The document discusses the importance of developing a compelling organizational proposition and outlines a framework for doing so. It defines a proposition as stating the reason customers should buy from an organization instead of alternatives. A good proposition provides integration, commitment, and validation. It also helps manage risks like being a reactive follower and lacking customer insight. The framework includes defining customer needs, segments, capabilities to deliver value, and competitive differences to communicate a superior value proposition. It provides criteria for an effective proposition and questions to evaluate an organization's current proposition.

1. 1c rsconsult limited. www.4betterchange.uk
Growing in the sea of competition
Demands a compelling proposition

2. the power of a good proposition…
2
• a clear and simple proposition is at the heart of a good
strategy and provides a powerful motivator and unifier for
any organisation
• it fulfils some of the most important roles that strategy can
provide:
• integration : unity from top to bottom, across functions
and with partners
• a compelling ‘why’ for commitment for leaders and staff
• a ‘touchstone’ for validating innovation and actions
• this pack outlines a component framework for developing a
proposition and the challenges in creating a compelling one
• context - its unifying role
• architecture
• a description of the key components
• capabilities
• A test of the quality of your own proposition - 12 keys
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@growth’s heart -
a winning proposition

3. what is a proposition?
3
“The reason why customers should buy from
you - in preference to alternatives (including
purchasing nothing)”
reason
− can be multilevel
− will have a clear rationale for superior value
− will describe an end-result benefit for customers at a relative
cost
customers
− can be segmented, and can be multithread but always specific
to someone
in preference to
− competitive propositions that fulfil the same needs
− current and future
− all about trade-offs
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the definer of what
happens to YOU

4. Organisation
4
why it is so important…
Reactive market
follower
Insufficient
business selectivity
Market
alignment
Lack of external
focus
Inconsistent
operational aims
• The key link from the market
to organisation
• Governs the ‘mindset’ of the
business or body
• Central to managing value:
what is created and captured
by the organisation
• Helps to minimise 4 key
business risks
Customer
insight
Customers
Proposition
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5. the architecture for developing a good proposition…
5
Effective
Capabilities
Well
understood
customer
needs
Defined
customer
segments
Superior
value
An enabling
market
mission
Compelling
competitive
difference
A clearly
defined
market
How we focus our energy and on whom
How we
visualise the
‘marketplace’ in
which we
compete
How we
deliver value
into the market
and to sustain
our offer
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aligned

6. explanations of the key components
6
Market definition
Purpose:
•provide focus on fundamental
needs
•examine competitive
possibilities and threats
•(re) set boundaries for
business definition
Definition:
•fundamental needs served
by business, and
•scoped by product/
customer set
Key issues:
•market definition or industry
definition
•evolution - future definitions
Customer segments
Purpose:
•create new possibilities in
well-served markets
•enable clearer focus and
visualisation of “customer”
•choose who not to cater for
Definition:
•identification of groups with
distinctly different needs
•profiles of these groups for
identification/quantification
Customer needs
Purpose:
•insight into ‘needs’ is the
fundamental basis for successful
innovation and differentiation
•deep insight yields unusual
propositions to transform even
mature businesses
Definition:
•a multi-tiered expression of the target
customers
mindset
purchase criteria
valued features
•a full understanding of what creates
value for the customer – thru seek,
purchase, use, discard cycle
Key issues:
•criteria vs drivers of need
•gaining a full understanding of
the interaction customer/
business (process, context,
service…)
•identifying future vs current
priorities
Key issues:
•balancing external accuracy and
internal implementability
•hierarchy - number of
segments
•understanding future groups
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7. explanations of the key components
7
Competitive difference
Purpose:
•identify the full range of competition
•ensure differential value - the only
type to yield supernormal returns
•understand the dynamics and
possible futures for the market
Definition:
•the way that the business will
contrast itself to its
competitive set
• orientation to excel
• activities :portfolio &
character
Key issues:
•definition of competitive set
•customer validation of
difference
•sustainability (barrier?
network effects?…)
Capabilities
Purpose:
•identify relevant assets and
competencies that the business
can deploy/needs to develop
•define the CSF’s for delivering the
proposition (How do we deliver?)
Definition:
•significant abilities (skills, know-
how, processes and assets
(brands, technology, resources))
that can be deployed by the
business in this marketplace
Key issues:
•identifying those that can be
built and defended through time
and how
•identifying competitive
superiority
•Providing a rationale for
superior valueMarket mission
Purpose:
•encapsulate the way that
the organisation will engage
the marketplace
•provide a rallying point for
stakeholders in the
organisation
Definition:
•the underlying approach that
the organisation has to the
marketplace
•articulating the purpose with
which activity must be
consistent
Key issues:
•avoiding platitudes
•possessing a compelling ‘why?’
•stretching beyond a focus on
shareholders
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8. explanations of the key components
8
Superior value
Purpose:
•define the nature and core means of
delivering the superior value being
offered to customers
•articulate the ‘relative worth’ of this -
identifying critical consumer cost
benchmarks to be matched
Definition:
•articulation of what
benefits customers will
receive at what relative
cost level
•specify how it is delivered -
the edge
Key issues:
•validation of strength of cost/
benefit
•specificity
•hygiene vs differentiators
•articulation of why believe -
what delivers the value
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9. criteria for a sound proposition
9
• Valuable - relevant
• Simple - easy to communicate internally and externally
• Tangible - can be seen/felt
• Sustainable - allowing superior returns to meet financial goals and
reinvestment needs
• Defensible - builds upon capabilities that the business can develop
versus competition
• Arguable - defines what and who will not be served as well as
served and therefore ensures focus
• Capable - it is possible to align the business against the
proposition in practice
• Developable - it represents superior value that will remain
relevant in a dynamic marketplace
• Excitable - creates energy and enthusiasm internally and externally
The proposition must work in multiple dimensions and ideally
there should be data to prove this…
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10. How are we doing with our current proposition?
10c rsconsult limited. www.4betterchange.uk
1. Is it easy to explain the proposition?
2. Is the organisation gaining or losing market share?
3. Does the proposition match our capabilities?
4. Is the business creating sufficient value?
5. Do we know why our customers actually buy from us?
6. Do we have a clear statement of who we serve and who we don’t?
7. Does the proposition offer development potential for the business?
8. Are we clear which capabilities we need to defend our position
effectively over the next 5 years?
9. Who do we compete with now and who it is likely to be in future?
10. Do we have identified the ‘white’ and ‘grey’ space for the
organisation?
11. Are stakeholders enthusiastic about our mission in the marketplace?
12. Is the business well aligned behind the proposition?
Ask yourself 12 important questions
understanding how the
organisation is REALLY
doing

11. Rod Street - details
11
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