David Frederick's | iAIR BLOG

Consulting, Innovation, Strategy, Vision, Education, & Ideation

Creating Shared Value

When I studied at MIT Sloan School of Management, one of my favorite professors was a gentleman named Arnoldo Hax. Not only was Prof. Hax engaging, funny, and entertaining, he was brilliant. He and his colleague Dean Wilde pioneered a business strategy framework called the Delta Model.

Briefly, the Delta Model is a customer-based approach to Strategic management. Compared to a philosophical focus on the characteristics of a product (product economics), the model is based on customer economics and relationship building i.e. trust, value and mutual gains. Unlike, prior Strategic management models and in particular models pioneered by brilliant Harvard professor and strategy pioneer Michael Porter. Personally, I have found that through my extensive experience and alignment of my business philosophy, the Delta Model seems to be a more effective and dynamic strategic model for 21st century business than say Porters Framework.

If these Strategic management models are of interest to you, I highly recommend you Google both the Delta Model by Arnoldo Hax and Dean Wilde and Porters Framework and Porters Five Forces. I would also encourage you to check out my Modified Delta Model which builds off of the original Delta Model to take into consideration other dynamics in global business. You can find it by click on this link to my website.

So what does this all me? Well, I came across a recent article by Prof. Porter where he is discussing and advocating the creation of shared value and a new philosophy of Capitalism that is built around this “shared value”. Very interesting. Perhaps Michael is coming around to the principles of the Delta Model? You be the judge. Regardless, this is a great article by a brilliant mind and a pioneering leader in Strategic management. I highly recommend it. You can read it here.

-DF

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Written by David Frederick

April 20, 2011 at 10:01 AM

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