IN PREVIOUS CHAPTERS, we described the building blocks of strategy and value creation. We showed how internal processes create and deliver the differentiating value proposition to targeted customers. We demonstrated how to align intangible assets—human, information, and organization capital—to these critical internal processes so that the value proposition can be continually improved. These connections, however, represent only a static model of value creation. In this chapter, we introduce the value creation dynamics.
Three ingredients must be added to the strategy map to create the dynamics of strategy.