Introduction

Objectives and content of the

program

Introduction

Module I

Module II

Module III

Module V

Roll-out
Qtr 1
4

Qtr 2

Qtr 3

Qtr

Action 1
Action 2
Action 3
Action 4
Action 5

Module VI

Conclusion

Module IV

Contents

Administrative issues

Strategy and its importance for A.T. Consulting

Defining strategy and how business unit strategy compares to other types of strategy

Objectives of A.T. Consultings Business Unit Strategy Training Program

Content of A.T. Consultings Business Unit Strategy Training Program

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

Administrative issues

Welcome to the Business Unit Strategy Training Program

Help make ATK

strategy capable

Network with likeminded colleagues

Develop skills in
strategic analysis

Goals of the
Business Unit
Strategy
Training
Program

Share and test

experiences with
others

Think about business

issues from a strategic
perspective

Source: A.T. Consulting

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

Administrative issues

About the creation of this program

The program was conceived and developed by the Global Strategy Initiative
(GSI), an initiative begun in 1997 to raise A.T. Consultings strategy
capability. The program is one of several deliverables resulting from the GSI
The program materials were developed by a team of A.T. Consulting
consultants from around the world over the course of 9 months
The program was created using a bottom-up approach, in which sources
from around the firm and academia were gathered and with time filtered into
the finished product
This is the first version of the business unit training program. It will be
updated and improved on a regular basis by a new team of A.T. Consulting
consultants

Source: A.T. Consulting

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

Administrative issues

Personal introductions

Name

Office
Experience with A.T. Consulting
Experience before A.T. Consulting

Specific strategy highlights

Source: A.T. Consulting

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

Administrative issues

What is your perspective on strategy, and what are your expectations of the
course?

What is your view on business unit strategy in

general?

What is your view on A.T. Consulting and business

unit strategy?
What are your expectations with regard to this
training program?

Source: A.T. Consulting

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

Administrative issues

Schedule for the A.T. Consulting Business Unit Strategy Training Program

Time

Monday

Tuesday

Wednesday

Thursday

Friday

Module II

Module III

Module V

Final presentation

8-9
Introduction
9-10
10-11
11-12
12-1

Module I

1-2

Lunch

Conclusion
Lunch

Lunch

Lunch

2-3
3-4

Module VI
Guest Speaker
Module IV

Guest Speaker

4-5
Case preparation

Case preparation

Case preparation

Strategy literature
review

7-8

Case presentation

Case presentation

Case presentation

Case Dinner
preparation

8-9

Dinner

Dinner

Dinner

Dinner

5-6

Lunch

6-7

9-10
10-?

Source: A.T. Consulting

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

Administrative issues

What are our expectations of you?

Expectation

Source: A.T. Consulting

Comments

Attentive

Give your attention and participate

Punctual

Be punctual to ensure efficient time management we have a lot of material to cover

Curious

Ask questions - there are no bad ones

Team-oriented

Work within teams to reinforce concepts and

enhance learning - and give it your full effort

Resourceful

Draw upon what you have learned in the course

and knowledge you have gained through project
experiences and other schooling to augment
analyses, presentations and group learning

Helpful

Provide feedback so we can make the course even

better

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

Contents

Administrative issues

Strategy and its importance for A.T. Consulting

Defining strategy and how business unit strategy compares to other types of strategy

Objectives of A.T. Consultings Business Unit Strategy Training Program

Content of A.T. Consultings Business Unit Strategy Training Program

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

Strategy and its importance for A.T. Consulting

The consulting industry has undergone continuous change during the past two
decades

1980-1989

1990-1997

1998

External trends Globalization of markets

Deregulation
Convergence of industries
Dismantling of conglomerates
Downsizing

Digital world
Virtual companies
Outsourcing
Regionalization (EU, NAFTA,
APEC)
Concentration of industries

Consultants
value
proposition

Building strategy capabilities

Cost reduction
Organizational design

Industry knowledge/insights
Process facilitators on
operations/IT

End-to-end capabilities

Key players

McKinsey
BCG
Bain
BoozAllen & Hamilton

McKinsey
A.T. Consulting
BCG
Bain
BoozAllen & Hamilton
Big six

McKinsey
A.T. Consulting
Big six (Big four)

International office network

Industry practices

CEO control
Integrated solutions

Key factors for Problem solving capabilities

success

Note: BCG, Bain, and BoozAllen & Hamilton are not considered as key players of the future, based on with their present strategy focused
offering. Shifts in focus or mergers and acquisitions can make these players more viable competitors in the future
Source: A.T. Consulting
Introduction
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

10

Strategy and its importance for A.T. Consulting

A.T. Consulting must improve its strategy capability to become

end-to-end capable

Strong capabilities

Weak capabilities

A.T. Consultings current value proposition

A.T. Consultings end-to-end capabilities

Strategy

Operations

Information
technology

Need for
improvement
on a global
basis

Source: A.T. Consulting

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

11

Strategy and its importance for A.T. Consulting

Introduction to A.T. Consultings Strategy Practice

Strategy practice mission statement

We seek to build the premier capability in developing value and growth

strategies for major corporations worldwide and in driving implementation
to measurable results

We shall broaden our

service offerings to
include greater
perception, ideas,
frameworks and
methodologies for
solving corporate and
business unit issues

Source: A.T. Consulting

We shall broaden our

focus to strengthen
current account
relationships, while
building relationships
with the leaders of the
future

We shall achieve the

image as a great
strategic consulting
company based on
delivering superior
contributions

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

We shall focus on
further developing the
growth potential
across industries,
particularly as it
relates to information
and technology

Introduction

12

Strategy and its importance for A.T. Consulting

A.T. Consultings value proposition in strategy

A.T. Consultings Strategy Practice helps

clients turn strategy into action. It sees
strategy as the design of the entire business
system and an integrated set of actions to
continuously create and redefine competitive
advantage. This is done through superior
customer value with the aim of maximizing
shareholder value in the long term

Source: A.T. Consulting

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

13

Contents

Administrative issues

Strategy and its importance for A.T. Consulting

Defining strategy and how business unit strategy compares to other types of strategy

Objectives of A.T. Consultings Business Unit Strategy Training Program

Content of A.T. Consultings Business Unit Strategy Training Program

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

14

Defining strategy and how business unit strategy compares to other types of strategy

Some strategy definitions

Author(s)

Definition

Sun Tzu

Strategy is the great work of the organization. In situations of life or death, it is

the Tao of survival or extinction. Its study cannot be neglected

Alfred D. Chandler, Jr.

The determination of the long run goals and objectives of an enterprise, and the
adoption of courses of action and the allocation of resources necessary for
carrying out these goals

Kenichi Ohmae

Strategy is the way in which a corporation endeavors to differentiate itself

positively from its competitors, using its relative corporate strengths to better

satisfy customer needs

James Brian Quinn

Strategy is the pattern or plan that integrates an organization's major goals,

policies, and action sequence into a cohesive whole. A well-formulated strategy
helps to marshall and allocate an organizations resources into a unique and viable
posture based on its relative internal competencies and shortcomings, anticipated

changes in the environment, and contingent moves by intelligent opponents

Michael Porter

Strategy is the matching of a companys strengths and weaknesses to the

opportunities and threats in the environment

Gerry Johnson & Kevan
Scholes

Strategy is the direction and scope of an organization over the long term: ideally,
which matches its resources to its changing environment, and in particular its

markets, customers or clients so as to meet stakeholder expectations

Source: Want, R.L. (1988); A New Translation of Sun Tzus Classic The Art of War;Chandler, A.D. (1960); Strategy and Structure; Ohmae, K.
(1976); Mind of the Strategist; Quinn, J.B. (1988); Strategies for Change; Porter, M.E. (1980); Competitive Strategy; Johnson, G. & Scholes, K. (1993);

Exploring Corporate Strategy

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

15

Defining strategy and how business unit strategy compares to other types of strategy

A.T. Consultings business unit strategy definition enables consultants to carry out
an acid test as to whether the client has a clear strategy that can enable the
company to achieve success
A Business Unit Strategy is about ...
an integrated set
of actions . . .

Does the client

manage the
value chain in an
integrated way?
Does its plan
include all of the
needed actions?

Source: A.T. Consulting

to design the
entire value
system . . .

Is the delivery
mechanism in
place to meet
strategic
objectives?
Is the value
system effectively
structured?

to continuously
create and redefine competitive
advantage . . .

through
superior
customer
value . . .

with the aim of

maximizing
shareholder
value in the
long-term

Is the client's
business
competition
oriented?

Is the client's
business
customer
oriented?

Does the
company have a
key strategic
objective?

Is the competitive
advantage
sustainable?

Does the
customer
perceive
sufficient value?

Is the company
maximizing
shareholder
value?

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

16

Defining strategy and how business unit strategy compares to other types of strategy

The A.T. Consulting definition of BU strategy reflects the importance that the firm
places on strategy for the future success of the company

an integrated set of
actions . . .

A program of specified organizational, manufacturing, financial, and managerial actions

aimed at integrating all resources of a BU towards a common goal

to design the entire value

system . . .

The sequence of steps and their respective elements (technology, production design,
sales, distribution, etc.) by which companies in a given business produce their goods or
services and deliver to the customer

to continuously create
and redefine competitive
advantage . . .

Competitive advantage is what a company possesses when it earns or has the potential to
earn a higher ratio of profit than its competitors. Competition without an advantage for
any particular competitor results in a totally competitive market. The markets forces will
not allow any company to realize any returns beyond the cost of equity
Competitive advantage needs to be sustainable in a way that competitors cannot copy or
nullify the particular advantage

through superior
customer value . . .

The value that an end-user receives from the product, which could be economic (low
price through cost reduction) or perceived benefit (qualitative) contributed by the product

with the aim of

maximizing shareholder
value in the
long-term

By maximizing profits, companies maximize shareholder value (the economic value

received by owners of equity through dividend payments and/or increases in share price).
Shareholder value maximization is widely seen as the appropriate goal of a company and
the primary yardstick for measuring performance

Source: A.T. Consulting

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

17

Defining strategy and how business unit strategy compares to other types of strategy

Although strategy can encompass corporate, business unit and functional strategy,
the focus of this training program is on the business unit

Industry

Corporate strategy and finance

M&A&D
Design of the corporation and
corporate center
Resource allocation

Market and
competitive
strategies

Business unit

Corporate

Business unit strategy

defines how the
company competes
within a particular
industry or market

Strategies for industry

restructuring

Corporate strategy defines the

scope of the company in terms of
the industries and markets in which
its various business units compete

Business unit

R&D
Personnel
Finance
Production

Where to compete

Source: A.T. Consulting

How to compete

Functional strategy
defines the detailed
deployment of
resources at the
operational level

Sales and
marketing

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

18

Defining strategy and how business unit strategy compares to other types of strategy

What is a strategic business unit (SBU)?

Definition of an SBU

Some traditional characteristics

A strategically and functionally distinct

execution-oriented entity that is usually
a subset of a corporation
A unit that has a:
Well-defined market (or market
segments)
Well-defined group of competitors
Well-defined business system that
serves the market
A unit grouped as such to optimize the
collective organizational capabilities
among its constituent entities

It is a single business, often with its own

P&L responsibilities, or collection of
related businesses that can be planned
separately from the rest of the
corporation/other business units
It has its own competitors, which it is
trying to surpass
It has a manager who is responsible for
strategic planning, profit, and
performance

Source: A.T. Consulting; Kotler, P. (1997); Marketing Management

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

19

Defining strategy and how business unit strategy compares to other types of strategy

The main elements of a business unit strategy

Product/market
Where to compete

In which segments should the

company compete?

Strategic roadmap
When to compete
Iterative
process

Capabilities?

Action?

Critical
path

Business system
How to compete

R&D

Design Manuf. S&M Service

Competitor reaction?
At what time and in which sequence
should a strategy be executed?
Source: A.T. Consulting

How should the business

system be designed?
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

20

Defining strategy and how business unit strategy compares to other types of strategy

Strategy projects differ from other types of engagements in several ways

Unique to each engagement and therefore issue-driven and more

flexibly structured
There is not one approach that will work for every situation.
However, for every company in every situation, there will be an
ideal approach
Broader in scope
More long-term oriented in nature and results might often be
intangible for several years
Characterized by ambiguity and a high degree of uncertainty as
consultants often dont know where the project will end up
Characterized by many iterations throughout the project due to
new findings which can result in changes to the scope and the
nature of the project
Characterized by a process and not a single approach

Source: A.T. Consulting

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

21

Defining strategy and how business unit strategy compares to other types of strategy

Strategy projects differ from other consulting projects in their process approach
Mechanical
systems thinking

Intuition

Strategic thinking

Problem
prototype

Process of
thought

Solution

Rearrangement of
elements

Local optimization, or
seeing the tree, not the
forest

Source: Ohmae, K. (1976); The Mind of the Strategist

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Transformation or
changed configuration
Introduction

22

Contents

Administrative issues

Strategy and its importance for A.T. Consulting

Defining strategy and how business unit strategy compares to other types of strategy

Objectives of A.T. Consultings Business Unit Strategy Training Program

Content of A.T. Consultings Business Unit Strategy Training Program

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

23

Objectives of A.T. Consultings Business Unit Strategy Training Program

The main objectives of the program

Company objectives

Individual objectives

Strengthen A.T. Consultings overall strategy

consulting delivery capabilities
Raise A.T. Consulting consultants strategy
skills to a higher level

Add to portfolio of consulting skills

Offer broader career possibilities within A.T.
Consulting
Satisfy intellectual curiosity

Teach A.T. Consulting consultants techniques

likely to be applied in many future strategy
engagements

Broaden ones perspective towards consulting

engagements

Teach A.T. Consultings unique and executionoriented perspective on strategy

Establish a common vocabulary and point-ofdeparture for all A.T. Consulting strategy
engagements

Source: A.T. Consulting

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

24

Objectives of A.T. Consultings Business Unit Strategy Training Program

Take-away objectives from the instruction and case sections of the program

The instruction section

The case section

Understanding of the fundamental strategy

analysis techniques

Reinforce the concepts taught during the class

Familiarization with strategy concepts that

consultants are most likely to apply

Understand when, how, and to what extent to

apply the techniques - realizing that use of the
analyses will vary with each engagement

Endowment of knowledge that enables

consultants to know where to go, when asked
to use the techniques

Realize that other project-specific strategy

techniques are also required in a consulting
engagement

Ability to practically apply the knowledge

gained from the course in strategy engagements

Understand how to structure a logical and

methodical game plan when approaching a
strategy project
Be prepared to hit the ground running when
staffed on an assignment

Source: A.T. Consulting

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

25

Objectives of A.T. Consultings Business Unit Strategy Training Program

The objective of the training program is to teach a set of techniques that form the
building blocks of analysis in strategy engagements and not to teach an approach
Issue/client
objective

Framework

Solved by

Defines

Approach

Contains

Deliverable

Shows

Technique

Shows

Example

Uses
Tool

Framework

A question which expresses the clients concern or the uncertainties which must be resolved to achieve the clients
objective. Issue questions are not rhetorical, they should have clear alternative solutions and significant consequences
associated with the answer
A way of looking at a clients business issue; a set of building blocks, planks or beliefs that determine at a high level
how we might approach a client issue; that ultimately translates to a collection of deliverables

Approach

A logical structure or sequence of deliverables that might span frameworks. There is no one approach to strategy

Deliverable

A result or insight necessary for the client to reach its objective; that which A.T. Consulting delivers to our client (or to
internal clients within A.T. Consulting) as a result of our proposed solutions and engagement efforts

Technique

A method, model, or calculation that produces a deliverable

Tool

A spreadsheet, model, database, survey or software used as part of a technique to produce a deliverable

Example

A specific illustration or application of a deliverable, technique, or tool, generally drawn from a client engagement but
sanitized so that the client is unrecognizable

Business issue

Source: A.T. Consulting, Centres of Excellence

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

26

Objectives of A.T. Consultings Business Unit Strategy Training Program

This program focuses on teaching techniques because there is not a standard

approach to strategy

Techniques allow consultants to:

Be flexible in modeling analyses

after issues instead of being confined
to rigid approaches that may not be
relevant in all engagements
Think with a strategic perspective
Adapt skills to other types of
consulting engagements

Source: A.T. Consulting

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Overall strategy
frameworks and
approaches are not the
focus of this program as
they vary greatly from
client to client and
project to project

Introduction

27

Objectives of A.T. Consultings Business Unit Strategy Training Program

The training program focuses intensively on exercises and examples to ensure that
the theoretical knowledge can be practically applied

Module

Example

Exercise

Oil and gas services

company

Big Kahuna Company/

Cessna Aircraft Company

II

Food and beverage industry

Airline industry

III

Copier company

Coca Cola

IV

n.a.

n.a.

Automotive industry

Petroleum industry

VI

n.a.

n.a.

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Case

Motorola

Introduction

28

Objectives of A.T. Consultings Business Unit Strategy Training Program

The techniques taught in this program do not cover all of the areas
that might be relevant in strategy projects

The techniques which are

taught in the program are the
most commonly used
techniques in BU strategy
engagements
However, some techniques are
not described, because they
either are covered by other
training programs or do not
specifically relate to BU
strategies

Source: A.T. Consulting

Change
Management
(Enterprise
Transformation
)

Illustrative

Finance
(CEO Agenda)

BU strategy program

Purchasing
(Strategic Sourcing)

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

29

Objectives of A.T. Consultings Business Unit Strategy Training Program

This program is complementary to A.T. Consultings other major training

programs
Orientation
NCO
Engagement
execution

BUS/
SS

Engagement
management
Business
development
Account
management

LSPD

Leadership

Source: A.T. Consulting

CEO:

CEO Agenda

ET:

Revised version of
Transforming the
Enterprise

MS:

VP- Mind setting

program

NCO:

New Consultant
Orientation (including
Pyramid and
Consultant Process
Workshop)

SS:

Strategic Sourcing

Officer

Principal

Manager

Associate

MS

BA

Business
process
Target
audience

Business Unit Strategy

LSPD: Lead Strategy and

Proposal Development

ET

CEO

BUS:

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

30

Objectives of A.T. Consultings Business Unit Strategy Training Program

This program can be viewed as A.T. Consultings chess book

If A.T. Consulting were a

chess club, it would want
to establish a set of
commonly used,
advanced and structured
techniques to play its
own game

Source: A.T. Consulting

To help clarify these

techniques and their use,
we are putting them in a
chess book for the use
of all club members

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

The goal of the chess

book is not to develop
new or proprietary
techniques, but to collect
and explain the most
commonly used ones to
ensure coherent and
successful chess playing

Introduction

31

Contents

Administrative issues

Strategy and its importance for A.T. Consulting

Defining strategy and how business unit strategy compares to other types of strategy

Objectives of A.T. Consultings Business Unit Strategy Training Program

Content of A.T. Consultings Business Unit Strategy Training Program

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

32

Content of A.T. Consultings Business Unit Strategy Training Program

The structure of the Business Unit Strategy Training Program

Module II
Structure and
dynamics of the
industry

Module I
Identification of the key
issues of the
engagement

Module III
Characteristics and
dynamics of the
individual companies

Module V
Definition and
evaluation of strategic
alternatives

Module VI
Implementable
recommendations

Roll-out
Qtr 1

Qtr 2

Qtr 3 Qtr 4

Action 1
Action 2
Action 3
Action 4
Action 5

Module IV
Execution
capacity of the
client

Note: The order of presentation of the curriculum elements should not be interpreted as a sequential guideline for a strategy engagement. Different
elements of the program may be referenced at different times in the engagement
Introduction
A.T. Consulting BUSINESS UNIT STRATEGY TRAINING
Source: A.T. Consulting

33

Content of A.T. Consultings Business Unit Strategy Training Program

The content of the program is structured such that related techniques are
categorized into deliverables and related deliverables into modules

Module: A collection of deliverables that

together address a key issue
Deliverable: A collection of techniques
that address specific issues
or sub-issues
Technique: A specific analysis
performed to test
hypotheses

* Exercises are located separately in a workbook

Source: A.T. Consulting

Description: A technique put into context through

a definition and/or a description
Usage:

Why, how, and when the technique is

applied

Methodology: The process for using the technique

Example:

A real-life presentation of a
technique as it would be presented in
its completed form

Exercise*:

A short exercise that requires the

participants to employ the technique

Conclusion:

A summary of key points, strengths,

weakness, and references

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

34

Modules I and II: Deliverables and Techniques

Module

Deliverable

Technique

I. Identification of the key issues

of the engagement

Key issues of the engagement

Issue analysis

II. Structure and dynamics of the

industry

Industry structure

Players analysis
Strategic group analysis
Substitution analysis
Supply chain analysis
Exit and entry barrier assessment

Development of the industry

Industry strategic era analysis

Life cycle analysis

Trends analysis
Product/market analysis

Size and growth of the market

Product/market segmentation

Demand and supply economics

Demand and supply economics

Industry analysis frameworks

Structure-conduct-performance
The five forces
The strategic triangle

Source: A.T. Consulting

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

35

Modules III and IV: Deliverables and Techniques

Module
III. Characteristics and dynamics
of the individual companies

Deliverable
Overall company profile

Technique
Purpose of the organization
Stakeholder analysis
Strategic era analysis
Strategic planning framework

Product/market focus

Evaluation of product/market
segments

Overview of the value chain

Value chain analysis

Cost and margin driver analysis

Financial resources and performance

Development over time

Financial ratios

Company analysis frameworks

7S
Benchmarking
SWOT

IV. Execution capacity of the

client

Assessment of execution capacity

Operational capacity assessment

Organizational capacity assessment

Information technology capacity

assessment

Source: A.T. Consulting

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Introduction

36

Modules V and VI: Deliverables and Techniques

Module
V.

Definition and evaluation of

strategic alternatives

Deliverable
Decision-making

Technique
Decision tree
Game theory

Long-term scenarios

Scenario planning
End game

Generic strategy frameworks

Three generic strategies

Gaining strategic advantage
The growth matrix

VI. Implementable recommendations

Source: A.T. Consulting

Implementable recommendations

A.T. Consulting BUSINESS UNIT STRATEGY TRAINING

Implementation plans

Introduction

37