Strategy by External Team vs. Strategy by Internal Team

Attribute	Strategy by External Team	Strategy by Internal Team
Expertise	Brings in specialized knowledge and skills	Relies on in-house expertise and experience
Objectivity	Can provide an unbiased perspective	Might be influenced by internal biases
Cost	Can be more expensive due to external fees	May be more cost-effective as no external fees are involved
Communication	Requires clear communication with external team	Internal team may have better communication due to proximity

Introduction

When it comes to developing a strategy for a business, organizations have the option to either rely on an external team or an internal team. Both approaches have their own set of advantages and disadvantages, and it is important for companies to carefully consider which option aligns best with their goals and resources.

Strategy by External Team

One of the main advantages of using an external team to develop a strategy is the fresh perspective they bring to the table. External teams are not bogged down by internal politics or biases, allowing them to provide a more objective view of the business and its challenges. Additionally, external teams often have a wealth of experience working with a variety of industries and companies, which can bring valuable insights and best practices to the table.

However, one of the drawbacks of relying on an external team is the potential lack of understanding of the company's culture and values. Since external teams are not immersed in the day-to-day operations of the business, they may struggle to develop a strategy that truly aligns with the organization's core beliefs and goals. This disconnect can lead to a strategy that is difficult to implement or does not resonate with employees.

• Advantages of Strategy by External Team:
• Fresh perspective
• Objective view
• Experience and best practices

• Disadvantages of Strategy by External Team:
• Lack of understanding of company culture
• Difficulty aligning with core beliefs
• Implementation challenges

Strategy by Internal Team

On the other hand, utilizing an internal team to develop a strategy can have its own set of benefits. Internal teams have a deep understanding of the company's culture, values, and goals, which can result in a strategy that is more closely aligned with the organization's overall mission. Additionally, internal teams have a vested interest in the success of the strategy, as they will be responsible for its implementation and execution.

However, one of the potential drawbacks of using an internal team is the risk of groupthink. Internal teams may be influenced by internal politics or biases, leading to a strategy that lacks creativity or fails to consider alternative perspectives. Additionally, internal teams may be limited by their own experiences and may not have the breadth of knowledge that an external team can bring to the table.

• Advantages of Strategy by Internal Team:
• Deep understanding of company culture
• Closely aligned with organization's goals
• Vested interest in strategy success

• Disadvantages of Strategy by Internal Team:
• Risk of groupthink
• Lack of creativity
• Limited experiences and perspectives

Conclusion

Ultimately, the decision to use an external team or an internal team to develop a strategy will depend on the specific needs and goals of the organization. While external teams may bring fresh perspectives and best practices to the table, internal teams have a deep understanding of the company's culture and values. Companies should carefully weigh the advantages and disadvantages of each approach before making a decision, and may even consider a hybrid approach that combines the strengths of both external and internal teams.