Operation Excellence 101: Why to Start from Redefining Your Organization Value Proposition

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Operation Excellence 101: Why to Start from Redefining Your Organization Value Proposition

  

A great bestselling market research business book called “The Discipline of Market Leaders: Choose Your Customers, Narrow Your Focus, Dominate Your Market” by Michael Treacy, Fred Wiersema. The book outlined tactics for any business striving to achieve market dominance.

 

The business renowned authors outlined that, successful companies do not attempt to be everything to everyone. Instead, they win customers by mastering one of three "value disciplines": the highest quality products, the lowest prices, or the best customer experiences. 

 

Authors have also stated that, companies that have taken leadership positions in their industries typically have done so by narrowing their business focus, not broadening it. They have focused on delivering superior customer value in line with one of three value disciplines—operational excellence, customer intimacy, or product leadership. They have become champions in one of these disciplines while meeting industry standards in the other two.

 

Companies that push the boundaries of one value discipline while meeting industry standards in the other two gain such a lead that competitors find it hard to catch up. This is largely because the leaders have aligned their entire operating model—that is, the company’s culture, business processes, management systems, and computer platforms—to serve one value discipline. Knowing what they want to provide to customers, they have figured out what they must do to follow through. And with the hard work of transforming their organizations behind them, they can concentrate on smaller adjustments that produce incremental value. Less focused companies must do far more than simply tweak existing processes to gain this advantage.

 

The authors conclusions drawn about the value disciplines are based on a three-year study of 40 companies that have redefined performance expectations in their markets. Through this research, they have come to understand what each value discipline demands of an organization and why.

 

Since PetroDIAC is an Operation Excellence think tank, we will focus on the next series of discussions about Operation Excellence value discipline and how to achieve producing reliable products or services at competitive prices and delivered with minimal difficulty or inconvenience to customers.

 

Your feedback and contribution to the series is quite important to us, so please feel free to connect with us on supportme@petrodiac.com

Location: Dubai - United Arab Emirates

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