The Strat/Assess model serves:
- as a business risk management tool/stress test for integral business development
(or in other words as opportunity management ) and
- subsequent decision making
In Strat/Assess the business risk is in addition to the financial aspects a factor of strategic market attractiveness and strategic competences:
- Strategic market attractiveness: scores for the external market analysis
- Strategic competences: scores for the internal analysis,
defined as 100% minus the product of the Strategic market attractiveness and Strategic competence scores(the risk can be limited over time by improving competences, whereas market conditions are in most cases a given fact):
100 -/- ( scoring of Strategic attractiveness x scores of Strategic competences) ___________________________________________________
100
SELF ASSESSMENT: STRATEGIC MARKET MAP
EXAMPLE:
From the scores below the risk is 90,5 %
Calculation:
(100 -/- (38x25) ) / 100 = (100 -/- 9,5 ) /100 = 90,5 %
The external factors determine the business risk to a great extent, competences can in most cases be improved.
The maximum risk score in this example is 62 % at a competences level of 100 %. Based on the Strat/Assess requirements as described in bottom-line decision making 62% risk is unacceptable.
Such a project should be discontinued.
SELF ASSESSMENT: STRATEGIC COMPETENCES MAP
Elaboration strategic competences map
(PROFESSIONAL VERSION ONLY)
At risk/incomplete/to be developed: Desired state:
According to the underlying theory a business will fail when not all scores are at 3 level at time of market introduction (at the latest) or when scored for an existing company.
- Risk/Return map:
- Strategic discussion issues and business risk analysis:
- With a stretched decision making oriented approach with "checks and balances" leading to "Survival of the fittest" business cases/projects/ businesses as a business decision stress test: