Scope of work
A strategy review examines the choices a business has made about customers, products, markets and capital. We compare the current plan with trading performance and external evidence, then identify where its assumptions need revision. The scope can cover the whole business, a division or a specific strategic question.
The review considers what the plan requires from the organization as well as what it projects financially. Distribution capacity, management attention, product development and working capital can limit a proposal that appears attractive in a forecast. Recommendations explain the trade-offs and the conditions that would justify a different course.
We reconcile the commercial and financial baseline, examine the assumptions supporting the plan, and compare feasible alternatives. Interviews and external research are used where the existing information leaves a material question unanswered. The recommendation identifies the work required, dependencies and measures for subsequent review.
Questions to address
- Revenue forecasts depend on market-share or pricing assumptions that have not been tested.
- Investment proposals compete for the same people, production capacity or funding.
- Business-unit plans use different definitions of growth, cost and return.
- A change in demand, competition or ownership requires the plan to be reconsidered.
When to consider this work
- Annual or multi-year planning
- A revised growth target
- A proposed change in business mix
- Preparation for a management or board discussion
How we approach it
Establish the baseline
Review plans, management accounts, customer and product performance, and existing market research. Agree the question the review must answer and the decisions it will inform.
Test the alternatives
Examine customer demand, competitive position, investment requirements and operational constraints. Separate supported assumptions from estimates that need further investigation.
Revise the plan
Compare the alternatives and specify the recommended changes. Record the assumptions to monitor and the actions that must precede a larger commitment.