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Value Discipline
by Micheal Treacy

What Is It?
Value disciplines is a framework that plots three areas in which a company may choose to excel, each producing a different kind of customer value:
  • operational excellence
  • customer intimacy
  • product leadership
To compete, a company must be competent in all three disciplines.

To become a market leader, a company must outperform competitors in one discipline.

When Do I Use It?
An excellent framework for establishing the focus and discipline necessary for market leadership.

Useful in answering the fundamental question: "What defines us?".

An essential precursor to defining organizational structure and business processes.

Consider This
Companies that attempt to excel in all three areas will likely run into organizational and process conflicts.

Only a handful of companies (e.g. Dell) have mastered all three disciplines.

Successful, companies have a keen awareness of their value to customers and optimize their efforts around that value.

The company's leadership team must define and articulate its values for the benefit of all stakeholders.

Book Summary: The Discipline of Market Leaders: Choose Your Customers Narrow Your Focus, Dominate Your Market Printed with permission from TCI Management Consultants. A group of senior-level management consultants, offering strategic planning and marketing services to a wide range of public and private sector clients. The Discipline of Market Leaders: Choose Your Customers Narrow Your Focus, Dominate Your Market by Michael Treacy and Fred Wiersema Addison-Wesley, Reading, Massachusetts, 1997 edition Copyright Micheal Treacy. All Rights Reserved.

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