You are on page 1of 8

June 2013

Wiersema’s Value Disciplines*

*Summary of key concepts from Discipline of Market Leaders, Treacy, M. and Wiersema, F., authors.

What Customers Say About Value Cost Best Total Cost “Great prices and quality.” “Their products last and last and last.” Benefit Best Product “Premium priced.” “Consumers ask for it by name.” “Their services are exactly what I need.” 2 .” Services “Consistency is their middle name.” Best Total Solution Products “A no-hassle firm. but worth it.” “They are experts in my business.

Provide the best offering in the marketplace by excelling in a specific dimension of value Maintain threshold standards on other dimensions of value Dominate your market by improving value year after year Build a well-tuned operating model dedicated to delivering unmatched value Rule #1 Rule #2 Rule #3 Rule #4 3 .Rules of Market Leaders Companies have created a set of expectations in customers’ minds that competitors now must strive to meet.

Threshold Versus Leadership “Best product” Product Leadership Product differentiation Operational competence Customer responsive Operational Excellence “Best total cost” Customer Intimacy “Best total solution” 4 .

The Three Value Disciplines Operational Excellence Product Leadership  Best product Customer Intimacy  Best total solution Value Proposition  Best total cost Golden Rule  Variety kills efficiency  Cannibalize your success with breakthroughs  Invention  Commercialization  Market exploitation  Solve the client’s broader problem Core Processes  End-to-end product delivery  Customer service cycle  Process redesign  Continuous improvement  Shift to new asset base  Client acquisition & development  Solution development  Problem expertise  Service customization  Total change in solution paradigm Improvement Levers Improvement Challenges  Product technology  R&D cycle time  Jump to new technology 5 .

The Discipline of Operational Excellence Culture  Disciplined teamwork  Process focused  Conformance. no frills fixed assets Management Systems  Command and control  Compensation fixed to cost and quality  Transaction profitability tracking Information Technology  Integrated. “one size fits all” mindset Organization  Centralized functions  High skills at the core of the organizations Core Processes  Product delivery and basic service cycle  Built on standards. low-cost transaction systems  Mobile and remote technologies 6 .

risk oriented  Reward individuals’ innovation capacity  Product life cycle profitability 7 .The Discipline of Product Leadership Culture  Concept. organic. commercialization  Market exploitation  Disjoint work procedures Information Technology  Person-to-person communication systems  Technologies enabling cooperation and KM Management Systems  Decisive. future driven  Experimentation. and cellular  High skills abound in loose-knit structures Core Processes  Invention. go for it. “out of the box” mindset  Attack. win Organization  Ad-hoc.

The Discipline of Customer Intimacy Culture  Client and field driven  Variation: “Have it your way” mindset Organization  Entrepreneurial client teams  High skills in the field Core Processes  Client acquisition and development  Solution development  Flexible and responsive work procedures Information Technology  Customer databases linking internal/external information  Knowledge bases built around expertise Management Systems  Revenue and share of wallet driven  Rewards based on client feedback  Value of client analysis 8 .