This is “Chapter Summary”, section 2.5 from the book Competitive Strategies for Growth (v. 1.0).
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Pastor Buss and the GNCS team are still working on implementing the strategic directions that emerged from the 3-Circle project. They have built an impressive staff and communicated their credentials, implemented standardized testing processes, and are in the process of hiring new leadership. While the development of the school will take time, and the development of new teaching paradigms like differentiated instruction will be up to the new school leaders, Pastor Buss reports being “sold on the 3-Circle model” and process that led to the current growth strategy for the school.
The simple truth is that your business is more profitable when you lead it with a careful view to customer value. However, there is much lip service given to customer value and customer satisfaction these days because we have few disciplined ways to think about and evaluate it. The 3-Circle model provides such discipline in asking the right questions and providing guidance on the right answers for growth. The key benefits of the framework are the following:
The outside view of the framework captures the front office—that is, it focuses explicitly on customer perception of the firm and its competitor. The analysis of the outside view produces a categorization of value in 7 categories, as summarized in Figure 2.14 "Summary: Outside View". The key competitive concepts reflected in this figure, and the associated growth strategy implications, are as follows:
Figure 2.14 Summary: Outside View
The inside view of the 3-Circle model captures the back office: the work, processes, capabilities, assets, and resources that are utilized in creating customer value. In the end, the most powerful competitive advantage emerges when your distinctive Area A, as perceived by customers, is a function of real, substantive, and distinctive capabilities and assets. Finally, the framework identifies a variety of actionable, high-impact ways in which a firm can enhance its growth prospects by building customer value that is superior to that of the competitors.
Chapter 1 "The Challenges of Growth" and Chapter 2 "Introduction to 3-Circle Analysis" have provided an overview of the framework and an introduction to the key concepts within it. Now it is time to get busy with an exploration of the core concepts in the model. Chapter 3 "Defining the Context" starts with the start—defining the context for your growth strategy analysis.