Wednesday, April 6, 2016

The Coherent Strategy of MuSigma

The article ‘The Coherence Premium’ by Paul Leinwand and Cesare Mainardi talks about the importance of aligning the strategy of the firm with its capabilities. The company should focus on a set of few capabilities which assist the firm to differentiate itself in the market. Many companies these days have understood its importance and have implemented their strategies and mission statements tailored to this ambition.

Let’s study MuSigma a leading company in Management Consulting. MuSigma was founded in 2004 and in 10 years the company was valued at $1 billion. They focused their capabilities on data analytics rather than a variety of management consulting services that the giants in the industry operated upon. With this objective focus, the designed their mission statement as follows:
· Developing raw talent
· Enabling continuous learning
· Providing a learning platform for stakeholders

Their strategy to achieve this goal is focused on developing talent and enabling learning. Their focus on data analytics and directed efforts to build an analytics workforce has enabled them to gain many clients and considerable market share in a very short time.

For further evaluating if MuSigma is a coherent company, let’s take the coherent test that the article states.
Can We State It?
Do We Live It?
Way to Play
Are we clear about how we choose to create value in the marketplace?
Are we investing in the capabilities that really matter to our way to play?
Musigma positioned themselves as a management consulting firm specializing in analytics. They invested in building the analytics workforce
Capabilities System
Can we articulate the three to six capabilities that describe what we do uniquely better than anyone else?
Do all our businesses draw on this superior capabilities system?
Their vision statement: ‘Creating and developing Human Capital for global leadership in analytics and the next generation of Decision Sciences talent.’ clearly articulates and builds on it
Product and Service fit
Have we specified our product and service “sweet spot”?
Do most of the products and services we sell fit with our capabilities system?
They specified their product as the analytics services and focused on it until they gained a good market share.

MuSigma is thus one of the many companies who seem to have adopted the policy of coherence to build their business.


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