Build-or-Buy Decision Pillars

This slide outlines the 3 core pillars—Strategy, Risks, and Economics—that underpin the build-or-buy decision-making process in strategic sourcing. It visually emphasizes each pillar with icons and provides concise descriptions, helping executives assess the critical factors influencing outsourcing choices.



Why This Slide Is Useful

This slide is valuable because it condenses a complex strategic decision into 3 essential dimensions, enabling quick yet comprehensive evaluation. For C-level leaders and strategy professionals, it offers a structured framework to guide discussions on outsourcing or internal development, ensuring all key considerations are addressed.

The visual layout with icons and brief descriptions makes it easy to communicate the decision criteria across executive teams and stakeholders. It supports alignment on strategic priorities, risk appetite, and financial implications, which are often points of contention in build-or-buy debates.

This slide also serves as a diagnostic tool during due diligence or strategic reviews. It helps identify gaps or biases in the decision process—such as overemphasizing cost savings at the expense of strategic fit or risk management. Leaders can use it to challenge assumptions and ensure a balanced approach.

Furthermore, the framework facilitates scenario analysis. Executives can modify assumptions within each pillar to simulate different outcomes, aiding in more informed decision-making. It acts as a reference point for both initial assessments and ongoing evaluations of outsourcing strategies.

How This Slide Is Used

This slide is typically used during strategic planning sessions, sourcing strategy workshops, or due diligence processes. It provides a clear, shared language for evaluating build versus buy options, especially in complex or high-stakes projects.

In consulting engagements, advisors often leverage this framework to structure client discussions around outsourcing decisions. They may customize the descriptions or add quantitative metrics to each pillar, aligning the analysis with specific project goals or industry nuances.

The slide also supports decision documentation and stakeholder communication. For example, during executive presentations, it helps clarify the rationale behind a build or buy recommendation by highlighting the relative importance of each pillar.

Organizations frequently use this slide as part of a broader decision matrix or risk assessment toolkit. It guides teams through a systematic review, ensuring that strategic, financial, and risk factors are all considered before finalizing a sourcing approach.

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