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Three Value Disciplines Characteristics of organizations

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In their 1993 Harvard Business Review article Michael Treacy and Fred Wiersema offered a unique strategic framework of three value disciplines. Their work was based on the three-year analysis of 40 successful business organizations. The authors suggested that the companies sell value, which is different for various groups of customers. While it is impossible to satisfy all the customers’ requirements, companies usually focus on some particular value. Depending on the value an organization sells, it operates within one of three value disciplines: operational excellence, customer intimacy or product leadership. The whole culture and operational processes of a successful organization are usually built around only one of the values, while standards are observed in the remaining two disciplines. The idea was later expanded in the best-selling book The Discipline of Market Leaders (Cambridge, Mass.: Perseus Books, 1995). This paper examines characteristics of organizations focused on different values, discusses integrated HRM practices and processes and suitable leadership styles. Organizations within three value disciplines basically differ in cultures, visions, goals, and operational practices.
A. Characteristics of Organizations:
i) A customer intimacy focused organization uses a combination of Porter’s differentiation and focus strategies. Customer intimacy targets segments with products created specifically for those segments.