Strategic Potential

Strategic Potential (drawing from Andrew Campbell's work on Corporate-Level Strategy and Core Competencies) provides a framework for identifying the untapped sources of value within a large organization. Campbell, a director at Ashridge Strategic Management Centre, argues that many firms fail because they look for growth in new markets while neglecting the Strategic Potential of their existing core. This work focuses on how a corporate center can systematically uncover and exploit the hidden strengths of its business units.

The methodology centers on the Strategic Fit between the parent company’s resources and the business units' critical success factors. Campbell explains how to use Resource Mapping to identify 'under-managed' assets and how to foster Capability Leveraging across the firm. He emphasizes the role of 'visionary parenting' and the importance of a clear corporate mission that guides resource allocation. The framework highlights the need for Internal Benchmarking to ensure that best practices in one division are recognized as potential advantages for the entire group.

This is mandatory reading for corporate development officers and senior executives in complex enterprises. Readers gain value by learning how to conduct a Potential Audit of their current portfolio. Real-world applications include identifying 'invisible' competitive edges and redesigning reporting structures to surface innovation. By mastering the principles of strategic potential, leaders can ensure their organization is fully utilizing its internal strengths before embarking on high-risk external diversification.