Pitfalls of using McKinsey Matrix
Robert Korsloot, Director, Netherlands, Member
Beware of the stereotypical pitfall: often the outcomes of these kind of portfolio management models / methods are based on assumptions rather than facts. Models as well as their inputs variables should be validated beforehand. Be sure to convince any user of the necessity of data quality during each phase of the assessment process.
To often I see lack of awareness as it comes to reliability of the assessment process or data used during that process.
Although business assessment array is a very useful and generally appropriate method, quantification of both input and output values is a prerequisite for applicable results. So, everybody, stretch out to measurable facts, choose for reliable quantification methods, validated models and then useful outcomes....