Parent fit matrix

Parenting matrix ppt

The parent also has skills in formula branding, in setting performance targets that generate above-average restaurant margins, and in designing flat structures for chain operations that keep overheads per unit to a minimum. They strive to be the best parents for the businesses they own—to create more value than rivals would. Managers make their biggest mistakes with businesses that fit in parenting opportunities but not in critical success factors. But the poor performance of companies using the portfolio-management technique, and disillusionment with diversification, have discouraged all but a handful of companies from using it today. Could the business link more effectively with other businesses to improve efficiency or market position? Dana Corporation, another manufacturing-oriented parent company, also spotted the opportunity at Champion. This creates a mechanism for translating the strategic vision into concrete actions necessary to achieve success. Companies need to be clear about their heartland before they can recognize alien territory. It involves reviewing the performance of each business in comparison with its competitors. Management initially saw it as an edge-of-heartland experiment, with parenting opportunities in food purchasing, property-development costs, and performance benchmarking. Parenting advantage not only drives planning; it also helps executives make decisions. The Balanced Scorecard has also been successfully adapted for use by not-for-profit and public sector organisations.

Characteristics of the Parent: Assessing Fit. The widespread adoption of the Balanced Scorecard is due in part to its flexibility.

parenting framework ppt

If there is a fit, the parent is likely to create value. While good parents are always fine-tuning their parenting, they rarely change in any fundamental ways. Edge-of-Heartland Businesses: In these businesses some parenting characteristics fit the business, but other do not.

Therefore corporate decision makers should consider divesting this unit as soon as they can get a price that exceeds the expected value of future cash flows. Because their minerals businesses have consistently under-performed those of minerals specialists.

Parent fit matrix

Previous strategic frameworks have focused on the businesses in the portfolio and searched for a logic by examining how they relate to one another. However, it is a good idea to summarize critical success factors, confirm their importance with business-level managers, and check whether circumstances in the business have changed—for example, whether its costs have risen.

Many companies have implemented their own variations to suit their strategic purposes. The core competence concept says that businesses are related if they have common technical or operating know-how.

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Those companies have what we call parenting advantage. Value Trap Businesses: Value Trap Businesses fit well with parenting opportunities, but they are a misfit with the parents understanding of the units CSF.

Finally, critical-success-factor analysis is a prerequisite for a parenting-opportunity analysis.

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Corporate Parenting Fit Matrix