PSTI: Domains of Transaction Flashcards
Planning is…
… the activity required to produce a plan
A plan is…
A plan is the articulation of a course of action one must take to satisfy an aim.
A strategy is…
… an approach, method, or design for the allocation, commitment, and deployment of limited resources through a set of focused transactions to achieve a personal or enterprise plan.
The three Value Disciplines (strategies) are…
Customer Intimacy, Product Leadership and Operational Excellence
The Value Disciplines come from a book called…
The Discipline of Market Leaders
Value Characteristics include…
- Proprietary technology, Branding, Network Effects, and Economies of Scale
- Clarity, Creativity, Communication, Customer Experience-focus
- 22 Immutable Characteristics of value
- The levers of influence
A powerful and effective strategy is structured as what?
… a set of unique, distinct, and highly valuable acts (transactions) that are crafted for the efficient allocation and commitment of limited resources.
An effective and efficient strategy must be what?
Concentrated and focused
Inspired by your accurate thinking, what three things support you as you move from the activities of planning into the more specific work of crafting strategies?
Insights, ideas, and innovation
Planning requires a serious and deliberate commitment to what two things?
Inquiry (a rigorous accounting and inventory of resources) and a willingness to concentrate and focus your thinking strategically.
What is inquiry?
A rigorous accounting and inventory of resources
If a plan gives us the general course of action required to fulfill on an aim based upon our current situation and limited resources, then a strategy gives us what?
The method and design for how we are to commit and deploy them.
What are the three fundamental elements we must consider in the transactional domain of strategy?
Value disciplines, value characteristics, and an accurate understanding of competition
A tactic is what?
The articulation of ordered and specific work. (A tactic is not work; it is the linguistic frontrunner required of work and action. )
A tactic is not work; it is what?
The linguistic frontrunner required of work and action.
Tactics reify what?
Our strategic intent.
Tactics transform intentions into what?
Commitments to do work and take action (or not). (Keep in mind that purposely ‘not acting’ produces results and consequences. A commitment not to act is a tactic.)
Work implemented from WHAT results in a higher likelihood of people and organisations doing the work and taking the action that help them reach their targets, plans, and ultimately their aims?
Proper, clear, and simple tactics, designed and constructed as commitments to fulfill on cohesive and coherent strategies
Tactical accuracy is what?
A determination based on whether the work one committed to was done according to specific terms.
Most ‘activity’ implemented by hard-working and well-intended adults is not judged on tactical accuracy, but rather too often it is critiqued (judged) on what?
Subjective criteria such as personal aptitude, competence, fortitude, attitude, or self-causal psychology, ontology, and the like.
Good, competent, and hard-working people who are implementing weak or faulty tactics produce what?
Lousy results.
Work that is accurately implemented yet does not satisfy goals and targets is a problem of either what or what?
Weak tactical construction and/or flawed strategy.
Where do traditional management tends to lay the blame and burden of unsatisfactory consequence?
On those who are doing the implementing.
When goals and targets are primarily focused on results, they tend to be what?
Difficult to hit.
When goals and targets are primarily focused on work and action, the results and consequences become what?
A foregone conclusion.
Bad targeting is a result of what?
Inaccurate or wishful thinking.
People and organisations that struggle to hit their “targets” are almost certainly setting them on what?
Their needs and aspirations.
What should targets be set based on?
An accurate measure of the deployment of resources.
A tactic is powerful when expressed as what?
A clear and coherent commitment to take specific action to produce a specific result.
In its most effective form, a tactic passes a two-pronged test by meeting what two things?
The minimum standards required of a contract and the requirements of a simple transaction (i.e., a transaction constructed whereby only one exchange is required to fulfill each of the moves and phases of a transaction cycle)
What does it mean when we say tactics are consequential?
They are contractually sound.
When tactics are consequential (contractually sound) and simple they are what?
Highly effective and easy to follow and measure.
The biggest problem we all face when making an offer in the marketplace is what?
The battle to keep our offer specialised—designing and crafting strategies and tactics that are consequential and simple
Value disciplined tactics are influenced by what?
Value characteristics
Value disciplined tactics are specific to what?
Each Condition of Transaction.
What are examples of value characteristics?
Proprietary technology, network effects, economies of scale, branding (discussed in Zero to One)
22 Immutable Laws of Marketing (characteristics of value)
Levers of Influence
Clarity, creativity, communication, customer-experience focus
What are the 22 Immutable Laws? (It’s important to know these as they are value characteristics)
The Laws of:
- Leadership: It is better to be first than it is to be better
- Category: If you can’t be first in a category, set up a new category you can be first in
- Mind: It is better to be first in the mind, than first in the marketplace
- Perception: Marketing is not a battle of products, it’s a battle of perceptions
- Focus: The most powerful concept in marketing is owning a word in the prospects mind
- Exclusivity: Two companies cannot own the same word in the prospects mind
- Ladder: The strategy you use depends on which rung you occupy on the ladder
- Duality: In the long run, every market becomes a two-horse race
- Opposite: If you are shooting for second place, your strategy is determined by the leader
- Division: Over time a category will divide into two or more categories
- Perspective: Marketing effects take place over an extended period of time
- Line Extension: There’s an irresistible pressure to extend the equity of the brand
- Sacrifice: You have to give something up in order to get something
- Attributes: For every attribute, there is an opposite, effective attribute
- Candor: When you admit a negative, the prospect will give you a positive
- Singularity - in each situation, only one move will produce substantial results
- Unpredictability - Unless you can write your competitors plans, you can’t predict the future
- Success - Success often leads to arrogance and arrogance leads to failure
- Failure - failure is to be expected and accepted
- Hype - the situation is often the opposite of the way it appears in the press
- Acceleration - successful programs are not built on fads, they’re built on trends
- Resources - without adequate funding, an idea won’t get off the ground
What is a value characteristic?
The traits and qualities that demonstrate the value of a thing
Planning involves what three specific areas of study and practice?
Inquiry, inventory and invention.
Inquiry is a broad and involved process that guides us towards what important kind of thinking?
Proper and accurate thinking
What proper and accurate thinking does inquiry guide us to?
Making fact-based assessments of our current situation, our needs and wants
Planning is an activity that requires a commitment to long term what?
Deliberate practice
Deliberate and accurate thinking committed to producing a factual and clear accounting of limited resources constrains and limits what, in powerful ways?
Possibilities
Effective and powerful planning includes a rigorous and honest accounting and detailed inventory of resources available to you to commit, allocate and deploy over what?
A specific period of time
The aspect of planning that produces factual, clear accounting of limited resources and that constrains and limits possibilities requires concentrated work meant to remove what from our deliberations?
The diluting, irrelevant and unimportant elements…
….so that we can focus and narrow possibilities towards a few highly relevant and important activities that are best suited and more likely to result in the satisfaction of our aims.
Strategic thinking protects and defends us against the constant seductions of what two things that are present in our dynamic and complex social environment?
Complexity and generalisation.
Planning, done well, focuses our thinking and allows for the state or condition required of us when we face limits and constraints and must deal rationally with limited resources as opposed to wishful thinking. What do we call this state?
Creativity
Most individual and enterprise offers opt towards activities that dilute the use of their precious limited resources, because they are unaware of the importance of what?
Being known for a specific kind of help.
Economic action is what?
The activity required to produce meaningful and valuable exchange.
Economic action is given by a world of what?
Objects.
What is the essence of economic action?
How objects are exchanged.
What is produced by how things or objects occur in a particular discourse or environment”
An agitation or excitement that triggers wants or emergent needs in a Condition of Life.
What leads to the triggering of wants and emergent needs in Conditions of Life?
The agitation or excitement generated by how ‘things’ or ‘objects’ occur in a particular discourse or environment.
What must you do if you are going to build any sustaining wealth in today’s dynamic and indifferent marketplace?
Pick your value discipline and build tactics that exemplify it and do so powerfully, openly and without hesitation or apology.
Most individual and enterprise offers rarely, if ever, make a strong case in their thinking for what - and instead, opt for what?
Resource allocation, instead opting to spread themselves across too wide a landscape to compete effectively.
Direct competition is just one of many strategic concerns, but while it is important, it ought not be what?
As all-consuming as the Current would have you believe.
What will take care of most common concerns people face with direct competition?
Scarce and highly useful offers of help that are clearly distinguished and differentiated.
Direct competition tends to capture our attention because it is what?
Most obvious and sometimes confrontational.
You can rest assured that your competition is unlikely to be knowledgable and practiced in what?
Adhering to a single value discipline.
Direct competitors may speak the language and even attempt to use or copy the tactics created to support value disciplines and value characteristics - but it is highly unlikely that they fully appreciate what?
The extent to which one must concentrate and focus to secure a firm marketplace advantage in one specialised offer.
Direct competition becomes of little consequence in the face of what?
Highly specialised offers of substantial help built on one value discipline.
The more important competition to concern ourselves with than direct competition is what?
Indirect (customers, vendors, suppliers, third party relationships - and the most dangerous of all - the Current)
What must we do with the Current to protect ourselves from it?
Study it and observe it carefully and deliberately. (It trains and conditions us all. We are and will likely always be in competition with the ethics and conditions produced and perpetuated by the most dominant narratives in our environment. As we evolve, we confront new behaviours, technology, politics, fads, trends, and the like.)
We are and will likely always be in competition with the ethics and conditions produced and perpetuated by what?
The most dominant narratives in our environment
As we evolve, we have to confront what (in the Current)?
New behaviours, technology, politics, fads, trends, and the like
Knowing your competition in all its forms is necessary but far less important than the work you must do to what?
Continually craft powerful offers for specific customers in specific ecologies.
One sign you are not distinct or specialised enough is what?
Being burdened with a concern for your competition (you will recognise the first sign you are in trouble the day you are told there is someone out there doing the same thing for less).
