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Discipline of Market Leaders: Three Fundamental Business Strategies
from "The Discipline of Market Leaders" by Treacy and Wiersema
Companies must chose from among one of these three fundamental strategies if they are to build a workable organization.
A. OPERATIONAL EXCELLENCE (to deliver quality, price and ease of purchase and use)
Processes for end-to-end product supply and basic service that are optimized and streamlined to minimize cost and provide hassle-free service
- Operations that are standardized, simplified, tightly controlled and centrally planned, leaving few decisions to rank-and-file employees
- Management systems that focus on integrated, reliable, high-speed transactions and compliance to norms
- A culture that abhors waste and rewards efficiency
B. PRODUCT LEADERSHIP (creating the best products or services)
A focus on the core processes of invention, product development, and market exploitation
- A business structure that is loosely knit, ad hoc, and ever-changing to adjust to entrepreneurial initiatives and re-directions that characterize working in unexplored territory
- Management systems that are results-driven, that measure and reward new product success, and that don't punish the experimentation needed to get there
- A culture that encourages individual imagination, accomplishment, out-of-the- box thinking, and a mind-set driven by the desire to create the future
C. CUSTOMER INTIMACY (delivering what specific customers want)
An obsession with the core processes of solution development (helping the customer understand exactly what is needed), results management (ensuring the solution gets implemented properly), and relationship management
- A business structure that delegates decision-making to employees who are close to the customer
- Management systems that are geared towards creating results for carefully selected and nurtured clients
- A culture that embraces specific rather than general solutions and thrives on deep and lasting client relationships
Harvy Simkovits, CMC, President of Business Wisdom, works with owner managed companies to help them grow, prosper and continue on by offering innovative approaches to business development, company management, organization leadership and learning, and management education. He can be reached at 781-862-3983 or .
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