Dan Schneider

How Do Business Performance Disciplines Differ?
April 8, 2008

Let’s take a look at the major characteristics of each business performance discipline. One of them, and only one, will be right for you and your business.

Operational Efficiency

This approach combines an emphasis on quality, price, and ease of purchase. We call these companies the WalMart of their industry. The features are:

1. Tight controls and central planning;
2. Few decisions left to the rank and file;
3. Integrated, high speed transactions;
4. Abhorrence of waste;
5. Optimal response systems to minimize costs and hassles; and,
6. Rewards for efficiency

Product Leadership

These companies push the creativity envelope, speed to the market place, and often leapfrog their own latest product or service. We call these companies Sony or Apple. The features are:

1. Focus on core processes of invention, product development, and market exploitation;
2. Loosely knit business structure;
3. Results driven management systems; and,
4. Out of the box thinking.

Customer Intimacy

These companies relate like a good neighbor, providing what any specific customer wants by cultivating relationships rather than pursuing transactions. We call these companies Nordstrom or Burger King. The features include:

1. Obsession with solution development, results management and relationship management;
2. Closest to the customer decision making;
3. Carefully selected and nurtured clients; and,
4. Specific solutions, lasting relationships.

You can score your organization in each of these disciplines. Use a scale of 0 (low) to 10 (high). Evaluate your scores in each discipline on the following scale:

0.0 – 2.5                      The marketplace is walking away
2.6 – 5.0                      Below average to Average
5.1 – 7.5                      Average to Above Average
7.6 – 10                       Superior to Excellent

Next: Choosing the Right Business Performance Discipline

Posted by Dan Schneider on April 8, 2008 | Comments (0)