GE-McKinsey Matrix Excel Template
The GE matrix is now officially known as the GE-McKinsey nine-box matrix.
According to the McKinsey website, the framework “offers a systematic approach for the multibusiness corporation to prioritize its investments among its business units.
It was developed in the 1970s, after the development of the Boston Consulting Group (BCG) matrix. The GE-McKinsey multi-business matrix, however, is a far superior tool as compared to the BCG matrix, because it builds in multiple factors and scores them on a set criteria. Whereas, the BCG matrix uses two top-level measures to approximate business strengthen industry attractiveness.
Free download of the Excel template for building the GE-McKinsey matrix
A Excel template has been developed by the Marketing Study Guide so that you can build and present the GE-McKinsey matrix quickly and effectively.
Please click here to download the free Excel template… free_download_attractiveness_strength_matrix_2020
How the GE-McKinsey Excel template looks
Here is an example of the final GE matrix that would be produced using the free Excel template (available for free download above).
How the multi-factor Excel template works
As you can see above, the end result is plotting firms, brands, or strategic business units (SBU’s) onto a two-dimensional matrix. This matrix shows overall industry attractiveness relative to the firm/SBU, against the overall business strength of that firm/SBU.
The results are plotted on a nine box matrix. The green color boxes indicate a good match of strength and industry attractiveness – and therefore, the business should invest in this area.
The yellow/gold cells running diagonally indicate a reasonable business opportunity that the corporation should either hold or selectively look to improve, but without the full on investment suggested by the green cells.
The red cells are a poor match of both industry attractiveness and relative business strength and the firm is playing the wrong markets here and should look to divest and use the money more effectively somewhere else, such as in the green cells area.
Here are the steps to complete the multi-factor GE-McKinsey matrix Excel template:
Rate the market attractiveness factors – as shown below:
As you can see, you first need to list your firm/SBUs across the top – in this example, generic types of retailing chains have been used. Then you need to allocate a percentage importance rating to each of the key factors that you want to include in your design of the matrix.
If you do not want to include a particular factor, then leave the importance rating at 0%. And if you want to add your own business strength factors into the multi-factor model, you can add your own at the bottom.
You then need to score, on a 1 to 10 basis, each of the firms/SBUs that you wish to include. You can score up to 10 firms using the free template. The importance ratings remain the same for each business, to ensure a consistent and relative outcome on the matrix.
Next Step: Rate the market attractiveness factors – as shown below:
Next we scroll down the Excel worksheet and directly underneath you will need to score the firms/SBUs on market attractiveness. Again, you construct your own GE-McKinsey matrix by selecting the percentage importance weighting of each factor that you wish to include. So the process is identical to the prior step.
HOWEVER, there are some market attractiveness factors that are negative – these have been indicated in the list of key factors. For example, competitive rivalry is not good – so if competitive rivalry is high, then you should give it a low score in the template, as this makes the market relative unattractive.
Final Step: Review and copy and paste your automatically generated GE-McKinsey nine box matrix
Once you have completed the above two steps, then the McKinsey matrix is produced automatically underneath the input tables. You can then copy and paste the matrix into your report or presentation.
Video instructions on how to use the GE matrix template maker