STRATEGY CONSULTING GROUP

 
 
              SCG

UNIQUE TALENTS FROM DIVERSE BACKGROUNDS

Our professional advisers come from a wide variety of exceptional backgrounds. They hold diplomas across a full range of disciplines, from business administration and economics to biochemistry, engineering, psychology, classics, and law. We value and utilize the unique talents that each individual offers.

 

Our teams often consist of graduates with inquiring minds working alongside seasoned specialists with years of industry or functional expertise. Although our consultants develop deep knowledge in particular industries and functions, they remain generalists at heart, curious about all business issues and open to sharing their ideas and experience.

 

Regardless of their tenure or focus, SCG advisers share a deep commitment to our clients and a passion for change.

 

 

Strategy: The What, Who, How, and Why

Many leaders we work with struggle with strategy. They know it’s important to have strategies in order to align decision making in their businesses. They understand that they can’t observe and control everything in their organizations (much as many of them would like to). They earnestly want to develop good strategies and they get the theory. But when it comes down to the nitty-gritty of crafting strategy, they rapidly get bogged down.


This is unfortunate, but it’s not that surprising. It’s a direct consequence of confusion about what a “business strategy” is… and is not. Here’s our definition: A business strategy is a set of guiding principles that, when communicated and adopted in the organization, generates a desired pattern of decision making. A strategy is therefore about how people throughout the organization should make decisions and allocate resources in order accomplish key objectives. A good strategy provides a clear road-map, consisting of a set of guiding principles or rules, that defines the actions people in the business should take (and not take) and the things they should prioritize (and not prioritize) to achieve desired goals.


As such, a strategy is just one element of the overall strategic direction that leaders must define for their organizations. A strategy is not a mission, which is what the organization’s leaders want it to accomplish; missions get elaborated into specific goals and performance metrics. A strategy also is not the value network — the web of relationships with suppliers, customers, employees, and investors within which the business co-creates and captures economic value. Finally, a strategy is not a vision, which is an inspiring portrait of what it will look and feel like to pursue and achieve the organization’s mission and goals. Visioning is part (along with incentives) of what leaders do to motivate people in the organization to engage in above average effort.


In a nutshell, mission is about what will be achieved; the value network is about with whom value will be created and captured; strategy is about how resources should be allocated to accomplish the mission in the context of the value network; and vision and incentives is about why people in the organization should feel motivated to perform at a high level. Together, the mission, network, strategy, and vision define the strategic direction for a business. They provide the what, who, how, and why necessary to powerfully align action in complex organizations.