S
Segment
For Market Value
Define meaningful customer, product, market, and channel segments based on needs, profitability, and strategic value.
Methods Segmentation • Needs analysis • Portfolio assessment
SIMPLIFY™ — Discipline 02
Redesign the enterprise around economic truth.
SIMPLIFY™ concentrates resources on the customers, products, markets, and activities that create the greatest economic value — while removing complexity that consumes capacity without proportional return.
Focus the enterprise — concentrate resources on what creates the greatest economic value and remove the complexity that consumes capacity without return.
The Four Economic Truths™
The foundation for strategic simplification
Economic Truths
1Not all customers create equal value.
2Not all products create equal value.
3Not all markets create equal value.
4Not all activities create equal value.
The SIMPLIFY Progression
I
Identify
Economic Truth
Determine where disproportionate value is created and expose the economic reality beneath enterprise averages.
Methods Segmented P&L • Margin analysis • Cost-to-serve
M
Map
Value vs. Complexity
Compare economic contribution with the complexity, resources, and friction required to support it.
Methods Quadrants • Quartiles • Complexity mapping
P
Prioritize
The Essential Few
Concentrate leadership attention, capital, talent, and operating resources on the highest-value opportunities.
Methods Strategic intent • Critical few • Stop-doing choices
L
Leverage
Decision Filters
Apply disciplined criteria before adding customers, products, investments, initiatives, or complexity.
Methods Strategic fit • Customer value • Economic return
I
Integrate
Clean-Sheet Design
Align structure, roles, capabilities, facilities, and processes around the most valuable opportunities.
Methods Org design • Capability mapping • Resource alignment
F
Focus
Through Simplification
Eliminate, minimize, standardize, or automate low-value products, activities, handoffs, and policies.
Methods PLS • USa • Outsource • Standardize
Y
Yield
Growth Capacity
Convert released capacity into strategic advantage by reinvesting in customers, innovation, talent, and growth.
Methods Capacity • Investment • Customer-back growth
◆
Primary Strategic Question
Where do we win in the market — and what is getting in the way?
SIMPLIFY™ Output
Economic Truth → Strategic Focus → Simplified Enterprise → Released Capacity → LEAD™
Executive Outcomes
Economic Truth›Strategic Focus›Simplified Enterprise›Released Capacity›Ready to LEAD™
From economic truth to disciplined execution — SIMPLIFY™ prepares the organization to LEAD™.
The Compass Operating System
Freedom Within a Framework™ | Clarity. Alignment. Execution. Results.
The next step