Optimizing a bottom-up strategy development process

Abstract

This master thesis studies the bottom-up strategy development process of a large multinational in the building and infrastructure industry. Due to a recent organizational transformation, the company transitioned from a global to a regional structure with a matrix model to better respond to local market needs. Through extensive research, including participatory experience, literature review, stakeholder interviews and AI-driven creativity sessions, an optimized and refined bottom-up strategy development process is proposed. Focusing on improved strategic dialogue between the three key departments of the strategy development process: Market Segments, Business Units and Multi Plant Units.

Key findings reveal that the organization moved from strategic planning and strategic management approaches towards a more open strategy approach, by including more regional stakeholders in the strategy development process. The enhanced transparency and inclusiveness in the strategy development process makes the organization more resilient and competitive. The matrix structure also increases the complexity to effectively collaborate with interdepartmental integration.
Participatory experience and stakeholder interviews revealed that poor communication and collaboration caused misalignment between regional and global initiatives. To address these challenges a solution is proposed that actively involves the key stakeholders in strategy re-alignment sessions to collective decide on future competitive positioning.

The proposed solution has three key elements. First, setting the stage ensures all stakeholders are aligned on strategic priorities before discussions begin, with leadership guidelines preventing misalignment. Second, organizing stakeholders brings market segments, regional business units, and multi-plant units together in structured, focused discussions. Over two days, market segments rotate between different units every two hours, enabling deep collaboration and efficient knowledge-sharing. Finally, the strategy re-alignment session establishes a customer-centric competitive positioning, ensuring all stakeholders define a shared strategic focus before formal strategy development starts.

This structured solution enhances collaboration, strategic alignment and customer-centricity while reducing inefficiencies caused by fragmented decision-making. Implementation follows a phased five-year approach, allowing the organization to gradually refine discussions, integrate customer insights and embed strategy re-alignment into its 3-yearly strategy cycle. By strengthening interdepartmental collaboration and reinforcing open strategy principles, this approach enables the company to balance global strategic direction with regional flexibility, ultimately improving execution speed, decision-making effectiveness and long-term competitiveness.