The most successful companies excel in three areas—Position, Pursuit, and Productivity. Therefore, if you want your company to be at its best, it needs to excel in all three areas as well.
Gerald Nanninga acts like a strategy doctor. He works with you to determine where your firm shows symptoms of weakness within these three areas—places needing the most improvement. He then prescribes a solution for these areas—to bring them back to health.
By focusing on only a few key areas at a time, there is a better chance of success in a shorter period of time.
In addition, because of the comprehensive approach to the situation, one can see the role each part plays in the greater plan. As a result, when the individual parts are improved, they are not only enhancing their own performance, but improving the effectiveness of every other part of the business. It all works together to re-enforce the winning formula.
A position is simply a reason why your customer would see your offering as the preferred alternative. It is the place where you can win in the customer’s mind. The best positions are ownable, sizeable, believable, preferable, profitable, achievable, and understandable.
The first step in this process is to create an agreed upon position uniquely suited to optimize your specific situation.
Next, one must determine the trade-offs and innovations needed within the firm’s business model to accentuate the areas most relevant to that position.
Finally, one must communicate the position in such a way that the intended customer believes it to be true and therefore naturally prefers you over the competition.
A position can only be won if a firm has all of the components necessary to make it a reality at a level superior to anyone else. This usually requires a push to be first, fast, full and fresh in the areas most critical for success.
The areas to pursue include:
• Capacity: Is your infrastructure large enough & sophisticated enough to deliver what is needed to win?
• Connections: Is your network of partners incented to behave in a manner most beneficial to your position?
At the end of the day, a successful strategy needs to optimize profits. Productivity is the process to create the most profits without damaging the long-term ability to properly pursue and win the chosen position. This is about how to monetize the business model.
Productive business models are:
• Effective: The model breaks with convention in order to achieve unconventional returns (do the right things).