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At the end of 2010, strategy+business showed an interesting essay on the link between performance and strategy, underlining the increasing factor of coherence in a whole company’s strategy. Coherence seems to be a key difference advantage that enlight all the capabilities of a company, aligning all skills to the best delivered services for customers. As now, 3 elements are necessary and described as essential to be “coherent” and have an efficient strategy:

  • market position
  • capabilities
  • product and service portfolio

I tried to resume these few parts in a synthetic matrix to help understanding of global concept as:

Where you can observe more details in explanations like:

  • the necessary start with few leans, skills and financial surface
  • the temptation to quick embrace the mass market with no really “shift” in value purpose: me-like, that can’t really last for a long time before a new comer sweep all your former efforts
  • or the early specialisation with rare skills, hold and protect them from new comers and competition (blue oceans or expert strategy)
  • and finally settle a strong position built on experience, rare skills, mass delivering and brand awareness

After revealing the steps and way, result of different paths/strategies to invade markets, Paul Leinwald and Cesare Mainardi isolated four sources of value to underline the relation between coherence and performance, like:

  • process and method engineering and quick improvement driven by coherence: coherent process increase efficiency faster than competitors: we say “enhance effectiveness”
  • training further your capabilities make an enroll process for other departments and skills of your company: we say “enhance efficiency”
  • focused investment: means really increase efforts and investments on capabilities that differentiate you from competition and/or gives you a step ahead and an substantial advance on your market
  • core coherence means “spending time to give a coherent and relevant global frame of decision making, agreed and used by everyone in the company” ; no need to fight, coherence is then a desired way of business life, inside all departments and process

All of these four sources of value reinforce the others. Alignment makes an easier future for company, to greater efficiency. Growth is faster, cheaper and with a better adoption for convincing employees to the whole strategy: “a good strategy must be obvious and has not to be explained”.

Coherence calls for coherence because when you practice it, you may identify more easily the misfunctions of process and behaviors. A virtual circle, with a stairway move to grow value, service and relevance for your customers’ delivering…

 

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