A Value Proposition Symphony
When a value proposition works it’s akin to an orchestra playing a symphony.
The performance of different activities combines to create a harmony.
In this article, I will unravel how such a harmony is delivered.
To achieve this, I will refer to one example.
A value proposition is simply a promise of value to be delivered to customers.
An infamous example is that of the original iPod:
On the surface, ‘1000 songs in your pocket’ is merely a strap-line.
However, if value propositions were just slogans then I could transform this:
…into a Coffee shop with a proposition of “the best coffee shop in the world.”
…and make it rain.
But, if my strategy was to use that proposition, while offering a similar experience to competitors; unfortunately I would be on a hiding to nothing.
The disconnect would be the incongruence between promise and delivery.
The source of that incongruence?
The configuration of activities.
Or in other words the value proposition orchestra.
Get Alan Kay’s stories in your inbox
Join Medium for free to get updates from this writer.
Michael Porter, perhaps the most influential management thinker alive states:
To own the best coffee shop different activities would need to be configured.
According to the Telegraph, Truth coffee is the best coffee shop in the world.
YouTuber, Moabi visited ‘Truth coffee’ to find out why: Here’s his video:
Based on that video an activity map of Truth’s activities was created.
An activity map connects an organisation’s activities to their value proposition.
The black nodes show high level themes while the white show linked activities.
Crucially, golden-threads of consistency among activities emerge.
The bean dispenser is consistent with the the decor and waiters’ attire.
Their philosophy to be the best inspires them to modernise their roaster.
The experience isn’t uniquely great because of any one activity performed.
It’s not because they aim to match the smell and taste of their coffee.
Nor is it because of the quality of their beans.
A whole system of activities combines to create something uniquely great.
Therefore, to deliver an irresistible value proposition customers flock to experience, enjoy and share; configuring a system of connected activities is key. The more connected activities are, the more alluring a value proposition becomes. And vitally, challenging for competitors to replicate.
References:
Porter, Michael E. “What is strategy.” Published November(1996).
