The selection of a value discipline is a central act that shapes every subsequent plan and decision a company makes, combing the entire organization, from its competencies to its culture.

The choice of value discipline in effect, defines what a company does and therefore what it is.

1. Operational Excellence.

Companies that pursue this discipline are not primarily product or service innovators, nor do they cultivate deep, one-to-one relationships with their customers. Instead, operationally excellent companies provide middle-of-the-market products at the best price with the least inconvenience.

Their proposition to customers is simple: Low price and hassle-free service. Wal-Mart is such a company in mass-market retailing.

2. Product Leadership.

These companies concentrate on offering products that push performance boundaries. Their proposition to customers is an offer of best product period. Intel and Nike are examples.

3. Customer Intimacy.

These companies focus on delivering not what the market wants but what specific customers want. Customer-intimate companies do not pursue one time transactions, they cultivate relationships.

They specialize in satisfying unique needs, which often only they, by virtue of their closer relationship with, and intimate knowledge of, the customer recognize. Their proposition to the customer: We will have the best solution for you and we will provide all the support you need to achieve optimum results and total lowest cost.

Note: Many companies recognizing the value of relationship equity  create a fourth discipline by combining any two of the three disciplines listed.  My personal recomendation is to use the third discipline, "Customer Intamacy" as the foundation for every decision you make.
 
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Rick Johnson, expert speaker, wholesale distribution's "Leadership Strategist", founder of CEO Strategist, LLC a firm that helps clients create and maintain competitive advantage. Need a speaker for your next event, E-mail rick@ceostrategist.com.  Don't forget to check out the Lead Wolf Series that can help you put more profit into your business.

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