The frenzy to disrupt, to differentiate is understandable in an environment where it’s increasingly harder to stand out. Part of the problem: a lack of visibility into what creates value and differentiation. To break out of this dynamic, companies need to transform the way they approach strategic change efforts. This starts with an understanding of what exactly creates value within an organization.
While most companies know what their customers want, many flounder when it comes to delivering it. Why? Let’s consider three main barriers:
A lack of alignment and visibility into the true drivers of differentiation caused by an inability to break out of a functional management of operations – ultimately impeding outcomes.
Minimal understanding of how effectively their resources, systems and investments create differentiation and value or destroy it.
The inability to reward the individual behaviors that contribute to differentiation.
To truly differentiate, begin with three actions:
Align your leadership by developing a blueprint for value creation starting with the outcome. What’s the outcome you’re driving toward and what business landscape does it operate within? How does it support your company’s differentiation in the marketplace?
Capture the complexity in your organization. By that we mean adverse effects of expanding offering types, service types, customer segments and transactions that have been layered onto the organization over the years.
Dare to question the status quo. An examination of value should start at the customer level and in terms of a business outcome.