The Starting Point Of The Build-borrow-buy Framework Is: Complete Guide & Key Details
So, there I was, staring at a mountain of Lego bricks. Seriously, a mountain. My nephew had dumped his entire collection on the living room floor, a chaotic explosion of primary colors and tiny, infuriatingly shaped pieces. He was eight, and he wanted to build a specific spaceship. Not just any spaceship, but the exact one from that cartoon he’d been obsessing over. And he wanted it now. My brain, meanwhile, was already doing the mental math. Did I have all the right pieces? Would it even look like the picture? The thought of rummaging through that glorious mess, piece by painstakingly small piece, felt… well, frankly, it felt like a lot.
It was in that moment, surrounded by a sea of plastic potential, that a concept I’d been kicking around for a while suddenly clicked into place. The Build-Borrow-Buy framework. It’s not just for big, fancy business decisions, you know. It applies to pretty much everything, from choosing your next streaming binge to, yes, even navigating a Lego emergency.
This whole framework, at its heart, is about asking yourself a fundamental question: "How do I get this thing I need or want?" Sounds simple, right? But trust me, digging into that question is where the real magic (and sometimes the existential dread) happens. It’s the starting point of so many decisions, big and small.
Think about it. That Lego spaceship. I could try to build it myself (the 'Build' option). That involves rummaging, sorting, and a hefty dose of creative interpretation, hoping the end result doesn't look like a squashed frog. Then there's the 'Borrow' option. Could I borrow a pre-built spaceship from another kid? Unlikely. But in the business world, this could mean licensing a technology or partnering with someone who already has what you need. Finally, there’s 'Buy'. Could I just… buy him a pre-made Lego spaceship? Or even better, a Lego kit that is the spaceship? That seems like the most straightforward, albeit potentially the most expensive, route.
This, my friends, is the genesis. The absolute starting point of the Build-Borrow-Buy framework isn't some complicated flowchart or a dense academic paper. It's that moment of need, that spark of desire, that realization that you need to acquire something. And the very first decision you have to make, even before you consciously think "Build, Borrow, or Buy," is: "What am I trying to achieve?"
The 'What' Is Everything: Defining Your Objective
Seriously, if you skip this step, you're basically trying to navigate without a compass. You'll end up making decisions based on impulse, convenience, or what seems easiest in the fleeting moment, and then wonder why you’re suddenly holding a half-finished Lego giraffe when you wanted a spaceship. Been there.
For my nephew, the objective was clear: "A spaceship that looks like the one from the show." Not just any spaceship, but a specific one. This level of clarity is crucial. If his objective was just "something cool to fly around the living room," my Lego rummaging task would have been infinitely easier. But the specificity? That narrows down the options considerably.
In a business context, this ‘What’ is about understanding the core need or goal. Are you trying to:
- Launch a new product?
- Enter a new market?
- Improve operational efficiency?
- Gain a competitive edge?
- Solve a customer problem?
Each of these objectives will lead you down a different path when you eventually get to the Build-Borrow-Buy decision. You can’t decide how to get something if you’re not crystal clear on what that something actually is. It’s like showing up at a restaurant and telling the waiter, "I want food." They'll look at you like you’ve grown a second head. You need to say, "I want a Margherita pizza, extra mushrooms."
This initial definition phase is about being explicit and detailed. What does success look like? What are the key features or capabilities you absolutely must have? What are the nice-to-haves? The more precise you are here, the less time you’ll waste exploring irrelevant options later.
The Two Pillars: Capability vs. Strategic Importance
Once you’ve nailed down your ‘What,’ the framework really starts to take shape. And a really useful way to think about it, right at the beginning, is to consider two critical dimensions: your existing capabilities and the strategic importance of what you're trying to achieve.
Let’s break these down.
Your Existing Capabilities: This is all about what you're already good at. Do you have the in-house expertise, the technology, the resources, and the talent to actually build this thing yourself? For me, with the Lego spaceship, my existing capability was… well, my fingers. And a vague understanding of how Lego bricks fit together. Not exactly a world-class Lego engineering team. But if I were building a simple Lego house, my capabilities would be much higher.
In business, this translates to:
- Do we have the R&D muscle?
- Do we have the manufacturing infrastructure?
- Do we have the sales and marketing channels?
- Do we have the necessary legal or compliance expertise?
If you're already strong in an area, ‘Build’ becomes a more attractive option. If you’re weak, you’ll probably lean towards ‘Borrow’ or ‘Buy’ from the get-go.
Strategic Importance: This is about how critical this particular objective is to your long-term success. Is this a core competency that will differentiate you in the market? Or is it a supporting function that, while important, isn't your main game?
Think of it this way: If a tech company’s core business is developing cutting-edge AI algorithms, then building their own AI platform is highly strategically important. They can't afford to be reliant on others for something so fundamental to their identity and future. However, if they need a new coffee machine for the breakroom, that's probably low strategically important, even though it’s a necessary ‘thing’ to have. They’re not going to try and build a coffee machine, right? (Though I wouldn't put it past some engineers I know!)
This is where the real nuance comes in. You might have the capability to build something, but if it’s not strategically important, why bother reinventing the wheel? Conversely, something might be hugely strategically important, but if you lack the capability, you have to look elsewhere.
The Four Quadrants: Where the Real Fun Begins
Now, let’s put those two pillars together. When you consider your capabilities against the strategic importance of the objective, you get a neat little matrix, a kind of decision-making superpower. Most people visualize this as a 2x2 grid, and it's a fantastic way to understand where your focus should be.
Imagine it like this:
Quadrant 1: High Strategic Importance, High Capability
This is your ‘Build with Confidence’ zone. You’re great at this, and it’s vital to your future. So, yes, you should absolutely be building it yourself. You’ve got the chops, and you want to control this critical piece of the puzzle. Think of Apple designing its own A-series chips for iPhones. They’re brilliant at it, and it’s a massive differentiator. This is where you pour your resources, innovate, and own the outcome.
Quadrant 2: High Strategic Importance, Low Capability
This is the ‘Strategic Partner or Acquire’ zone. It's super important, but you're not great at it. You can't afford to outsource this to someone who doesn't truly understand your vision, but you also can't build it from scratch effectively. So, what do you do? You might look to acquire a company that is good at it and sees the strategic value. Or you might seek out a deep, strategic partnership with a company that can bring their expertise to the table, but with strong controls and alignment to your goals. This is where you might see a company buy out a key supplier or partner with a niche technology firm for a critical component.
Quadrant 3: Low Strategic Importance, High Capability
Welcome to the ‘Outsource or Standardize’ zone. You're good at this, but it's not your main game. Why tie up your valuable resources building something that’s readily available or that others do better and cheaper? This is where you'll look to ‘Borrow’ (in the sense of licensing or using standard solutions) or ‘Buy’ from a third party. Think of HR software for a manufacturing company. They might be excellent at making widgets, but they’re probably not going to build their own HR payroll system. They'll use an off-the-shelf solution or a managed service. This is about efficiency and leveraging external expertise.
Quadrant 4: Low Strategic Importance, Low Capability
This is the ‘Don't Bother or Buy Simple’ zone. It’s not important to your strategy, and you're not good at it. Honestly? Unless it’s absolutely essential, you might just want to ignore it or find the simplest, cheapest way to acquire it. If you absolutely must have it, then a straightforward ‘Buy’ is probably the order of the day. Like my nephew’s desire for a juice box. He’s not good at making them, they’re not strategically vital for his Lego endeavors, so you just… buy one. No need to overthink it.
See how this starts to paint a clearer picture? The starting point is always defining your objective, but understanding your internal landscape (capabilities) and the external landscape (strategic importance) is what truly informs which of the Build, Borrow, or Buy options makes the most sense.
Beyond the Grid: The Nuances and the "Why"
Now, while those four quadrants are a fantastic mental model, real life (and real business) is rarely that neat. There are always nuances.
For instance, what if you have the capability to build something, and it’s strategically important, but doing so would divert resources from an even more strategically important project where your capabilities are even stronger? That’s a tough call, and it often comes down to opportunity cost. What are you giving up by choosing to build?
Or what about the ‘Borrow’ option? It’s often overlooked, but it's a powerful middle ground. Borrowing can mean licensing technology, using a service provider for a specific function, or even forming a joint venture. It allows you to leverage external expertise without fully relinquishing control or the significant investment of ‘Buying’ outright.
The starting point, then, isn't just about identifying what to do, but also about understanding the why behind your choices. Why is this strategically important? Why do we have (or lack) this capability? Answering these deeper questions will lead to more robust and sustainable decisions.
So, next time you're faced with a mountain of Lego bricks, or a complex business challenge, remember the starting point. It’s not the tools, it’s not the process. It’s the clear, unshakeable understanding of what you are trying to achieve. From there, the path to Build, Borrow, or Buy becomes infinitely clearer. Now, if you'll excuse me, I think I saw a stray grey brick somewhere… the spaceship demands perfection!