The Power of One: The Strategy Diamond Framework

The diamond framework can be used to develop strategies in multibusiness enterprises at all organizational levels and across markets or products. This note demonstrates how the framework yields insights that managers and executives need in order to make critical strategic decisions. The power of a single integrated approach lies in its transformative ability to unite a firm with one template based on a common language and shared lexicon. Excerpt UVA-S-0237 Feb. 7, 2014 THE POWER OF ONE: THE STRATEGY DIAMOND FRAMEWORK Organizations need a coherent strategy to achieve their objectives. In “Are You Sure You Have a Strategy?,” Donald C. Hambrick and James W. Fredrickson present an eminently practical approach to developing a clear strategic plan. They identify five elements of strategy: arenas—where a firm should be active; vehicles—how it can enter the arenas; differentiators—how it can win in its markets; staging—sequence and speed of moves; and, at the core of their framework, economic logic—how the firm plans to obtain its returns. Together these five facets form a strategy diamond framework. The diamond framework can be used to develop strategies in multibusiness enterprises at all organizational levels and across markets or products. This note demonstrates how the framework yields insights that managers and executives need in order to make critical strategic decisions. The power of a single integrated approach lies in its transformative ability to unite a firm with one template based on a common language and shared lexicon. First, we will examine the components of the diamond framework and then show specific applications. These include how to create an integrative organizational strategy, how to plan for strategic change over time, and how to apply the framework both for competitor analysis and for comparison of your firm's strategy with those of your partners and other stakeholders. . . .