Bain's Differentiating Capabilities Model Template
Originally published: 31/08/2023 16:40
Last version published: 26/10/2023 14:47
Publication number: ELQ-71450-2
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Bain's Differentiating Capabilities Model Template

A editable version of Bain's Differentiating Capabilities Model for business leaders, consultants or analysts to showcase the success of an operating model.

In December 2014, Bain & Company's (one of the top 3 leading Strategy Consulting Firms across the globeMarcia Blenko (Advisory Partner, Boston), Eric Garton (Partner, Chicago) and Ludovica Mottura (Practice Executive Vice President, Boston), published an article on Bain Insights called "Winning Operating Models That Convert Strategy to Results" (full article available here: ). The article stresses the importance that successful strategy execution also depends on selecting the adjusted operating model.
In the article, Figure 4 titled "IKEA anchors its cost-leadership strategy on serval differentiated capabilities", highlights IKEA's four differentiating capabilities, among 15 standard capabilities, in it's operating model in a very original manner. The specific slide can be found here:

The highlighted 2014 IKEA differentiated capabilities by the Bain Team, and the accompanying rationale:
- Business unit strategy and priorities: When entering new markets and categories, offers low prices early and enhances offering later- Supply chain and logistics: Strong partnerships with suppliers, logistics designed to have at least 95% of merchandise in stock
- Development and innovation: Low-cost design starts with setting price
- Go-to-market: Standardized but unique store model spurs cross-selling

The Bain differentiated capabilities framework is a 3 x 5 matrix.

- Management Capabilities (5)
- Operating Capabilities (5)
- Proprietary Assets (5)

- Back Office (Score 1)
- Customer Facing (Score 5)

Details of the Y-Axis:

👔 Management Capabilities:
- Portfolio management and finance - 1 =>Back Office
- M&A, joint ventures and partnering - 2
- Regulatory management - 3
- Business unit strategy and priorities - 4
- Talent management and culture - 5 =>Customer Facing

👷‍♂️ Operating Capabilities:
- Supply chain and logistics - 1 =>Back Office
- Production and operations - 2
- Development and innovation - 3
- Go-to-market - 4
- Customer relationships  - 5 =>Customer Facing

💡 Proprietary Assets:
- Tangible assets - 1 =>Back Office
- Scale - 2
- Technology and Intellectual property  - 3
- Brand - 4
- Tied customer network - 5 =>Customer Facing

Given the pertinence of the application of this framework in the context of the Bain 2014 article, I decided to create a universal template any business leader, consultant or analyst can use to showcase the differentiated capabilities of his/her company.

The Best Practice is:
- 1 editable Microsoft PowerPoint Template Slide
- with an online & offline 6 step-by-step methodology, with pedagogical illustrations for each step.

Should you have any questions about this top tier Bain & Company framework template, you're welcome to reach out to me via Private Message.

Good Luck!
- Tim

⭐️ Bundle of 20+ MBB (McKinsey, BCG, Bain) Strategy Consulting Frameworks (including this one): 

This Best Practice includes
1 PowerPoint Template Model + 1 Offline/Online 6 Step-by-Step Methodology

Acquire business license for $6.00

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