Boston Consulting Group developed this BCG Growth Share Matrix which helps you to determine what priorities should be given in your product portfolio of a product. BCG growth share matrix is a strategic management analytical tool. This provides guidance for all resource allocation among the company
's business units.
BCG matrix has essentially two dimensions - relative market share and market growth rate. It can be used to classify product portfolio in four business types based on four graphic labels including Stars, Cash Cows, Dogs and Question Marks.
Stars: Leaders of the business comes in stars group. Products in this category are in high growth rate & high market share. It generates high cash flow and requires high cash input. Cash flow is flat in this category.
Cash Cows: Foundation of the business (stars of past years). Products in this category are in low growth rate & high market share. They generate high cash flow with low cash input requirements.
Dogs: Drags of the business. Products in this category are in low growth rate & low market share. They must be avoided whenever possible. Liquidate as many as possible.
Question Marks: Ambiguity of the business - Products in this category are in high growth rate & low market share. It requires high cash demand and low returns. Usually new products are comes in question marks. If you keep new products in question marks, you must ensure increase in market share and deliver cash.
Strategies to Pursue BCG Matrix
Build: The product market share needs to be increased to strengthen its position. Short-term earnings and profits are intentionally forfeited because it is hoped that the long-term earnings and profit will be much higher than this. This strategy is suited to Question Marks if they want to become stars.
Hold: The objective is to maintain the current market share position and this strategy is often used for Cash Cows so that they continue to generate large amounts of cash.
Harvest: Company tries to increase short-term cash flows as far as possible even at no profit and no loss. It is a strategy suited to weak Cash Cows or Cash Cows that are in a market with a limited future. Harvesting is also used for Question Marks where there is no possibility of turning them into Stars, and for Dogs.
Divest: This strategy is to rid the organization of the products that are drain on profits and to utilize these resources elsewhere in the business to make greater benefit. This strategy is typically used for Question Marks that will not become Stars and Dogs.
Showing posts with label building confidence. Show all posts
Showing posts with label building confidence. Show all posts
Sunday, September 26, 2010
Monday, September 6, 2010
Thornton's 3-C Leadership Model
Numerous theories have been put forth about the many aspects of leadership such as motivation, alignment, and empowerment. However, it is not obvious how these pieces fit together into a coherent model, if they do at all. As such, leadership has a reputation of being an art that is practiced by the lucky few who possess certain talents.
In his 1999 book, Be The Leader, Make The Difference, consultant Paul B. Thornton proposed an integrating framework that takes these various leadership ideas and transforms them into a model that quickly can be studied, understood, and implemented by managers in order to develop an effective leadership style and better lead their organizations. The model is based on the premise that leaders exist because individuals need guidance, without which they do not always know what they can accomplish, what they should accomplish, or how to accomplish it. To this end, leaders can provide challenge, confidence, and coaching. Thornton calls this framework the 3-C Leadership Model and depicted it as shown below.
This three vertex diagram illustrates the balanced relationship among the three 3-Cs of leadership: presenting a challenge, building confidence, and providing coaching.
Present a Challenge
Of the 3 aspects of leadership, challenge is the one that is practiced most widely by managers as they ask their employee's to set increasingly higher goals. Human nature is such that most people do not want to leave their comfort zone and therefore are inclined to suggest small, incremental improvements in their objectives. In today's competitive environment, such small improvements often are insufficient. Improvements of 30%, 50%, or even several hundred percent sometimes are required. There are many ways in which leaders can challenge their employees. They can:
Once success is achieved, it is important continue raising the bar in order to fight the temptation to rest on one's laurels.
Build Confidence
A challenge brings people out of their comfort zones, often resulting in a drop in their confidence level. Without confidence, the challenging goals that caused the drop in confidence in the first place become even more difficult to reach. Therefore, a major responsibility of a leader is to build confidence in his or her employees so that they will believe in their ability to reach their objectives.
Many motivation experts make the case for positive thinking and self-affirmation as a means of building confidence. Paul Thornton argues that simply thinking something does not make it reality, and that a person achieves genuine self-confidence not by repeating affirmations but by actually working and achieving something. In the process of achievement we expand our abilities, and these expanded abilities create a more genuine, lasting confidence.
With this philosophy in mind, leaders can instill real confidence in their employees by:
Provide Coaching
Coaching is the process of advising people in a way that facilitates their success. It may take various forms, from training to offering a broader perspective. Coaching can help employees to better understand how their efforts fit into the larger strategy, thereby allowing them to make better decisions.
Leaders may coach employees by:
Overcoaching should be avoided as it can create dependent employees, reduce their initiative, and cause them to feel micro-managed.
Relationship Among the 3-Cs
The triangle diagram is particularly appropriate for depicting the 3-C Leadership Model because there is no single "correct" order and because balance among the three vertices is important.
The 3-Cs do not need to occur in any specific order. For example, the leader may choose first to present a challenge, then to build the confidence needed to meet the challenge, followed by coaching. Alternatively, the leader first may build the team's confidence, then present the grand challenge.
A proper balance among the 3-Cs is important. Consider the balance between confidence and challenge. A significant challenge without enough confidence likely would result in failure. Conversely, high confidence with little challenge would result in under-utilization of one's abilities and boredom. In the case of insufficient confidence, coaching can be used to improve the employee's skills and thus build confidence. In the case of insufficient challenge, the employee may need to be offered an assignment that better utilizes his or her capabilities.
When the right balance is achieved, employees will experience a higher degree of effectiveness and satisfaction in their work.
In his 1999 book, Be The Leader, Make The Difference, consultant Paul B. Thornton proposed an integrating framework that takes these various leadership ideas and transforms them into a model that quickly can be studied, understood, and implemented by managers in order to develop an effective leadership style and better lead their organizations. The model is based on the premise that leaders exist because individuals need guidance, without which they do not always know what they can accomplish, what they should accomplish, or how to accomplish it. To this end, leaders can provide challenge, confidence, and coaching. Thornton calls this framework the 3-C Leadership Model and depicted it as shown below.
This three vertex diagram illustrates the balanced relationship among the three 3-Cs of leadership: presenting a challenge, building confidence, and providing coaching.
Present a Challenge
Of the 3 aspects of leadership, challenge is the one that is practiced most widely by managers as they ask their employee's to set increasingly higher goals. Human nature is such that most people do not want to leave their comfort zone and therefore are inclined to suggest small, incremental improvements in their objectives. In today's competitive environment, such small improvements often are insufficient. Improvements of 30%, 50%, or even several hundred percent sometimes are required. There are many ways in which leaders can challenge their employees. They can:
- Share their vision, inspiring them to believe that more is possible.
- Set very high goals, forcing people to leave their comfort zones to find ways to achieve them.
- Ask challenging questions that lead people to reconsider their assumptions about what is possible.
- Use benchmarking to reveal the best practices of others and use these as a challenge.
- Provide a wide variety of assignments. Many firms make it a policy to expose their employees to a wide range of aspects of the firm. Each new position is a new challenge that develops the employee further.
Once success is achieved, it is important continue raising the bar in order to fight the temptation to rest on one's laurels.
Build Confidence
A challenge brings people out of their comfort zones, often resulting in a drop in their confidence level. Without confidence, the challenging goals that caused the drop in confidence in the first place become even more difficult to reach. Therefore, a major responsibility of a leader is to build confidence in his or her employees so that they will believe in their ability to reach their objectives.
Many motivation experts make the case for positive thinking and self-affirmation as a means of building confidence. Paul Thornton argues that simply thinking something does not make it reality, and that a person achieves genuine self-confidence not by repeating affirmations but by actually working and achieving something. In the process of achievement we expand our abilities, and these expanded abilities create a more genuine, lasting confidence.
With this philosophy in mind, leaders can instill real confidence in their employees by:
- Recognizing and rewarding positive accomplishments rather than focusing on deficiencies.
- Providing professional development in order to build confidence through competence.
- Empowering them by providing both responsibility and authority, thereby expressing confidence in them.
- Verbally expressing confidence in them.
- Reminding them of past successes that may have faded from their consciousness in the face of new challenges.
Provide Coaching
Coaching is the process of advising people in a way that facilitates their success. It may take various forms, from training to offering a broader perspective. Coaching can help employees to better understand how their efforts fit into the larger strategy, thereby allowing them to make better decisions.
Leaders may coach employees by:
- Providing feedback immediately after the employee performs some important task such as meeting with a client or delivering a presentation.
- Showing them the best practices of others as examples of how tasks can be accomplished.
- Posing carefully formulated questions designed to improve their understanding by leading them to think through the situation.
- Setting an example, especially one of continual self-improvement.
Overcoaching should be avoided as it can create dependent employees, reduce their initiative, and cause them to feel micro-managed.
Relationship Among the 3-Cs
The triangle diagram is particularly appropriate for depicting the 3-C Leadership Model because there is no single "correct" order and because balance among the three vertices is important.
The 3-Cs do not need to occur in any specific order. For example, the leader may choose first to present a challenge, then to build the confidence needed to meet the challenge, followed by coaching. Alternatively, the leader first may build the team's confidence, then present the grand challenge.
A proper balance among the 3-Cs is important. Consider the balance between confidence and challenge. A significant challenge without enough confidence likely would result in failure. Conversely, high confidence with little challenge would result in under-utilization of one's abilities and boredom. In the case of insufficient confidence, coaching can be used to improve the employee's skills and thus build confidence. In the case of insufficient challenge, the employee may need to be offered an assignment that better utilizes his or her capabilities.
When the right balance is achieved, employees will experience a higher degree of effectiveness and satisfaction in their work.
Labels:
3-C Leadership Model,
alignment,
assignments,
building confidence,
challenge,
empowerment,
goals,
managers,
Motivation,
organization,
professional,
providing coaching,
Relationship,
Thornton,
vision
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