The Strategy Palette is one of the more recent and probably the most recognized framework for selecting the appropriate strategy approach. The framework’s use of dichotomous variables with low and high values makes it simple and easy to understand. It does not stop at identifying the strategy approaches, instead further linking them with the relevant strategy tools. BCG also has an interactive website for the strategy tools providing a short description of the tool, its author(s), and the original reference. The linking of the various strategy tools to strategy approaches allows for the creation of a strategy toolbox for each approach that can be used by strategists []. Moreover, the book provides several case studies and vignettes to explicate the strategy approaches.

BCG’s Strategy Palette is based on three key contingent variables: unpredictability, malleability, and harshness, resulting in five strategy approaches: classical, adaptive, shaping, visionary, and renewal. It serves as a good introduction to strategy approaches and provides guidance on the relevant strategy tools that can be utilized for each approach. However, using only dichotomous variables makes this a more reductionist framework which does not lend itself towards capturing the different degrees of variation and complexity within the variables. Therefore, it does not allow for a more extensive and pertinent set of strategy approaches to be considered. 

The shaping strategy approach is most suitable for environments which are unpredictable but malleable. These environments usually exist in new industries where there are no established leaders or rules of competition. Many companies can enter these low barrier industries and introduce innovative business models, products, and services. Mature markets may also be ready to be disrupted if they are overserving major customer segments or not serving customers. The disruption is usually through business model innovation.

Finally, the book and its accompanying website cover strategy tools and link them to the five strategy approaches, creating five strategy toolboxes. This is a good development but one with insufficient coverage of the available strategy tools. In my research on strategy tools covering the same period (-), I identified over strategy tools. Some of these strategy tools include backcasting [], business wargaming [], assumption-based planning [], strategy under uncertainty [], the three horizons framework [], strategy diamond [], portfolio of initiatives [], strategy as active waiting [], the strategy tripod framework [], and capabilities-driven strategy []. BCG’s narrow coverage of strategy tools combined with fewer strategy approaches results in limited and incomplete strategy toolboxes and consequently, inadequate strategy guidance.

The Strategy Palette framework was first published in Harvard Business Review (HBR) in by the lead author, Martin Reeves, and two colleagues, Claire Love and Philipp Tillmanns []. It had two dimensions: predictability and malleability; as well as four strategy approaches. Subsequently in , the framework was updated, and a third dimension was added called harshness, resulting in five strategy approaches. This updated version was published in the book “Your Strategy Needs a Strategy: How to Choose and Execute the Right Approach”, which was written by the lead author, Martin Reeves, and two new co-authors, Knut Haanaes and Janmejaya Sinha [].