Options Analysis
“To create the kind of distinctive asset base and market positions that allow one to outperform the competition and generate great returns requires a continuous process of developing strategic options, applying skills and technology to stretch their potential, and regularly winnowing them, choosing only the best.” John Browne (Ref 1)
A business is always faced with a range of possible options for moving forward. These options may be strategic or tactical. Options analysis is a technique for systematically evaluating and prioritising options. It consists of the following steps:
- Brainstorm for possible options
- Use a quick-screen elimination process, to quickly eliminate obviously unfavourable options.
- Develop a set of key metrics and basic concepts that will decide a good vs bad option.
- Conduct in-depth analysis of remaining options. Focus on facts, and force simple "" yes", "no" or "further analysis required" answers.
Note: It is important to understand when more detailed analysis is required in order to make the decision…and when it is required to allow action planning…if the latter, then it need not delay the decision.