The SFA matrix is a framework that helps businesses evaluate strategic options. Gerry Johnson and Kevan Scholes created the SFA matrix to help businesses evaluate their strategic options before committing. Evaluation of strategic opportunities is performed by considering three criteria that make up the SFA acronym: suitability, feasibility, and acceptability.
The Hoshin Kanri X-Matrix is a strategy deployment tool that helps businesses achieve goals over the short and long term. Hoshin Kanri is a method that seeks to bridge the gap between strategy and execution. Strategic objectives are clearly defined and the goals of every level of the organization are aligned. With everyone moving in the same direction, process coordination and decision-making ability are strengthened.
The Kepner-Tregoe matrix was created by management consultants Charles H. Kepner and Benjamin B. Tregoe in the 1960s, developed to help businesses navigate the decisions they make daily, the Kepner-Tregoe matrix is a root cause analysis used in organizational decision making.
The Eisenhower Matrix is a tool that helps businesses prioritize tasks based on their urgency and importance, named after Dwight D. Eisenhower, President of the United States from 1953 to 1961, the matrix helps businesses and individuals differentiate between the urgent and important to prevent urgent things (seemingly useful in the short-term) cannibalize important things (critical for long-term success).
An action priority matrix is a productivity tool that helps businesses prioritize certain tasks and objectives over others. The matrix itself is represented by four quadrants on a typical cartesian graph. These quadrants are plotted against the effort required to complete a task (x-axis) and the impact (benefit) that each task brings once completed (y-axis). This matrix helps assess what projects need to be undertaken and the potential impact for each.
The TOWS Matrix is an acronym for Threats, Opportunities, Weaknesses, and Strengths. The matrix is a variation on the SWOT Analysis, and it seeks to address criticisms of the SWOT Analysis regarding its inability to show relationships between the various categories.
The GE McKinsey Matrix was developed in the 1970s after General Electric asked its consultant McKinsey to develop a portfolio managementmodel. This matrix is a strategy tool that provides guidance on how a corporation should prioritize its investments among its business units, leading to three possible scenarios: invest, protect, harvest, and divest.
In the 1970s, Bruce D. Henderson, founder of the Boston Consulting Group, came up with The Product Portfolio (aka BCG Matrix, or Growth-share Matrix), which would look at a successful businessproduct portfolio based on potential growth and market shares. It divided products into four main categories: cash cows, pets (dogs), question marks, and stars.
In the FourWeekMBA growth matrix, you can apply growth for existing customers by tackling the same problems (gain mode). Or by tackling existing problems, for new customers (expand mode). Or by tackling new problems for existing customers (extend mode). Or perhaps by tackling whole new problems for new customers (reinvent mode).
You can use the Ansoff Matrix as a strategic framework to understand what growthstrategy is more suited based on the market context. Developed by mathematician and business manager Igor Ansoff, it assumes a growthstrategy can be derived by whether the market is new or existing, and the product is new or existing.
The Kraljic matrix is a framework that analyzes and classifies a company’s supplier base.
Kraljic’s matrix is used by purchasers to maximize supply security/minimize supply risk and reduce costs. In so doing, it encourages them to see procurement as a strategic activity and not one that is simply transactional.
The Kraljic matrix is divided into four quadrants based on varying degrees of supply risk and profit impact. Each quadrant defines a type of supply item and a strategy that reduces risk and cost. The quadrants encompass leverage items, bottleneck items, non-critical items, and strategic items.
The product-process matrix was introduced in two articles published in the Harvard Business Review in 1979. Developed by Robert H. Hayes and Steven C. Wheelwright, the matrix assesses the relationship between The stages of the product life cycle (from ideation to growth or decline) and The stages of the process (technological) life cycle.
The Mendelow stakeholder matrix is a framework used to analyze stakeholder attitudes and expectations and their potential impact on business decisions.
A requirements traceability matrix (RTM) is a vital part of the lifecycle of any embedded system, helping organizations ensure their products are safe and meet intended standards. While the matrix has long been associated with medicine, technology, and engineering, the approach works well for any project regardless of industry. A requirements traceability matrix is a tool used to identify and maintain the status of project requirements and deliverables.
The value/effort matrix is a feature prioritization model used to build effective product roadmaps. The value/effort matrix allows product managers to prioritize their product backlog using a confident, structured approach. The product team learns how to plan an effective roadmap, identify boundaries of work, and differentiate between needs and wants.
A decision matrix is a decision-making tool that evaluates and prioritizes a list of options. Decision matrices are useful when: A list of options must be trimmed to a single choice. A decision must be made based on several criteria. A list of criteria has been made manageable through the process of elimination.
The grand strategy matrix was created by American business theorist Paul Joseph DiMaggio in 1980. The matrix, which first appeared in the Strategic Management Journal, was initially used as a strategic option tool for managers. The grand strategy matrix helps organizations develop feasible alternative strategies based on their competitive position and the growth of their industry.
Key Highlights
SFA Matrix: A framework to evaluate strategic options based on suitability, feasibility, and acceptability.
Hoshin Kanri X-Matrix: A strategy deployment tool aligning organizational goals and actions to bridge the gap between strategy and execution.
Kepner-Tregoe Matrix: A root cause analysis tool aiding in organizational decision making.
Eisenhower Matrix: Helps prioritize tasks based on urgency and importance to prevent urgent tasks from overshadowing important ones.
Action Priority Matrix: Prioritizes tasks based on effort required and potential impact, assisting in project selection and planning.
TOWS Matrix: An extension of SWOTanalysis that addresses relationships between threats, opportunities, weaknesses, and strengths.
GE McKinsey Matrix: Guides portfolio investment decisions among business units based on scenarios: invest, protect, harvest, divest.
BCG Matrix: Categorizes products into cash cows, pets (dogs), question marks, and stars based on growth potential and market shares.
Growth Matrix: Categorizes growth strategies for existing and new customers based on tackling problems or offering new solutions.
Ansoff Matrix: Helps select growth strategies based on market and product characteristics: new/existing markets and products.
Kraljic Matrix: Analyzes and classifies a company’s supplier base based on supply risk and profit impact.
Product-Process Matrix: Analyzes the relationship between product and process life cycle stages for effective production planning.
Mendelow Stakeholder Matrix: Analyzes stakeholder attitudes and potential impact on business decisions.
Requirements Traceability Matrix: Ensures products meet intended standards by tracking project requirements and deliverables.
Value/Effort Matrix: Prioritizes product backlog by evaluating value and effort required for features.
Decision Matrix: Evaluates and prioritizes options based on multiple criteria.
Cash Flow Statement Matrix: Likely related to analyzing cash flows to make financial decisions.
Grand Strategy Matrix: Assists in developing alternative strategies based on competitive position and industry growth.
Matrix
Description
When to Use
Advantages of Using It
Drawbacks of Not Using It
SFA Matrix
The SFA (Suitability, Feasibility, Acceptability) matrix evaluates strategic options based on these three criteria to make informed decisions.
When assessing and selecting strategic options for a business.
1. Provides a structured framework for evaluating strategic choices. 2. Ensures alignment with organizational goals and capabilities.
1. Risk of pursuing strategies that are unsuitable, unfeasible, or unacceptable. 2. Lack of a clear decision-making framework.
Hoshin Kanri X-Matrix
The Hoshin Kanri X-Matrix aligns organizational goals and objectives to facilitate strategy execution. It ensures that everyone in the organization is working toward common strategic goals.
When deploying long-term strategies and aligning organizational objectives.
1. Enhances strategic alignment and coordination across all levels of the organization. 2. Helps bridge the gap between strategy and execution.
1. Without alignment, individual efforts may not contribute to overall strategic goals. 2. Risk of disjointed execution and resource allocation.
Kepner-Tregoe Matrix
The Kepner-Tregoe matrix is a problem-solving tool that assists in making informed decisions by analyzing root causes and potential solutions.
When facing complex decisions or problem-solving challenges.
1. Systematic approach to problem analysis and decision-making. 2. Identifies underlying causes and facilitates data-driven choices.
1. Risk of making decisions based on assumptions rather than data and analysis. 2. Lack of structured problem-solving can lead to suboptimal outcomes.
Eisenhower Matrix
The Eisenhower Matrix helps prioritize tasks by categorizing them based on urgency and importance. It aids in focusing on high-priority activities and preventing the neglect of critical tasks.
When managing workload and prioritizing tasks effectively.
1. Clearly distinguishes between urgent and important tasks for better time management. 2. Prevents procrastination and ensures critical tasks receive attention.
1. Without prioritization, important tasks may be overlooked or delayed. 2. Risk of time mismanagement and inefficiency in task completion.
Action Priority Matrix
An action priority matrix assesses tasks based on effort required and impact achieved. It aids in selecting projects and objectives that provide the most significant benefits for the effort invested.
When prioritizing projects or objectives to maximize impact.
1. Helps allocate resources efficiently by focusing on high-impact, low-effort tasks. 2. Prioritizes initiatives that yield the most substantial results.
1. Without prioritization, resources may be allocated ineffectively, leading to suboptimal outcomes. 2. Risk of pursuing low-impact tasks that consume significant effort.
TOWS Matrix
The TOWS Matrix is a strategic planning tool that combines external threats and opportunities with internal weaknesses and strengths to generate strategic options. It helps in developing actionable strategies.
When conducting strategic planning and analysis.
1. Offers a systematic approach to strategy formulation by considering internal and external factors. 2. Generates strategic options based on a comprehensive assessment.
1. May overlook critical strategic factors by not considering both internal and external aspects. 2. Lack of a structured analysis can lead to less-informed strategies.
GE McKinsey Matrix
The GE McKinsey Matrix prioritizes business units or products based on market attractiveness and competitive strength. It guides investment decisions by categorizing units into “invest,” “protect,” “harvest,” or “divest” segments.
When managing a portfolio of business units and making investment decisions.
1. Helps allocate resources strategically by focusing on units with the most potential. 2. Provides a clear framework for portfolio management and growth strategy.
1. Without portfolio prioritization, resources may be spread thinly, limiting growth opportunities. 2. Risk of neglecting underperforming units or investments.
BCG Matrix
The BCG Matrix categorizes products or business units into four quadrants: cash cows, pets (dogs), question marks, and stars, based on market share and market growth. It guides resource allocation and portfolio management decisions.
When assessing and managing a product or business unit portfolio.
1. Offers a visual representation of portfolio performance and resource allocation needs. 2. Guides strategic decisions on growth, divestment, or investment.
1. Without portfolio categorization, resources may not be optimized, leading to inefficiencies. 2. Risk of neglecting emerging opportunities or underperforming products.
Growth Matrix
The FourWeekMBA growth matrix provides strategies for growth based on targeting existing or new customers and solving existing or new problems. It offers four growth modes: gain, expand, extend, and reinvent.
When deciding on growth strategies and market approaches.
1. Provides a structured framework for selecting growth strategies based on market dynamics. 2. Helps tailor strategies to customer needs and market conditions.
1. Lack of strategic guidance may result in pursuing ineffective growth strategies. 2. Risk of misalignment with market demands and missed growth opportunities.
Ansoff Matrix
The Ansoff Matrix helps determine growth strategies by considering whether to enter new or existing markets and offer new or existing products. It provides a framework for market and product development decisions.
When evaluating growth opportunities and market entry strategies.
1. Simplifies growth strategy decision-making by categorizing options based on market and product dimensions. 2. Guides expansion efforts and minimizes uncertainty.
1. May lead to missed opportunities if growth strategies are not aligned with market conditions. 2. Risk of pursuing strategies that do not match organizational capabilities.
Kraljic Matrix
The Kraljic Matrix classifies suppliers based on supply risk and profit impact, allowing businesses to optimize their supplier relationships and procurement strategies. It helps identify critical suppliers and reduce supply risk.
When managing supplier relationships and procurement strategies.
1. Enhances supplier relationship management by categorizing suppliers for tailored strategies. 2. Reduces supply chain vulnerabilities and ensures supply continuity.
1. Without supplier categorization, businesses may miss opportunities for strategic procurement optimization. 2. Risk of over-reliance on high-risk suppliers.
Product-Process Matrix
The Product-Process Matrix assesses the relationship between the product life cycle stages and process life cycle stages. It guides decision-making regarding process and product development to match the business context.
When aligning product development with process capabilities and life cycle stages.
1. Helps match product and process strategies for effective development and production. 2. Guides decisions to optimize product and process alignment.
1. Lack of alignment may lead to inefficiencies and misalignment in product development and production efforts. 2. Risk of pursuing incompatible product-process strategies.
Mendelow Stakeholder Matrix
The Mendelow Stakeholder Matrix assesses stakeholder attitudes and potential impact on business decisions. It aids in understanding stakeholder dynamics and identifying strategies for stakeholder management.
When analyzing stakeholder relationships and formulating stakeholder management strategies.
1. Provides insights into stakeholder influence and interests for targeted management strategies. 2. Guides efforts to build positive stakeholder relationships.
1. Lack of stakeholder analysis may result in unaddressed stakeholder concerns and conflicts. 2. Risk of ineffective stakeholder engagement and management.
Requirements Traceability Matrix
The Requirements Traceability Matrix (RTM) tracks project requirements and ensures their alignment with project deliverables. It helps maintain visibility and control over requirements throughout the project lifecycle.
When managing projects and ensuring compliance with requirements.
1. Ensures that project requirements are met and aligned with project goals. 2. Provides a traceable record of requirement changes and approvals.
1. Without an RTM, requirements may become unclear, leading to misaligned project outcomes. 2. Risk of scope creep and project delays due to unmanaged requirements.
Value/Effort Matrix
The Value/Effort Matrix helps prioritize product features or initiatives based on their value and effort required for implementation. It assists in building product roadmaps that focus on high-value, low-effort items.
When planning product development and feature prioritization.
1. Maximizes the impact of product development efforts by focusing on high-value features. 2. Guides product roadmap decisions for efficient resource allocation.
1. Without prioritization, product development may lack focus and result in lower value delivery. 2. Risk of resource misallocation on low-impact features.
Decision Matrix
A Decision Matrix evaluates and prioritizes a list of options based on specific criteria. It aids in making informed decisions by systematically assessing choices.
When facing decisions involving multiple options and criteria.
1. Provides a structured approach to decision-making by comparing options objectively. 2. Helps select the most suitable option based on predefined criteria.
1. Without a decision matrix, decisions may be subjective and lack a systematic evaluation process. 2. Risk of selecting suboptimal choices due to incomplete analysis.
Cash Flow Statement Matrix
A Cash Flow Statement Matrix organizes cash flow data to provide a clear financial picture of a business’s cash inflows and outflows. It helps in monitoring and managing cash flow for financial stability.
When analyzing financial performance and managing cash flow.
1. Offers a visual representation of cash flow data for effective financial analysis. 2. Supports informed decision-making to ensure financial stability.
1. Without a cash flow matrix, financial analysis may be challenging, leading to potential cash flow issues. 2. Risk of financial instability due to insufficient cash flow monitoring.
Grand Strategy Matrix
The Grand Strategy Matrix categorizes strategic options based on market growth and competitive position. It guides organizations in selecting appropriate strategies, including growth, stability, retrenchment, or diversification.
When evaluating strategic options and making decisions on organizational direction.
1. Provides a structured framework for aligning strategies with market conditions and competitive positioning. 2. Aids in selecting suitable strategies for organizational growth and stability.
1. Without a strategic framework, organizations may struggle to determine optimal strategies and market responses. 2. Risk of pursuing unsuitable strategies for the current market context.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
