strategic context: the critical missing link in the strategy puzzle
DESCRIPTION
Market dynamics have been changing and traditional approaches are leaving many companies with market values that are stagnant and eroding. Historical approaches are necessary but no longer sufficient. Understanding your complete Strategic Context is now an imperative and missing in strategy toolsets. The work will enable you to see your business within a broader context, understand all strategic options available and determine which one are most likely to generate value.TRANSCRIPT
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Strategic Context
A critical missing link in the strategy puzzle
A Starcher Group LLC practice area
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Market Value
Source: Wikinvest, WolframAlpha
HP Growing horizontally
Market Value $B
CISCO Flatlined
Market Value $B
Blackberry
Market Value $B
Decline
Why do once excellent companies end up under-performing and see their market
valuation flatten and erode?
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No single smoking gun
• The answer can be found across the business system:
– Incomplete or missing understanding of the Strategic Context
– Company structures, systems and processes (“Company”) become misaligned with the strategic context and core
– The Culture, Capabilities and Assets (“Core”) evolve too slowly for the current environment and no longer align with the Strategic Context.
Why does market value go flat or decline?
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Strategic Context
• Context defines the external environment that is relevant to the organization
• Strategic context focuses on business model and strategic elements of the external environment
What is it?
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Strategic Context, Company and Core
The business core is the essence of
the company
The Company leverages the core to create
value within its context
The Strategic Context is the environment in
which the company operates
Alignment is what enables the company to operate at peak performance and grow market value
History, Ecosystem, Competition,Strategy Map, Trends, Customer Value Gaps,
Customers
Brand, Strategies, Products,Structure, Processes
Vision, Core Competencies, Culture, Behaviors,
Employees
Core
Company
Strategic Context
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Strategic Context, Company and Core
While Companies evolve through a lifecycle
time
And the core naturally changes at a relatively slow pace
The “Strategic Context” rate of change continues to accelerate
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Strategic Context, Company and Core
Over time alignment gaps develop and widen, leading to degraded
market performance
Shared Value Gap
Core
Company
StrategicContext
Business Model Gap
An additional gap exists between real and perceived Strategic Context.
This can be due to inside-out perspectives, industry vs. ecosystem focus, incomplete analysis, linear vs. systems thinking, lack of
strategy map, …
time
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What is happening to YOUR COMPANY?
What would you like to see happen to YOUR COMPANY?
Changes in Market Value
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Strategic Context
Ecosystem
Company
Industry
Competitor
Competitor
The relevant space has shifted from the industry to the ecosystem, requiring significant outside-in insights
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Strategic Context
Traditional Approach Starcher Group Approach
Define marketTrend Analysis
Political, Economical, Social, Technological, Legal, Environmental
Competitor AnalysisSWOT
Competitive forcesPorter 5 Forces
The bargaining power of buyersThreat of new entrantsPower of competitionCompetitor behaviorCompetitor strategy
Consumer needs
Define ecosystemTrend Analysis
Economic, Environmental, Geopolitical, Societal, Technological
Competitor AnalysisHistoryPorter 5 forcesSWOT, TOWS
Ecosystem AnalysisEcosystem definitionExperiencesValue Delivery SystemsValue Migration
Strategy MapStrategic SegmentsCustomer Value Gaps
Strategic Options
To change the trajectory of your company, using traditional market analysis approaches is necessary but no longer sufficient
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Client Projects
Client Gap Project
Fortune 100 company business unit
Business Model Gap
Traditional Competitive Analysis that evolved to understand the Digital Imaging ecosystem, business models, competitors, value migration, Strategies. The outcome was reverse engineering competitor master plan and impact on HP business. The insights were not visible to senior management prior to the engagement and led to significant changes in strategy.
Fortune 100 company business unit
Business Model Gap
Work with established team to create innovative business model in the Marketing Collateral space. Created a new to this world business model that was valued in excess of $1B
Fortune 1000 company business unit
Strategic Context
Develop growth strategy for Business Unit in the Print Finishing Industry. Developed strategic context (trends, ecosystem analysis, strategy map, strategy options). This led to developing an operating model, organization model and implementation plan that would enable the chosen strategies.
$1B private company
Strategic Context
Develop a global and local point of view on Macro Trends that would inform client’s long term technology roadmap.
$1B private company
Strategic Context
Worked with client in search of a new growth platform in an unrelated market to investigate Markets worth over $1T across 9 industries. For each industry, develop strategic context and enumeration of potential strategies. The work would lead to potential M&A actions.
The work delivers a complete set of strategic options and provides the “Why” so critical for decisions,
alignment and execution
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Bruce StarcherManaging Director
Starcher Group LLC
Office: 708 406 9460email: [email protected]
web: www.starchergroup.com