Situation: A CEO is facing a decision whether to make or buy key technology frequently used by the company. What have others done when faced by similar decisions? What are the most important factors that impacted those decisions? How do you frame a make versus buy decision?

Advice from the CEOs:

• In considering either option evaluate the opportunity by asking whether the technology:
  • Complements the company’s core strategic focus – the company’s “Main Thing” – what you are passionate about, what drives your key economic denominator, and what can you be best at in your market.
  • Supports the key economic denominator – the single factor that has the greatest impact on the company’s profitability and growth.
  • Complements the best use of the company’s critical resources.
  • Protects the company’s process secrets.
  • Feeds your passion as CEO.
• In evaluating a buy decision look at the strengths of the people who come along with the opportunity.
  • Do they complement the company’s strengths or not?
  • Will they fit the company’s ecology and culture?

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