Guiding Innovation and Investments through Outside-In Prioritization

In a world where businesses are bombarded with countless choices and opportunities, it becomes imperative to prioritize investments and innovations that align with their strategic objectives. This is where an outside-in prioritization approach comes in, leveraging a customer-centric strategy and models like Lafler’s Strategy Cascade to guide decisions.

The Power of Outside-In Prioritization

Outside-In prioritization is a strategic approach where customer needs, preferences, and behaviors guide a company’s investment and innovation decisions. By looking from the outside (the market, customers) in (the company, product), businesses can ensure that their strategic choices align with what their customers truly value. It enables businesses to adapt to market changes, stay competitive, and ensure their resources are utilized most effectively.

Using Lafler’s Strategy Cascade

Lafler’s Strategy Cascade, as defined in our previous blog post, is a powerful tool for implementing an outside-in approach to prioritization. By focusing on strategic outcomes that are inherently customer-centric, businesses can align their investments and innovations with achieving these outcomes.

Shielding Key Strategies

With clarity on where they intend to compete, companies can shield their key strategies from good, yet non-strategic, ideas. While these ideas might seem attractive, they can divert valuable resources from areas that are more critical to the company’s strategic outcomes. Using Lafler’s Strategy Cascade can provide the clarity needed to differentiate between strategic and non-strategic ideas.

Guiding Innovation

Innovation is crucial to maintaining competitiveness and staying ahead in today’s dynamic business landscape. An outside-in approach, guided by a customer-centric strategy, ensures that innovation efforts align with customer needs and preferences. Moreover, using Lafler’s Strategy Cascade can help identify the key systems where innovation can have the most significant impact.

Guiding Investments

An outside-in approach can also guide investment decisions. By understanding the strategic outcomes they wish to achieve and the key systems driving these outcomes, businesses can make informed investment decisions. This approach ensures that investments are channeled into systems and initiatives that directly contribute to achieving strategic outcomes and enhancing customer value.


Outside-In prioritization, powered by a customer-centric strategy and tools like Lafler’s Strategy Cascade, provides a robust framework for guiding innovation and investment decisions. It ensures that businesses remain focused on their strategic objectives and customer needs, making the most effective use of their resources. As they navigate the complexities of the business landscape, this prioritization approach can serve as a guiding compass, leading them towards sustained success.

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