The Hay Group Strategic Issues Matrix

ABOUT THIS CONTENT

A useful way to evaluate and analyze various business entities based on characteristics and the phase of the business development life cycle.
Subject: Strategy/Frameworks
Source: The Hay Group

Phases of Business Development

The Hay Group Strategic Issues Matrix provides a useful way to evaluate and analyze various business entities based on characteristics and the phase of the business development life cycle.

Note: normally this would be presented as a tabular matrix but is broken down by characteristic here due to formatting constraints.

Style Characteristics
Emergence Limited delegation by strong leadership
Variety of schemes are possible
Developmental Highest degree of delegation and freedom supported
Mature Delegative to controlled
Flexibility in meeting fixed goals
Liquidation Very limited delegation and freedom

Decision Making Characteristics
Emergence Formalized goals virtually nonexistent
Information limited
Developmental General goals exist
More information for decisions
Mature High degree off clarity
Information based decisions
Liquidation Rigid goals
Information for control

Planning and Control Systems Characteristics
Emergence Informal, highly qualitative (milestone oriented)
Developmental Capable of selling broad goals and measuring results (program oriented)
Mature Supportive of careful goal setting and control (P & L oriented)
Liquidation De-emphasize long term planning quantitative controls (balance sheet oriented)

Responsiveness to External Conditions Characteristics
Emergence Limited responsiveness at first, focus on establishing a position
Developmental Highly responsive
Adapt to market opportunities
Mature Less responsiveness required due to decreasing rate of change in markets
Liquidation Responsive but under very limited conditions

Integration and Differentiation Characteristics
Emergence High degree of differentiation among organization
Integration at top
Developmental Decreasing differentiation among units
Integrative functions becoming more “local” to markets, products
Mature Continuing decrease in differentiation
Integration “local”
Liquidation Low differentiation
Integration at the top (corporate)

Leadership Characteristics
Emergence Entrepreneur, strong leader
Developmental Entrepreneur / business manager
Mature Sophisticated manager
Liquidation Administrator, S O B
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