Five Dimensions of Strategy
The five dimensions of strategy developed from the work with some of the leading consulting engineers in the UK. We employ multi dimensional techniques of analysis, as part of a project planning process. Computer aided design rapidly developed the two dimensional capacity of the drawing board into two and three dimensions. Accelerated slow motion capture, or project prediction and acceleration, incorporated the fourth dimension of time into the planning process. Adding the fifth dimension of cash management, expenditure, receipts and debt management, enabled the construction of a holistic five dimensional Model to facilitate overall project control.
The challenge then became how to incorporate this sophisticated 5D model into the corporate strategy and business modelling cycle. The steps, or building blocks had been identified by previous major advances by The Boston Consulting Group BCG and Bain and Company.
BCG had developed the Growth Share Matrix, as a two dimensional portfolio analysis model. Challenging conglomerates, or portfolio businesses to analyze holdings using two dimensions of relative market attraction and relative market share. Dogs, Cows, stars and questions marks the classification developed by the two step technique. How attractive is the market, in terms of rate of growth and how significant is the market strength in terms of market share or relative market share. [Check out The Herfindahl index for information on RMS].
The Bain Cube introduced a third dimension of relative financial strength into the growth share matrix. By analysing business according to relative market attraction, relative market share and relative financial strength, a strategy could be developed according to the position of the organisation within the cube. For example businesses with strong market share in a good or growing market with cash to support expansion would be at one extreme. Businesses with a low market share, in a static or declining market, with zero cash or heavy borrowing would present at the other extreme. Companies in the former camp would be in a strong position to consolidate or expand markets share by organic growth or acquisition, businesses in the latter camp would be facing a much more difficult challenge. You can download a copy of the Bain Cube PDF here or check out the web link.
In the 5D profile, we build upon the strengths of the 2D and 3D model. We incorporate RMA, relative market attraction, RMS, relative financial strength and RFS, relative financial strength into a time and monetary dimension. We place businesses at the stage in terms of the growth or product life cycle and also position ( as far as possible) within the economic cycle. This provides our fourth (time) dimension.
Finally by incorporating debt into the mix, we introduce a fifth monetary dimension into the model. Managing the debt curve, becomes even more critical when understood against the dimension of time and the basic 3D analysis.
The challenge then became how to incorporate this sophisticated 5D model into the corporate strategy and business modelling cycle. The steps, or building blocks had been identified by previous major advances by The Boston Consulting Group BCG and Bain and Company.
BCG had developed the Growth Share Matrix, as a two dimensional portfolio analysis model. Challenging conglomerates, or portfolio businesses to analyze holdings using two dimensions of relative market attraction and relative market share. Dogs, Cows, stars and questions marks the classification developed by the two step technique. How attractive is the market, in terms of rate of growth and how significant is the market strength in terms of market share or relative market share. [Check out The Herfindahl index for information on RMS].
The Bain Cube introduced a third dimension of relative financial strength into the growth share matrix. By analysing business according to relative market attraction, relative market share and relative financial strength, a strategy could be developed according to the position of the organisation within the cube. For example businesses with strong market share in a good or growing market with cash to support expansion would be at one extreme. Businesses with a low market share, in a static or declining market, with zero cash or heavy borrowing would present at the other extreme. Companies in the former camp would be in a strong position to consolidate or expand markets share by organic growth or acquisition, businesses in the latter camp would be facing a much more difficult challenge. You can download a copy of the Bain Cube PDF here or check out the web link.
In the 5D profile, we build upon the strengths of the 2D and 3D model. We incorporate RMA, relative market attraction, RMS, relative financial strength and RFS, relative financial strength into a time and monetary dimension. We place businesses at the stage in terms of the growth or product life cycle and also position ( as far as possible) within the economic cycle. This provides our fourth (time) dimension.
Finally by incorporating debt into the mix, we introduce a fifth monetary dimension into the model. Managing the debt curve, becomes even more critical when understood against the dimension of time and the basic 3D analysis.
