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Have you tested your strategy lately? | McKinsey & Company

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Strategy & Corporate Finance

Article McKinsey Quarterly January 2011

By Chris Bradley, Martin Hirt, and Sven Smit

Exhibit 1

Exhibit 2

1. International Institute for Management Development. 2. For a rich account of strategy’s birth and growth as a field, see Walter Kiechel, The Lords of Strategy, Boston, MA: Harvard Business School Press, 2010. 3. For a classic statement of the idea that strategies are more emergent than planned, see Henry Mintzberg, “Crafting strategy,” Harvard Business Review, 1987, July– August, Volume 65, Number 4, pp. 66–75. 4. The three Cs and the five forces are seminal strategy frameworks. The three Cs (competitors, customers, and company) were articulated by retired McKinsey partner Kenichi Ohmae in The Mind of the Strategist (McGraw-Hill, 1982). The five forces (barriers to entry, buyer power, supplier power, the threat of substitutes, and the degree of rivalry) were set forth by Harvard Business School professor Michael Porter in Competitive Strategy (Free Press, 1998). 5. For more on strategy setting in today’s environment, see Lowell Bryan, “Dynamic management: Better decisions in uncertain times,” mckinseyquarterly.com, December 2009; and “Navigating the new normal: A conversation with four chief strategy officers,” mckinseyquarterly.com, December 2009. 6. See Ivan Arreguin-Toft, How the weak win wars: A theory of asymmetric conflict, Cambridge, UK: Cambridge University Press, 2005.

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