The Value Disciplines Model

Basing Strategy on Value

Value Disciplines Model

How do you provide value?

© iStockphoto/samxmeg

If your team or organization is providing a service or product, you have to deliver "value" to your customers to be successful.

However, value will mean different things to different customers. For example, imagine that you're buying a new cell phone – for you, value might be a no frills model at a good price. To someone else, value may mean having a lot of interesting functions, albeit at a slightly higher price.

While it's possible to provide value in many different ways, organizations tend to choose to concentrate on delivering value in certain areas – after all, it's unlikely that you can please everyone all of the time. Therefore, you need to choose the best way to deliver value to your clients.

One way to do this is by using the Value Disciplines Model. This model describes three "value disciplines" that you can develop to give great value to your customers in different ways.

About the Model

The Value Disciplines Model was introduced in the early 1990s by Michael Treacy and Fred Wiersema.

After studying high-performing companies in the United States and Europe, they identified three value disciplines that they found in almost any marketplace that they studied. These disciplines are a development of Porter's Generic Strategies  , and each is based on what the customer values.

These three core value disciplines are:

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