Strategy in a world of overlapping disruptions
How leaders can make sharper choices on where to compete, where to invest and what to stop when multiple structural shifts hit at once.
Read articleWhich Customers Are Actually Worth Winning?
The largest contract can destroy more value than a smaller one creates. Revenue forecasts omit the concessions, working capital, support and concentration risk required to earn them. A customer is attractive when lifetime contribution and option value exceed the full cost and risk of acquiring and serving it.
Build a customer contribution waterfall from net price, usage and retention. Deduct acquisition expense, onboarding, custom engineering, service, returns, credits, financing and the capacity displaced from other accounts. Allocate costs by the activity the customer causes rather than spreading overhead by revenue. Include cash timing: slow collection or inventory commitments can make an accounting profit economically weak.
Then price bargaining and concentration risk. A customer with credible alternatives, frequent tenders and little switching friction can capture future productivity gains through renegotiation. Large exposure without committed volume also creates asymmetric downside. Public-company filings routinely identify customer concentration in revenue and receivables because the loss of one relationship can affect both earnings and liquidity.
Not all value appears in the first contract. A demanding customer may create reusable capability, a reference in an attractive segment, proprietary insight or access to an ecosystem. Count that option only when it has an owner, a route to reuse and evidence of transferability. Bespoke work described as �strategic� without a replication path is usually unpriced delivery cost.
Use a risk-adjusted account thesis before bidding: expected contribution range, cost-to-serve drivers, renewal leverage, cash exposure, capabilities created and exit conditions. Revisit it with actual cohort data after implementation. Winning is not the signature; it is a relationship that compounds contribution without consuming scarce capacity faster than it builds durable advantage.
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Articles
How leaders can make sharper choices on where to compete, where to invest and what to stop when multiple structural shifts hit at once.
Read articleHow companies can identify new value pools and build business models that combine differentiated customer value with scalable economics.
Read articleFocus
A strategy becomes meaningful when priorities impose consequences on where capital, leadership attention and capabilities will not be allocated.
Corporate positioning becomes strategic when it is designed around stakeholders whose choices materially affect the company's ability to execute.
Strategic challenges
Hiring, infrastructure and market expansion can institutionalise assumptions that were never properly tested at smaller scale.
Pricing, channels, delivery and cost structure can each appear rational while producing unattractive economics when combined.
POV
A smaller, more productive network can create greater strategic value than ubiquitous availability built on weak economics and limited control.
A B2B strategy becomes stronger when the value proposition is distinctive enough to be highly relevant to some customers and deliberately less relevant to others.
Strategic impact
A growth product, retention product and harvesting product should not receive resources according to the same assumptions or success criteria.
Moving from transactions to subscriptions or outcomes affects cash flow, risk, capabilities and customer relationships far beyond pricing.
What we observe
We frequently see strategic importance assigned according to revenue while complexity, concessions and servicing requirements quietly erode value.
We frequently see new priorities added without removing initiatives whose original rationale has weakened or disappeared.