GSP & Associates LLC
Achieving Growth Sustained Profitablity

Competitive Performance

Customer performance implies the profitable creation and delivery of competitive advantage.  Evidence of this achievement is reflected in superior organizational profitability relative to one's industry or other benchmark.  History has demonstrated that maintaining this competitive position over a period of five to ten years is an achievement that few organizations have attained.  There have been many pundits who have tried to formalize the attributes of successful companies; however, time has demonstrated that today's best companies can fall victim to the dynamics of the market.  These experiences reflect that formula prescriptions do not predict success for the long run; there are however here a number of concepts that can help organizations get on track and stay on track:

 

1. Leadership

Leadership must be accessible and requires being on the field as opposed to being on the side lines.

 

2. Value Delivery to Constituencies

Stockholders, suppliers, employees, distributors, and customers all represent constituencies that have value needs and contribute to the effectiveness of short and long term competitive performance.  Failure to integrate these perspectives into one's strategy will dilute performance.

 

3. Frame of Reference

Strategy creation that is based on an inward focus is a recipe for competitive disaster.  Competitive innovation is based on a unique understanding of one's business model and how it can be configured to achieve a competitive advantage.

 

4. Organizational Alignment

Most senior managers recognize that organizational structure and behavior is often its own worst enemy.  Solutions such as the Balanced Score Card offer a framework to better understand performance and alignment; however, these solutions are often based on strategies that are driven by financial metrics that may be internally consistent but drive behavior that dilutes competitive value.

 

5. Value Articulation and Delivery

Most organizations cannot articulate a clear definition of their value-add nor do they validate that customers recognize said value as a competitive advantage.  The result is confused or mixed message to market and worse yet, conflicting behavior within the organization.

 

There are few companies that do not demonstrate a level of disconnect with some if not all of these issues.  Often these issues are so intertwined with the culture that it is difficult to separate cause and effect.  To move the organization to a new level of competitive performance requires a change in framework.  Providing this type of context is the thrust of the services of GSP & Associates.