FIRST PRINCIPLE Costs and prices almost always decline | - How does your cost slope compare with your competitors?
- What is the slope of price change in your industry right now and how does your cost curve compare?
- What are your costs compared with competitors?
- Who is most efficient and effective in priority areas?
- Where can you improve most, relative to others?
- Which of your products or services are making money (or not) and why?
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SECOND PRINCIPLE Your competitive position determines your options | - How do you and your competitors compare in terms of returns on assets and relative market share?
- How are the leaders making money and what is their approach?
- How big is your market?
- Which parts are growing fastest?
- Where are you gaining or losing share?
- What capabilities are creating a competitive advantage for you?
- Which ones need to be strengthened or acquired?
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THIRD PRINCIPLE Customers and profit pools don’t always stand still. | - Which are the biggest, fastest-growing and most profitable customer segments?
- How well do you meet customer needs relative to competitors and substitutes?
- What proportion of customers are you retaining?
- How does your Net Promoter Score track against competitors?
- How much of the profit pool do you have today?
- How is the pool likely to change in the future?
- What are the opportunities and threats?
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FOURTH PRINCIPLE Simplicity gets results. | - How complex are your product or service offerings and what is that degree of complexity costing you?
- Where is your innovation fulcrum?
- What are the few critical ways your products stand out in customers' minds?
- How complex is your decision making and organisation relative to competitors?
- What is the impact of this complexity?
- Where does complexity reside in your processes?
- What is that costing you?
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