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Where Are the Sinkholes in Your Strategy?

My firm was once asked by a CEO to assess the strategy of his company, one of the world’s largest. He wanted to know if there were any holes that he and his board should address. I’ve always thought this showed great leadership and confidence. (Strategy is a lot like IQ for many people: to challenge their strategy is to question their intelligence.) It also revealed his keen awareness that no strategy is perfect.

We started by asking two questions:

1. What distinctive capabilities make the company better than any other at how it adds value to its individual businesses, and how those businesses meet their promises to customers?

2. Are changes happening in the company’s world that could render its distinctive capabilities obsolete or insufficient?

The first question requires you to be clear about the capabilities that make your company special.

via Where Are the Sinkholes in Your Strategy?.

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