Mason

MasDiamonds  &  Stars  

  The  strategy  diamond  is  how  we  will  think  and  talk  about  strategy  formulation;  the  star  is  how  we  will      

What  is  the  Strategy  Diamond?  

  The  strategy  diamond  portrayed  in  Figure  1  provides  executives  and  consultants  a  concise,  coherent  way  to   analyze,  integrate,  summarize,  and  communicate  product,  business,  and  corporate  level  strategies.  The   model  covers  strategy  formulation  -­‐-­‐  that  is,  it  helps  answer  questions  about  what  the  strategy  is  and  what   it  will  be  in  the  future.    If  strategy  is  conceptualized  as  being  about  choice  -­‐-­‐  managerial  choices  about  what   the  organization  does  and  does  not  do  -­‐-­‐  then  the  strategy  diamond  highlights  the  choices  and  choice-­‐gaps   in  the  current  and  proposed  strategy.        

Figure  1    The  Strategy  Diamond  

  Ideally,  application  of  the  strategy  diamond  begins  by  answering  questions  about  arenas  and   differentiators  (or  vice-­‐versa).  The  vehicles  dimension  (i.e.,  organic  activity  versus  alliances  or   acquisitions)  is  considered  an  essential  element  because  historically  it  was  treated  somewhat  as  an   afterthought.  Such  treatment  has  been  shown  to  be  particularly  problematic  for  successful  strategy   implementation.  Staging  and  pacing  build  strategic  change  into  the  strategy.  Economic  logic,  as  the  last  step   in  the  strategy  formulation  process,  summarizes  how  the  four  other  elements  work  together  to  maximize   profits  (or  otherwise  benefit  its  stakeholders).  It  tells  us  why  all  the  pieces  add  up  in  a  way  that  yields  near-­‐ term  and  long  term  positive  performance.     Arenas     Arenas  encompass  choices  made  about  where  to  compete:  the  external  environment  such  as  product  or   service  markets,  geographic  markets  or...