1 Strategy compass – A structured approach to strategy development By Carsten Henkel and Michael Hilb Strategy development is a core process of corporate development. A structured approach can help in efficiently configuring the process and also in making it value-adding in the long term. No other aspect of corporate management receives so much attention, yet is also so firmly defined by the individual business experience, as strategy development. Nevertheless, or perhaps precisely because of this constellation, strategy development remains one of the major challenges. The strategy compass, a structured approach, can assist in tackling the strategy development challenge, while optimally taking into account one’s own experience. Around 1480, Christopher Columbus took up an idea of Aristotle and decided to explore the western route to India. Prior to presenting his proposition to potential financial backers, he found himself facing a diversity of strategic questions: Should he position his mission as a political act of the Spanish crown, or as an economic campaign? Would it not be wiser to recruit his own seamen, or to charter a ship with a crew? Should he undertake the project himself, or bring other partners on board? The implementation of any vision needs strategic orientation aids. In the thicket of differing opinions, a compass is needed that provides orientation while also indicating potential directions, but without committing to dogmatic recommendations that subsequently often prove misleading (Rosenzweig 2007). Determining that orientation and defining the route to reaching it is a core task of all management bodies. In that context, the compass must ensure that all aspects are considered, the individual elements are properly linked, and that the entire concept has a clear overview and remains pragmatic. In business terminology, the potentially successful compass fulfills the four Cs: comprehensive, consistent, combinative and concise. Critical assessment The strategy compass differentiates between the inner, middle and outer strategy spheres. The inner sphere defines the positioning by answering the question of: How do I position myself compared to the competition, in order to maximize customer benefit? The middle