Vertical Axis
The y-axis of this matrix is made up of the ‘Fit for Mission’. The axis is divided into two halves representing a good fit or a poor fit.
The x-axis or horizontal axis is made up of ‘Fit with core competencies’ and again the axis is divided into two halves representing a good fit or a poor fit.
Horizontal Axis
The MCC Matrix can give guidance on the relative merits of any claim on resources, not only those associated with products and markets, making it more versatile than the traditional BCG matrix. The investigator may want to analyse research, the new development of technology, training initiatives etc. These will all be referred to as projects.
The location of these projects on the matrix is determined by answering two questions (one for each axis).
a) Mission - How well does the project fit with and help achieve the firm’s mission?
b) Core Competencies - How well does the project use and further develop the firm’s core competencies?
The answers to these questions are subjective and therefore the construction of the matrix depends to a large extent on the way that the company sees itself, how it defines its mission and how it analyses its core competencies.
The use of this matrix therefore allows a firm to assess its projects but at the same time it will also be assessing and verifying the validity of the basic assumptions against which the projects are tested (i.e. the mission of the firm and its core competencies) As long as a division, unit, department or smaller entity has a mission and core competencies, this matrix can be utilised.
The matrix consists of four quadrants and to be a usable and useful tool, the implications for projects landing in any of these quadrants must be identified.
The MCC Matrix
Drive - Projects falling in the upper right hand quadrant are called ‘Drives’ and have a high fit with both the Mission and the Core Competencies. Resources are being devoted to things that have strategic synergy in driving the organisation forward and these projects should be looked after.
Drain - Projects falling into the left hand lower quadrant are the exact opposite of Drives – they do not have any fit with the mission of the firm nor the core competencies. These projects may give attractive short-term results but they will be a drain on the firm’s strategic strength because of their lack of fit – they should be eliminated.
Distractions – These are projects that depend on the core competencies but they do not fit the mission of the firm. They use current skills but can be dangerous as they distract the firm from its central purpose.
Dilutions – Projects in the top left quadrant fit the mission of the firm but they do not draw on or further develop the currently defined core competencies. These projects will dilute the necessary concentration on core competencies.
An organisation is at its strongest when all its resources are devoted to drives and none to drains i.e. when everything it does helps to fulfil its mission while using and strengthening its core competencies