“What counts in the things said by men is not so much what they may have thought or the extent to which these things represent their thoughts, as that which systematizes them from the outset, thus making them thereafter endlessly accessible to new discourses and open to the task of transforming them.”

– Micheal Foucault

The Building Blocks of Value Creation: Part Two – A Grounded Genealogy

During my last post we established the metaphor that value creation is the life of any business. A business that does not create value cannot exist. The mechanism for value creation is a business’s offerings. With respect to biological life, every living thing can be defined in terms of its DNA (i.e. the four molecules…

The Building Blocks of Value Creation: Part One – Establishing A Grounded Foundation

Within the new paradigm of Grounded Strategy (i.e. as opposed to Traditional Strategy) – Strategy is defined as “The unique way a business creates value via its offerings”. Now, there are several key ideas (Offerings, Unique Way, Grounded Strategy, Traditional Strategy, etc.) associated with this definition. I will seek to address each of these key…

“The mind did not evolve in the context of individuals sitting alone solving problems. It evolved in the context of group collaboration, and our thinking evolved interdependently, to operate in conjunction with the thinking of others. Much like a beehive, when each individual is master of a domain, the group intelligence that emerges is more than the sum of its parts.”

– Steven Sloman and Philip Fernbach

“In order to survive, the organization must have an objective that appeals to its customers, so that they will make the contributions necessary to sustain it. Hence, organization objectives are constantly adapted to conform to the changing values of customers, or to secure new groups of customers in place of customers who have dropped away. The organization may also undertake special activities to induce acceptance of its objectives by customers – advertising, missionary work, and propaganda of all sorts.”

– Herbert Simon

“A truly winning company is one that manages itself around a few differentiating capabilities—and deliberately integrates them. When companies accomplish this, we say they are coherent…The word coherence means something specific to us. It refers to the alignment among three strategic elements: (1) A value proposition that distinguishes a company from other companies (we sometimes call this a “way to play” in the market); (2) A system of distinctive capabilities that reinforce each other and enable the company to deliver on this value proposition and (3) A chosen portfolio of products and services that all make use of those capabilities.”

– Paul Leinwand, Cesare Mainardi & Art Kleiner