The three value disciplines described by Treacy and Wiersema are:
|Three Value Disciplines |Quadrant’s Approach | |Operational Excellence |Convenient, Cost Effective and Standardized | |Customer Intimacy |Limited | |Product Leadership |Proactive |
Quadrant’s Approaches to the Three Value Disciplines clearly signifies that they are giving much more impetus to Operational Excellence than to the other two. Operational Excellence as per the authors means “a specific strategic approach to the production and delivery of products and services, to lead industry in price and convenience.”
In my opinion Quadrant can be described as one of the organizations in the industry which are looking for Operational Excellence. It is very much evident the way Quadrant contracts, starts and closes six houses everyday by following a Stringline Schedule to distribute and complete the housing in 54 days by religiously following mass customization approach. They are doing everything possible to create opportunities for standardization and simplify operations leading to lesser flow time and cost reductions. So by reducing wastes, labor costs, minimizing risks of errors they are trying to lead the industry in price and convenience. Moreover they help customers in getting the financing also, so they are trying everything to give the customers hassle free transactions, which is also an important part of Operational Excellence.
Regarding Customer Intimacy aspect they are ready to accommodate a customer if it doesn’t interfere with their basic flow. They are offering more designs however if customer requires a customization that can complicate operations or increases work times, they drop those clients. However they are pleased to entertain a client, whose needs for customizations are getting several rooms or greater interior space, making space for more car garages, making rooms bigger or smaller.
Since customer intimacy means customer gets exactly what they need and Quadrant is not ready to entertain all wishes of the customers. So we can conclude that Quadrant is providing a very limited Customer Intimacy.
Regarding the final value, Product Leadership, they are trying to follow a proactive approach, by providing more and more standardized housing options to customers however with in the footprint. They are trying to continuously improve upon their operations and services to the clients. They try to maintain their leadership at every front from acquiring a site, setting up a community sales center, giving over 5000 options to the potential customer, higher personnel who are proficient to create a steady flow of potential customers, following stringent schedule and to even rope in the external stake holders in their value chain process. An evidence of it could be seen when they started providing Mortgage Financing to integrate its value chain and acting proactively to save time on inventories and lock in the qualified customers as soon as possible. Moreover the emulators also tried to copy their value chains and usually only the industry leaders creating benchmarks are copied which again evidently leads us to believe that they had the Product Leadership.