--- title: Is Your Strategy Missing the ROIC Link? description: there is a missing link that clearly outlines what the company must change as it goes from its AS IS to SHOULD BE future strategy state. image: http://www.thinkingdimensions.com/hubfs/img/Blog_Photos/StrategyMissingLink.jpg --- - [strategic planning](https://www.thinkingdimensions.com/blog/strategy/topic/strategic-planning) # Is Your Strategy Missing the ROIC Link? ![](http://www.thinkingdimensions.com/hubfs/img/Blog_Photos/StrategyMissingLink.jpg) - June 18, 2015 ![Tim Lewko](https://www.thinkingdimensions.com/hubfs/Tim-min%20ROUND%202019.png) [ Tim Lewko ](https://www.thinkingdimensions.com/blog/strategy/author/tim-lewko) While much as been written on both settingand implementing strategy – in all the literature there is a **missing link** that clearly and practically outlines a one pager on what the company must change as it goes from its AS IS to SHOU![StrategyMissingLink](http://www.thinkingdimensions.com/hs-fs/hubfs/img/Blog_Photos/StrategyMissingLink.jpg?width=400&name=StrategyMissingLink.jpg "StrategyMissingLink")LD BE future strategy state. This is one of the critical [**BIG DECISIONS**](https://www.thinkingdimensions.com/resources/blog/strategy/strategic-and-operational-decisions-on-entering-a-fast-growing-market) executives are faced with. ** And this step is missed all too often – leaving the rationale for the “vision” unchecked or hazy. ** I don’t mean a list of projects or a strategic master project plan – that comes later. What is lacking and what we outline for the CEOs to use is a practical **Key Capabilities Matrix** – that is a detailed set of needs that must be bought, built or phased out relative to customer segment needs. It is the defining set of specs that has investments needed in exchange for the return these assets are expected or envisioned to produce. In short it's a initial but meaningful ROIC (Return on Invested Capital). In addition, it is the ultimate 1 page for Board Members to delve into to see just how **“REAL” and “REALISTIC"** the strategy planning process has been – and what business case needs to be presented to key shareholders. It also helps to explain to the company the WHAT, WHY behind any initiatives that will be announced. *** For clarity - future (key) capabilities are the processes, skills and technology needed to build what’s next and underpin your competitive advantage – how you make money.*** Put another way it's the business case that says – *** “If we envision this purpose and path for our company, across these product and market priorities then to achieve these goals we require “X” – the X is the future capabilities.*** And these resources must provide an advantage against the competition that produces above average profitability. Below I have outlined the worksheet and 3 steps to complete this. There must first be real clarity on your product and market choices – which your strategy process should avail – as well as meaningful and valid “relative importance” purchasing criteria for your segments In short you must have previously determined priority segments and understood why customers will buy and pay a premium relative to the competition. ### ** Three Steps to Using the Worksheet with your Executive or Business Unit team.** **![keycapabilities_](https://www.thinkingdimensions.com/hubfs/img/Blog_Photos/keycapabilities_.png)** 1. Outline your High Level **Current and New Product / Market Segments** 2. Incorporate Relative Importance **Purchasing Criteria** and **Select Attributes** that are most critical for that segment 3. Populate** Key Capabilities Matrix **for each segment by defining 1. PURCHASING CRITIERA – priority attributes that determine why customers from that segment buy 2. CAPABILITY – the ability to do “X” as a outcome 3. GAP or Change that must happen 4. TIMING when it must be “operational” – delivering benefits to the company 5. Investment required to close gaps For example a business case that would result looks something like this below – it is a early and powerful reality check for your strategy. AS IS:              50MM   Revenue, OI 10MM for 2015 SHOULD BE: 100MM Revenue / OI 40MM for 2017 **The Big Decision – Would you invest 13 MM dollars to go from a 10MM OI to 40MM or 300% Change** Of course no one is selling the farm at this point – but if the front part of your strategy process is robust it should channel you to a point where this type of analysis is based in reality and provides a starting point to begin gets sign-offs and make plans for implementation. [![Learn how to Simplify Your Strategy  for Higher Profits Download the Thinking Dimensions Global Strategic System](https://no-cache.hubspot.com/cta/default/358589/ec166585-2e9b-4a2a-bbc8-e42bab51e455.png)](https://cta-redirect.hubspot.com/cta/redirect/358589/ec166585-2e9b-4a2a-bbc8-e42bab51e455) Blog Post ## Related Articles Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. [![](https://www.thinkingdimensions.com/hubfs/img/Blog_Photos/ApolloMissionsGraphic.png) ](https://www.thinkingdimensions.com/blog/strategy/how-to-calibrate-world-class-alignment-with-your-strategy) [strategic planning](https://www.thinkingdimensions.com/blog/strategy/topic/strategic-planning) ### [ How to Calibrate World Class Alignment with Your Strategy ](https://www.thinkingdimensions.com/blog/strategy/how-to-calibrate-world-class-alignment-with-your-strategy) May 7, 2015 1. The Situation: Alignment to the critical few strategic priorities is key. No one has unlimited resources. Every CEO... [ Read more ](https://www.thinkingdimensions.com/blog/strategy/how-to-calibrate-world-class-alignment-with-your-strategy) [![CEO Tim Lewko and Managing Partner Scott Newton](https://www.thinkingdimensions.com/hubfs/February%204th%202022.jpg) ](https://www.thinkingdimensions.com/blog/strategy/are-you-ready-for-bold-growth) [Blogs - Strategic Transformation](https://www.thinkingdimensions.com/blog/strategy/topic/blogs-strategic-transformation), [strategic planning](https://www.thinkingdimensions.com/blog/strategy/topic/strategic-planning), [strategy meetings](https://www.thinkingdimensions.com/blog/strategy/topic/strategy-meetings), [success](https://www.thinkingdimensions.com/blog/strategy/topic/success), [Competitive Advantage](https://www.thinkingdimensions.com/blog/strategy/topic/competitive-advantage), [future of your business](https://www.thinkingdimensions.com/blog/strategy/topic/future-of-your-business), [customers of the future](https://www.thinkingdimensions.com/blog/strategy/topic/customers-of-the-future), [long-term success](https://www.thinkingdimensions.com/blog/strategy/topic/long-term-success), [Strategy](https://www.thinkingdimensions.com/blog/strategy/topic/strategy), [CEO](https://www.thinkingdimensions.com/blog/strategy/topic/ceo), [tough decisions](https://www.thinkingdimensions.com/blog/strategy/topic/tough-decisions), [Sustainablegrowth](https://www.thinkingdimensions.com/blog/strategy/topic/sustainablegrowth), [Value creation](https://www.thinkingdimensions.com/blog/strategy/topic/value-creation) ### [ Are You Ready for Bold Growth? ](https://www.thinkingdimensions.com/blog/strategy/are-you-ready-for-bold-growth) February 1, 2022 How Ready is your organization for Bold Growth? Join Thinking Dimensions Global CEO Tim Lewko together with Managing... [ Read more ](https://www.thinkingdimensions.com/blog/strategy/are-you-ready-for-bold-growth) [![Delta Lufthansa Qatar Zoom valuation earn status miles without flying](https://www.thinkingdimensions.com/hubfs/image.png) ](https://www.thinkingdimensions.com/blog/strategy/delta-airlines-lufthansa-and-qatar-airways-announce-new-skyconnect-alliance) [Stakeholder Requirements](https://www.thinkingdimensions.com/blog/strategy/topic/stakeholder-requirements), [Blogs - Strategic Transformation](https://www.thinkingdimensions.com/blog/strategy/topic/blogs-strategic-transformation), [strategic planning](https://www.thinkingdimensions.com/blog/strategy/topic/strategic-planning), [Customer Insights](https://www.thinkingdimensions.com/blog/strategy/topic/customer-insights), [future of your business](https://www.thinkingdimensions.com/blog/strategy/topic/future-of-your-business), [customers of the future](https://www.thinkingdimensions.com/blog/strategy/topic/customers-of-the-future), [profitability](https://www.thinkingdimensions.com/blog/strategy/topic/profitability), [Sustainability](https://www.thinkingdimensions.com/blog/strategy/topic/sustainability) ### [ DELTA AIRLINES, LUFTHANSA, AND QATAR AIRWAYS ANNOUNCE NEW SKYCONNECT ALLIANCE ](https://www.thinkingdimensions.com/blog/strategy/delta-airlines-lufthansa-and-qatar-airways-announce-new-skyconnect-alliance) July 9, 2020 URGENT PRESS RELEASE: FEBRUARY 31, 2012 [ Read more ](https://www.thinkingdimensions.com/blog/strategy/delta-airlines-lufthansa-and-qatar-airways-announce-new-skyconnect-alliance) Check all articles Blog Post CTA ### H2 Heading Module Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. GET STARTED Subscribe for ### Our Blog Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. ![](https://googleads.g.doubleclick.net/pagead/viewthroughconversion/871691188/?guid=ON&script=0)