategically the future
schedule
* Footnote Value system

Source: Sources
14
STRAT GAMEBOARD
Unit of measure
3.
Create and
pursue a unique
advantage
2. 4.
Resegment the Exploit unique
market to create advantage
a niche industrywide
Se e When
lec 1. m
tiv ga to
e w
Do more and Ne compete
better of the
W Ac
he same
re r te
t
os
st me pe
o he ga m
co
m bo m
e co
pe ar Sa to
te d w
Ho
* Footnote
Source: Sources
15
STRAT DIAG FREEDOM

Unit of measure
es
tur
En
fea
vir
on
ice
me
e rv
nta
t/s
l fo
uc
rce
od
Pr
s
Service SDFs Application economics
requirements
Cu
els
sto
nn
ha
me
nc
rus
tio
ag
ibu
e
tr
Dis
* Footnote
Source: Sources
16
SMILE CHART
Unit of measure
Appraise
performance Bottom
and prospects 1 up action
8 programs
Develop
strategy
2 Top down
Define and 3 7 action
appraise programs
skills
4 6
Redesign Assess
pivotal jobs change
5 readiness
Design the skill

building process
* Footnote
Source: Sources
17
2 ON 1
Unit of measure
Text
Text
Text
Text
* Footnote
Source: Sources
18
5 ON 6
Unit of measure
Text
* Footnote
Source: Sources
19
AGAINST
Unit of measure
Text
Text
Text
Text
Text
Text
* Footnote
Source: Sources
20
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Mckinsey-Style: Strategy Diagrams

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McKinsey-style

Skills Staff Style

The people in the organization,

The processes and Staff

A coherent set of Capabilities possessed

The way managers collectively

Low Medium High

Value-creation potential in business unit

• Corporate Retain Retain and Retain and

Adopt sound Grow through

Efficiency Support leverage

Forecast Externally Strategic

Meet Predict Think Create

* Footnote Value system

STRAT DIAG FREEDOM

Design the skill

Get the original powerpoint

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