Answering “how does the business compete?”.

This question evaluates how a business competes in their market.

  • Differentiation (autonomy): The product is unlike others. This business may see that great ideas come from individuals.
  • Cost (control): This is optimized by generic processes and machine-like control over development. Cost is comprised of purchase price, cost of operating the product, and the price paid to gain access or obtain.
  • Flexibility (cooperation): Lead time of changes, responsiveness and adaptability of the offering and backing servicing. Cross-functional teams deliver the fastest here.


  1. Robert W Keidel, Seeing Organizational Patterns: A New Theory and Language of Organizational Design (Washington, D.C.: Beard Books, 2005). (See notes.)