Tripple-P value discipline model - part 1

Determining Value Disciplines: A Rovaha Synthesis of Two Models

With the business definition established, the next step is to determine which value disciplines drive the organization’s ability to deliver maximum value to its customers. To achieve this, we integrate two complementary models: the Value Discipline Model and the Value Stream Model, synthesizing them into the Rovaha Triple-P Value Discipline Model for a holistic strategic approach.

1 - Value Discipline Model

Developed by Michael Treacy and Fred Wiersema, this model highlights three generic strategies that define how companies add value in the market:

1. Product Leadership: Focus on innovation, creating cutting-edge products that differentiate the organization.
2. Customer Intimacy: Develop deep customer relationships and deliver tailored solutions.
3. Operational Excellence: Prioritize efficiency, reliability, and cost-effectiveness to deliver consistent value.

Each value discipline requires excellence in one focus area while maintaining threshold standards (hygiene factors) in the others. The four Critical Success Factors (CSFs) ensure alignment:

• CSF 1: Excel in one value discipline.
• CSF 2: Maintain threshold standards across all disciplines.
• CSF 3: Continuously improve added value.
• CSF 4: Align the organizational model with the chosen value discipline.

Key insight: It’s impossible to excel in all three disciplines simultaneously. Attempting to do so creates internal conflicts and confuses customers.

Product Leadership

Product Leadership focuses on innovation and delivering cutting-edge products or services that stand out in the market. Companies excelling in this discipline prioritize creativity, high-quality design, and rapid adaptation to emerging trends. Their core strength lies in consistently offering products or services that customers perceive as superior or unique. These organizations typically invest heavily in research and development (R&D), encouraging a culture of experimentation and risk-taking.

To succeed in Product Leadership, companies must ensure that their innovation processes are efficient and that they have the agility to bring ideas to market quickly. However, they must also meet basic operational standards and customer expectations to ensure the product's quality and reliability. Organizations that excel in this discipline include those in technology, fashion, or industries where innovation drives consumer preference.

By being leaders in their product category, these companies create strong brand loyalty and can often command premium prices, differentiating themselves from competitors in highly saturated markets.

Drivers of excellence:

• Strategic orientation: Best product
• Determinant of quality: Product innovation
• Key value driver: Flexible production
• Operational dominancy: R&D is dominant

Customer Intimacy

Customer Intimacy is about developing deep relationships with customers and offering personalized solutions tailored to their specific needs. Companies that prioritize this discipline focus on understanding their customers on a granular level, often providing customized products or services and delivering exceptional service experiences.

These organizations thrive on flexibility and responsiveness, often adapting their offerings based on direct feedback or evolving customer demands. Trust and loyalty are cornerstones of their strategy, and they aim to deliver long-term value rather than just immediate gains. To succeed in this discipline, companies must establish robust customer relationship management systems and a strong service-oriented culture within their workforce.

Examples include luxury brands, bespoke service providers, or consulting firms where personalization is paramount. While customer intimacy requires significant resources and effort, companies that master it can foster enduring customer loyalty and create significant barriers for competitors.

Drivers of excellence:

• Strategic orientation: Loyal customers
• Determinant of quality: Best customer solution
• Key value driver: Innovation at customer level
• Operational dominancy: CRM is dominant

Operational Excellence

Operational Excellence emphasizes efficiency, reliability, and cost-effectiveness in delivering products or services. Companies that excel in this discipline streamline their processes to minimize costs, reduce errors, and maximize value for customers, often offering competitive pricing and consistent quality.

Organizations pursuing operational excellence are typically highly process-driven, leveraging technologies such as automation and supply chain optimization to achieve economies of scale. They focus on delivering predictable, hassle-free experiences, ensuring that customers receive exactly what they expect, when they expect it, at the lowest possible cost.

This discipline is most common in industries with commoditized products or services where price and convenience are primary decision-making factors for customers. Examples include logistics companies, low-cost airlines and centralised organisations where operational efficiency is critical to sustaining profitability. While excelling in operational excellence, these companies must still meet baseline expectations in customer experience and product quality to remain competitive.

Drivers of excellence:

• Strategic orientation: Reliable product
• Determinant of quality: Lowest cost price
• Key value driver: Ease of use / convenience
• Operational dominancy: Logistic is dominant