Make better strategic decisions

Method by Matt Watkinson

The Grid jointly and dynamically considers the three goals that make for a successful business:

• Desirability: people must need or want what you are offering
• Profitability: you must be making money
• Longevity: your goal is to continue making money for a long time

These three goals are each influenced by three “actors”:

• Customers: their needs, wants and behavior change
• The Market: competitors, regulations, supply chains and more, all change
• Your Organisation: your capabilities, strengths and weaknesses change

The brilliance of The Grid is to capture the interactions between the three goals with the three “actors”. This allows for you to jointly consider these aspects in a dynamic way.

We are one of the only “Grid” consultants in Europe.

Desirability

For a given decision we are evaluating, we explore “desirability” for the three actors.

A customer’s wants and needs are underpinned by their values & beliefs, the means to achieve their goal or solve their problem and the barriers preventing them.

In the Market, you face rivalry in your category, in your territory and from alternatives & substitutes.

Your Organisation is built around your Value Proposition, your brand appeal and the customer experience.

Profitability

We then explore “profitability” and how each actor influences it.

Creating profit requires revenues from customers based on your revenue model, your pricing and your volume.

Your bargaining power with your customers and with your suppliers affect your profits, as do government rules and regulations.

Profitability depends on your fixed and variable costs and on your longer-term investments.

Longevity

Finally, we explore “longevity”.

Your customer base depends on the stages of your sales cycle: awareness,  acquisition, retention.

Imitability can adversely affect your longevity. You can seek legal protection, build durable advantages or be faster than your competitors.

Finally, your adaptability is key. This can depend on your cash position, your scalability or reserve capacity and the complexity or rigidity of your organisation.

How are all these elements influenced by your decision?

Examples

The Grid reveals the fundamental, inseparable elements behind business success.

For example:

• Evaluate and refine product and service ideas
• Reduce risk by considering the broader impact of strategic decisions
• Identify the root causes of business challenges
• Anticipate the impact of changes in the market and turn them to your advantage
• Collaborate more effectively across teams