Build-or-Buy Assessment Matrix

Why This Slide Is Useful

This slide is useful for senior executives and strategy consultants because it provides a structured visual framework to assess which functions or assets should be developed internally versus outsourced or divested. It helps prioritize initiatives by highlighting areas with high strategic value that warrant focused investment, versus those with lower importance that may be candidates for reduction or external sourcing.

For C-level decision-makers, this matrix simplifies complex trade-offs involved in resource allocation. It supports strategic discussions around core capabilities that differentiate the business, versus supporting functions that can be optimized or outsourced. This clarity enables more disciplined portfolio management and strategic focus.

Management consultants can leverage this slide to facilitate client workshops on strategic prioritization. It provides a common language and visual reference point to challenge assumptions about function importance, guiding clients toward more effective resource deployment. The matrix also serves as a diagnostic tool to identify gaps or misalignments in strategic focus.

In addition, this slide can be used to track progress over time. By periodically reassessing functions within this framework, organizations can monitor shifts in strategic value and adapt their build-or-buy decisions accordingly. It supports dynamic portfolio management aligned with evolving market conditions and corporate strategy.

How This Slide Is Used

This slide is typically used during strategic planning sessions, portfolio reviews, or transformation initiatives. It helps leadership teams identify which functions or assets should be prioritized for internal development and which could be candidates for outsourcing or divestment.

In consulting engagements, this matrix is often customized with specific functions relevant to the client’s industry. Facilitators guide clients through a scoring process based on performance metrics and strategic importance, then plot functions accordingly. This process clarifies where to allocate resources for maximum strategic impact.

Organizations also use this slide in decision-making around mergers and acquisitions, where understanding the strategic value of different assets is critical. It supports due diligence by highlighting areas that align with long-term goals versus those that may be non-core or surplus.

Furthermore, this matrix can serve as a communication tool within executive teams and boards. It visually summarizes complex strategic trade-offs, enabling more informed discussions and consensus-building. Regular updates to the matrix help ensure ongoing alignment with strategic priorities and market dynamics.

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