“Capabilities-Driven Strategy”
In the June 5, 2011 broadcast of Peter Day’s World of Business on BBC World Service, and later rebroadcast in the U.S. on National Public Radio, Booz & Company Partner Cesare Mainardi (North America) said that companies that agree how they will add value in a market are able “to focus on the few things that allow them to define value in that way.” Booz & Company refers to those “few things” as “capabilities,” the crux of a strategy the firm uses to ensure a company’s products and services fit that kind of value proposition—and then outperform their competition by as much as 50 percent. Mainardi appeared on the business program with Booz & Company Partner Paul Leinwand, with whom he co-authored the book, The Essential Advantage, which details the firm’s approach toward what it calls Capabilities-Driven Strategy. “The benefit of big for the sake of being big is no longer as helpful,” Leinwand told Day. “And that’s why we’ve got to become better. We’ve got to find out what do we do well as a company—how can we win, how can we create that right to win in every market in which we compete.”