The Corporate Executive Board: What the Best Companies Do

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Business Unit Strategy Building Blocks Template

Strategy “Building Blocks”

Sample Questions and Planning Outputs

Planning Outputs

1 Aspirations

•  What are specifi c business unit aspirations in terms of market leadership, share, penetration, customer loyalty, and brand image?

•  Three years from now, why are you the company of choice for your various customer groups?

•  Revenue

•  Operating margin

•  Earnings growth

•  Industry-specifi c metrics

2 Where to Play

•  In three years, how will your customer base change? What types of customers will you gain or lose?

•  In which specifi c markets will you play? In which markets will you not play?

•  How will the types and mix of products be different from today?

•  How will distribution channels differ?

•  Customer segments

•  Geographic areas

•  Product types

•  Distribution channels

3 How to Win

•  What are specifi c features of your future products? How do these differ from today?

•  How do your major competitors look in three years? In which areas are they dominant? Are there “white spaces”?

•  Value proposition to target customers

•  Sources of competitive advantage

4 Capabilities Required for Success

•  In which core capabilities must you excel, compared to your competitors?

•  What processes or functionalities are necessary in three years, but currently present to a lesser degree, or absent altogether?

•  Functionalities

•  Critical competencies

•  Required investments

5 Performance Management Systems Required

•  How will you measure success in creating value for the customer?

•  What incentive programs are necessary to promote this value creation?

•  Metrics to judge success

•  Reward systems

•  Feedback mechanisms




















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