Developing a winning corporate strategy requires a relentless focus on value creation—and thoughtful attention in three important areas.
First set a clear, shared, long-term vision that motivates the team and engages investors. Where do we want to be in five or ten years? Then define a portfolio strategy to realize the vision. Which businesses should we be in? Where should we expand and where is it best to divest? And finally, establish the corporate policies and processes that reflect the corporation's parenting approach. How do we link strategy to value creation?
Corporate strategy is an ongoing process—particularly given today’s volatile competitive environments. Consistently delivering value creation that outpaces peers demands that organizations enhance their capabilities and regularly revisit their strategies.
Eric Wick, a BCG partner and managing director, discusses the critical elements companies need for a successful corporate strategy—and pitfalls they should avoid.