Transforming corner-office

strategy into front line action

Group Customer Service and Operations
Strategic Principles
A memorable and actionable phrase that distills a companys corporate
strategy into its unique essence and communicates it through-out the
organization
Captured all in a phrase
Everyone in the organization can work towards it without being rigid








DELL
Be Direct
With strategic phrase Low Prices, Every Day,
Wal-Mart intends to serve price-sensitive
customers offering a range of branded
products at stockout rates with prompt
after sales service of defective
products.
GE
Be #1 or 2 in every industry
we compete, or get out
Wal-Mart
Low Prices, Every Day
What Strategic Principles Do
Strategic Principles help employees

Make Trade Offs
Test soundness of a business move
Experimentation within clear boundaries


eBay
Focus on trading
communities
AOL
Consumer connectivity first
anytime, anywhere
Vanguards Strategic advantage lies in giving
apex value to its investor-owner by investment
experience, breadth, performance, and low
costs as it is the only client-owned
mutual fund company in the world
Vanguard
Unmatchable value for investor-
owner
South West Airline Example & 80 100 Rule
South-Wests Strategic Principle :
Meet customers short-haul travel needs at fares competitive with
the cost of automobile travel

South West airline pulled out from long-hauled Denver sector routes
in order to focus as per its Strategy Principle.

What it does:
Empowers the employees to innovate and take risks
Maintain strategic focus

80 100 Rule
You are better off with a 80% right and
100% implementable, than one that is
100% right but doesnt drive the
consistent action through out the
organization
Mission vs Strategy Principle
Mission
Informs companys culture
Aspirational
Inspire frontline workers

Strategy Principle
Drives a companys strategy
Action Oriented
Enables them to act quickly by guiding them in
making strategically consistent choices



Example :
Comparison of
GE Mission
Statement and
Strategy
Principle
Need of the Strategy Principle
Decentralization
Need to adapt coherent strategic action
Example : GE

Rapid Growth
Focus and Direction in case of rapid growth
Aids less-experienced manager in decision making
Example : A young start- up company

Technological Change
Technological landscape changing too fast and very rapidly
Example : Dell

Institutional Turmoil
Change in Management can result in new strategy but not a new strategy
principle
Example : Vanguard