Better, Simpler Strategy: A Value-Based Guide to Exceptional Performance

On average, a US company at the 90th percentile of productivity creates twice as much output as a company at the 10th percentile—with identical inputs!1 The dispersion is even more pronounced in China and in India, where we often see 90–10 ratios of 5:1.2 Nor are these fleeting differences. Gaps in productivity tend to persist over long periods.3

Initiatives that decrease WTS not only increase employee satisfaction, they also create powerful selection effects. In competition for talent, you

In my conversations with executives, I regularly meet managers who describe their products and services as being commoditized; there is no way to raise customer WTP. (I confess I am usually skeptical. I never quite know if “commoditization” reflects an incontrovertible industry fact or a lack of imagination.)

One of the lines that had received only the multiplier incentive proved an exception. This line became increasingly dysfunctional. Workers criticized each other for a lack of skill, their supervisor for poor communication, and management for an insufficient flow of quality material. A full 70 percent of these workers quit. (Another line with the sa

Second, specificity: Do you ask your supplier to invest in dedicated capacity? Would you like them to develop a novel process that benefits primarily your firm?

Digital platforms that connect companies with passionate workers can help shift corporate boundaries.

My recommendation is to begin your value curve analyses by employing a fine-grained customer segmentation. Create separate value curves for many different groups of customers. If the data show that two segments have nearly identical value drivers, you can treat the two groups as one segment. If you begin with a broad grouping, however, subtle diffe

This exercise forces them to use language that customers understand. Ian McAllister, a former general manager at the company, explains, “If the benefits listed don’t sound very interesting or exciting to customers, then perhaps they’re not (and [the product] shouldn’t be built). Instead, the product manager should keep iterating on the press releas

standardize and empower, cross-train, and operate with slack.”13

“Media companies have flown into higher-quality content,” explains Pau Sabria, cofounder of Olapic, a startup focused on employing user content in marketing.