Strategic Leadership
The first set of capabilities involves defining value exchange and establishing strategic alignment within the organization. The Strategic Leadership Category has two primary objectives: First, to create a clear understanding of how the organization exchanges value with its markets; second, to build a shared sense of what goes into value-based decision making. This requires a balancing act between the two, with the complex objective of capturing the greatest profit with the least amount of effort. The senior leadership team is usually the group responsible for Strategic Leadership in the organization, but it can involve the entire management team.
Defining Value Exchange The first objective of the Strategic Leadership team is to clearly define what a market values that the organization is capable of producing, and why the market values it. This requires an understanding of value-exchange, which is the ability to match an organization’s value with market potential. It therefore requires the identification of those markets that offer the greatest potential value for the organization to expend its resources.
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Value Proposition (Effectiveness) Clarify organizational purpose 1. Define the potential for the organization to create value based on general market needs. 2. Rank the value exchange options based on overall productivity and market share potential. 3. Produce effective core value proposition statements to articulate to the stakeholders, employees and market. 4. Maintain an understanding throughout the organization as to “why� markets value core value propositions.
Market Prioritization (Efficiency) Prioritize broad market options 1. Describe the broad markets and general attributes that represent opportunities to exchange value. 2. Rank the potential of all likely markets based on their overall efficiency and effectiveness. 3. Deliver clear market focus to the organization to maximize overall productivity. 4. Recognize new markets and changing markets based on the most relevant and current market research.
CAMMI Model and Framework TM