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

Making change real—

“dial up” or “dial down” one’s career, as in Deloitte’s mass career customization program.

In fact, the overwhelming majority of people who lack a good understanding of life insurance report that they have never been approached by an insurance company.

Be aware of a dark side of learning. Because you benefit from running the same process many times, learning can lock in your organization and stifle innovation. Ford’s Model T is again a good example. In the process of learning how to produce its cars at ever lower cost, the company created many novel processes (figure 14-3).11 Over time, product a

The logic of value capture dominates many buyer-supplier relationships. A reorientation toward value creation makes it easier to share information, align incentives, and discover attractive business opportunities.

A straightforward failure to recognize a complement (NASCAP), the difficulty of predicting the timing of substitution (computers and paper), and hard-to-see second-order effects of technological change (ATMs) all contribute to the difficulty of spotting complementarities.

To be competitive in the market for talent, companies do need to “match” competing offers. But matching does not imply paying the same compensation (“paying market”). Matching means creating as much value for your employees—the difference between compensation and WTS—as your company’s competitors.

Minimum efficient scale changes over time. Some of these changes mirror trends in technology and consumer tastes. Others reflect savvy strategic decision-making. Escalating fixed costs can be a powerful means

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

Members of the 100 Club—reps who achieve perfect performance in monitored calls—receive a free snack. Impactful FICs are rewarded with small gifts.