A.T. Kearney Strategy
Dozens of strategy schools and frameworks claim to be the most widely applicable and useful for strategy development. The question is, are these strategy schools universally applicable or can they complement one another? Based on our extensive work in strategy development, we believe they can be complementary. With this in mind, we developed the A.T. Kearney Strategy Chessboard to help corporate leaders select the right starting point for strategy development and formulation.
As strategy development begins, the two main tasks are conducting an honest, critical assessment of the industry’s predictability, and articulating whether the company intends to adapt its position within the industry or to shape the industry. These two tasks lead to a selection of one of four “umbrella strategies":
- Position and conquer
- Redefine the industry
- Reinvent the industry
- Maintain foresight and flexibility
Redefine the industry. Through analysis (and simulations) we deduce the optimal ways to shape the industry to benefit both the company and the industry. Using this approach, the company becomes an industry architect, moving the overall industry structure, boundaries, conduct, and performance in a favorable direction while capturing a strong role in the future of the redefined industry. Pursuing an ambitious M&A agenda helps shape the industry structure.
Position and conquer. Strategic analysis is used to determine which optimal position in the industry a company should pursue and how to outmaneuver competition in order to grow at a faster-than-market rate. This is a classic approach to strategy development. The most influential contributor in this area has been Michael Porter with his book Competitive Strategy, which focuses on positioning for competitive advantage (price, premium and niche strategies).
Reinvent the industry. In unpredictable industries, a useful goal for many companies is to reinvent the industry to gain advantage, reduce or off-load risk, or create new capabilities and resources. Uncertainty makes prediction difficult, but it also opens up significant opportunities for visionary leaders to guide others in a favorable direction. Companies in the reinvent quadrant have powerful imaginations—they are able to develop both an attractive future vision for their industry and an agenda to increase the likelihood of the industry moving toward this vision.
Maintain foresight and flexibility. For companies unwilling or unable to reshape their industry, the key is to institutionalize a strategic process that accelerates learning across the company, while pursuing a portfolio of strategic initiatives that provides strategic flexibility with limited investment. A company may encourage "strategic experimentations" in order to prepare for different futures.
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The A.T. Kearney Strategy Chessboard
We selected what we consider the most useful and complementary strategy schools of thought for each of the umbrella strategies to create our Strategy Chessboard. The chessboard provides a multi-dimensional perspective on strategy development and addresses an important but rarely discussed element: the selection of strategic frameworks to be used for a particular effort.
For more information about our Strategy Chessboard
Access the paper: The A.T. Kearney Strategy Chessboard – A broader perspective on strategy development and formulation
Learn more about our approach to helping companies design and implement strategies that will help them succeed into the future
Contact one of the Strategy Leaders listed on the right
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