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Three Value Disciplines --- Which One Defines Your Company?

Guest post by: Dr. Rick Johnson

Article Overview: The selection of a value discipline is a central act that shapes every subsequent plan and decision a company makes, combing the entire organization, from its competencies to its culture. The choice of value discipline in effect, defines what a company does and therefore what it is. It is effectively possible that some companies can create a fourth discipline by combining any two of the three disciplines listed.

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Three Value Disciplines --- Which One Defines Your Company?

The selection of a value discipline is a central act that shapes every subsequent plan and decision a company makes, combing the entire organization, from its competencies to its culture. The choice of value discipline in effect, defines what a company does and therefore what it is. It is effectively possible that some companies can create a fourth discipline by combining any two of the three disciplines listed.

1. Operational Excellence. Companies that pursue this discipline are not primarily product or service innovators, nor do they cultivate deep, one-to-one relationships with their customers. Instead, operationally excellent companies provide middle-of-the-market products at the best price with the least inconvenience. Their proposition to customers is simple: Low price and hassle-free service. Wal-Mart is such a company in mass-market retailing.

2. Product Leadership. These companies concentrate on offering products that push performance boundaries. Their proposition to customers is an offer of best product period. Intel and Nike are examples.

3. Customer Intimacy. These companies focus on delivering not what the market wants but what specific customers want. Customer-intimate companies do not pursue one time transactions, they cultivate relationships. They specialize in satisfying unique needs, which often only they, by virtue of their closer relationship with, and intimate knowledge of, the customer recognize. Their proposition to the customer: We will have the best solution for you and we will provide all the support you need to achieve optimum results and total lowest cost.

The selection of a value discipline is a central act that shapes every subsequent plan and decision a company makes, combing the entire organization, from its competencies to its culture. The choice of value discipline in effect, defines what a company does and therefore what it is. It is effectively possible that some companies can create a fourth discipline by combining any two of the three disciplines listed.

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Home > Human-Resources > Dr. Rick Johnson > Three Value Disciplines Which One Defines Your Company >
Article Tags: competencies, discipline, entire organization, value disciplines

About the Author: Dr. Rick Johnson
RSS for Dr. Rick's articles - Visit Dr. Rick's website

www.ceostrategist.com - Sign up to receive "The Howl" a free monthly newsletter that addresses real world industry issues. - Straight talk about today's issues. Rick Johnson, expert speaker, wholesale distribution's "Leadership Strategist", founder of CEO Strategist, LLC a firm that helps clients create and maintain competitive advantage. Need a speaker for your next event, E-mail rick@ceostrategist.com.

Dr. Rick Johnson has over 35 years of experience in distribution sales and operations. Rick�s career can be broken down by decades. The first ten years of his distribution career were spent with the largest steel-processing distributor in the world (Joseph T. Ryerson). The second ten years began with Rick starting his own processing distribution center from scratch. In the first year, sales reached $1 million dollars and had grown to $25 million in its tenth year when Rick sold the business to one of the major national chains. The third ten years of Rick�s career dealing with financially troubled Turn-A-Round companies. After completing ten years of TAR work, Rick decided a decade of acting like Darth Vader was enough and became a consultant to the Wholesale Distribution Industry in 1999. Rick received an MBA from Keller Graduate School in Chicago and a Bachelor's degree from Capital University, Columbus Ohio. He also served six years in the United States Air Force as a survival instructor. Rick completed his dissertation on Strategic Leadership and received his Ph.D. in 2005. Rick is frequently published in numerous magazines including a column in Supply House Times, with over 250 different articles published to date. He�s also a published author with eight books to his credit.



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