1 Analisi SWOT Microseminario ASIO
2 Introduzione Obiettivi Utilizzare questo strumento come sostegno al raggiungimento dei propri obiettivi Permettere analisi quantitative e qualitative Analisi SWOT Microseminario ASIO 2
3 Introduzione Contenuti Cos è l analisi SWOT Quando utilizzare un analisi SWOT deciderlo attraverso l analisi SWOT L analisi i SWOT strumento t per una valutazione quantitativa e qualitativa Esercitazioni i i pratiche Analisi SWOT Microseminario ASIO 3
4 Cos è l analisi SWOT Il metodo della SWOT analysis serve a cambiare gli atteggiamenti mentali di fronte ai problemi. Si basa su una matrice divisa i in quattro campi, dedicati rispettivamente ai punti di forza (strenghts) e di debolezza (weaknesses), alle opportunità (opportunities) e alle minacce (trhreats) Analisi SWOT Microseminario ASIO 4
5 Cos è l analisi SWOT L'analisi SWOT è una delle metodologie attualmente più diffuse per la valutazione di progetti e fenomeni. Si tratta tt di un procedimento di tipo logico, mutuato dall'economia aziendale, che consente di rendere sistematiche e fruibili le informazioni raccolte circa un tema specifico e fornisce informazioni fondamentali per la definizione di politiche e linee di intervento. Attraverso l'analisi SWOT è possibile evidenziare i punti di forza e di debolezza al fine di far emergere quelli che vengono ritenuti capaci di favorire, ovvero ostacolare o ritardare, il perseguimento di determinati obiettivi. Più specificamente nell'analisi li i SWOT si distinguono fattori endogeni ed esogeni. La terminologia consueta distingue i fattori endogeni tra punti di forza e punti di debolezza e quelli esogeni tra opportunità e rischi. Tra i primi si considerano tutte quelle variabili che fanno parte integrante del sistema stesso, sulle quali è possibile intervenire per perseguire obiettivi prefissati. Tra i secondi, invece, si trovano variabili esterne al sistema che però possono condizionarlo sia positivamente che negativamente Analisi SWOT Microseminario ASIO 5
6 Cos è l analisi SWOT La matrice si usa da soli o in gruppo, e si applica a qualsiasi soggetto: l'azienda, il prodotto, un'iniziativa, un progetto. L'analisi va fatta prendendo in considerazione sia l'interno sia l'esterno dell'azienda, del prodotto, del progetto. I punti di forza interni i di un prodotto, per esempio, sono i materiali e la tecnologia impiegati, quelli esterni il rapporto vincente con la concorrenza. anche opportunità e minacce sono da cercare all'interno (organizzazione, problemi sindacali) e all'esterno (impatto ambientale, recessione) Analisi SWOT Microseminario ASIO 6
7 Cos è l analisi SWOT In genere si tende ad avere un solo punto di vista. Se è troppo pessimistico si stroncano le idee nuove e l'intraprendenza. Se è troppo ottimistico si rischia di avventurarsi in acque perigliose senza avere le attrezzature adatte. Con la SWOT analysis invece ci si costringe ad analizzare il problema da quattro punti di vista diversi e contrastanti. La SWOT analysis è utile per prendere decisioni su quali sono i punti di forza su cui puntare, o i punti deboli su cui intervenire, e su quali sono le minacce che possono essere trasformate in opportunità Analisi SWOT Microseminario ASIO 7
8 Cos è l analisi SWOT La matrice è stata proposta da H. Weihrich nel 1982, fra i modelli e strumenti per la pianificazione strategica. Management Autori: Weihrich, Heinz; Koontz, Harold ISBN: Analisi SWOT Microseminario ASIO 8
9 Cos è l analisi SWOT Ecco alcuni esempi in cui la tecnica dello SWOT può essere usata per valutare: un'azienda (la relativa posizione nel mercato, la validità commerciale, ecc) un metodo di distribuzione di vendite un prodotto o una marca un'idea di affari un'opzione strategica, come l'accesso ad un mercato nuovo o il lancio di un prodotto nuovo un'occasione di fare un'aquisizione un'associazione potenziale un fornitore da cambiare outsourcing di un servizio, un'attività o una risorsa un'occasione di investimento t Analisi SWOT Microseminario ASIO 9
10 LA SWOT analysis La SWOT analysis permette di analizzare da una parte i punti di forza e di debolezza della propria organizzazione e dall altra le opportunità e le minacce del proprio settore Analisi Punti di Punti di INTERNA forza debolezza Analisi ESTERNA Opportunità Minacce Analisi SWOT Microseminario ASIO 10
11 LA SWOT analysis La SWOT analysis permette di analizzare da una parte i punti di forza e di debolezza della propria organizzazione e dall altra le opportunità e le minacce del proprio settore Analisi INTERNA Capacità tecnologiche, marchio, canali di distribuzione, clientela, qualità del prodotto, management/capacità di gestione Analisi ESTERNA Gusti dei clienti, mercati, tecnologie avanzate, politiche economiche, tasse, distribuzione, popolazione Strenghts - Punti di forza presenti dominante numerosi e funzionali fidelizzata buona/ottima efficiente & efficace Weaknesses punti deboli inesistenti scarsi e inefficaci Modesto accesso alla distribuzione molto volubile prodotto scarsamente affidabile inadeguato Opportunities Opportunità Threats - minacce - costanti - in cambiamento - apertura di nuovi - chiusura di esistenti - utilizzate - carenti - stabili e di supporto - riduzione - utilizzo di nuovi canali - struttura permanente - instabili - aumento - prioblematicità - cambiamenti nella struttura Analisi SWOT Microseminario ASIO,
12 LA SWOT analysis In genere si tende ad avere un solo punto di vista. Se è troppo pessimistico si stroncano le idee nuove e l'intraprendenza. Se è troppo ottimistico si rischia di avventurarsi in acque perigliose senza avere le attrezzature adatte. Con la SWOT analysis invece ci si costringe ad analizzare il problema da quattro punti di vista diversi e contrastanti Analisi SWOT Microseminario ASIO 12
13 LA SWOT analysis L analisi interna utilizza come strumento il modello della catena del valore, l analisi esterna utilizza il modello delle cinque forze competitive Analisi INTERNA: Determinazione dei vantaggi competitivi di costo e differenziazione Analisi ESTERNA: Valutazione dell attrattività del settore Determinazione dei punti di forza (strenght) e di debolezza (weakness) rispetto ai concorrenti del settore Determinazione delle opportunità (opportunity) e delle minacce (threaten) del settore Modello della catena del valore Modello delle 5 forze competitive Analisi SWOT Microseminario ASIO 13
14 LA SWOT analysis La SWOT analysis è un utile strumento per riassumere i risultati strategici interni ed esterni Esempi Ambiente Interno Strengths Weakness + - Brand - - Qualità del prodotto - - Valore percepito - - Fedeltà - - Efficacia distributiva - Economie di scala Copertura geografica Disponibilità di capitali Cash Flow Capacità di leadership - Rapidità di risposta e flessibilità Ambiente Esterno Opportunities Threats - Dimensioni e crescita del mercato - Posizionamento competitivo/economics - Strategie apparenti - Barriere all entrata - Bisogni del cliente Analisi SWOT Microseminario ASIO 14
15 Collocamento dell analisi Analisi SWOT Microseminario ASIO 15
16 Strategia da adottare affrontare evitare sfruttare trasformare Analisi SWOT Microseminario ASIO 16
17 Conclusione L'analisi analisi, dunque, si sostanzia nella classificazione dei risultati dell'analisi "preliminare" all'interno di un diagramma predefinito che agevoli l'individuazione delle priorità di intervento ed offra un valido supporto all'attività di programmazione. Inoltre, attraverso l'individuazione lindividuazione delle opportunità e dei rischi connessi all'adozione di un determinato progetto o di una particolare politica, si offre al decisore la possibilità di fare leva su aspetti sinergici o su opportunità esogene e di individuare le azioni preventive da attuare per limitare l'impatto di eventuali fattori di rischio. Nel complesso, dunque, la vantazione SWOT è un utile strumento a sostegno delle attività operative di soggetti pubblici e privati Analisi SWOT Microseminario ASIO 17
18 Allegati Analisi SWOT Microseminario ASIO 18
19 Ambiente interno L analisi dell ambiente interno porta ad evidenziare i punti di forza e di debolezza dell azienda Overall market position Sourcing & production Product offering Sales & distributio n Strengthsth Weaknesses - High quality mineral sources - Well situated to serve Italian clients - - Industrial experience - Dependence on one market vs European presence of the major players - Limited sales & marketing capabilities/efforts Complex product assortment - Low brand awarenessareness Analisi SWOT Microseminario ASIO 19
20 Ambiente esterno L analisi dell ambiente esterno opportunità e minacce del settore Market size and trends End user behaviour Trade behaviour/ channels Product segments Opportunities Threats - Capture clumping -Profitability may be attacked if market share (also in price competition continues other growing EU (next moves vs. leading market) competitor will be key) - Leverage on end user -Difficult to appeal to trade on quality perception to factors other than price (eg. defend market share package, service) and profitability Competitors Analisi SWOT Microseminario ASIO 20
21 FRAMEWORKS September 2001 SWOT ANALYSIS Source: INTERNAL S W K. Andrews The Concept of Corporate Strategy STRENGTHS WEAKNESSES McGraw Hill 1987 EXTERNAL O T OPPORTUNITIES THREATS POSITIVE NEGATIVE What Is It? SWOT (strengths, weaknesses, opportunities and threats) analysis provides a framework for quickly isolating the key issues relevant to a business situation. When Do I Use It? Use SWOT to: Gain insight into your organization s assets and liabilities. Idenfity the external forces that will influence your success in a given area. Help answer the question "should we go down this path?" Examples: - Should we open a new office in Lisbon? - Should we launch this new service now? - Should we sell products on our web site? SWOT also helps to: Quickly isolate your strengths relative to your weaknesses. To understand the broader context of the business issue you are considering. Consider This Use SWOT with other, more indepth evaluation tools to help make go/no go decisions. Don t ignore the downstream implications (e.g. the cost and complexity of overcoming weaknesses). SWOT works best when: A knowledgeable cross-section of individuals and interests is included. People are brutally honest and can back up their views with facts or representative examples. GartnerG2 helps strategists guide and grow their businesses. 2001, GartnerG2. All rights reserved.
22 FRAMEWORKS September 2001 VALUE DISCIPLINE PRODUCT LEADERSHIP Minimum Threshold to Complete Source: M. Treacy; F. Wiersema The Discipline of Market Leaders Harper Collins 1995 Adapted by Gartner OPERATIONAL EXCELLENCE CUSTOMER INTIMACY What Is It? Value disciplines is a framework that plots three areas in which a company may choose to excel, each producing a different kind of customer value: - operational excellence - customer intimacy - product leadership To compete, a company must be competent in all three disciplines. To become a market leader, a company must outperform competitors in one discipline. When Do I Use It? An excellent framework for establishing the focus and discipline necessary for market leadership. Useful in answering the fundamental question: "What defines us?". An essential precursor to defining organizational structure and business processes. Consider This Companies that attempt to excel in all three areas will likely run into organizational and process conflicts. Only a handful of companies (e.g. Dell) have mastered all three disciplines. Successful, companies have a keen awareness of their value to customers and optimize their efforts around that value. The company s leadership team must define and articulate its values for the benefit of all stakeholders. GartnerG2 helps strategists guide and grow their businesses. 2001, GartnerG2. All rights reserved.
23 FRAMEWORKS September 2001 CORE COMPETENCIES MATRIX Source: CORE COMPETENCIES NEW EXISTING HOW TO PROTECT AND EXTEND THE FRANCHISE? IMPROVE POSITIONING WITH BETTER LEVERAGE? PARTICIPATE IN THE FUTURE? REDEPLOY OR REDEFINE TO CREATE NEW PRODUCTS? G. Hamel; C. Prahalad Competing for the Future Harvard Business School Press 1994 EXISTING NEW MARKETS What Is It? A Framework that identifies the existing core competencies that can be leveraged or restructured and new core competencies that may be needed in the future. When Do I Use It? Use Value Disciplines when: Considering your company s current and future opportunities and its "readiness" to exploit them. Assessing the implications of allocating resources to achieve particular goals. Also useful for: Understanding the tradeoffs inherent in your strategy decisions. Evaluating competitive position. Helps to answer the questions: What new core competencies will we need to build to protect and extend our franchise in current markets? What new core competencies will we need to build to participate in the most exciting markets of the future? What is the opportunity to improve our position in existing markets by better leveraging our existing core competencies? What new products or services could we create by creatively redeploying or recombining our currentcore competencies? Consider This In times when resources are scarce such as during economic downturns companies must scrutinize investments, and can use the core competencies matrix to that end. GartnerG2 helps strategists guide and grow their businesses. 2001, GartnerG2. All rights reserved.
24 FRAMEWORKS September 2001 BALANCED SCORECARD CUSTOMER Key measures seen by customers -- e.g. service, quality FINANCIAL Bottom-line measures such as costs or revenues INNOVATION & GROWTH Improvements to the organization's underlying capabilities BUSINESS PROCESS Measures of process efficiency and effectiveness Source: R. Kaplan; D. Norton The Balanced Scorecard: Translating Strategy into Action Harvard Business School Press 1996 What Is It? A comprehensive measurement-based approach to managing a business that considers performance in four areas: Financial (e.g., cost, revenues) Customer (e.g., service, quality) Business Process (e.g., efficiency, effectiveness) Innovation & Growth (e.g., capacity for innovation) When Do I Use It? When looking to: align day-to-day processes and activities with an overall strategic plan. define metrics to assess performance, establish benchmarks and uncover best practices. improve visibility into the company with an eye toward reducing costs and improving productivity. When evaluating investment proposals. Consider This The balanced scorecard approach provides a more realistic, rationale approach to evaluating current business activities and potential investments. - The financial perspective only tells part of the story. The balanced scorecard can be implemented for an individual group or department, for a business unit or for the entire organization. GartnerG2 helps strategists guide and grow their businesses. 2001, GartnerG2. All rights reserved.
25 FRAMEWORKS September 2001 FORCES OF COMPETITION Source: Bargaining power of suppliers SUPPLIERS NEW ENTRANTS INDUSTRY COMPETITORS Bargaining power of new entrants BUYERS M Porter Competitive Strategy: Techniques for Analyzing Industries and Competitors The Free Press 1980 Threat of substitutes INTENSITY OF RIVALS Bargaining power of buyers SUBSTITUTES What Is It? The Forces of Competition framework succinctly illustrates the five distinct sources of competition that organizations must keep on their radar screen. These forces will influence their success and profitability, and include: Threat of new entrants Bargaining power of buyers Threat of substitutes Rivalry among existing firms Bargaining power of suppliers When Do I Use It? Use Forces of Competition when looking to: Develop a competitive advantage over rival firms. Further your understanding of the dynamics that influence your industry and your position in it. Assess your strategic position and spark ideas for disruptive initiatives. Consider This The traditional rivals in your industry are but one source of competition. Ignore others at your peril. Blunting the competition will require different strategies at the departmental, business unit and corporate level. Understanding the complexities of competition can help organizations get beyond simplistic price (and profit eroding) wars. GartnerG2 helps strategists guide and grow their businesses. 2001, GartnerG2. All rights reserved.
26 FRAMEWORKS September 2001 GENERIC COMPETITIVE STRATEGIES Source: M Porter Broad Target COMPETITIVE SCOPE Narrow Target COST LEADERSHIP COST FOCUS DIFFERENTIATION DIFFERENTIATION FOCUS Competitive Strategy: Techniques for Analyzing Industries and Competitors The Free Press 1980 Lower Cost Differentiation COMPETITIVE ADVANTAGE What Is It? This framework helps executives ascertain the strengths the source for competitive advantage for their companies, and focus on it. Potential areas of strength include: cost leadership (being a low cost producer) differentiation (having unique products) focus (broadly or narrowly targeting a market) The generic competitive strategies framework applies equally well to big and small companies, and across industries. When Do I Use It? Use Generic Competitive Strategies framework when: Defining competitive strategy that will result in above average profitability (within your industry) Honing your defensible niche in the marketplace for a particular line of business Consider This Apply these firms at the business unit, not corporatewide level. This is especially true for diversified companies, which may adopt a different competitive strategy across businesses. Technology is constantly lowering the bar for companies set on pursuing cost leadership strategies. To some degree, these strategies are mutually exclusive. Pursuing strength in a certain area will invariably weaken your position in another. GartnerG2 helps strategists guide and grow their businesses. 2001, GartnerG2. All rights reserved.
27 FRAMEWORKS September 2001 CHANNEL CONFLICT STRATEGY Source: HIGH OUTFLANK AND KILL RESPECT Gartner Executive Programs Research POWER OF INTERMEDIARY KILL LOVE LOW LOW VALUE OF INTERMEDIARY HIGH What Is It? Channel Conflict Strategy is a Gartner framework that helps companies assess the impact and importance of its channel partners. It helps companies assess their partners influence along two dimensions as perceived by customers: The extra value added to the company s final product or service Their power, or ability to control the market A company may take one of four courses of action in response to channel conflicts: Kill (remove the channel) Outflank (bypass the channel over a period of time) Love (accept the channel as needed and willing to comply with your policies) Respect (accept the channel is needed but willing to do business on its own terms only) When Do I Use It? Whenever sorting out channel conflict issues with your partners. Potential areas of conflict include: - When channel partners are eroding your margins. - When channel partners have conflicting markets or territories. - When you are at risk of being disintermediated or are considering a disintermediation strategy. When preparing to negotiate with channel partners. When regulatory changes or other external forces have placed your market in a state of flux. Consider This Given the rate of business change, continually evaluating competitors is essential to anticipating competitive threats and opportunities to your channels. As companies make more use of strategic partners, a more rigorous framework for deciding which intermediaries really add value will be required. GartnerG2 helps strategists guide and grow their businesses. 2001, GartnerG2. All rights reserved.
28 FRAMEWORKS October 2001 ENTERPRISE-WIDE INFORMATION MANAGEMENT MODEL Source: R Benson M Parker BUSINESS SECTOR STRATEGIC PLAN OF ENTERPRISE IMPACT TECHNOLOGY SECTOR INFORMATION TECHNOLOGY OPPORTUNITIES Information Economics: Linking Business Performance to Information Technology Prentice Hall 1988 BUSINESS ORGANIZATIONS (that carry out plans] ALIGNMENT INFORMATION SYSTEMS ARCHITECTURE What is it? This framework illustrates the two ways that information technology (IT) can serve lines of business: by supporting current operations, called alignment; and by influencing future ways of working, called impact. When do I use it? Use this framework when: business and technology executives are coming together to discuss IT s contribution to business goals considering the use of technology to not only react to, but also to shape, business strategy developing a balanced technology portfolio Consider This Only one in five companies will sustain or increase technology investment levels during an economic slowdown. Those that do will improve their competitive position once the economy picks up again. GartnerG2 helps strategists guide and grow their businesses. 2001, GartnerG2. All rights reserved.
29 FRAMEWORKS October 2001 MINDSET DIFFERENCES INTUITION AND IDEAS BENEFITS Source: Gartner EXP Wentworth Report Boards Are From Mars, IT Is From Venus SUBJECTIVE Do I understand? Is it right for the business? OBJECTIVE July 1998 Do I trust? Will it work? RISKS ANALYSIS AND PROOF Business people start here IT people start here What is it? This Gartner framework was initially developed to help business and information technology (IT) executives break through longstanding communications gaps by acknowledging that they often think in fundamentally different ways. Typically, business people are more comfortable with intuition and ideas. They start by asking do I trust? then do I understand? proceeding clockwise. IT people start with will it work? then is it right for the business? before proceeding in the opposite direction. When do I use it? When kicking off projects and bringing technology and business staff together for the first time. When appraising IT investment proposals and considering the rationale behind them. Consider This Despite these innate differences, today s successful IT executives are also astute business executives. Having a board level executive who has in-depth knowledge of both technology and business issues can be a huge asset to strategic planning efforts. Where communications gaps do exist, often among rank-and-file workers on project teams, consider: involving people who are fluent in both the language of the business and also in technology, and who may interpolate for both sides. co-locating teams for the duration of the project. Physically isolating IT people from the internal clients they serve often contributes to misunderstandings and lack of trust. GartnerG2 helps strategists guide and grow their businesses. 2001, GartnerG2. All rights reserved.
30 FRAMEWORKS October 2001 VALUE CHAIN ANALYSIS FIRM INFRASTRUCTURE SUPPORT ACTIVITIES HUMAN RESOURCES MANAGEMENT TECHNOLOGY DEVELOPMENT PROCUREMENT MARGIN Inbound Logistics Operations Outbound Logistics Marketing and Sales Service MARGIN PRIMARY ACTIVITIES Source: M. Porter The Competitive Advantage of Nations Collier Macmillan 1989 For its application in relation to the Internet see: M. Porter Strategy and the Internet Harvard Business Review March 2001 What is it? Value Chain Analysis is a framework developed by Michael Porter that helps companies examine their production and support processes for their value and contribution to competitive advantage. It excludes the external factors that will likewise influence success. When do I use it? Among its many applications, value chain analysis is helpful in: segmenting and analyzing business costs identifying steps in which value is created isolating your core competencies relative to competitors The outcome of these analyses will influence a number of strategic technology decisions including: which IT investments are most in line with corporate objectives and will delivery the best payback which functions may be considered for outsourcing Consider This Porter s value chain analysis is a good lens through which to view IT s contribution and effectiveness relative to business goals. Technology may be the single largest contributing factor in achieving competitive advantage GartnerG2 helps strategists guide and grow their businesses. 2001, GartnerG2. All rights reserved.
31 FRAMEWORKS November 2001 SEVEN S's Source: STRUCTURE McKinsey and Company STRATEGY SYSTEMS SUBORDINATE GOALS SKILLS STYLE STAFF What Is It? This timeless framework was originally developed in the 1970s by Tom Peters when he was a McKinsey consultant. It reminds us that management includes a broad scope of concerns: 1. Strategy - A coherent set of actions aimed at corporate success. 2. Structure - The organizational chart and accompanying detail that efines lines of reporting and division of responsibility. 3. Systems - The process and flows that enable an organization to operate effectively. 4. Shared values - The values that go beyond formal goals and objectives. 5. Skills - The capabilities that are possessed by an organization as a whole rather than the people within it. 6. Style - The way management collectively allocates time and attention and uses symbolic behavior, which indicates what is considered important. 7. Staff - The people in an organization When Do I Use It? To remind managers of the scope of what can be managed. By recognizing that real change in large institutions is a function of at least seven chunks of complexity, managers are made appropriately more humble about the difficulty of changing a large institution in any fundamental way. As a checklist when implementing a strategy, no matter how large or small, to ensure you ve covered all the bases. Consider This A new generation of managers may have overlooked this message entirely. It bears repeating early and often. All of the Seven S's are interdependent; ignoring one or more puts them all in peril The relative importance of each S will change over time. GartnerG2 helps strategists guide and grow their businesses. 2001, GartnerG2. All rights reserved.
32 FRAMEWORKS November 2001 FINANCIAL SERVICES STRATEGIC PLANNING MODEL Source: Customers Noncustomers Competitors Regulators Investors External Press Suppliers Resource Markets Technologies Internal Processes Employees Management Assets Liabilities Capital Revenues Expenses Gartner G2 SCAN SENSE LEARN Challenges Opportunities Best Practices Processes Technologyenabled applications Policies Procedures Training Brand Offerings KNOW MUTATE EXECUTE INNOVATE AND ADAPT Offerings Products Services Channels Messages Promotions Brand Policies Procedures Technologies What Is It? This GartnerG2 framework defines seven strategic competencies critical to organizational success regarrdless of strategy or markets. The seven competencies are: Scan and Sense - to determine changes in any stakeholders who may influence the organization's performance. Learn - to compare this information to the organization's core knowledge base. Innovate and Adapt - to create new value and adjust to changing market conditions Mutate - Deliver innovations and adapt to the market ahead of the competition Execute - Flawless market delivery. When Do I Use It? Adopt this process for managing and capitalizing on change on a continuous basis. Use it a way to simultaneously manage both short and long term strategic planning objectives. Consider This While this framework was designed for financial services firms, it is applicable to any company operating in an industry marked by rapid change. Strategic processes must be updated and retooled in much the same way as operational processes. GartnerG2 helps strategists guide and grow their businesses. 2001, GartnerG2. All rights reserved.
33 FRAMEWORKS November 2001 MIT 90s FRAMEWORK STRUCTURE External Technological Environment STRATEGY MANAGEMENT PROCESSES TECHNOLOGY External Socioeconomic Environment INDIVIDUALS AND ROLES ORGANIZATION BOUNDARY Source: M Scott Morton, ed, The Corporation of the 1990 s: Information Technology and Organizational Transformation, Oxford University Press, 1991 What Is It? The MIT 90s framework asserts that organizations comprise five sets of forces. They include: corporate structure (how you are organized) corporate strategy (your corporate objectives and how you intend to go about achieving them) management processes (your operations for executing strategy) technology (the underlying infrastructure that supports the business) individuals & roles (contribution at the employee level) A central task of management is to ensure that all five forces remain in equilibrium as they change over time. Changes in technology should go hand in hand with changes in the other four areas. When Do I Use It? Use this framework: when planning for, implementing or responding to changes within your company or market when merging with or acquiring another company, or when being acquired in times of turmoil or upheaval to ensure that you develop and execute a coordinated response Consider This The technology implications of changes, whether big or small, are often the least understood and wreck the most havoc in times of change. Since this model was originally conceived in the early 90s, companies are much more intertwined with and interdependent upon one another, hence increasing the importance of external forces in this equation. GartnerG2 helps strategists guide and grow their businesses. 2001, GartnerG2. All rights reserved.
34 FRAMEWORKS November 2001 CHANGE GOVERNANCE ORGANIZATIONAL PROCESS FIT Poor Good INTEGRATE Leverage Values Heavyweight team within the existing organization IMPLEMENT Seamless/Integrated Lightweight or functional team within existing organization INNOVATE Spin-off/Subsidiary Separate due to business, organizational influencers INCUBATE Leverage Process In-house heavyweight team, commercialization could require spin-off Good [Evolutionary - Sustaining innovation] Poor [Revolutionary - Disruptive innovation] ORGANIZATIONAL VALUES FIT Source: C. Christensen and M. Overdorf, Harvard Business Review, March April 2000, adapted by Gartner What Is It? This framework helps companies figure out the best way to implement changes. The appropriate course will be driven by the extent to which the proposed change is or is not in line with existing corporate processes and values. Changes that affect only resources and processes can generally be accommodated within the existing line management structure. Christensen maintains that those affecting values and culture are best accommodated in a spin-off. When Do I Use It? This framework is useful when: determining the corporate structure and governance for a new business entity (product, service or brand, for instance) Consider This Christensen has come under fire in the wake of the dot com meltdown, as spinoffs have fallen out of favor. While his recommendations are the subject of many a lively debate, the model is still a useful lens for contemplating how to accomplish new strategies. GartnerG2 helps strategists guide and grow their businesses. 2001, GartnerG2. All rights reserved.