The Dimensions of Value Captured and Value Created
Strategy Selection Based on Value Captured and Value Created
For many people, strategy is a total mystery. But it’s really not complicated, says Harvard Business School’s Felix Oberholzer-Gee, author of “Better, Simpler Strategy”. Companies should simplify and focus on two value drivers, he argues: customer satisfaction and employee satisfaction. By aligning strategic initiatives on these alone, leaders make their workers’ jobs less complicated and improve customer experiences.
Example:
Steve likes to pick-up a coffee and doughnut from his local coffee shop every morning on his way to work. Normally this would cost Steve USD3.00.
The coffee shop sees an opportunity to enhance their customer experience by offering a delivery service on regular orders. So, they offer to have the coffee and doughnut delivered to Steve’s house every morning for an extra delivery fee of USD0.50. Steve signs-up for this delivery as he is willing to pay the extra fee for the convenience of having his coffee and doughnut delivered to him. This is an example of how the delivery chain can create a customer experience that sets the organisation apart from competitors.