Key Strategy Models by Operational Excellence Consulting

© Operational Excellence Consulting. All rights reserved.
This presentation is a collection of PowerPoint diagrams and
templates used to convey 32 different key corporate and business
strategy frameworks and models.
Key Strategy Models
Diagrams and Templates of Key Strategy
Frameworks & Models

© Operational Excellence Consulting. All rights reserved. 2
Contents
NOTE: This is a PARTIAL PREVIEW. To download
the complete presentation, please visit:
http://www.oeconsulting.com.sg
Core Strategy Models
 SWOT Analysis
 Porter’s Five Forces
 PEST Analysis
Competitive Advantage
 Ohmae’s 3C Model
 The Value Net Model
 McKinsey’s Three Horizons of Growth
Strategic Options
 Porter’s Generic Strategies
 Blue Ocean Strategy
 Value-based Management
Organization Design
 Business Model Canvas
 Customer Journey Mapping
 The McKinsey 7S Framework
 Greiner’s Growth Model
 Harvard Strategic HRM Model
Strategic Prioritization
 The BCG Matrix
 Porter’s Value Chain
 MABA Analysis
Strategy Execution
 Hoshin Kanri Strategy Deployment Model
 The Balanced Scorecard
Sourcing & Purchasing Strategy
 Kraljic’s Purchasing Model
Marketing Strategy
 4 Ps Marketing Mix
 Ansoff’s Growth Matrix
 The Branding Pentagram
Manufacturing & Operations Strategy
 Lean Management Model (TPS)
 Business Process Reengineering (BPR)
 Value Stream Mapping
 The RATER Model
Quality Strategy
 Baldrige Excellence Framework
 EFQM Excellence Model
 Deming Prize Framework
 Six Sigma
 The Xerox Benchmarking Model

Core Strategy Models
1

SWOT analysis is a structured planning method used in business to
evaluate the strengths, weaknesses, opportunities and threats
Harmful
to achieving the objective
Helpful
to achieving the objective
External
(attributesoftheenvironment)
Internal
(attributesoftheorganization)
Strengths
Analysis of the
organic business
Weaknesses
Analysis of
competitors
Opportunities Threats
Analysis of markets
and trends
Analysis of the business
environment
SWOT Analysis

Porter’s competitive analysis identifies five fundamental competitive
forces that determine the relative attractiveness of an industry
Bargaining
Power of
Suppliers
Bargaining
Power of
Customers
Threat
of New
Entrants
Rivalry
Among
existing
competitors
Threat
of
Substitutes
Threat of New Entry:
- Time and cost of entry
- Specialist knowledge
- Economies of scale
- Cost advantages
- Technology protection
- Barriers to entry
Competitive Rivalry:
- Number of competitors
- Quality differences
- Other differences
- Switching costs
- Customer loyalty
- Costs of leaving market
Supplier Power:
- Number of suppliers
- Size of suppliers
- Uniqueness of service
- Your ability to substitute
- Cost of changing
Threat of Substitution:
- Substitute performance
- Cost of change
Customer Power:
- Number of customers
- Size of each other
- Differences between
competitors
- Price sensitivity
- Ability to substitute
- Cost of changing
Source: Michael Porter
Porter’s Five Forces

Competitive Advantage
2

Ohmae’s 3C Strategy Triangle forms the basis of all strategies and
defines the three key factors for competitive advantage
Ohmae’s 3C Model
Source: Kenichi Ohmae
 Selectivity and
sequencing
 Make or buy
 Cost effectiveness
 Segmenting by
objectives
 Segmenting by
customer
 Re-segmenting
 Changes in customer
mix
 Power of image
 Capitalizing on profit- and
cost structure differences
 Using tangible and
intangible resources
Customer
Competitor
Corporation

McKinsey’s Three Horizons of Growth model is a useful tool to
distinguish between the embryonic, emergent and mature phases of a
business’s life cycle
McKinsey’s Three Horizons of Growth Model
Source: McKinsey
Time (Years)
Profit
Horizon 1
Extend and defend
core business
Horizon 2
Build emerging
businesses
Horizon 3
Create viable
options

Strategic Options
3

Porter's generic strategies are ways of gaining competitive
advantage
Porter’s Generic Strategies
DifferentiationCost
NarrowBroad
Cost Leadership Differentiation
Cost Focus Differentiation Focus
Source of Competitive Advantage
Scope

Value Innovation is the cornerstone of Blue Ocean Strategy – placing
equal emphasis on value and innovation
Blue Ocean Strategy - The Four Actions Framework
Eliminate
Reduce
Raise
Create
COST
VALUE
Value
Innovation
Reduce
cost
Increase
customer
value
Source: C. Kim, R. Mauborgne

Organization Design
4

The Business Model Canvas is a visual tool for generating new
business models and ideas for and new ways of doing business
Business Model Canvas
Source: www.businessmodelgeneration.com
Customers
Customer
Relationships
Key
Activities
Key
Partners
Costs
Key
Resources Channels Revenue
Value
Proposition

Customer
Actions
Activity Phase
Touchpoints
Thinking
Feeling
Backend
Processes
Look at café
surroundings
Entrance / Posters
Am I entering the
right place?
Walk around the
cafe
Café space
Can I find seats?
Queue at the
counter to be served
Counter / Price
display
How much does it
costs?
Payment process
Seated at the table
Seat
Ah… 
Clearing the tables
Wait at the counter
Counter
How long do I have
to wait?
Brew the coffee
+
-
Enter Starbucks Find Seat Buy Coffee Wait for Coffee Drink Coffee
Customer Journey Mapping is a method of documenting and
visualizing the experiences the customers have with your
organization with the intention of improving these interactions
Customer Journey Mapping – An Example

The McKinsey 7-S framework involves seven interdependent factors
which are categorized as either “hard” or “soft” elements
Source: McKinsey
McKinsey 7-S Framework
Structure
SystemsStyle
Staff
Skills Strategy
Shared
Values
Soft Elements
Hard Elements

Greiner’s growth model describes the phases that organizations pass
through as they grow, regardless of the type of organization
Source: Larry Greiner
Greiner’s Growth Model
Time
Phase 1
Growth
through
creativity
OrganizationSize
Phase 6
Growth
through
alliances
Phase 5
Growth
through
collaboration
Phase 4
Growth
through co-
ordination
Phase 3
Growth
through
delegation
Phase 2
Growth
through
direction

Strategic Prioritization
5

The BCG Matrix is a strategic tool to identify the profit and growth
potential of each business unit as a company
The BCG Matrix
?Analyze
Divest Milk
Market Share
MarketGrowth
High
HighLow
Low
Invest
Source: BCG

Porter’s Value Chain enables a firm to gain insight into how to
maximize value creation while minimizing costs
Porter’s Value Chain
SUPPORTACTIVITIESPRIMARYACTIVITIES
Firm Infrastructure
Procurement
Human Resource Management
Technology Development
Inbound
Logistics
Operations
Outbound
Logistics
Marketing
& Sales
Service

Strategy Execution
6

Hoshin Kanri Strategy Deployment Process focuses and aligns the
organization to the core objectives of the business
Source: Yoji Akao
Hoshin Kanri
Senior
Management
Implementation
Teams
Middle
Management
 Vision
 Objectives
 Strategy
 Resources
 Action
 Schedule
Measures
Hoshin
Plan

The Balanced Scorecard focuses the entire organization on financial
and non-financial outcomes
FINANCIAL
BUSINESS PROCESSES
Vision
and
Strategy
To succeed financially, how
should we appear to our
shareholders?
LEARNING & GROWTH
CUSTOMERS
To achieve our vision, how will
we sustain our ability to change
and improve?
To achieve our vision, how
should we appear to our
customers?
To satisfy our shareholders and
customers, what business
processes must we excel at?
Source: Kaplan & Norton
The Balanced Scorecard

Sourcing & Purchasing Strategy
7

Kraljic’s purchasing model is used to determine an adequate purchasing
strategy that optimizes the trade-off between costs and risks
Kraljic’s Purchasing Model
Source: P. Kraljic, Harvard Business Review, 1983
Strategic itemsLeverage items
Non-critical items Bottleneck items
Supply Risk
FinancialImpact
HighLow
LowHigh

Marketing Strategy
8

The 4 Ps (or marketing mix) is a description of the strategic position
of a product in the marketplace
4 Ps of Marketing
Source: Kotler, P. and Keller, K.L.
Do you actually
produce what your
customers want?
How much are your
customers willing to
pay?
Product
Price
Are your products
available in the right
quantities, in the right
place, at the right
time?
Place
How can you best
inform/educate groups
of customers about
your organization and
its products
Promotion
Marketing
Mix

The Ansoff Growth Matrix offers a logical way of determining the scope
and direction of a firm’s strategic development in the marketplace
Ansoff’s Growth Matrix
Source: Ansoff
Product
Development
Market
Penetration
Market
Development
Diversification
Product
Market
NewExisting
NewExisting

Manufacturing & Operations Strategy
9

Lean management framework provides a holistic approach to
improving speed and quality
Source: Adapted from Toyota Production System
Lean Management Model (a.k.a. Toyota Production System)
Stability
Heijunka Standardized Work Kaizen
Just-In-Time
• Continuous flow
• Takt time
• Pull system
• Flexible workforce
Jidoka
• Separate man &
machine work
• Abnormality
Identification
• Poka yoke
Goals:
highest quality,
lowest cost, shortest lead times
Involvement
Stability
Standardization
Just-In-Time
Jidoka
Involvement
1
2
3
4
5
1
2
3 4
5

• Creates an end-to-end view of the system
• Demonstrates interaction between material/work and information flow
• Provides a common visual language for understanding a complex system
Supplier
Management
Control
Customer
Work & Information Flow
Information flow
Value stream mapping provides a holistic view of the end-to-end
business process and highlights opportunities for improvement
Value Stream Map

The RATER model can be used to perform a gap analysis of an
organization’s service quality performance
Source: “SERVQUAL” by Valarie A. Zeithaml, A. Parasuraman, and Leonard L. Berry
Responsiveness
Empathy Tangibles
Assurance
Reliability
The RATER Model

Quality Strategy
10

The Baldrige framework takes a holistic, systems approach in viewing an
organization’s performance management system across seven areas
Baldrige Performance Excellence Model
Leadership
Customers
Strategy
Operations
Workforce
Integration RESULTS
Measurement, Analysis & Knowledge Management
Organizational Profile

Six Sigma DMAIC is a data-driven improvement cycle used for
improving, optimizing and stabilizing business processes
Six Sigma
DMAIC
Roadmap
Improve
Measure
Analyze
Define
Control
Define the problem
or opportunity
Measure the current
performance and
capability
Analyse to identify
root causes
Improve by
implementing potential
solutions
Control by
standardizing solution
and monitoring
performance

1. IDENTIFY WHAT IS TO BE BENCHMARKED
2. IDENTIFY COMPARATIVE COMPANIES
3. DETERMINE DATA COLLECTION METHOD AND COLLECT DATA
4. DETERMINE CURRENT PERFORMANCE “GAP”
5. PROJECT FUTURE PEROFMANCE LEVELS
6. COMMUNICATE BENCHMARK FINDINGS AND GAIN ACCEPTANCE
7. ESTABLISH FUNCTIONAL GOALS
8. DEVELOP ACTION PLANS
9. IMPLEMENT SPECIFIC ACTIONS AND MONITOR PROGRESS
10. RECALIBRATE BENCHMARKS
 LEADERSHIP POSITION ATTAINED
 PRACTICES FULLY INTEGRATED INTO PROCESSES
Phase 1:
PLANNING
Phase 2:
ANALYSIS
Phase 3:
INTEGRATION
Phase 4:
ACTION
MATURITY
The Xerox Benchmarking Model helps to identify best practices which
can be adapted to improve business competitiveness
Source: Robert C. Camp
Xerox Benchmarking Model

About Operational Excellence
Consulting

About Operational Excellence
Consulting
• Operational Excellence Consulting is a management
training and consulting firm that assists organizations in
improving business performance and effectiveness.
• The firm’s mission is to create business value for
organizations through innovative operational excellence
management training and consulting solutions.
• OEC takes a unique “beyond the tools” approach to enable
clients develop internal capabilities and cultural
transformation to achieve sustainable world-class excellence
and competitive advantage. For more information, please visit
www.oeconsulting.com.sg

To download this presentation,
please visit us at:
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Key Strategy Models by Operational Excellence Consulting

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