12 April, 2012

McKinsey: 10 questions to test your strategy

 McKinsey uses 10 good questions to challenge a client's business strategies, and a short article on the McKinsey website explains them (along with useful links for further reading).  [My comments are in italics].
  1. Will your strategy beat the market? [What are you doing differently to the rest?]
  2. Does your strategy tap a true source of advantage? [Don't kid yourself.]
  3. Is your strategy granular about where to compete? [Who will value your market offer, and who won't?]
  4. Does your strategy put you ahead of trends? [Being "customer-led" often means you'll be too late.]
  5. Does your strategy rest on privileged insights? [Most data is noise; what "blinding flash of the obvious" have you spotted before anyone else?]
  6. Does your strategy embrace uncertainty? [Don't blithely assume it will all work, but equally avoid "paralysis by analysis".]
  7. Does your strategy balance commitment and flexibility? [Allow for evolution; a few well-timed big actions, some smaller exploratory moves, and some resources (money) held in reserve.]
  8. Is your strategy contaminated by bias? [Again, don't kid yourself, but on the other hand, passion and belief inevitably involve some form of bias.]
  9. Is there conviction to act on your strategy? [Does the team want to make it happen?]
  10. Have you translated your strategy into an action plan? [Strategy is worthless without action; commit people, time and money to make it happen.]
Thanks to Mark Robotham for the link.

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