Value Disciplines
(Treacy and Wiersema)

Knowledge Center

   

Trying to be leading on operational excellence, product leadership or customer intimacy. Explanation of Value Disciplines of Treacy and Wiersema. ('94)

Contents

Premium

Value Disciplines model - Treacy & WiersemaFour New RUles

According to CSC Index consultants Michael Treacy and Fred Wiersema in "The Discipline of Market Leaders", there are four new rules that competing companies must obey.

  1. Provide the best offer in the marketplace, by excelling in one specific dimension of value. Market leaders first develop a value proposition, one that is compelling and unmatched.
  2. Maintain threshold standards on other dimensions of value. You can't allow performance in other dimensions to slip so much that it impairs the attractiveness of your company's unmatched value.
  3. Dominate your market by improving the value year after year. When a company focuses all its assets, energies and attention on delivering and improving one type of customer value, it can nearly always deliver better performance in that dimension than another company that divides its attention among more than one.
  4. Build a well-tuned operating model dedicated to delivering unmatched value. In a competitive marketplace, the customer value must be improved. This is the imperative of the market leader. The operating model is the key to raising and resetting customer expectation.

What are Value Disciplines? Description

Treacy and Wiersema describe three generic value disciplines in their book. Any company must choose one of these value disciplines and consistently and vigorously act upon it. As indicated by the four rules mentioned above.

  • Operational Excellence. Superb operations and execution. Often by providing a reasonable quality at a very low price. Task-oriented vision towards personnel. The focus is on efficiency, streamlined operations, Supply Chain Management, no-frills, volume is important. Most large international corporations are operating out of this discipline. Measuring systems are very important. Extremely limited variation in product assortment. But see: Reverse Positioning.

  • Product Leadership. Very strong in innovation and brand marketing. Company operates in dynamic markets. The focus is on development, innovation, design, time to market, high margins in a short time frame. Flexible company cultures.

  • Customer Intimacy. Company excels in customer attention and customer service. Tailors its products and services to individual or almost individual customers. Large variation in product assortment. Focus is on: CRM, deliver products and services on time and above customer expectations, lifetime value concepts, reliability, being close to the customer. Give decision authority to employees that are close to the customer. Compare: Customer Relationship Management.

The Value Disciplines model is quite similar to the 3 generic strategies from Porter (Cost Leadership, Differentiation, Focus). However there is at least one major difference: according to the Value Disciplines model no discipline may be neglected: threshold levels on the 2 disciplines that are not selected must be maintained. According to Porter, companies that act like this run a risk to get "stuck in the middle".


Book: Michael Treacy & Fred Wiersema - The Discipline of Market Leaders -


Value Disciplines Special Interest Group


Special Interest Group (643 members)


Value Disciplines Forum  

Recent topics

  Why not Use all 3 Value Disciplines?
Why is it not possible to use the three disciplines in the same organization?...
     
 
  The Differences Between Customer-led and Market-oriented Companies
The concepts "customer focus" and "market orientated" are often discussed and presented in different companies’ mission statements. It is important to...
     
 
  Value Discipline for Coca-Cola Company?
Would you agree that the Coca-Cola Company's primary value principle is Operational Excellence? Although they are innovative in product leadership and...
     
 

Best Practices - Value Disciplines
  Value discipline vs. value proposition
What is the difference between a value discipline and a value proposition?...
     
 
  What customers are willing to give up
Note that operational excellence (low cost, no-frills) competitors may know perfectly well what their clients want, but even more what they are prepar...
     
 
  Focusing on ONE Value Discipline
Be careful for the trap to get "stuck in the middle" in an effort to install concomitant high levels for all 3 value disciplines.
Don't run after...
     
 
  Value Discipline Process?
Hi, I'm looking for a generic process to implement value disciplines thinking in a company. Who has some experience? Thanks --...
     
 
  Balanced Value Disciplines...
In my opinion any company needs to apply a bit of all three customer disciplines that Treacy & Wiersema created, in order to optimize and guara...
     
 



All you need to know about management


  Customer Intimacy Discipline
If I establish a company that sells equipment with an aim to not only sell but provide customers with a know-how to use the equipment to their advanta...
     
 
  Are Most Firms Opting for Operational Excellence?
Isn't it so that most (almost all) large corporations are opting for the operational excellence strategy? I find it difficult to mention more than a f...
     
 
  Competitive Priorities
Competitive priorities are critical, more operational, dimensions a process, company or an entire supply chain must posses to satisfy customers...
     
 
  How to Adapt Value Disciplines Model to Services / Schools?
Is this model applicable to services - how? I can visualize what a manufacturing company wanting to be "operationally excellent" or a "product leader...
     
 

Expert Tips - Value Disciplines
 

Customer Centricity: Success Factors for Customer Intimacy

 
 
 

Understanding your Customer's Needs

 
 
 

Extreme Customer Trust as a Source of Competitive Advantage

 
 
 

The Importance of Customer Differences in Markets with Network Effects: the Limits of Scale

 
 



Advance yourself in business administration and management



Resources - Value Disciplines

Dynamic Competitive Paradigm of Managing Moving Targets

 

Fundamental Customer Centricity

 

How Businesses can Use Information Technology (IT) in Strategic Ways

 

The Importance of a Long Term Focus on the Customer

 

Value Disciplines Diagram

 
 

News about Value Disciplines Treacy


     
 

News about Value Disciplines Strategy


     
 

Videos about Value Disciplines Treacy


     
 

Videos about Value Disciplines Strategy


     
 

Presentations about Value Disciplines Treacy


     
 

Presentations about Value Disciplines Strategy


     
 

Books about Value Disciplines Treacy


     
 

Books about Value Disciplines Strategy


     
 

More about Value Disciplines Treacy


     
 

More about Value Disciplines Strategy


     



Accelerate your management career



Compare with Value Disciplines:  Core Competence  |  Distinctive Capabilities  |  Three Dimensional Business Definition  |  Value Profit Chain  |  Competitive Advantage  |  Experience Curve  |  Twelve Principles of the Network Economy  |  Strategic Types


Return to Management Hub: Change & Organization  |  Decision-making & Valuation  |  Finance & Investing  |  Leadership  |  Marketing  |  Strategy  |  Supply Chain & Quality


More Management Methods, Models and Theory

Special Interest Group Leader

 


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2018 12manage - The Executive Fast Track. V15.0 - Last updated: 13-11-2018. All names ™ of their owners.