How to Link Strategic Vision to Core Capabilities

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To generate a firm's strategic vision, managers must understand a highly complex set of interacting factors, including the industry's history and structure, the company's and its competition's core capabilities, and the various strategic segments in which the firm competes. They must also take into account the unpredictable future. What if there is a technological breakthrough? What if new markets open up? The author gives a methodology for organizing all of this information, centering on a core capabilities matrix. He shows step-by-step how to envision the possible futures and your company's place in them. When you finish, you'll know which of your core capabilities are most important and how to leverage them for maximum advantage.  

Paul J. H. Schoemaker is a senior fellow at the SEI Center for Advanced Management at the Wharton School, University of Pennsylvania, and a director of Decision Strategies International, a Chicago-based consulting firm. He was associate professor of strategy at the Graduate School of Business, University of Chicago, when this paper was written.

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