This document provides an overview of gap analysis, a tool used to analyze the difference between desired and actual performance. It discusses gap analysis in three parts: 1) Go for the Should - defining what the ideal or desired state of performance should be in terms of value creation, 2) Analyze the Is - examining what the current state of performance is, and 3) Pinpoint the Causes - identifying factors that cause gaps between the ideal and actual states of performance. The document uses an example of a construction company building houses to illustrate how gap analysis can be applied to identify performance gaps and determine solutions.
3. 3
You have a gap that you have to close
before you start on your next result
What's your
answer?
4. TEN TOOLS
4
1. Atom of Work
2. Gap Analysis
3. Difficult Conversations
4. Advocacy versus inquiry
5. Feed Forward & Johari Window
6. Team Effectiveness
7. Problem-solving techniques
8. Mental Maps
9. Seven Influence Strategies
10. Events of Instruction
5. THE ATOM OF WORK PROVIDED A WAY FOR
CUSTOMER AND PERFORMER INTERACTION TO
LEAD TO VALUE
5
Where does the
customer's request
originate? The
source is often a
'gap'
6. 6
How do I now
what to do?
How do I
know how to
get things
done?
How do I
know where
to spend my
time?
How do I
add
value?
7. HOW DO I…
7
Know what to do?
Gap analysis
Sensemaking
Ideal-setting
Get things done?
Collaboration
Performance
Nurture and enhance
relationships?
Collaboration
Communication
Develop myself?
Personal mastery
Gap Analysis
Sensemaking
Move people and their
behavior from point A to point
B?
Gap analysis
Influence
Performance
Lead teams to produce desired
results?
Collaboration
Performance
Facilitation
Solve problems?
Sense making
Evaluation
Performance
8. WHAT MIGHT YOU GAIN FROM THIS
SESSION?
Given a performance situation, you will
Understand how value is the determinant of business needs
Distinguish among different org’l needs: business, performance,
work environment, and capability
Follow the ‘Go for the Gaps’ model to determine what the business
need (“to be” state, “should” condition) is
Analyze the “as is” state using that same model
Determine using that same model possible causes of gaps for
further exploration & experimentation
Distinguish between the development of skill and the changing of
performance
Devise appropriate interventions and experiments that will produce
solutions to the gaps
8
9. DID YOU EVER FEEL INEFFECTIVE IN YOUR
CHOICE OF ACTION?
Session Assumptions
Organizations possess aims
and seek to be effective
Accomplishments sometimes
fall short of these goals
Figuring out why that gap
occurs and filling it is an
important activity that the
members should pursue
methodically
Other worthy
methods exist such
as the DMAIC
sequence of Six
Sigma and TQM.
This method is a
simpler framework
that emphasizes the
people connection
10. GAP ANALYSIS
10
the tool to
discern the
difference
between what
you wanted to
accomplish and
what you are
actually
accomplishing —
and the causes of
that disparity
11. WHY GAP ANALYSIS IS USEFUL
Focuses you on overall business needs that we should see
mirrored in ETS strategy, annual goals, project scopes, and
service level agreements
Presents clear & simple methodology for identifying and filling
gaps between desired and actual accomplishment
Based upon what works: research of the field of Human
Performance Technology (HPT)
In this session, we provide a look at the
methodology’s essential framework
12. WHY GAP ANALYSIS IS USEFUL
Because gaps occur so
frequently between
what we need and what
we get:
‘as is’ ‘to be’
13. WHAT IF ‘AS IS’ ‘TO BE’?
THE RESULT AND PROCESS FAILED TO MATCH
DESIRES?
13
14. 14
You have a gap that you have to close
before you start on your next result
Here's my
answer!
15. 15
S
P
Pinpoint the causes What causes the gap between ‘should’ and ‘as is’
A
Analyze the ‘As Is’ What currently exists
G
Go for the Should What must be accomplished
Select the solutions: what actions are needed to address root causes
Go for the GAPS !
16. ANALYZE THE GAP…
16
Between the ideal
the ‘to be’ creation of
value and the ‘as is’
In organizational
performance
In group performance
In individual
performance
Between the value we
wanted to create and
the value we did create
17. GAPS! MAPS
BUSINESS NEED:___________________ EMPLOYEE GROUP:_____________________
(AN OPERATIONAL GOAL FOR AN ORGANIZATION MEASURED IN NUMBERS)
G
Go for the SHOULD
• In the future, the business should…
• In the future, performance should…
A
Analyze the IS
• Currently, the business is…
• Currently, performance is…
P
Pin down the CAUSES
• What’s going on/work environment
• What are capability needs?
Business SHOULDS Business IS Factors External to Organization
Factors Internal to Organization
Outside Business Unit
Within Business Unit
Performance SHOULDS Performance IS
Factors Internal to Individuals
18. 18
G
Go for the Should What must be accomplished:
value created
Go for the GAPS !
Where
you start:
value
desired
If you can’t
specify a
‘should be’ that
adds or creates
desired value,
go no further
What behaviors
or conditions
WOULD create
the value
result?
19. WHY IS VALUE THE DETERMINANT OF
‘SHOULD BE’?
19
Organizations exist
to create value
for their stakeholders
20. YOU NEED A POINT OF REFERENCE IN
SETTING YOUR COURSE: VALUE IS ‘THE SUN’
20
21. HOW DO YOU KNOW VALUE IS ADDED?
21
when a customer
— internal or external —
perceives increased worth,
gets what is needed,
appreciates improvements,
signals higher satisfaction
22. ETS EXAMPLE OF VALUE CREATION
22
Resources: Room, IT
systems, equipment
Systems: Logistics
People at ETS w/ expertise
performing
And more…
But CB has readers
and test-takers who are
satisfied leading to
more AP courses and
tests taken.
Value created!
By themselves,
they don’t add
up to much…
A Business
Need, a
SHOULD BE
23. 23
Your ‘to be’ must
connect to creating
or adding value, or…
why is it a business
need?
24. BUT YOU’RE NOT STARTING FROM A BLANK PAGE IN
YOUR EXPLORATION OF POSSIBLE GAPS, ARE YOU?
24
What
reference
points
already exist
for you?
25. NOT STARTING FROM A BLANK PAGE IN YOUR
EXPLORATION OF POSSIBLE ETS GAPS EITHER
25
What
reference
points
already exist
for you?
Employee’s Guide to
Objective Plan NOT FOR EXTERNAL
DISTRIBUTION ETS CONFIDENTIAL & PROPRIETARY
Start Your Performance Planning
1. Logon to ETS’ Recognizing Performance System using the following
link ETS Performance Management System.
2. Enter your username and password. Note that your employee ID
serves as your username.
3. Then click
4. Select the “Objectives” tab in the upper left hand corner of your
screen
My Objective Plan Navigation
Cascade Hierarchy – view of supervisor’s and direct reports’ objectives
Objective Toolbar – buttons to cascade and/or delete objectives. Use checkbox on
individual Objectives and then apply a command.
Display Options – click preferred display options and then click to change display.
Objective Categories – there are several types of objectives to create and edit in
My Objective Plan.
Objectives – individual goals for 2010.
Add Objective - to add a new Objective, click on the button. You can also choose to
copy an objective from a previous goal plan.
Edit Objective - to edit an existing objective, click on the
26. HOW DO YOU KNOW
WHAT A BUSINESS NEEDS SHOULD BE?
Accomplishment of Business Needs
They are in your business plan as goals.
They emerge from your business model.
They originate in an idea of what someone
wants you to provide:
customer needs the creation of value
27. PLACES TO LOOK FOR BUSINESS NEEDS:
VALUE CREATION PROMISED
27
Strategy
• Corporate Objectives
• Strategic Initiatives & Roadmaps
Operational
• Operational Work Plans
• Project Plan; e.g., Special Initiatives
‘Front Lines’
• Atom of Work Agreement
• Service Level Agreement
28. GAPS! MAPS
BUSINESS NEED:___________________ EMPLOYEE GROUP:_____________________
(AN OPERATIONAL GOAL FOR AN ORGANIZATION MEASURED IN NUMBERS)
G
Go for the SHOULD
• In the future, the business should…
• In the future, performance should…
A
Analyze the IS
• Currently, the business is…
• Currently, performance is…
P
Pin down the CAUSES
• What’s going on/work environment
• What are capability needs?
Business SHOULDS
Construct ten houses per quarter
on time and under budget
Business IS Factors External to Organization
Factors Internal to Organization
Outside Business Unit
Within Business Unit
Performance SHOULDS Performance IS
Factors Internal to Individuals
29. OK, YOU’VE GOT A LEGITIMATE ‘SHOULD’ TO
ANALYZE; WHAT’S NEXT?
29
How are you
organized to fulfill
the need?
31. GLOBAL TERMS ALTERNATIVE TERMS
Business needs
Business goals
Business objectives
Current business results
Performance needs
Accomplishments &
behaviors
Behavioral requirements
Current practices
Work environment needs
Barriers or enhancers
Inhibitors or enablers
Infrastructure
Capability needs
Skill
Knowledge
Attributes
32. Business Needs are the operational and/or strategic goals for a unit,
department or organization. They are expressed in operational terms and
are measured in numbers.
Performance Needs are the on-the-job behavioral requirements of people
who are performing a specific job or role. These needs describe what people
need to produce through their day-to-day performance if business needs are
to be met. They also describe the best practices by which these results are
produced; performance needs are measured behaviorally.
Work Environment Needs identify any systems and processes that are
needed if the performance needs are to be achieved.
Capability Needs identify skill, knowledge and attributes (I.e., competencies)
required of people if they are to perform successfully. Capability needs also
include job match and inherent ability.
HIERARCHY OF NEEDS
32
33. What supports
their
accomplishment
in this model?
NOW WE KNOW HOW NEEDS ARE MET…
Outside
Environment
Work
Environment
Capability
Performance
Accomplishment of Business Needs
Their
absence or
malfunction
causes
gaps
34. WHAT IS THE ‘SHOULD’ OF THESE
ELEMENTS FOR SUCCESSFUL PERFORMANCE?
34
People
Attitude
Skills &
Knowledge
Information &
Knowledge
Management
Incentive
Systems
Processes
Management
Work
Environment
Production
Systems
Clear Goals &
Objectives
Outside
Environment
Market
Conditions
Competitive
Practices
Governmental
Regulation
Fortune &
Misfortune
Materials
&
Resources
36. GAPS! MAPS
BUSINESS NEED: HOUSES____________ EMPLOYEE GROUP:_____________________
(AN OPERATIONAL GOAL FOR AN ORGANIZATION MEASURED IN NUMBERS)
G
Go for the SHOULD
• In the future, the business should…
• In the future, performance should…
A
Analyze the IS
• Currently, the business is…
• Currently, performance is…
P
Pin down the CAUSES
• What’s going on/work environment
• What are capability needs?
Business SHOULDS
Construct ten houses per quarter
on time and under budget
Business IS Factors External to Organization
Factors Internal to Organization
Outside Business Unit
Within Business Unit
Performance SHOULDS
•Project plan for each house
•Workers frame a house in one
day w/out mistakes
•Plumbers lay pipe for each house
in three days
•All materials delivered complete
and on time three days prior to
use
•Capable crew including foreman
with ability to oversee multiple
sites simultaneously
Performance IS
Factors Internal to Individuals
37. 37
S
P
Pinpoint the causes What causes the gap between ‘should’ and ‘as is’
A
Analyze the ‘As Is’ What currently exists
G
Go for the Should What must be accomplished
Select the solutions: what actions are needed to address root causes
Go for the GAPS !
38. DOES YOUR ‘AS IS’ STATE CREATE VALUE
DESIRED, THE BUSINESS NEEDS?
38
Plans, Systems, &
Processes
Management
42. GAPS! MAPS
BUSINESS NEED: HOUSES____________ EMPLOYEE GROUP:_____________________
(AN OPERATIONAL GOAL FOR AN ORGANIZATION MEASURED IN NUMBERS)
G
Go for the SHOULD
• In the future, the business should…
• In the future, performance should…
A
Analyze the IS
• Currently, the business is…
• Currently, performance is…
P
Pin down the CAUSES
• What’s going on/work environment
• What are capability needs?
Business SHOULDS
Construct ten houses per quarter
on time and under budget
Business IS
Averaging construction of six
houses per quarter with quality
issues and over budget by 50%
Factors External to Organization
Factors Internal to Organization
Outside Business Unit
Within Business Unit
Performance SHOULDS
•Project plan for each house
•Workers frame a house in one
day w/out mistakes
•Plumbers lay pipe for each house
in three days
•All materials delivered complete
and on time three days prior to
use
•Capable crew including foreman
with ability to oversee multiple
sites simultaneously
Performance IS
•Project plans missing and
incomplete
•Workers frame house in 3 days
w/ mistakes
•Plumbers lay pipe for each house
in three days, but they spend lots
of time waiting
•Materials delivered incomplete
and late
•Crew has many new hires
including a foreman; all lack
basic skills
Factors Internal to Individuals
43. 43
S
P
Pinpoint the causes What causes the gap between
‘should be’ and ‘as is’
A
Analyze the ‘As Is’ What currently exists
G
Go for the Should What must be accomplished
Select the solutions: what actions are needed to address root causes
Go for the GAPS !
44. PIN DOWN THE CAUSES
When conducting a gap analysis, you identify performance
gaps for purposes of determining and prioritizing actions
needed to close those gaps.
1. What are the factors impacting performance?
2. What are the enhancers and barriers?
3. Are there factors external to the organization?
4. Are there factors internal to the organization such as work
environment?
5. Are there factors internal to individuals such as capability?
44
45. GAPS! MAPS
BUSINESS NEED: HOUSES____________ EMPLOYEE GROUP:_____________________
(AN OPERATIONAL GOAL FOR AN ORGANIZATION MEASURED IN NUMBERS)
G
Go for the SHOULD
• In the future, the business should…
• In the future, performance should…
A
Analyze the IS
• Currently, the business is…
• Currently, performance is…
P
Pin down the CAUSES
• What’s going on/work environment
• What are capability needs?
Business SHOULDS
Construct ten houses per quarter
on time and under budget
Business IS
Averaging construction of six
houses per quarter with quality
issues and over budget by 50%
Factors External to Organization
Factors Internal to Organization
Outside Business Unit
Within Business Unit
Performance SHOULDS
•Project plan for each house
•Workers frame a house in one
day w/out mistakes
•Plumbers lay pipe for each house
in three days
•All materials delivered complete
and on time three days prior to
use
•Capable crew including foreman
with ability to oversee multiple
sites simultaneously
Performance IS
•Project plans missing and
incomplete
•Workers frame house in 3 days
w/ mistakes
•Plumbers lay pipe for each house
in three days, but they spend lots
of time waiting
•Materials delivered incomplete
and late
•Crew has many new hires
including a foreman; all lack
basic skills
Factors Internal to Individuals
46. WHAT ELEMENTS ARE INVOLVED IN SUCCESSFUL
PERFORMANCE IN OUR EXAMPLE?
46
People
Attitude
Skills &
Knowledge
Information &
Knowledge
Management
Incentive
Systems
Processes
Management
Work
Environment
Production
Systems
Clear Goals &
Objectives
Outside
Environment
Market
Conditions
Competitive
Practices
Governmental
Regulation
Fortune &
Misfortune
Materials
&
Resources
47. HOW DO YOU KNOW WHAT THE CAUSES OF
THE GAPS ARE?
47
People
Attitude
Skills &
Knowledge
Information &
Knowledge
Management
Incentive
Systems
Processes
Management
Work
Environment
Production
Systems
Clear Goals &
Objectives
Outside
Environment
Market
Conditions
Competitive
Practices
Governmental
Regulation
Fortune &
Misfortune
Materials
&
Resources
GAP
=
48. GET DATA ON PERFORMANCE FROM STARS
Is there something that a small group of star performers does differently in
their behaviors or in their approach that seems to be connected to the gap?
Ask those star performers, “Identify the specific business results or
performance accomplishment that you think would make the difference. “
“Please walk me through the steps and actions you take to achieve this
result.”
“Are there any steps or actions you would like to take that support this result
but are not currently doing so? If yes, could you describe them?”
How do you know that you've accomplished this result in an excellent
“manner? What criteria do you use to determine that the result was
completed successfully?”
“What obstacles or barriers within our organization, if any, few encounters
you work in support of this result?”
“What factors within our organization are supporting you as you work to
achieve this result?” 48
49. 49
S
P
Pinpoint the causes What causes the gap between ‘should’ and ‘as is’ ?
A
Analyze the ‘As Is’ What currently exists: Business? Performance?
G
Go for the Should What must be accomplished: Business? Performance?
Select the solutions: what actions are needed to address root causes?
Go for the GAPS !
50. Business Need Performer Group
Performance
SHOULD
IS
ASSESSING GAPS IN PERFORMANCE
Operational
SHOULD
“X”
IS
“Y”
YOU MUST START HERE
WITH THE DESIRED
OPERATIONAL RESULT
Causal
Linkage
“If everyone did it,
would it affect business
needs?”
GAP GAP
50
51. Business Need Performer Group
Performance
SHOULD
Causal
Linkage
“If everyone did it,
would it affect business
needs?”
IS
ASSESSING GAPS IN PERFORMANCE
Operational
SHOULD
“X”
IS
“Y”
Metrics Behaviors
Be
Specific!
51
52. WHAT ARE THE NECESSARY ELEMENTS IN
SUCCESSFUL PERFORMANCE?
52
People
Attitude
Skills &
Knowledge
Information &
Knowledge
Management
Incentive
Systems
Processes
Management
Work
Environment
Production
Systems
Clear Goals &
Objectives
Outside
Environment
Market
Conditions
Competitive
Practices
Governmental
Regulation
Fortune &
Misfortune
Materials
&
Resources
58. PRACTICE: DISCUSS A SITUATION WHERE BUSINESS
NEEDS ARE UNMET: WHERE IS THE GAP?
58
People
Attitude
Skills &
Knowledge
Information &
Knowledge
Management
Incentive
Systems
Processes
Management
Work
Environment
Production
Systems
Clear Goals &
Objectives
Outside
Environment
Market
Conditions
Competitive
Practices
Governmental
Regulation
Fortune &
Misfortune
Materials
&
Resources
61. Assess what the best do in the
best way to achieve off-the-
chart results.
What do they do differently?
How do they do it differently?
What are the models
that they employ
to view their reality?
Performance
SHOULD
Get to unfuzzy practices
IS
Find out what the best
are doing differently
from us
To get at WHY we have a gap involves
61
62. WE NEED A MODEL, A SCHEME TO UNDERSTAND
WHERE GAPS CAN OCCUR IN VALUE CREATION
62
value
63. ISBI HUMAN PERFORMANCE MODEL
Organizational
Analysis (Vision, mission,
values, goals, and
strategies)
Environmental Analysis
• Organizational
environment (Society,
stakeholders, and
competition
•Work environment
(Resources, tools, human
resources policies
•Work (work flow,
procedure, responsibilities
and ergonomics)
•Worker (knowledge, skill,
motivation, expectations,
and capacity)
Desired work
Performance
Gap
Analysis
Actual State of
Work
Performance
Intervention Selection,
Design, and
Development
Cause Analysis Intervention
Implementation
and Change
Lack of
Environmental
Support
•Data, information,
and feedback
•Environmental
support, resources
, and tools
•Consequences,
incentives, or
rewards
Lack of Repertory
of Behavior
•Skills and
knowledge
•Individual capacity
•Motivation and
expectations
Performance Analysis
(Need or opportunity)
Performance
Support
(instructional and
non-instructional)
Job analysis work
design
Personal
development
Organizational
communication
Organizational
design and
development
Financial systems
Change
management
Process consulting
Employee
development
Communication,
networking, and
alliance building
Evaluation
Formative
•Performance analysis
•Cause analysis
•Selection and design on
interventions
Summative
•Immediate reaction
•Immediate competence
Confirmative
•Continuing competence
(Job transfer)
•Continuing effectiveness
(organizational impact)
•Return on investment
Meta evaluation or
validation
•Formative, summative,
confirmative process
•Formative, summative,
confirmative, products
•Lessons learned
64. GOALS FULFILL CUSTOMER NEEDS
The
Customer
Determines
Value
1 Source
of Goals
1 Source
of Gaps
65. WE NEED A MODEL, A SCHEME TO
UNDERSTAND VALUE CREATION
65
We organize elements
through performance to
create value
You can’t just
throw resources
out there and
expect them to
do something
66. IF YOU ORGANIZE THE ELEMENTS
POORLY…
66
… through performance
or lack other components
like systems there is a
GAP between the value
you wanted to create and
the value that actually
resulted
67. ELEMENTS OF SUCCESSFUL PERFORMANCE
67
People
Attitude
Skills &
Knowledge
Information &
Knowledge
Management
Incentive
Systems
Processes
Management
Work
Environment
Production
Systems
Clear Goals &
Objectives
Outside
Environment
Market
Conditions
Competitive
Practices
Governmental
Regulation
Fortune &
Misfortune
Materials
&
Resources
68. EXAMPLE: BUSINESS NEED TO DEVELOP
PRODUCTIVITY TOOLKITS FOR ALL ETS MANAGERS
68
People
Attitude
Skills &
Knowledge
Information &
Knowledge
Management
Incentive
Systems
Processes
Management
Work
Environment
Production
Systems
Clear Goals &
Objectives
Outside
Environment
Market
Conditions
Competitive
Practices
Governmental
Regulation
Fortune &
Misfortune
Materials
&
Resources
TO BE = 100% of managers w/ toolkit
AS IS = 20% of managers w/ toolkit
69. WHAT IS HAPPENING HERE?
http://www.youtube.com/watch?v=I2HqW-AAb20 while they
enter run on loop
World Record 2 Hour House - Exemplary Corporate Leadership
Another
http://www.youtube.com/watch?feature=fvwp&v=mctUNUQSJ
Co&NR=1
Amazing Team work construction
69
70. WHAT IS GOING ON THERE?
70
Did they have desired end state
the ‘To Be’ of Business Needs?
Creation
Value
House
Did they have desired process
the way they wanted things to
unfold the ‘To Be’ of
Performance
Amount of time
Number of people
Quality
Cost
72. GAPS! MAPS
BUSINESS NEED:___________________ EMPLOYEE GROUP:_____________________
(AN OPERATIONAL GOAL FOR AN ORGANIZATION MEASURED IN NUMBERS)
G
Go for the SHOULD
• In the future, the business should…
• In the future, performance should…
A
Analyze the IS
• Currently, the business is…
• Currently, performance is…
P
Pin down the CAUSES
• What’s going on/work environment
• What are capability needs?
Business SHOULDS Business IS Factors External to Organization
Factors Internal to Organization
Outside Business Unit
Within Business Unit
Performance SHOULDS Performance IS
Factors Internal to Individuals
Fill in your sheet and discuss for
example
73. GAPS! MAPS
BUSINESS NEED:___________________ EMPLOYEE GROUP:_____________________
(AN OPERATIONAL GOAL FOR AN ORGANIZATION MEASURED IN NUMBERS)
G
Go for the SHOULD
• In the future, the business should…
• In the future, performance should…
A
Analyze the IS
• Currently, the business is…
• Currently, performance is…
P
Pin down the CAUSES
• What’s going on/work environment
• What are capability needs?
Business SHOULDS Business IS Factors External to Organization
Factors Internal to Organization
Outside Business Unit
Within Business Unit
Performance SHOULDS Performance IS
Factors Internal to Individuals
Fill in your sheet with example info
74. WHAT DO WE MEAN BY ADDING VALUE?
The difference between cost of
materials and labor to produce a
product, and the sale price or mission
impact of a product is the value
added
Individuals through their skills, efforts,
and knowledge EXPRESSED IN
PERFORMANCE transform the
organization's other resources to add
value
Organizations through their
architecture (or network of
relationships), innovation, and
reputation add value
75. 75
S
P
Pinpoint the causes What causes the gap between
‘should’ and ‘as is’
A
Analyze the ‘As Is’ What currently exists
G
Go for the Should What must be accomplished
Select the solutions: what actions are needed to address root causes
Go for the GAPS !
Notas do Editor
For those of you would looked at the materials from the last time that I offered the 10 tools series, you may notice a change in the sequence in which I am presenting the tools. I learned that there is one tool that is so fundamental it deserves primacy. And that is the Atom of Work. [Slide 2] All of the other tools that you see below will be ineffective — if not meaningless — unless there is use of the Atom of Work [Slide 4]
The 10 tools are a set of ways of looking at the world in situations so as to be more effective. All of us at work are confronted with questions – if we bothered to be aware and we care about being successful – that need answers. And those answers must be more than mere prescriptions; those answers must contain within them the means by which we can make things different. The 10 tools are way for us to know more clearly what to do, to get things done more efficiently and more effectively with less breakdowns, to improve and strengthen our relationships that are critical to the success of any individual in any enterprise, to allow us to do capital C. change management, to lead teams to produce their objectives, and to solve problems.
Not a substitute for other more sophisticated methods but a prelude
This is to gain a rough idea
You may need to drill deeper and longer
This orients you to the notions of performance and gaps and causes
Chris may have put the cat amongst the pigeons somewhat with his posting Apple iPhone vs Google Nexus One: iPhone Wins First Round [Or Why Shouldn’t You Buy a Nexus One Android Smartphone Now] but did you know that the Google Nexus One Smartphone is reportedly cheaper, in terms of the raw cost of components, than the iPhone?
According to a report by iSuppli this is indeed the case with the Nexus One coming in with, they say (post analysis of its raw components) a manufacturing raw material cost of some $174 whilst the iPhone – specifically the iPhone 3GS – reportedly comes in at some $179.
Of course the Nexus One packs in newer components such as a faster CPU and a larger AMOLED touchscreen
display, but, thanks to sporting just 4GB of memory courtesy of a microSD card versus the minimum 16GB of onboard capacity offered up by the iPhone 3GS the iPhone apparently comes in at a slightly higher cost in terms of materials.
Read: Google Nexus One Cheaper to Build Than iPhone? [Nexus One Estimated to Cost $174 to Manufacture, $5 Less than iPhone] » TFTS – Technology, Gadgets & Curiosities
Explain Value
Explain that Mission and overall strategy are broader source of goals
My Notes:
This is the Susan David version of TJ’s iPhone example.
I’m not a technophobe, but this example resonates more with me. I suspect we all have something personal that would give you a concrete example of adding value.
Only if the organization itself adds value is there an asset that belongs to the firm. When the organization’s performance rests solely on the talents of the people in it, then the rewards of that performance accrue to these individual talents, rather than to the organization
Page 17.
John Kay
TJ: What’s the technical definition of adding value?
It drives our structure, roles, strategy as it does for other organizations.