This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Reinventing Your Strategy Development

IBM's Business Leadership Model. Gerstner's first step was to ban strategy consulting firms and enable leadership teams to build their own strategies. This required a common strategy model and vocabulary. The new model was named the IBM Business Leadership Model (BLM). This model is still in use today.

The BLM is very simple. It has two parts: strategy and execution. Ask an IBM executive about strategy and he will see the BLM model in his mind. This common perspective and vocabulary is essential for real communication.

IBM's Strategic Leadership Forum. IBM designed the Strategic Leadership Forum (SLF) to build business unit (BU) strategies. The SLF is a four-and-a-half day working session for BU top teams. Typically four to six business unit top teams attend with 10 to 15 members on each team.

The week begins on Sunday evening and ends of Friday mid-afternoon with a completed strategy. It is important to note that some of IBM's BUs employ more than 100,000 people. Yet regardless of size, the process is the same. In one week, the strategy is complete.

The SLF methodology is straightforward. One month before the session, team leaders hold a kick-off meeting to define data needs. Like a business school case study, attendees review this data prior to the SLF.

The Sunday evening objective is to gain consensus on the performance gap -- the main problem they are trying to fix. Note that this is the "main problem" and not "main problems." Perhaps the ultimate failure factor during strategy design is addressing too many performance gaps. These teams inevitably get lost and the process grinds to a halt. Successful teams address only one gap.

Over the next four days, the teams complete each part of the BLM model. For example, BLM "strategy" is broken into three parts: strategic intent, marketplace insight and business design.

On Monday morning, members of all the teams assemble in a theater-style room to listen to a one-hour lecture on strategic intent. After the lecture, the BU work teams move into breakout rooms and spend three hours forming a consensus on a statement of strategic intent for their BU.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
IBM $149.04 0.00%
AAPL $110.78 0.00%
FB $94.01 0.00%
GOOG $641.47 0.00%
TSLA $246.15 0.00%


Chart of I:DJI
DOW 16,776.43 +304.06 1.85%
S&P 500 1,987.05 +35.69 1.83%
NASDAQ 4,781.2640 +73.4890 1.56%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs