Companies today face a business environment of constant change and disruption. New technologies, shifting customer expectations, emerging competitors, and social/political upheaval continually alter the landscape. In this turbulent era, adopting a focused strategic orientation is crucial for organizations hoping to thrive.
But how do you assess whether your company's strategy is aligned for the times? Are you optimizing for all the key dimensions that matter for shared progress? This is where the TriValue Matrix comes in as an insightful visualization tool.
The TriValue Matrix is a framework that maps a company's strategic focus and prevailing mindset along two core dimensions. The first dimension looks at your strategic focus—are you oriented more towards maximizing revenue and profits or delivering exceptional customer value? The second dimension examines the prevailing mindset—do traditional command-and-control hierarchies still dominate decision-making, have agile, collaborative structures taken root, or are you prepared for accelerated markets?
By visualizing different products, services and initiatives on this matrix, you gain valuable perspective regarding your organization's overall strategic alignment. Patterns emerge indicating whether parts of your company are still anchored in old models versus areas reflecting the adaptable, partnership-focused identity needed today.
To build your company's TriValue Matrix (TVM), start by listing major offerings and organizational units on a spreadsheet. Then assess where each falls on the matrix by looking at factors like target customers, business models, metrics, organizational design, and values. A customer-obsessed business unit innovating for emerging niches would likely fall into the customer-focused, agile quadrant. A profitable legacy product catering to slowly declining segments might lie in the revenue-focused, traditional quadrant.
Repeating this exercise provides a holistic view of your strategic landscape. You can spot potential misalignments between your intent and actual orientation. The TriValue Matrix (TVM) visually reveals if you are transitioning effectively from overemphasis on profits to optimizing for all three key dimensions—customer, company, and workforce value.
The TriValue Matrix (TVM) enables conscious shaping of your strategic mix for the new reality, rather than leaving it to inertia. You can identify priorities for moving towards greater agility and shared prosperity. As conditions evolve, periodically updating your TriValue map provides an evolving picture of progress made.
In essence, the TriValue Matrix serves as both a planning tool and tracking mechanism for navigating change. While perfect strategies are impossible to craft in turbulent times, the TriValue Matrix provides a compass for increased strategic agility. With it, companies can traverse the peaks of change and foster value for customers, organizations, and employees alike.
Learn more about TVM in Enterprise Agility Fundamentals Chapter 8.