Blog Posts Process Analysis

Five Basic Shared Concepts

Blog: Biz-Performance, David Brown


  • Transformation and specification of the Business Vision into five essential and easy-to-understand concepts that show the future impact of the achieved vision. They simplify discussions around the vision and will be used as a company-wide communication medium to create understanding and buy-in. This concept was developed by Nolan, Norton & Co.and can still be of value when comparing an Organisation to it’s competitors. It also helps in structuring a Value Proposition.

When To Use

  • The Five Basic Shared Concepts are typically used during the Arouse or Envisage phases to create understanding of the chosen strategy, to confirm the future direction, and to provide input for strategy and visioning workshops (Case for Change, Business Position, (Confirmed) Business Vision).



The form below is an example of how an organisation can rank itself against its competitors structured around the Five Basic Share Concepts.

Five Basic Shared Concepts
Score 1-5
  • How Will I Compete?
We produce products and services that exactly meets the customers’ requirements at the same price level, with better quality than the competition.
We help our customers to reach their business objectives through minimising their total operational costs (total acquisition costs, total costs linked to switching between different materials produced, increase in productivity)
We make it easy to buy our products (easy identification of products, easy to conclude a contract)
We broaden our product range to increase our customer base.
  • How will we make money?
We produce the strategic components only and acquire non strategic components
We locate as close as possible to the customer (to shorten the total lead time and to minimise the total production costs)
We sell free capacity.
  • How will we conduct our business?
We Sell our products through the network of selected agents.
We organise without functional barriers, built on the process principles.
We pass production of non-strategic items to suppliers (i.e. partnership with selected suppliers).
  • Are we a good buy?
We are a successful company with a long tradition in our market. .
We are a successful global organisation
We are competitiveness in terms of costs, profit and satisfaction of customers’ needs”
  • How do we describe our work environment?
Offer employees interesting work, an attractive salary, and a nice working place
Offer the community job opportunities, taxes, sponsoring certain activities (environment, arts, sport)

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