Strategy Development

Strategy development requires a company to understand both the high-level aspirational goals of the organization, as well as what specific decisions need to be made to realize those goals. Neither the ‘top-down’ nor ‘bottom-up’ view is sufficient on its own. Strategic processes should consider alternatives for each area of the business and involve a discussion of the risk, cost and value of each alternative strategy. Reviewing the results of the bottom-up process tells the company whether it can reach its aspirational goals. If it cannot, then a growth strategy is required to identify areas of either internal or external (acquired) growth where investments can be made.

Capius has expertise in both top-down corporate growth and bottom-up, portfolio management strategies. The team has led over one hundred projects within these areas. We believe strategies are best developed by executives who own the results, and therefore we provide frameworks, facilitation and other support as a company goes through a strategy process. We believe that strategies developed solely by consultants, while often insightful, do not get fully implemented because the company does not truly own the recommendations.

Case Study

Capius worked with a large, multi-national diagnostics company to find new areas of growth. The company was currently successful, but the growth rate of its core business was too sluggish to reach its aspirational goals. It had many technologies and other ideas that could lead to business expansion.

Small groups of experts were assembled for each idea identified to be evaluated. We led those groups through a disciplined strategy process. The overall size and challenges within the market space were assessed. Alternative ways of entering the market were generated. Financial models were created evaluating the cost, risk and value of each strategy. The company’s Executive Committee was engaged throughout the process with regular, interactive meetings. The most promising alternative strategies were then chosen and invested in.

The corporation found new areas of growth increasing its growth rate by an additional 2% - 5% annually for the next five years. New businesses were created, and the small group leaders became the leaders of those business units.

Case Study

One of the world’s largest biotechnology companies needed to find a consistent way to manage its portfolio of development projects. Decisions needed to be made across over twenty different projects, within a total annual R&D budget of over $1 billion.

Capius provided a governance framework and financial models for managing the overall project. We facilitated group sessions involving management of the various development teams and the executives overseeing them, in order to develop the financial models underlying the process.

The executive management team gained a much clearer understanding of the cost, risk and value associated with each asset in their portfolio. Using these insights, they re-prioritized development spending towards projects with higher commercial potential.