The Best Deal Is Always a Focused Offer

Best Product
• Product features that
deliver results

Best Total Cost Best Total Solution

• Low price • Valued advice
• High reliability • Brokered solutions
• Hassle-free basic service • Tailored basic service
There Are Only Three Value Disciplines

Best Product

Product Leadership

Operational Customer
Excellence Intimacy

Best Total Cost Best Total Solution

The Best Value and Focus requires Discipline
There are only three Value Disciplines

We provide the best products

Our products have the greatest
performance impact or experiential
impact for our customers

Product
Leadership

Operational Customer
Excellence Intimacy

Nobody provides customers with We provide the best total solution to

a lower total cost meet your unique needs
The combination of our prices, We help you define your specific
product reliability and hassle-free problem, identify the best solution and
service is unbeatable take charge of implementing it
Leadership versus Parity

Product Leadership

Product differentiation

Operational Customer
competence responsive

Operational Excellence Customer Intimacy

The Power of Operating Models Lies in Their
Focus

Optimized for
Innovation and Speed

Product
Leadership

Operational Customer
Excellence Intimacy

Optimized for Optimized for

Efficiency Responsiveness
The Five Imperatives

1. Pick a primary value discipline - you cannot fight on every front

2. Maintain forward momentum - you cannot win by merely being on the
defensive
3. Avoid hitting the paradigm wall - you cannot win the next war by re-fighting
the previous one
4. Maintain parity in your secondary value disciplines - you cannot let your
auxiliary forces become a distraction or liability
5. Develop supremely powerful, finely tuned and well-conditioned version of
operating model