MacMillan Matrix

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The MacMillan Matrix: 

The MacMillan Matrix Vicki Cederburg, Vice President of Quality Assurance and Clinical Services February 27,2006

The MacMillan Matrix: 

The MacMillan Matrix Developed by I.C. MacMillan Proposes some guidelines for strategy formulation Recognizes that senior management is often faced with making agonizing choices This approach calls for very aggressive strategies to concede programs to superior competitors and wrest programs away from inferior competitors

The MacMillan Matrix: 

The MacMillan Matrix Three Levels of Strategic Decision Making Definition of Mission Formulation of corporate strategy (for the multi program agency) Formulation of competitive program strategies

The MacMillan Matrix: 

The MacMillan Matrix Definition of Mission Clear and specific statement of what role the organization will play in the segment of society it intends to serve Seldom unilaterally determined Selection of the level of generality is crucial Ensure that in defining a certain mission you don’t later face exit barrier problems

The Family Conservancy: 

The Family Conservancy Mission Investing in families and children by: Delivering parenting and early education solutions Supporting families in crisis Helping families overcome poverty

The MacMillan Matrix: 

The MacMillan Matrix Definition of Mission Determine how success will be handled Continuous review of mission and mission appropriateness is imperative As accurate a judgment as possible of what the future holds in store/forecasting environmental trends

The MacMillan Matrix: 

The MacMillan Matrix Formulation of Corporate Strategy All current and pending programs are dichotomized according to three dimensions Program Attractiveness Competitive Position Alternative Coverage

The MacMillan Matrix: 

The MacMillan Matrix Formulation of Corporate Strategy Program Attractiveness must develop criteria unique to organization Internal Criteria Congruency with the mission Existing skills of the organization Extent to which program activities can be shared with or by other programs External Criteria Support group appeal Fundability and funding stability Measurability of results Exit Barriers Client resistance Self sufficiency orientation

The MacMillan Matrix: 

The MacMillan Matrix Formulation of Corporate Strategy Competitive Position Location and logistics Prior funding history Track record Market share Momentum Leadership Quality Organizational skills Communication skills Cost effectiveness

The MacMillan Matrix: 

The MacMillan Matrix Formulation of Corporate Strategy Alternative Coverage High – other large agencies or many smaller agencies are providing a similar program in the same region Low – no large agencies or very few smaller agencies are providing a similar program in the same region

The MacMillan Matrix: 

The MacMillan Matrix Now that we are clear about the mission and we have formed our corporate strategy, including program attractiveness, and competitive position . . . We are ready to consider the formulation of competitive program strategies through “scoring” the programs

Slide12: 

High Program Attractiveness Alternative Coverage HIGH 1. Aggressive Competition Good Fit Competitive High Attractiveness High Coverage 3. Aggressive Divestment Good Fit Not Competitive High Attractiveness High Coverage Alternative Coverage LOW 2. Aggressive Growth Good Fit High Attractiveness Low Coverage 4. Invest, Find Partner or Divest Good Fit Not Competitive High Attractiveness High Coverage Low Program Attractiveness Alternative Coverage HIGH 5.Reinforce Best Competitor or Find Partner Good Fit Competitive Low Attractiveness High Coverage 7. Find Partner or Divest Good Fit Not Competitive Low Attractiveness High Coverage Alternative Coverage LOW 6.”Soul of the Agency” Good Fit Low Attractiveness Low Coverage Competitive 8. Find Partner or Divest Good Fit Low Attractiveness Low Coverage Not Competitive 10. Orderly Divestment Poor Fit Low Attractiveness 9. Aggressive Divestment Poor Fit High Attractiveness Strong Compet- itive Position Weak Compet- itive Position Good Fit Good Fit

The MacMillan Matrix: 

The MacMillan Matrix Cell I - Aggressive Competition Strong Position High Program Attractiveness High Alternative Coverage Cell II - Aggressive Growth Strong Position High Program Attractiveness Low Coverage

The MacMillan Matrix: 

The MacMillan Matrix Cell III - Aggressive Divestment Weak Position High Program Attractiveness High Alternative Coverage Cell IV - Build Strength or Sell Out Weak Position High Program Attractiveness Low Alternative Coverage

The MacMillan Matrix: 

The MacMillan Matrix Cell V - Build up the best competitor Strong position Low Program Attractiveness High Alternative Coverage Cell VI - Soul of the Agency Strong Position Low Program Attractiveness Low Alternative Coverage

Slide16: 

Cell VII - Orderly Divestment Weak position Low Program Attractiveness High Alternative Coverage Cell VIII - Joint Venture Weak Position Low Program Attractiveness Low Alternative Coverage The MacMillan Matrix

Slide17: 

High Program Attractiveness Alternative Coverage HIGH 1. Aggressive Competition Good Fit Competitive High Attractiveness High Coverage 3. Aggressive Divestment Good Fit Not Competitive High Attractiveness High Coverage Alternative Coverage LOW 2. Aggressive Growth Good Fit High Attractiveness Low Coverage 4. Invest, Find Partner or Divest Good Fit Not Competitive High Attractiveness High Coverage Low Program Attractiveness Alternative Coverage HIGH 5.Reinforce Best Competitor or Find Partner Good Fit Competitive Low Attractiveness High Coverage 7. Find Partner or Divest Good Fit Not Competitive Low Attractiveness High Coverage Alternative Coverage LOW 6.”Soul of the Agency” Good Fit Low Attractiveness Low Coverage Competitive 8. Find Partner or Divest Good Fit Low Attractiveness Low Coverage Not Competitive 10. Orderly Divestment Poor Fit Low Attractiveness 9. Aggressive Divestment Poor Fit High Attractiveness Strong Compet- itive Position Weak Compet- itive Position Good Fit Good Fit

Instructions for Breakouts: 

Number off (1 to 4) to divide into four groups Each person has a few minutes to think about a program from their agency which they will share with the group One person at a time runs their program through the criteria, rating the program while discussing with entire group High or low ( program attractiveness) Weak or strong (competitive position) Instructions for Breakouts

The MacMillan Matrix: 

The MacMillan Matrix Vicki Cederburg, Vice President of Quality Assurance and Clinical Services February 27,2006