Entropy is a physics term that when applied to the human experience and business processes says that all systems will naturally decline into disorder. The key point as applied to business processes is that precision, process controls, and discipline are required to counter the natural and ever present forces of entropy.
Business processes often suffer the effects of entropy even with well defined with process controls in place. It's a constant battle to keep processes under control. The strategic value chain for your business is supported by many processes that need to be controlled and optimized in order to maintain focus and avoid strategic drift. At THE DIGITAL TRUTH our definition of the Strategic Value Chain outlines the relationship between distinctive competencies, value proposition, positioning, and your target market. (See Chart Below)
Strategic Drift
Some businesses have one strategic value chain and others have many. Each Strategic Value Chain is fundamentally defined by the coupling of your distinctive competencies that manifest themselves to customers through products and services to address a target market. The more well defined the target market and tighter the coupling, the better position you are in to execute effectively on all supporting go-to-market strategies and supporting processes. These include all marketing demand generation, sales strategies and supporting processes. The diagram above shows strategic value chain on the left and shows the effects of drift when a tight coupling doesn't exist. At THE DIGITAL TRUTH we have found that a vast majority of underperforming companies that feel the effect of strategic drift do not have a clear, crisp attribute-based definition of their target market in place and understood by all.
When drift occurs, the effects are obvious. The diffusion of focus causes growth rate decline in the short-term and will insidiously diminish the companies' distinctive competencies over time. This can create a spiraling downward momentum with diminished distinctive competencies fueling further growth rate decline. Job 1 in these situations is clarity and precision around target market definition (see Target Market Precision Insight blog) and your distinctive competencies (see Distinctive Competencies Insight blog). Attribute-based clarity around the target market enables the appropriate coupling with positioning, value proposition and ultimately your distinctive competencies. At THE DIGITAL truth we have a proven proprietary process for working with you to do the deep forensic analysis to help you to gain insights to focus your strategy to drive double-digit incremental growth. If you would like to learn more, click here to schedule a free Digital Truth introductory consultation.
