ALIGNING IMPROVEMENTS 
    WITH BUSINESS STRATEGY
      WHAT IS COMPANY STRATEGY?
       • Vision - why the organization exists, the market 
        need it will provide. 
       • Mission - what the organization is going to do to 
        achieve vision, kinds of activities. 
       • Strategy – how it will undertake mission to 
        achieve advantage over competitors by either 
        doing different activities or doing similar activities 
        differently
       Source: Collis, D. J., & Rukstad, M. G. (2008). Can you say what your 
       strategy is? Harvard Business Review, 86(4), 82-90.
             VALUE PROPOSITION
               •  Defines
                   – Benefit the company will provide
                   – To which market segments
                   – And how the company’s offering will be 
                      uniquely superior to offerings of competitors
               •  What attributes does customer use to evaluate 
                  competitive offerings?
                  MAKING A BUSINESS CASE
                  EXTERNAL DRIVERS                     IMPACT ON COMPANY
                  •                                 •                                      CAPTURING VALUE
                   Economic                          Products / Customers
                     –
                      Income inequality               –
                                                        New products & services, 
                     –                                brand value                                              Revenue
                      Outsourcing jobs
                     –                                –
                      Trade imbalances                  Market restrictions
                  •
                   Environmental                      –
                                                        Taxes- e.g. carbon tax
                     –
                      Climate change- extreme       •
                                                     Factories/ Communities                     Margin
                     weather, rising sea, 90°F days,  –
                                                        License to operate, ease of 
                     crop damage                      permitting
                     –                                                                                          Cost of 
                      Peak oil, price volatility      –
                                                        Improved process efficiency                             Sales
                     –
                      Air quality- respiratory        –
                                                        Employee morale, 
                     illness, asthma                  productivity
                     –
                      Resource depletion- e.g. rare   –
                                                        Taxes, fines, liabilities
                     earths                         •
                                                     Supply Chain                    ROIC
                     –
                      Toxic chemicals                 –
                     –                                  Public campaigns, supply 
                      Water scarcity, quality         interruptions                                            Working 
                     –
                      Land use                        –
                     –                                  Liability for clean up                                  Capital
                      Biodiversity & species          –
                                                        Access to quality suppliers
                     extinctions                    •
                  •                                  Public/ Communications
                   Social                             –                                          Invested 
                     –                                  Access to capital                        Capital
                      Child, forced labor             –
                     –                                  Recruitment & retention
                      Supply chain mgmt in 
                                                      –
                     developing economies               Reputation, brand value, 
                                                      stock P/E ratio                                           Fixed 
                     –
                      Socially responsible                                                                      Capital
                     investors
                     –
                      Fair trade
                 BUILD SHAREOWNER VALUE
                    Stakeholder                    Potential Sources of Shareowner Value
                    Investors                      Access to socially responsible investor capital; potentially lower 
                                                   weighted average cost of capital (WACC)
                    Employees                      Hiring and retention of talent; Improved employee morale and 
                                                   productivity
                    Customers                      Brand loyalty and reputation; goodwill and intangible value; 
                                                   collaboration in developing new products
                    Business partners              Access to strategic resources and capabilities
                    Unions                         Improved labor relations and conflict resolution
                    Value chain associates         Cost- reduction/ value enhancing collaboration throughout the value 
                                                   chain
                    Regulatory authorities         Validation of specific product/ service quality levels; lobbying 
                                                   regulations in company’s favor; increased flexibility with regulators
                    Governments                    Favorable fiscal and industry- specific environmental and social 
                                                   policies
                    Local communities and          Mutual support and accommodation; “license to operate”; reasonable 
                    citizens                       treatment with respect to local taxes and service fees
                    Non- governmental              Constructive collaboration with individual organizations and groups; 
                    organizations (NGO)            favorable public opinion environment; “license to operate”