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This is a collection of common Strategy and Management Consulting Frameworks. It contains 2 sections.
Strategy Frameworks -- includes SWOT, Stages of Growth, Hedgehog Concept, BCG Matrix, Customer Intimacy - Cost Leadership - Product Innovation, 7-S Concept
Change / People Frameworks -- includes Emotional-Political-Rational, Team Building, Ingredients of Change, Emotional Cycle of Change, Level of Commitment, Trust Formula.
2. 3
Legend
Five Phases of Growth
1 2 3 4 5
SizeofOrganization
Small
Large
Young Mature
Stages of Growth
Creativity
Direction
Delegation
Coordination
Collaboration
Autonomy
Leadership
Control
Red Tape
Stage
Growth Crisis
Framework: Stages of Growth
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3. 6
Key Points
Unexpected
Results
• To go from good to great requires a deep understanding of three intersecting circles
translated into a simple, crystalline concept (the Hedgehog concept)
- WHAT ARE YOU DEEPLY PASSIONATE ABOUT?
- WHAT DRIVES YOUR ECONOMIC ENGINE?
- WHAT CAN YOU BE THE BEST IN THE WORLD AT?
• The key is to understand what your organization can be the best in the world at, and
equally important what it cannot be the best at – not what it “wants” to be the best at
• The Hedgehog Concept is not a goal, strategy, or intention; it is an understanding
• If you cannot be the best in the world at your core business, then your core business
cannot form the basis of your Hedgehog Concept
• The “best in the world” understanding is a much more severe standard than a core
competence
• You might have a competence but not necessarily have the capacity to be truly the
best in the world at that competence
• Conversely, there may be activities at which you could become the best in the world,
but at which you have no current competence
• To get insight into the drivers of your economic engine, search for the one
denominator that has the single greatest impact
• Good-to-great companies set their goals and strategies based on understanding;
comparison companies set their goals and strategies based on bravado
• Getting the Hedgehog Concept is an iterative process
• The good-to-great companies are more like hedgehogs – simple, dowdy creatures
that know “one big thing” and stick to it
• The comparison companies are more like foxes – crafty, cunning creatures that
know many things yet lack consistency
• It took 4 years on average for the good-to-great companies to get a Hedgehog Concept
• You absolutely do not need to be in a great industry to produce sustained great
results: no matter how bad the industry, every good-to-great company figured out how to
produce truly superior economic returns
What can you
be the best in
the world at…
What drives
your economic
engine…
What are you
deeply passionate
about…
Framework: The Hedgehog Concept continued
This document is a partial preview. Full document download can be found on Flevy:
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4. 9
Operational
Excellence
Strategy
Framework: Customer Intimacy and Other Value Disciplines continued
Customer
Intimacy
Product
Innovation
• Provide customers with reliable
products or services at
competitive prices and deliver
with minimal difficulty or
inconvenience
Description
• Segment and target markets
precisely and tailor products
and services to address the
specific demands of each
target segment
• Offer customers innovative
products and services that
consistently enhance their use
or application of the product
• Optimize business processes
across functional and
organizational boundaries and
leverage enabling technologies
Requirement
• Combine detailed customer
knowledge with operational
flexibility to respond to
customer needs
• Pursue new solutions to
problems, and engineer
businesses and processes to
commercialize ideas quickly
• Dell
• Federal Express
Example
• Home Depot
• Nordstrom
• Apple
• Nike
Source: Treacy, M. and Wiersema, F., Customer Intimacy and Other Value Disciplines, Harvard Business Review
Each disciplines requires its own unique business model.
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5. 12
Both support and resistance can come from the same area - it is important
to recognize which
“..the benefits are enormous”
“..how will this affect our
relationships with
clients?”
“..I’ve been waiting for
this moment for years”
“..but that will affect
my pay!”
“..the benefits will be enormous”
“..de-layering of the
organization makes such good
sense ”
“..we don’t have the resource
to do this”
“..quality will suffer”
“..this could risk delivery”
“..the increases agility will really thrill
customers”
“..satisfaction indices will
soar”
Some above
the surface
...and some
below
PoliticalEmotional
Rational
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7. 18
The trust formula:
• What’s at stake for the
client
• Centered/even-keeled
• Perceived experience
• Repeated successes
• Prepared
• Sensitive to situation
TRUST =
INTIMACY x CREDIBILITY
RISK
• Rapport
• Humor
• Openness
• Approachability
• Facilitating style
• Non-verbal cues
• Active listening
• Appearance
• Behaviors
• Appropriate response to
testing questions
• Understanding/Insight
• Thought provoking
questions
T =
I * C
R
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8. 1
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