Customer focused value chain™
The customer focused value chain ™ is conceptually underpinned by the principle that “..the purpose of a business is to create and keep a customer..” (Theodore Levitt). The concept looks at the organisation in terms of a series of value creating activities and considers the best in class approaches to enhancing value and reducing the cost of delivery.
The concept is based on bringing together the following elements into a holistic approach to creating and sustaining customer value in order to maintain competitive edge:-
- Strategy and structure – aligned to creating and serving the customer (Johnson & Scholes)
- Business processes – engineered to add customer value through “Service Breakthrouths” (Heskett)
- Business controls – performance management principles i.e. the Balanced Scorecard (Kaplan & Norton), to ensure the business continually monitors and manages the chain of events which drive customer value. Namely, people perform business processes which create customer value which creates business profitability.
- Culture – the creation of a learning environment (Garratt)
