1. Business strategy with congruent and reinforcing operational capability for the targeted market segment is always key to its success. This should always be the first step. This guides the allocation of capital for focus and accepting trade-offs. Companies may decide to focus on providing the most relevant designs to their customers to entice them to buy, or be able to provide customers with wide range of products to meet their needs.
2. Develop a theory of cause and effect to assess presumed drivers of the business strategy. This requires someone who is close to business, and understand common financial and non-financial drivers to the business. Sales, costs and investments are typical financial drivers. Return on capital invested, earnings growth and cad flow growth are some more specific financial measures. Non financial measures include customer loyalty, latency, recency, frequency, monetary and product quality measures. Measure these drivers for statistical correlations to see if one's cause and effect theory is correct. There should be experiments on examining theories that will fail. Worse is if one doesn't try at all.
3. Identify activities that employees and customers can do to achieve business goals. If customer satisfaction drives business value, then find reliable drivers of customer satisfaction. If is about speed of processing? Or performance of the funds invested? Perform statistical analysis on these specific measures to ascertain causal effect. Base on this, a company can focus on such measures within control
Of departments and employees to ensure process is quick and effective.
4. Don't forget to re-evaluate your statistics to adapt to changing needs. Customer may need to be engaged in the social network with now compared to before. A bank teller becomes less important than the online experience.
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