TextTextTextTextLEVEL SEPARATE 4PlanImplementSupportLINKS 3TextTextTextTextTextTextTextTextTextText2X2 CUBED2X2 TOWERTextTextTextTextTextTextSIZES INTextTextTextTextTextTextTextTextTextTextJOINTTextTextTextTextSPOTLIGHTTextTextTextTextTextTextSTAIRCASE0000P1EYYMMDD.CHARGEXXXPRStrategySkillsSystemsStaffShared valuesStructureStyle7SNew entrantSuppliersIndustrycompetitorsBuyersSubstitutesFORCES AT WORK5Ps MARKETINGPlacePriceProductPackagePositioning promotionProduct offeringTextTextWIRE CUBESTextTextTextTextCUTOUT 3DTextTextTextLINEAR A 3DTextTextTextTextLINEAR B 3DTextTextTextLINEAR C 3DTextTextTextLINEAR D 3DTextTextTextTextLINEAR E 3DTextTextTextLINEAR G 3DTextTextLINEAR I 3DTextTextTextTextLINEAR J 3DTextLINEAR N 3DTextTextTextTextTextTextLINEAR P 3DLINEAR Q 3DTextTextTextTextLINEAR Q 3DTextTextTextPROPELLER 3DSPIRAL1 3DSpiralBrakesTube in tubeSPIRAL2 3D0000P1EYYMMDD.CHARGEXXXPRSTARS 3D0000P1EYYMMDD.CHARGEXXXPRRINGS 3D0000P1EYYMMDD.CHARGEXXXPRPERSPECTIVE 3D0000P1EYYMMDD.CHARGEXXXPRARROW 3D0000P1EYYMMDD.CHARGEXXXPRCUBES1 3D0000P1EYYMMDD.CHARGEXXXPRCUBES2 3D0000P1EYYMMDD.CHARGEXXXPR*FootnoteSource:CUBES3 3D0000P1EYYMMDD.CHARGEXXXPRTextTextSCALETextTextSCALESARROWSTextTextTextTextTextTextTextLEVEL 1TextLEVEL 2TextTextLEVEL 3TextTextTextLEVEL 4TextTextTextTextLEVEL 5TextTextTextTextTextLEVEL 6TextTextTextTextTextTextFLOW 2TextHeaderHeaderTextTextFLOW 2 TITLETextHeaderHeaderTextFLOW 3TextHeaderHeaderTextHeaderTextTextFLOW 3 TITLETextHeaderHeaderTextHeaderTextFLOW 4TextHeaderHeaderTextHeaderHeaderTextTextTextFLOW 4 TITLETextHeaderHeaderTextHeaderHeaderTextTextFLOW 5TextHeaderHeaderTextHeaderHeaderHeaderTextTextTextTextFLOW 5 TITLETextHeaderHeaderTextHeaderHeaderHeaderTextTextTextFLOW 6TextTextHeaderHeaderHeaderHeaderHeaderTextTextTextHeaderTextTextFLOW 6 TITLETextTextHeaderHeaderHeaderHeaderHeaderTextTextTextHeaderTextBLADESTextTextTextTextBOXTextTextTextTextBOXTextTextTextTextCYCLE 1TextTextTextCYCLE 2TextTextUPON 2TextTextCYCLE 3TextTextTextCYCLE 4TextTextTextTextCYCLE 5TextTextTextTextTextCYCLE 6TextTextTextTextTextTextCYCLE 7TextTextTextTextTextTextTextCYCLE 8TextTextTextTextTextTextTextTextTextINCOMINGTextTextTextTextTextRIBBONTextTextTextTextTextRINGTextTextTextTextTextCONTINUOUSTextTextTextTextTextTextTextTextCUTOUTTextTextTextTextLINEAR ATextTextTextLINEAR BTextTextTextTextLINEAR CTextTextTextLINEAR DTextTextTextLINEAR ETextTextTextTextLINEAR FTextTextTextLINEAR GTextTextTextLINEAR HTextTextTextTextLINEAR ITextTextLINEAR JTextTextTextTextLINEAR KTextTextTextTextTextTextLINEAR NTextTextTextTextLINEAR PTextTextTextLINEAR QTextTextPROPELLERTextTextTextSTEP 5TextTextTextTextTextTextTextTextText2 ON 1TextTextTextTextTextTextAGAINSTTextTextTextTextTextAT WORKNew entrantSuppliersIndustry competitorsBuyersSubstitutesFORCES AT WORKTextTextCOUPLED HORIZTextTextCOUPLED VERTTextTextTextTextFOCUSEDTextTextTextPARALLELTextTextTextTextSPLITTextSURROUNDTextTextTWISTEDTextTextUP&AWAYTextTextUP&DOWNThe way managerscollectively behave with respect to useof time,attention,and symbolic actions The people in the organization,consideredin terms of corporate demographics,not individual personalitiesThe organization chart and accompanying baggage that show who reports to whom and how tasks are both divided up and integrated Those ideas of what is right and desirable(in corporate and/or individual behavior)which are typical of the organization and common to most of its members The processes and procedures through which things get donefrom day to day A coherent setof actions aimedat gaining asustainableadvantage over competition Capabilitiespossessed bythe organizationas a whole asdistinct from theindividuals.Some companies perform extraordinaryfeats withordinary peopleStaffSystemsStyleSharedValuesStructureSkillsStrategy2S-5SCustomerClientsDistributorsCompetitorsSuppliers3Cs TRIANGLESkillsSharedvaluesStrategyStaffStructureSystemsStyleA coherent set ofactions aimed at gaining a sustainable advantageover competition The organization chart andaccompanying baggage that showwho reports to whom and how tasks are both divided up and integrated The people in the organization,considered interms of corporatedemographics,notindividual personalities The way managers collectively behave with respect to use of time,attention and symbolic actions The processes and proceduresthrough which things get donefrom day-to-dayThose ideas of what is rightand desirable(in corporateand/or individual behavior)which are typical of theorganization and commonto most of its members Capabilitiespossessed bythe organizationas a whole asdistinct fromthe individuals.Some companiesperform extraordinaryfeats with ordinary people3S-4SStyleStructureStaffStrategySystemsSkillsShared valuesThe way managers collectively behave with respect to use of time,attention and symbolic actionsCapabilities possessed by the organization as a whole as distinct from the individuals.Some companies perform extraordinary feats with ordinary peopleThose ideas of what is right and desirable(in corporate and/or individual behavior)which are typical of theorganization and commonto most of its membersThe processes and and procedures through which things get donefrom day-to-dayThe organization chart and accompanying baggage that showwho reports to whom and how tasks are both divided up and integratedThe people in theorganization,considered in terms of corporate demographics,notindividual personalitiesA coherent set of actions aimed at gaining a sustainable advantage over competition7SCompetitive positionLowMediumHighProduct/market attractivenessLowMediumHighBUSS PORTFOLIOChange visionChief ExecutiveLeadership groupsDown the lineExternal constitutionCommitmentConvictionCourageCapabilityIndividual activityEnabling devicesCHANGE BOARD Delta P Vision andLeadershipOrganizationalInfrastructurePerformanceMeasurementPeopleDevelopmentCommunicationsProblem SolvingProcessClient managers(particularly middle management)haveskill to lead programimplementationChange in actual behaviorAction plans sufficient to achieve goalsAgreement on objectives by line managementManagement of high-involvement processImplementation ornear implementationof required structureand systemsFlow of 2-way communicationsPeoples understanding,belief and contribution to act on vision and action plansAccurate measurementof action and resultsClear accountabilitiesEarly winsVisible demonstrationof new vision andvalues by clientleadershipDELTA PNatural owner Relative ability to extract value Low Medium Value-creation potential in business unit High Corporatecenter skillsBusiness unit linkagesTaxation/valuationdifferences Industry attractivenessCompetitive positionRestructuring/rationalization opportunities“One of the pack”Retain andgive toppriorityRetain andgive priorityRetain andmanage forcode orliquidate Probablydivest DivestDivest orliquidate MACSBusiness StrategyManufacturing StrategyConfigurationSystemsResearchFocusLaborPolicyProductDesignMakevs.BuyOrganizationProcessDesignMANUFACTURING STRATEGYRestructuring framework 1 5 4 3 2 PENTAGONBenefit Price Competitivedisadvantage Competitiveadvantage PRICE BENEFITAppraise performanceand prospects Developstrategy Redesignpivotal jobs Design the skillbuilding process Assess changereadiness Top downaction programs Bottom up action programs 1 2 4 5 6 7 8 3 SMILE CHARTReal Perceived Clients relative ability to extract valueCorporate center skillsLinkages between business unitsFinancial ownership fitIndustry restructureInternal controllerShared resourcesTransfer of capabilityVertical integrationDifferences in tax positionExistence of non-cases objectivesInefficiencies in financial marketsDifference in valuation techniqueVALUE SOURCES3.Create andpursue a uniqueadvantage 2.Resegment the market to create a niche4.Exploit uniqueadvantageindustrywide 1.Do more andbetter of thesameWhen tocompete STRAT GAMEBOARDStage 1 Stage 2 Stage 3 Stage 4 Value system Strategic manage-mentExternally orientated planningForecast based planningBudget planningMeet budget and schedulePredict the futureThink strategicallyCreate the futureSTRAT MANAGESelling margin ContributionSalesSelling rateSalesAvailable selling time EffectivenessContribution Available selling time Productivity ContributionTotal selling costsEfficiencyAvailable selling timeTotal selling costsUtilizationAvailable selling timeTotal sales time Support intensitySupport costsTotal selling costsSupport leverageTotal sales timeSupport costsTREE PRODUCTIVITYMaximizeshareholdervalueGrowthroughculturalinitiativeRedeployassetsImprove corebusinessperformanceGrow throughacquisitionand/or mergerAdopt soundfinancingapproachVALUE CREATIONGANTT10HeaderTextGANTT15HeaderText#TextTextTextTextLEFT TO RIGHTTextTextTextTextTextProcess objectivesTextSub-objectivesSTUDY OBJECTIVETextTextTextTextTextTextTextTOP DOWNTextTextSCALETextTextSCALESTextTextTextTextTextTextTextTextTextText2X2 CUBEDTextTextTextTextTextTextTextTextTextTextTextText2X2 EXTENDEDTextTextTextTextTextText2X2 TOWERTextTextTextTextTextTextTextTextTextText2X2TextTextTextTextTextTextTextTextTextTextTextTextTextTextTextTextTextTextTextText3X3 EXTENDEDTextTextTextTextTextTextTextTextTextTextTextTextTextTextTextTextText3X3TextTextPASS THROUGHTextTextDIFFRACTIONTextTextTextFLOW DOWNTextTextTextText4 BOX 3DTextBOUNCETextTextCUBE WITH CIRCLESTextTextSEASAWPlanImplementSupportLINKS 3TextTextWAY THRUTextTextTextTextTextTextTextTextTextDECISIONSTextTextTextLOOPSROLLERSTextTextTextLEVEL 03TextTextTextTextLEVEL 04TextTextTextTextTextTextTextTextTextLEVEL 09TextTextTextTextTextTextTextTextTextTextLEVEL 10TextTextLEVEL INVERTED 02TextTextTextLEVEL INVERTED 03TextTextTextTextLEVEL INVERTED 04TextTextTextTextTextTextTextTextTextLEVEL INVERTED 09TextTextTextTextTextTextTextTextTextTextLEVEL INVERTED 10TextText2 AROUNDTextTextTextTextText4 IN 1 SQUARETextTextTextText4 IN 1 TRITextTextTextTextTextTextSIZES INTextTextCROSS SECTIONTextTextTextTextTextTextTextHONEYCOMBTextTextTextTextTextTextTextTextTextTextJOINTTextTextTextPYRAMIDTextTextTextTextSPOTLIGHTTextTextVENN 2TextTextTextVENN 3STICKERILLUSTRATIVECONFIDENTIALESTIMATEEXAMPLEFOR DISCUSSION ONLYFOR DISCUSSIONPRELIMINARYDRAFT0000P1EYYMMDD.CHARGEXXXPRSTICKER OTHERCONFIDENTIALDISCUSSION DRAFTDISGUISED CLIENT EXAMPLEPRELIMINARY DRAFTPRELIMINARY ESTIMATEDISCUSSION DRAFTDISGUISEDDRAFT FOR DISCUSSIONSAMPLEBACKUPHYPOTHESISSTRAW MANTO BE COMPLETEDPROPOSEDREVISEDROUGH ESTIMATECONCEPTUAL0000P1EYYMMDD.CHARGEXXXPRLEGENDSLegendLegendLegend0000P1EYYMMDD.CHARGEXXXPRMcKINSEY LOGO0000P1EYYMMDD.CHARGEXXXPRMOONSVery attractiveAverageVery unattractiveVery attractiveAverageVery unattractive0000P1EYYMMDD.CHARGEXXXPRARROWS0000P1EYYMMDD.CHARGEXXXPRMISC0000P1EYYMMDD.CHARGEXXXPRDISCLAIMERS CLIENTThis report is solely for the use of client personnel.No part of it may be circulated,quoted,or reproduced 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