This note guides students or Executive Education participants through an exercise to help identify growth opportunities for their business units. The 3-Circle framework consists of 10 steps that lead to a vetted growth strategy. Readers work through the first five steps to identify three potential growth ideas. They then follow the remaining five steps to develop one specific Big Idea for growth. This exercise is a condensed guide to the process described in Grow by Focusing on What Matters: Strategy in Three Circles, by Urbany and Davis.
In their book Grow By Focusing on What Matters (2010 Business Expert Press), Professors Urbany and Davis start from the premise that growth and competitive advantage are about effective positioning. Through nine chapters they explain how to build positioning using a "3-circle model" that facilitates speed of understanding and action by focusing attention on the most critical strategy concepts in a demanding and uncertain competitive environment. Chapter 2 provides an overview of the underlying framework that begins with the customer perspective. The authors introduce the basic concepts and several case examples illustrating the principles that underlie the development of effective growth strategy. The book's outline: Chapter 1 The Challenges of Growth Chapter 2 Introduction to 3-Circle Analysis Chapter 3 Defining the Context Chapter 4 The Meaning of Value Chapter 5 Sorting Value Chapter 6 Growth Strategy Chapter 7 Implementation: An Inside View of the Organization Chapter 8 The Dynamics of Customer Value and Competitive Advantage Chapter 9 Summary: Growth Strategy in 10 Steps
In their book Grow By Focusing on What Matters (2010 Business Expert Press), Professors Urbany and Davis start from the premise that growth and competitive advantage are about effective positioning. Through nine chapters they explain how to build positioning using a "3-circle model" that facilitates speed of understanding and action by focusing attention on the most critical strategy concepts in a demanding and uncertain competitive environment. Chapter 4 is an in-depth study of customers, exploring the value customers seek and the means by which existing competitors get credit for the value they create. Following a review of concepts and background ideas, the authors present six basic lessons regarding customer-value dynamics and competition. The book's outline: Chapter 1 The Challenges of Growth Chapter 2 Introduction to 3-Circle Analysis Chapter 3 Defining the Context Chapter 4 The Meaning of Value Chapter 5 Sorting Value Chapter 6 Growth Strategy Chapter 7 Implementation: An Inside View of the Organization Chapter 8 The Dynamics of Customer Value and Competitive Advantage Chapter 9 Summary: Growth Strategy in 10 Steps
In their book Grow By Focusing on What Matters (2010 Business Expert Press), Professors Urbany and Davis start from the premise that growth and competitive advantage are about effective positioning. Through nine chapters they explain how to build positioning using a "3-circle model" that facilitates speed of understanding and action by focusing attention on the most critical strategy concepts in a demanding and uncertain competitive environment. Chapter 5 examines customer value in terms of response to the attributes of a product or product idea, then goes on to enumerate seven kinds of customer evaluation when confronting competing product concepts: better than competitor, same as competitor, worse than competitor, both below expectations, etc. The authors embed these ideas in the 3-circle model that dominates the book. At the end of chapter 5, the authors present a value map as a means of determining where a specific offering lies in a value space, defined by price on one axis and perceived benefits on the other. The book's outline: Chapter 1 The Challenges of Growth Chapter 2 Introduction to 3-Circle Analysis Chapter 3 Defining the Context Chapter 4 The Meaning of Value Chapter 5 Sorting Value Chapter 6 Growth Strategy Chapter 7 Implementation: An Inside View of the Organization Chapter 8 The Dynamics of Customer Value and Competitive Advantage Chapter 9 Summary: Growth Strategy in 10 Steps
In their book Grow By Focusing on What Matters (2010 Business Expert Press), Professors Urbany and Davis start from the premise that growth and competitive advantage are about effective positioning. Through nine chapters they explain how to build positioning using a "3-circle model" that facilitates speed of understanding and action by focusing attention on the most critical strategy concepts in a demanding and uncertain competitive environment. Chapter 7 examines issues of execution. The authors prod readers to consider their own organizations and products by asking "Do we have the skills and resources necessary to pursue these ideas" underlying the 3-circle model. A presentation on identifying and evaluating a firm's resources - financial, physical, human, technological, and reputational - leads to a discussion about applying those resources. Several case examples illuminate the chapter. The book's outline: Chapter 1 The Challenges of Growth Chapter 2 Introduction to 3-Circle Analysis Chapter 3 Defining the Context Chapter 4 The Meaning of Value Chapter 5 Sorting Value Chapter 6 Growth Strategy Chapter 7 Implementation: An Inside View of the Organization Chapter 8 The Dynamics of Customer Value and Competitive Advantage Chapter 9 Summary: Growth Strategy in 10 Steps
In their book Grow By Focusing on What Matters (2010 Business Expert Press), Professors Urbany and Davis start from the premise that growth and competitive advantage are about effective positioning. Through nine chapters they explain how to build positioning using a "3-circle model" that facilitates speed of understanding and action by focusing attention on the most critical strategy concepts in a demanding and uncertain competitive environment. Chapter 9, the final chapter, summarizes the book by presenting the 10-step process in which a growth strategy project is defined and executed. There are really three big elements underlying these 10 steps. The first involves the management team formally laying out the scope of the project and then their hypotheses about customer value. The second involves gathering data directly from target customers and analyzing it by breaking it down into the categories defined in the 3-circle model and deeper analysis via laddering. The third involves developing particular growth strategy ideas and testing them via (a) an assessment of alignment and capabilities required and (b) an evaluation of the competitive dynamics of the marketplace. The book's outline: Chapter 1 The Challenges of Growth Chapter 2 Introduction to 3-Circle Analysis Chapter 3 Defining the Context Chapter 4 The Meaning of Value Chapter 5 Sorting Value Chapter 6 Growth Strategy Chapter 7 Implementation: An Inside View of the Organization Chapter 8 The Dynamics of Customer Value and Competitive Advantage Chapter 9 Summary: Growth Strategy in 10 Steps
This is an MIT Sloan Management Review article. Much lip service is given today to "values-based decision making," with the implication that the underlying values are "good" values, occupying high moral ground. But the fact is that all decisions--whether highly ethical, grossly unethical or anywhere in between--are values-based. That is, a decision necessarily involves an implicit or explicit trade-off of values. The values represented in a particular decision are not always easy to identify and evaluate, however, and the shortcuts that people often take in decision making can make deeper analysis of values all the more difficult. This article presents a framework designed to explore the values implicit in decisions. Moving systematically from concrete consequences to higher-ordered values, the framework, embodied in a decision-mapping technique, helps the decision maker think through what is gained and what is given up as a result of a decision. It also encourages an expansion of choice options, motivates a more balanced view of positive and negative consequences, and provides insight into the dynamics of decision making. When good people at times say yes to bad--unethical or illegal--actions, there are four possible reasons: (a) the organization's values are fuzzy to them, leading them to resort to undeveloped intuition and expedient criteria, (b) they may not be clear on their own values, (c) their interpretation of probability conveniently favors their a priori preferred option, or (d) they see no other options (they believe their hands are tied). Each of these possibilities reflects issues that senior managers need to account for directly in addressing ethical decision making in their organizations. Illustrating the framework through a case study based on actual events, the article aims to help managers build a culture that better integrates the organization's values into staff members' decisions.
Executives can delineate their corporate strategy with three simple circles: one for what customers value, one for how customers perceive the company's offerings, and one for how customers perceive competitors' offerings. The overlap (or lack thereof) will provide valuable insights.
The answer is probably "yes." Managers often unintentionally sap their businesses' profits by ignoring the complexities of pricing. Find out what they're doing wrong.