Value Proposition

In my initial post, I refer to three rules for market leading organizations: 1. Choose your customers/clients. 2. Organize the business around delivering specific value to those customers. 3. Have the discipline to stick to the first two.

As we go through the strategic planning process both in concept and in practice with our fruit stands, we will use those rules to help formulate the plan and clear up how to create competitive advantage.

The most common mistake organizations make when planning for the future is to leap past what is commonly called a Customer Value Proposition. This element should be the absolute foundation of every activity and decision within a company. I cannot emphasize the importance of the Value Proposition enough. Essentially, to clarify the term, a Value Proposition is the specific value a company proposes to deliver to a customer. For example, Staples, the well-known office supply store, offers an "Easy" button. Their proposal to the customer is to make things easy, fast, and hassle-free. So, inside an organization where you find this type of Value Proposition, you should see operations that are set up to deliver that value in a way that makes them different from their competitors.

I'll elaborate more in posts to come, but, again, the Value Proposition is the foundation, and without a disciplined approach, organizations tend to try to "be all things to all people."

What happens when a company tries to be all things to all people?