Profitability is driven from the value equation:

Demand + Efficiency + Efficacy = Profitability.

Demand begins with a deep understanding of your market. It answers questions such as:

What are the basic satisfiers, or “must haves” that you customers expect, and that your organization will need to fulfill to be successful?

Answers to this question are clarified when an organization determines:

  • Where do we compete?
  • What unique value do we bring to win in those markets?

Efficiency means that every customer receives on-time, complete, and correct (OTCC) service. The objectives of efficient customer service are no wasted steps, no unnecessary waiting, and no unnecessary costs for the customer.

Efficiency answers the following strategy question: What resources and capabilities will be required to deliver optimal customer value?

Efficacy ensures that the purpose of the organization is fulfilled in every customer engagement. High quality outcomes, customer satisfaction, and repeat buying behaviors demonstrate good efficacy.

Efficacy answers the following strategy question; How do we sustain our ability to provide that unique value?

Profitability is the reward for organizations that effectively differentiate from competitors, increasing market demand, optimizing efficiency, and achieving efficacy.

This enables an organization to maximize shareholder value, cash flow, profitability, and equity.

Connecting the dots

Can you see how these Financial Value components connect back to the three key strategy execution steps?

  • Differentiating your organization in the market
  • Engaging your associates to execute seamlessly.
  • Measuring performance to expectations and adjusting course as necessary

See Organizational Hierarchy of Needs

Organizational Hierarchy of Needs

Everybody has a playbook. Execution is the challenge. That’s why 7 of 8 companies failed to achieve profitable growth. Any slips or missteps can be disastrous. Let’s talk about your Successful Strategy Execution.

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