Consulting Frameworks
Preview
Synopsis
Business management is what drives the overarching business strategy. To ensure the strategy is healthy and to solve unique problems, business analysts and management consultants need "sharp" tools – business frameworks. Unfortunately, when it comes to frameworks, there is no one all-purpose instrument. That is why we offer the Consulting Frameworks deck. This presentation allows you to use a hybrid and "mix and match" approach to unveil hidden opportunities and risks, outsmart the competition and help businesses achieve all their goals.
Slide highlights
Communicate the results of a portfolio analysis you conducted with the Market Attractiveness Framework. The results can be divided into: Market Size, Growth Rate, Institutional Contexts, Competition, Cultural and Economic Distance.
If the strategy around your venture's compelling story (based on a strong argument for the future) needs to be redefined, employ the AcdB model. Examine current position, define vision and map out an effective direction.
With the The Strategic Triangle (3C's) framework slide, you can demonstrate the competitive position in relation to customers, products and channels, define your strategy and explain the measures that can be taken to drive improvements.
Overview
According to SMB Advisors, management consulting frameworks are tools and principles that enable managers to perform a variety of key tasks in an attainable manner based on best practices. More specifically, the firm says, "since businesses have different structures and may operate in different industries [and] markets – and may have different departments that are needed to engage in key projects – management consulting frameworks become a GPS that a company can use to ensure that their entire internal systems are on the right track, and follow the company's overarching strategic plan."
Application
Some of the widely-applied consulting framework types include:
- Porter's Five Forces Analysis - a framework developed by Michael Porter at Harvard Business School, which focuses mainly on an industry analysis for a strategic plan.
- The 4 Ps – a marketing framework that forms factors around products' and services' marketing workflows and processes.
- McKinsey 7S Framework – an organizational model created by Tom Peters and Robert Waterman, which concentrates on a venture's strategic vision and its internal design.
- SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats) – a model for ideological and practical analysis of an organization to improve strategic planning operations.
- Root Cause Analysis (RCA) – a process for identifying "root causes" of problems or events and an optimal approach for effective responses to them.[/item
- Business Benchmarking – a process of comparing a company metrics to the metrics of the competition or progressive companies outside the industry.
- Balanced Scorecard – a framework for following core aspects of business strategy and for facilitating improvement.
- The BCG Growth-Share Matrix – a quadrant matrix, developed by Boston Consulting Group (BCG), which is used to evaluate the relative strength of product lines within their portfolios.
- Core Competency Analysis – a process of identifying a venture's important competencies and defining the organization's competitive advantage.
- Value Chain Analysis – a framework designed to identify areas for improvement, boost efficiency and increase profit margins, based on customers' satisfaction.
Case study
Ithaca Beer Company
Center for Hospitality at Cornell University conducted an analysis of how the McKinsey-developed 7-S model, applied at the Ithaca Beer Company (IBC), can be used to assess a company's competitive and strategic advantage. Based on interviews and other analysis, Center for Hospitality at Cornell reports, four of the seven factors in the 7-S model were aligned and critical for this particular company's success. These factors were: strategy, staff, skills and shared values.
IBC's overall strategy revolves around community involvement and attention to distributors, retailers and clients. Its relatively small team is enthusiastic about the product they produce, has strong skill set and knows how to work collaboratively. At the moment of the analysis, the other three "S" factors didn't seem to be critical, however, this may change as IBC continues to grow.
"Thus," Center for Hospitality at Cornell concludes, "while the 7-S analysis is useful in highlighting a company's strengths and challenges, a contingency approach may be the most appropriate, with certain factors being more salient than others at any particular time. All firms face a multitude of environmental challenges."
The researches continue: "As such, the need to establish priorities is critical for creating and sustaining a strong competitive position. Our analysis has found that the 7-S framework provides an excellent starting point for analyzing the requirements for a company's success and growth. However, given each company's distinctive position, a contingency approach may be appropriate to 7-S analysis, as it was clear from this case study that some factors are more important than others."
