Each Value Discipline Requires A Different Business System Or Operating Model

Source: CSC Index and Treacy & Company

Operational Excellence

• Central authority, low level of empowerment

• High skills at the core of the organization

• Process, product- driven

• Conformance, 'one size fits all' mindset

• Integrated, low cost transaction systems

• The system is the process

• Command and control

• Quality management

Customer Intimacy

• Empowerment close to point of customer contact

• High skills at boundary of the organization

• Customer-driven

• Variation and 'have it your way' mindset

• Granular customer databases, linking internal and external information

• Strong analytical tools

• Customer equity measures like life time value

• Satisfaction and share management

Product Leadership

• Ad hoc, organic and cellular

• High skills abound in loose-knit structures

• Concept, future-driven

• Experimentation and 'out of the box' mindset

• Person-to-person communications systems

• Technologies enabling cooperation

• Rewarding individuals' innovative capacity

• Risk and exposure management

Organization, jobs,

skills

Management

systems

Information and

systems

Culture, values,

norms

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