“Three Leaders on Business Execution, Reasons for Corporate Strategy Failure and the Effective Use of the Balanced Scorecard”
In the December 5, 2010 issue of The Sunday Telegraph, Booz & Company Partner Paul Leinwand (North America) said that a successful corporate strategy begins when a company focuses on its capabilities: “What are we truly great at?” as well as “What markets would reward that greatness?” and “How can we create and sustain a Right to Win?” However, added Leinwand, “most strategies bypass these questions and instead focus on appealing, but sometimes unhelpful queries: ‘What markets are attractive?’ as well as ‘What are the 10 new ways we can grow?’ and ‘What are our competitors doing that we should emulate?’” Where companies should be focusing, he added, is on capabilities—what the company does vs. what it has (its assets). “A capability is at the roots of Booz & Company’s Capabilities-Driven Strategy, which focuses on the ability to reliably and consistently deliver a specific outcome and is supported by the right combination of processes, tools, skills and organization that create value to customers,” Leinwand said. “But coherent companies don’t just have a list of capabilities, they build what we describe as a capability system—3-to-6 interconnected capabilities that work together to support the way the company competes.”