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Outside-In Strategic Modeling

Author

Listed:
  • David Matheson

    (Navigant Consulting, Inc./Strategic Decisions Group, One Boston Place, 39th Floor, Boston, Massachusetts 02108-4667)

  • James E. Matheson

    (Navigant Consulting, Inc./Strategic Decisions Group, One Boston Place, 39th Floor, Boston, Massachusetts 02108-4667)

Abstract

The roots of good strategic decision making are in cultural and organizational norms and patterns. One principle, which we call the outside-in strategic perspective, is essential for excellent strategy. This perspective led a company to recognize that its current strategy was counterproductive and that it must make almost a 180-degree turn. While many companies start with themselves and project market shares, earnings, and so forth out into the environment, the outside-in strategic perspective reverses this to start with the environment and work inwards to the company. In this case, we used a framework that starts with consumer spending in various entertainment areas and divided revenues along a simple value chain of retailers, wholesalers, and producers. An influence-diagram-based model led to counter-intuitive insights about the most valuable segments.

Suggested Citation

  • David Matheson & James E. Matheson, 1999. "Outside-In Strategic Modeling," Interfaces, INFORMS, vol. 29(6), pages 29-41, December.
    • Handle: RePEc:inm:orinte:v:29:y:1999:i:6:p:29-41
    DOI: 10.1287/inte.29.6.29
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    Cited by:

    1. Donald L. Keefer & Craig W. Kirkwood & James L. Corner, 2004. "Perspective on Decision Analysis Applications, 1990–2001," Decision Analysis, INFORMS, vol. 1(1), pages 4-22, March.

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