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Strategy Dynamics Course - Class 2 – Resources drive performance


This course is unavailable whilst it is being updated.

The fundamental message of this class is that a small set of easy-to-understand "resources" drives business performance – customers drive demand and revenue; capacity, staff and products enable us to build and satisfy that demand, and drive costs.

The class starts by showing how to lay out a simple but quantified causal diagram connecting the performance indicator we want to improve back to those resources that drive it. This rigorous, causal relationship does not just apply at any point in time, but at all times – so time-charts on all items explain exactly what has happened up to today, and what could happen in future.

Key issues addressed

Clients, staff and service quality for an IT support provider, over 36 months
  • Laying out a simple Income Statement (Profit & Loss) to show where revenue, costs and profits come from.
  • How customers drive demand and revenue, and staff, capacity and other simple resources drive costs.
  • Adding time-charts to show how resources drive performance over time – the key question we need to understand.
  • How the standard types of resource are understood in different kinds of business.
  • Important issues in dealing with resources properly.
  • How certain types of business may rely on specific types of resource that do not arise in other cases.
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Other resources and links


Jay Barney, Gaining and Sustaining Competitive Advantage, 2nd Edition, (2002), Prentice-Hall: Upper Saddle River NJ, Chapter 2   Amazon UK   Amazon Canada