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Hambrick & Frederickson’s Strategy Diamond clearly outlines an organization’s plan for growth. Specifically, this model is an organizational tool that includes all the important information for the organization’s strategy. Using the information that is included in the diamond, business leaders will be sure they are considering all the important details when making decisions.
Description of Hambrick & Frederickson’s Strategy Diamond
The Hambrick & Frederickson’s Strategy Diamond is made up of five parts:
- Arenas: The organization should consider the unexplored areas of the industry they are trying to expand into and what other organizations they will compete with in the market space they are targeting. It is important to spend a considerable amount of time determining the customers the organization is trying to reach, as all subsequent decisions will be based on them. After making this determination, think about the strategy the organization will employ to conquer those markets (e.g., directly to customers or through another agency).
- Differentiators: If it is the case that the organization has a large number of competitors, spend time evaluating the unique qualities of the company and what it offers. A fruitful avenue to start on would be to consider quality or price of the product, but location or customer service could also be factors. It is important to depend on individuals in the company and the information that they use when deciding what products to purchase. After accumulating this information, consider what resources the organization has that can be utilized to highlight its differentiating qualities.
- Vehicles: Determine how the organization will produce the products that will be highly competitive in a new or already occupied market space. This involves considering if all products will be developed solely within the company or if outside partners will be brought in. These decisions are critical for determining how long it will take to advertise and sell the product on the market.
- Staging and Pacing: It is also critical to have systems in place for transitioning from one part of the strategy to the next. That is, every employee should understand the role that they play and should have the resources to execute the task(s) they were assigned. There should also be a clear timeline for expansion that is set to move at an appropriate pace.
- Economic Logic: Every decision that is made in the other aspects of the diamond should all be for the purpose of generating profit for the organization. Said differently, the strategy that the organization is executing should ultimately be to increase bottom-line performance through more efficient and streamlined processes and improved products. If the strategy does not serve this purpose, it is important to reconsider certain decisions to determine which path will most benefit the company. After determining which strategy is economically sound, it can be implemented.
Praxie's Online Hambrick & Frederickson’s Strategy Diamond Tools & Templates
Strategy Teams use the new online Hambrick & Frederickson’s Strategy Diamond template from Praxie as a simple way to show how the different parts of an organization fit together and work in synchronicity. When using the Hambrick & Frederickson’s Strategy Diamond, leaders within the organization can consider using benchmarking to determine its current position in the market. This will help to determine its strengths, gaps, and in which direction it should be moving. Ultimately, the Strategy Diamond is meant to make the strategy of the business easier to understand for a wider audience.
Get started with our Hambrick & Frederickson’s Strategy Diamond template.
How to use it:
- Review the Strategy Diamond.
- Enter answers to each question to create your strategy.
- Create an action plan for completing the Strategy Diamond template.
Unlike most traditional Strategy Diamond techniques, Praxie’s online tools allow any team or organization to instantly begin working with our web templates and input forms. Our digital platform goes far beyond other software tools by including progress dashboards, data integration from existing documents or other SaaS software, elegant intuitive designs, and full access on any desktop or mobile device.