Sustainable, superior returns accrue to companies that focus on what they do best. It is that simple. Yet it is incredibly hard to internalize. It is the rare company that focuses on what we do better than anyone in making every operating decision across every business unit and product line. Rarer still is the company that has aligned its differentiating internal capabilities with the right external market position. These companies are called coherent.
Most companies do not pass the coherence test because they succumb to intense pressure for top line growth. They chase business in markets where they do not have the capabilities to sustain success. Being coherent allows our companies to establish our differentiated capabilities to achieve greater profitability and market leadership.
This presentation provides the framework towards achieving Capabilities Coherence:
1. Value Creation
2. Capabilities System
3. Product & Service Fit
Companies achieve competitive advantages when the alignment of value creation, capabilities system and product & service fit are achieved.
This deck also includes slide templates for you to use in your own business presentations.
This PPT delves into the intricacies of aligning your company's capabilities with market demands to achieve coherence. It emphasizes the importance of building a coherent portfolio of capabilities that uniquely distinguish your organization from competitors. The framework provided is not just theoretical, but includes practical steps and templates to guide your company towards achieving greater profitability through coherence.
The presentation also features a detailed case study on Pfizer, illustrating how the pharmaceutical giant achieved coherence and improved profitability. By examining market dynamics and aligning their capabilities system with their value proposition, Pfizer was able to create a defensible market position. This document is a valuable resource for any organization aiming to build a coherent and profitable business model.
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Source: Best Practices in Competitive Advantage, Core Competences PowerPoint Slides: Business Capabilities Coherence PowerPoint (PPT) Presentation Slide Deck, LearnPPT Consulting
This PPT slide outlines 3 fundamental questions that guide companies in achieving coherence in their strategic approach. The first question, "How are we going to face the market?" emphasizes the necessity for firms to have a clear understanding of their value creation processes. It suggests that successful organizations maintain a broad yet focused perspective on how they deliver value to customers, which allows for flexibility in strategy and decision-making.
The second question, "What capabilities do we need?" addresses the essential capabilities required for effective value delivery. It highlights that a company should cultivate a system of 3 to 6 mutually reinforcing capabilities. This system enhances the effectiveness of their value proposition, suggesting that the alignment of capabilities is crucial for maximizing impact.
The third question, "What are we going to sell, and to whom?" focuses on the alignment of offerings with the established capabilities system. It indicates that products and services should be closely tied to the capabilities that the company has developed. Any offerings that do not fit this system should be eliminated to maintain coherence. The slide also points out the importance of continuously scanning the external market for new opportunities that can leverage existing capabilities.
Overall, the slide serves as a strategic framework for companies aiming to build a coherent organization. It underscores the importance of aligning market approach, capabilities, and product offerings to create a unified strategy that can adapt to changing market conditions.
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