The Strategy Diamond is a useful tool if you wish to quickly formulate a starter strategy or summarise an exciting strategic plan to communicate out. Let's learn a bit more on the framework...
The Strategy Diamond (not to be confused with Porter’s Diamond) is a way to summarise and check a strategy. It can be used as a one pager on a strategic plan or as a checklist to review the assumptions around a strategy.
The Strategy Diamond contains five parts:
The five parts are designed to summarise a complete strategy.
Arenas look at areas that the company will be active within, such as markets or demographics. It’s designed to be a list of the different focus areas that the strategy is aiming for in order to be successful. This includes items such as:
Vehicles is the component of the diamond that looks at how a company will get to the destination. What are the key strategic activities required in order to progress further? This includes items such as:
The Differentiators part lists out how you’ll make a clear difference, what will be giving you the edge in order to overtake the competition. Consider elements from the Strategy Clock or Porter’s Generic Strategies at this point. This includes items such as:
Staging, sometimes referred to as Sequencing, looks at the order and speed at which you do the tasks within the strategic plan. This includes items such as:
The Economic Logic establishes how you will make a good return for the business, and what steps are needed to ensure a healthy margin. It is often heavily linked to the Differentiators segment of the diamond, and includes items such as:
The Strategy Diamond has a number of advantages:
There are a few disadvantages of tool:
It’s a great tool if you want to do a quick strategy formulation to begin discussion or you wish to summarise a strategic plan for everyone to discuss.
The Strategy Diamond was created by Donald Hambrick and James Fredrickson in a paper called "Are you sure you have a strategy?", published in 2001.
Porter’s Diamond is a model designed to understand competitive advantage, whereas The Strategy Diamond is a model designed to formulate or summarise a strategic plan.
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