Introduction
Objectives and content of the
program
Introduction
Module I
Module II
Module III
Module V
Roll-out
Qtr 1
4
Qtr 2
Qtr 3
Qtr
Action 1
Action 2
Action 3
Action 4
Action 5
Module VI
Conclusion
Module IV
Contents
Administrative issues
Strategy and its importance for A.T. Consulting
Defining strategy and how business unit strategy compares to other types of strategy
Objectives of A.T. Consultings Business Unit Strategy Training Program
Content of A.T. Consultings Business Unit Strategy Training Program
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
Administrative issues
Welcome to the Business Unit Strategy Training Program
Help make ATK
strategy capable
Network with likeminded colleagues
Develop skills in
strategic analysis
Goals of the
Business Unit
Strategy
Training
Program
Share and test
experiences with
others
Think about business
issues from a strategic
perspective
Source: A.T. Consulting
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
Administrative issues
About the creation of this program
The program was conceived and developed by the Global Strategy Initiative
(GSI), an initiative begun in 1997 to raise A.T. Consultings strategy
capability. The program is one of several deliverables resulting from the GSI
The program materials were developed by a team of A.T. Consulting
consultants from around the world over the course of 9 months
The program was created using a bottom-up approach, in which sources
from around the firm and academia were gathered and with time filtered into
the finished product
This is the first version of the business unit training program. It will be
updated and improved on a regular basis by a new team of A.T. Consulting
consultants
Source: A.T. Consulting
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
Administrative issues
Personal introductions
Name
Office
Experience with A.T. Consulting
Experience before A.T. Consulting
Specific strategy highlights
Source: A.T. Consulting
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
Administrative issues
What is your perspective on strategy, and what are your expectations of the
course?
What is your view on business unit strategy in
general?
What is your view on A.T. Consulting and business
unit strategy?
What are your expectations with regard to this
training program?
Source: A.T. Consulting
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
Administrative issues
Schedule for the A.T. Consulting Business Unit Strategy Training Program
Time
Monday
Tuesday
Wednesday
Thursday
Friday
Module II
Module III
Module V
Final presentation
8-9
Introduction
9-10
10-11
11-12
12-1
Module I
1-2
Lunch
Conclusion
Lunch
Lunch
Lunch
2-3
3-4
Module VI
Guest Speaker
Module IV
Guest Speaker
4-5
Case preparation
Case preparation
Case preparation
Strategy literature
review
7-8
Case presentation
Case presentation
Case presentation
Case Dinner
preparation
8-9
Dinner
Dinner
Dinner
Dinner
5-6
Lunch
6-7
9-10
10-?
Source: A.T. Consulting
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
Administrative issues
What are our expectations of you?
Expectation
Source: A.T. Consulting
Comments
Attentive
Give your attention and participate
Punctual
Be punctual to ensure efficient time management we have a lot of material to cover
Curious
Ask questions - there are no bad ones
Team-oriented
Work within teams to reinforce concepts and
enhance learning - and give it your full effort
Resourceful
Draw upon what you have learned in the course
and knowledge you have gained through project
experiences and other schooling to augment
analyses, presentations and group learning
Helpful
Provide feedback so we can make the course even
better
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
Contents
Administrative issues
Strategy and its importance for A.T. Consulting
Defining strategy and how business unit strategy compares to other types of strategy
Objectives of A.T. Consultings Business Unit Strategy Training Program
Content of A.T. Consultings Business Unit Strategy Training Program
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
Strategy and its importance for A.T. Consulting
The consulting industry has undergone continuous change during the past two
decades
1980-1989
1990-1997
1998
External trends Globalization of markets
Deregulation
Convergence of industries
Dismantling of conglomerates
Downsizing
Digital world
Virtual companies
Outsourcing
Regionalization (EU, NAFTA,
APEC)
Concentration of industries
Consultants
value
proposition
Building strategy capabilities
Cost reduction
Organizational design
Industry knowledge/insights
Process facilitators on
operations/IT
End-to-end capabilities
Key players
McKinsey
BCG
Bain
BoozAllen & Hamilton
McKinsey
A.T. Consulting
BCG
Bain
BoozAllen & Hamilton
Big six
McKinsey
A.T. Consulting
Big six (Big four)
International office network
Industry practices
CEO control
Integrated solutions
Key factors for Problem solving capabilities
success
Note: BCG, Bain, and BoozAllen & Hamilton are not considered as key players of the future, based on with their present strategy focused
offering. Shifts in focus or mergers and acquisitions can make these players more viable competitors in the future
Source: A.T. Consulting
Introduction
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
10
Strategy and its importance for A.T. Consulting
A.T. Consulting must improve its strategy capability to become
end-to-end capable
Strong capabilities
Weak capabilities
A.T. Consultings current value proposition
A.T. Consultings end-to-end capabilities
Strategy
Operations
Information
technology
Need for
improvement
on a global
basis
Source: A.T. Consulting
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
11
Strategy and its importance for A.T. Consulting
Introduction to A.T. Consultings Strategy Practice
Strategy practice mission statement
We seek to build the premier capability in developing value and growth
strategies for major corporations worldwide and in driving implementation
to measurable results
We shall broaden our
service offerings to
include greater
perception, ideas,
frameworks and
methodologies for
solving corporate and
business unit issues
Source: A.T. Consulting
We shall broaden our
focus to strengthen
current account
relationships, while
building relationships
with the leaders of the
future
We shall achieve the
image as a great
strategic consulting
company based on
delivering superior
contributions
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
We shall focus on
further developing the
growth potential
across industries,
particularly as it
relates to information
and technology
Introduction
12
Strategy and its importance for A.T. Consulting
A.T. Consultings value proposition in strategy
A.T. Consultings Strategy Practice helps
clients turn strategy into action. It sees
strategy as the design of the entire business
system and an integrated set of actions to
continuously create and redefine competitive
advantage. This is done through superior
customer value with the aim of maximizing
shareholder value in the long term
Source: A.T. Consulting
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
13
Contents
Administrative issues
Strategy and its importance for A.T. Consulting
Defining strategy and how business unit strategy compares to other types of strategy
Objectives of A.T. Consultings Business Unit Strategy Training Program
Content of A.T. Consultings Business Unit Strategy Training Program
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
14
Defining strategy and how business unit strategy compares to other types of strategy
Some strategy definitions
Author(s)
Definition
Sun Tzu
Strategy is the great work of the organization. In situations of life or death, it is
the Tao of survival or extinction. Its study cannot be neglected
Alfred D. Chandler, Jr.
The determination of the long run goals and objectives of an enterprise, and the
adoption of courses of action and the allocation of resources necessary for
carrying out these goals
Kenichi Ohmae
Strategy is the way in which a corporation endeavors to differentiate itself
positively from its competitors, using its relative corporate strengths to better
satisfy customer needs
James Brian Quinn
Strategy is the pattern or plan that integrates an organization's major goals,
policies, and action sequence into a cohesive whole. A well-formulated strategy
helps to marshall and allocate an organizations resources into a unique and viable
posture based on its relative internal competencies and shortcomings, anticipated
changes in the environment, and contingent moves by intelligent opponents
Michael Porter
Strategy is the matching of a companys strengths and weaknesses to the
opportunities and threats in the environment
Gerry Johnson & Kevan
Scholes
Strategy is the direction and scope of an organization over the long term: ideally,
which matches its resources to its changing environment, and in particular its
markets, customers or clients so as to meet stakeholder expectations
Source: Want, R.L. (1988); A New Translation of Sun Tzus Classic The Art of War;Chandler, A.D. (1960); Strategy and Structure; Ohmae, K.
(1976); Mind of the Strategist; Quinn, J.B. (1988); Strategies for Change; Porter, M.E. (1980); Competitive Strategy; Johnson, G. & Scholes, K. (1993);
Exploring Corporate Strategy
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
15
Defining strategy and how business unit strategy compares to other types of strategy
A.T. Consultings business unit strategy definition enables consultants to carry out
an acid test as to whether the client has a clear strategy that can enable the
company to achieve success
A Business Unit Strategy is about ...
an integrated set
of actions . . .
Does the client
manage the
value chain in an
integrated way?
Does its plan
include all of the
needed actions?
Source: A.T. Consulting
to design the
entire value
system . . .
Is the delivery
mechanism in
place to meet
strategic
objectives?
Is the value
system effectively
structured?
to continuously
create and redefine competitive
advantage . . .
through
superior
customer
value . . .
with the aim of
maximizing
shareholder
value in the
long-term
Is the client's
business
competition
oriented?
Is the client's
business
customer
oriented?
Does the
company have a
key strategic
objective?
Is the competitive
advantage
sustainable?
Does the
customer
perceive
sufficient value?
Is the company
maximizing
shareholder
value?
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
16
Defining strategy and how business unit strategy compares to other types of strategy
The A.T. Consulting definition of BU strategy reflects the importance that the firm
places on strategy for the future success of the company
an integrated set of
actions . . .
A program of specified organizational, manufacturing, financial, and managerial actions
aimed at integrating all resources of a BU towards a common goal
to design the entire value
system . . .
The sequence of steps and their respective elements (technology, production design,
sales, distribution, etc.) by which companies in a given business produce their goods or
services and deliver to the customer
to continuously create
and redefine competitive
advantage . . .
Competitive advantage is what a company possesses when it earns or has the potential to
earn a higher ratio of profit than its competitors. Competition without an advantage for
any particular competitor results in a totally competitive market. The markets forces will
not allow any company to realize any returns beyond the cost of equity
Competitive advantage needs to be sustainable in a way that competitors cannot copy or
nullify the particular advantage
through superior
customer value . . .
The value that an end-user receives from the product, which could be economic (low
price through cost reduction) or perceived benefit (qualitative) contributed by the product
with the aim of
maximizing shareholder
value in the
long-term
By maximizing profits, companies maximize shareholder value (the economic value
received by owners of equity through dividend payments and/or increases in share price).
Shareholder value maximization is widely seen as the appropriate goal of a company and
the primary yardstick for measuring performance
Source: A.T. Consulting
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
17
Defining strategy and how business unit strategy compares to other types of strategy
Although strategy can encompass corporate, business unit and functional strategy,
the focus of this training program is on the business unit
Industry
Corporate strategy and finance
M&A&D
Design of the corporation and
corporate center
Resource allocation
Market and
competitive
strategies
Business unit
Corporate
Business unit strategy
defines how the
company competes
within a particular
industry or market
Strategies for industry
restructuring
Corporate strategy defines the
scope of the company in terms of
the industries and markets in which
its various business units compete
Business unit
R&D
Personnel
Finance
Production
Where to compete
Source: A.T. Consulting
How to compete
Functional strategy
defines the detailed
deployment of
resources at the
operational level
Sales and
marketing
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
18
Defining strategy and how business unit strategy compares to other types of strategy
What is a strategic business unit (SBU)?
Definition of an SBU
Some traditional characteristics
A strategically and functionally distinct
execution-oriented entity that is usually
a subset of a corporation
A unit that has a:
Well-defined market (or market
segments)
Well-defined group of competitors
Well-defined business system that
serves the market
A unit grouped as such to optimize the
collective organizational capabilities
among its constituent entities
It is a single business, often with its own
P&L responsibilities, or collection of
related businesses that can be planned
separately from the rest of the
corporation/other business units
It has its own competitors, which it is
trying to surpass
It has a manager who is responsible for
strategic planning, profit, and
performance
Source: A.T. Consulting; Kotler, P. (1997); Marketing Management
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
19
Defining strategy and how business unit strategy compares to other types of strategy
The main elements of a business unit strategy
Product/market
Where to compete
In which segments should the
company compete?
Strategic roadmap
When to compete
Iterative
process
Capabilities?
Action?
Critical
path
Business system
How to compete
R&D
Design Manuf. S&M Service
Competitor reaction?
At what time and in which sequence
should a strategy be executed?
Source: A.T. Consulting
How should the business
system be designed?
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
20
Defining strategy and how business unit strategy compares to other types of strategy
Strategy projects differ from other types of engagements in several ways
Unique to each engagement and therefore issue-driven and more
flexibly structured
There is not one approach that will work for every situation.
However, for every company in every situation, there will be an
ideal approach
Broader in scope
More long-term oriented in nature and results might often be
intangible for several years
Characterized by ambiguity and a high degree of uncertainty as
consultants often dont know where the project will end up
Characterized by many iterations throughout the project due to
new findings which can result in changes to the scope and the
nature of the project
Characterized by a process and not a single approach
Source: A.T. Consulting
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
21
Defining strategy and how business unit strategy compares to other types of strategy
Strategy projects differ from other consulting projects in their process approach
Mechanical
systems thinking
Intuition
Strategic thinking
Problem
prototype
Process of
thought
Solution
Rearrangement of
elements
Local optimization, or
seeing the tree, not the
forest
Source: Ohmae, K. (1976); The Mind of the Strategist
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Transformation or
changed configuration
Introduction
22
Contents
Administrative issues
Strategy and its importance for A.T. Consulting
Defining strategy and how business unit strategy compares to other types of strategy
Objectives of A.T. Consultings Business Unit Strategy Training Program
Content of A.T. Consultings Business Unit Strategy Training Program
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
23
Objectives of A.T. Consultings Business Unit Strategy Training Program
The main objectives of the program
Company objectives
Individual objectives
Strengthen A.T. Consultings overall strategy
consulting delivery capabilities
Raise A.T. Consulting consultants strategy
skills to a higher level
Add to portfolio of consulting skills
Offer broader career possibilities within A.T.
Consulting
Satisfy intellectual curiosity
Teach A.T. Consulting consultants techniques
likely to be applied in many future strategy
engagements
Broaden ones perspective towards consulting
engagements
Teach A.T. Consultings unique and executionoriented perspective on strategy
Establish a common vocabulary and point-ofdeparture for all A.T. Consulting strategy
engagements
Source: A.T. Consulting
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
24
Objectives of A.T. Consultings Business Unit Strategy Training Program
Take-away objectives from the instruction and case sections of the program
The instruction section
The case section
Understanding of the fundamental strategy
analysis techniques
Reinforce the concepts taught during the class
Familiarization with strategy concepts that
consultants are most likely to apply
Understand when, how, and to what extent to
apply the techniques - realizing that use of the
analyses will vary with each engagement
Endowment of knowledge that enables
consultants to know where to go, when asked
to use the techniques
Realize that other project-specific strategy
techniques are also required in a consulting
engagement
Ability to practically apply the knowledge
gained from the course in strategy engagements
Understand how to structure a logical and
methodical game plan when approaching a
strategy project
Be prepared to hit the ground running when
staffed on an assignment
Source: A.T. Consulting
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
25
Objectives of A.T. Consultings Business Unit Strategy Training Program
The objective of the training program is to teach a set of techniques that form the
building blocks of analysis in strategy engagements and not to teach an approach
Issue/client
objective
Framework
Solved by
Defines
Approach
Contains
Deliverable
Shows
Technique
Shows
Example
Uses
Tool
Framework
A question which expresses the clients concern or the uncertainties which must be resolved to achieve the clients
objective. Issue questions are not rhetorical, they should have clear alternative solutions and significant consequences
associated with the answer
A way of looking at a clients business issue; a set of building blocks, planks or beliefs that determine at a high level
how we might approach a client issue; that ultimately translates to a collection of deliverables
Approach
A logical structure or sequence of deliverables that might span frameworks. There is no one approach to strategy
Deliverable
A result or insight necessary for the client to reach its objective; that which A.T. Consulting delivers to our client (or to
internal clients within A.T. Consulting) as a result of our proposed solutions and engagement efforts
Technique
A method, model, or calculation that produces a deliverable
Tool
A spreadsheet, model, database, survey or software used as part of a technique to produce a deliverable
Example
A specific illustration or application of a deliverable, technique, or tool, generally drawn from a client engagement but
sanitized so that the client is unrecognizable
Business issue
Source: A.T. Consulting, Centres of Excellence
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
26
Objectives of A.T. Consultings Business Unit Strategy Training Program
This program focuses on teaching techniques because there is not a standard
approach to strategy
Techniques allow consultants to:
Be flexible in modeling analyses
after issues instead of being confined
to rigid approaches that may not be
relevant in all engagements
Think with a strategic perspective
Adapt skills to other types of
consulting engagements
Source: A.T. Consulting
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Overall strategy
frameworks and
approaches are not the
focus of this program as
they vary greatly from
client to client and
project to project
Introduction
27
Objectives of A.T. Consultings Business Unit Strategy Training Program
The training program focuses intensively on exercises and examples to ensure that
the theoretical knowledge can be practically applied
Module
Example
Exercise
Oil and gas services
company
Big Kahuna Company/
Cessna Aircraft Company
II
Food and beverage industry
Airline industry
III
Copier company
Coca Cola
IV
n.a.
n.a.
Automotive industry
Petroleum industry
VI
n.a.
n.a.
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Case
Motorola
Introduction
28
Objectives of A.T. Consultings Business Unit Strategy Training Program
The techniques taught in this program do not cover all of the areas
that might be relevant in strategy projects
The techniques which are
taught in the program are the
most commonly used
techniques in BU strategy
engagements
However, some techniques are
not described, because they
either are covered by other
training programs or do not
specifically relate to BU
strategies
Source: A.T. Consulting
Change
Management
(Enterprise
Transformation
)
Illustrative
Finance
(CEO Agenda)
BU strategy program
Purchasing
(Strategic Sourcing)
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
29
Objectives of A.T. Consultings Business Unit Strategy Training Program
This program is complementary to A.T. Consultings other major training
programs
Orientation
NCO
Engagement
execution
BUS/
SS
Engagement
management
Business
development
Account
management
LSPD
Leadership
Source: A.T. Consulting
CEO:
CEO Agenda
ET:
Revised version of
Transforming the
Enterprise
MS:
VP- Mind setting
program
NCO:
New Consultant
Orientation (including
Pyramid and
Consultant Process
Workshop)
SS:
Strategic Sourcing
Officer
Principal
Manager
Associate
MS
BA
Business
process
Target
audience
Business Unit Strategy
LSPD: Lead Strategy and
Proposal Development
ET
CEO
BUS:
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
30
Objectives of A.T. Consultings Business Unit Strategy Training Program
This program can be viewed as A.T. Consultings chess book
If A.T. Consulting were a
chess club, it would want
to establish a set of
commonly used,
advanced and structured
techniques to play its
own game
Source: A.T. Consulting
To help clarify these
techniques and their use,
we are putting them in a
chess book for the use
of all club members
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
The goal of the chess
book is not to develop
new or proprietary
techniques, but to collect
and explain the most
commonly used ones to
ensure coherent and
successful chess playing
Introduction
31
Contents
Administrative issues
Strategy and its importance for A.T. Consulting
Defining strategy and how business unit strategy compares to other types of strategy
Objectives of A.T. Consultings Business Unit Strategy Training Program
Content of A.T. Consultings Business Unit Strategy Training Program
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
32
Content of A.T. Consultings Business Unit Strategy Training Program
The structure of the Business Unit Strategy Training Program
Module II
Structure and
dynamics of the
industry
Module I
Identification of the key
issues of the
engagement
Module III
Characteristics and
dynamics of the
individual companies
Module V
Definition and
evaluation of strategic
alternatives
Module VI
Implementable
recommendations
Roll-out
Qtr 1
Qtr 2
Qtr 3 Qtr 4
Action 1
Action 2
Action 3
Action 4
Action 5
Module IV
Execution
capacity of the
client
Note: The order of presentation of the curriculum elements should not be interpreted as a sequential guideline for a strategy engagement. Different
elements of the program may be referenced at different times in the engagement
Introduction
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Source: A.T. Consulting
33
Content of A.T. Consultings Business Unit Strategy Training Program
The content of the program is structured such that related techniques are
categorized into deliverables and related deliverables into modules
Module: A collection of deliverables that
together address a key issue
Deliverable: A collection of techniques
that address specific issues
or sub-issues
Technique: A specific analysis
performed to test
hypotheses
* Exercises are located separately in a workbook
Source: A.T. Consulting
Description: A technique put into context through
a definition and/or a description
Usage:
Why, how, and when the technique is
applied
Methodology: The process for using the technique
Example:
A real-life presentation of a
technique as it would be presented in
its completed form
Exercise*:
A short exercise that requires the
participants to employ the technique
Conclusion:
A summary of key points, strengths,
weakness, and references
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
34
Modules I and II: Deliverables and Techniques
Module
Deliverable
Technique
I. Identification of the key issues
of the engagement
Key issues of the engagement
Issue analysis
II. Structure and dynamics of the
industry
Industry structure
Players analysis
Strategic group analysis
Substitution analysis
Supply chain analysis
Exit and entry barrier assessment
Development of the industry
Industry strategic era analysis
Life cycle analysis
Trends analysis
Product/market analysis
Size and growth of the market
Product/market segmentation
Demand and supply economics
Demand and supply economics
Industry analysis frameworks
Structure-conduct-performance
The five forces
The strategic triangle
Source: A.T. Consulting
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
35
Modules III and IV: Deliverables and Techniques
Module
III. Characteristics and dynamics
of the individual companies
Deliverable
Overall company profile
Technique
Purpose of the organization
Stakeholder analysis
Strategic era analysis
Strategic planning framework
Product/market focus
Evaluation of product/market
segments
Overview of the value chain
Value chain analysis
Cost and margin driver analysis
Financial resources and performance
Development over time
Financial ratios
Company analysis frameworks
7S
Benchmarking
SWOT
IV. Execution capacity of the
client
Assessment of execution capacity
Operational capacity assessment
Organizational capacity assessment
Information technology capacity
assessment
Source: A.T. Consulting
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Introduction
36
Modules V and VI: Deliverables and Techniques
Module
V.
Definition and evaluation of
strategic alternatives
Deliverable
Decision-making
Technique
Decision tree
Game theory
Long-term scenarios
Scenario planning
End game
Generic strategy frameworks
Three generic strategies
Gaining strategic advantage
The growth matrix
VI. Implementable recommendations
Source: A.T. Consulting
Implementable recommendations
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Implementation plans
Introduction
37
