Glossary

Guiding Principles

Set of assumed or stated ideas that communicate what you value, how you make decisions, how you behave at work, and what's most important for the organisation. And with "you", I mean you as a collective team. Guiding principles may have many forms, and you may have multiple sets of them. These ideas may be disguised as value statements, codes of conducts or culture playbooks.

Key metrics

Numbers that demonstrate the health and desired progress of your organisation.

Purpose

The reason for which your organisation exists. You could also think of it as the expected outcomes or the desired impact of the organisation. It can be pretty much anything. Shareholder wealth generation, provision for the employees' families, some social cause, fun, or any other outcome the organisation is expected to generate.

Strategies

Strategy is, in its simplest form, a plan to achieve a goal. I find R. Rumelt's definition of a good strategy useful: a good strategy is based on analysis, has a general guiding policy for specifying a general approach to overcome the challenge, and is communicated as a set of coherent actions. For me, strategies are a set of clear and coherent actions that describe what you do (and what you do not do) to achieve the goal you want.

Support activities

Strategy is, in its simplest form, a plan to achieve a goal. I find R. Rumelt's definition of a good strategy useful: a good strategy is based on analysis, has a general guiding policy for specifying a general approach to overcome the challenge, and is communicated as a set of coherent actions. For me, strategies are a set of clear and coherent actions that describe what you do (and what you do not do) to achieve the goal you want.

Value capture

All the activities and processes you do to create demand and capture demand. The most usual value capture activities are marketing and sales.

Value creation

All the activities and processes you do to design, improve or produce your products and services. Both innovation processes and product development activities are good examples of value creation activities.

Value delivery

All the activities and processes that deliver the for the captured demand. These activities are, for example, logistics, customer service or provision of the services.