Delta Model

Delta Model

Management Theories

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The Delta ModelThe Delta Model is a strategy (organizing) framework that was developed by Dean Wilde, along with other members of Dean & Company, and Arnoldo Hax of the MIT/Sloan School of Management. It is aimed at assisting managers in the articulation and implementation of effective corporate and business strategies.The emergence of the Internet, with the previously unimagined potentials for communication, and the technologies surrounding e-business and e-commerce, made available some new options tools that allowed the feasibility of new business approaches. Hax and Wilde II integrate the Competitive Advantage and Value Chain frameworks from Porter with the Resource-Based View on the Firm and complement those with new Extended Enterprise perspectives and with offering Total Customer Solutions.The Delta Model contains the following elements:1. Strategic Triangle: used for defining strategic positions that reflect fundamentally new sources of profitability (three strategic options: best product, customer solutions, and system lock-in),2. Aligning these strategic options with a firm's activities and provides congruency between strategic direction and execution (three fundamental processes are always present and are the repository of key strategic tasks: operational effectiveness, customer targeting, and innovation), and3. Adaptive processes: core processes of the company must be aligned to the chosen strategy in order to make progress against the strategic agenda and avoid a commodity-like outcome. The Delta Model identifies the core processes of the business and provides a guide for how they need to function differently to achieve different strategic positions capable of continually responding to an uncertain environment.4. Metrics (Aggregate Metrics that should be supplemented with Granular Metrics).

Hax and Wilde believe a firm owes itself to its customers. They are the ultimate repository of all the...