Tuesday, September 26, 2006

Strategy or Tactic

Raw Response to Geoffrey Moore
Coins in the Couch

I disagree that squeezing costs out of the value chain is a strategy... This is the destiny of all organizations, you might call it evolution, it's nothing new. I would argue that finding coins in the couch is a tactic, most commonly know as kaizen. Incremental improvement is not a strategy, it's reality. I feel that tactics are part of a larger strategy that one might pursue, such as becoming the low-cost leader. But, that's a tough strategy that allows only one player per industry and if one thinks that finding coins in the couch is a tactic that will lead towards that strategy, that leader may end up like K-Mart. The 2nd cheapest and bankrupt.

On the other hand, if one incorporates finding coins in the couch with a differentiation strategy, this leader should be able to keep up with or beat the competition. The reason being that lowering certain productivity improvements can fund quality and not lower costs.

Be very clear on your strategy and make sure your tactics are aligned. Finding coins in the couch is a tactic, not a strategy.

Posted by: John Acheson | September 24, 2006 at 12:36 PM

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