The Delta Model framework offers four major contributions to the process of developing competitively based corporate and business level strategies. If taken as a whole, the integrated framework provides a roadmap for identifying optimal strategic positioning and the steps necessary to drive implementation, and ultimately, performance. The key element include:
The Triangle
A New Set of Strategic Positionings
Three distinct positions can all lead to outperforming your industry over the long term:
- Best Product — Low cost or differentiation
- Total Customer Solution — Reducing customer costs or increasing their profits
- System Lock-in — Complementor lock-in, competitor lock-out, or proprietary standard
The System Lock-In and Total Customer Solutions options offer new ways to compete that deviate substantially from conventional "best product" strategic positioning.
The Adaptive Processes
How to Really Link Strategy with Execution
Most companies implicitly execute as if they were pursuing a Best Product commodity strategy. No degree of competent execution can save them from this never-ending treadmill. The core processes of the company need to be aligned to the chosen strategy in order to make progress against their 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.
The Metrics
Aggregate Metrics need to be supplemented with Granular Metrics
The popular wisdom today is that the success of a business can be managed by focusing on several key top-line variables. While these averages are helpful, our research has shown that the true performance drivers can only be identified by de-averaged granular metrics. The challenge then is to isolate these detailed metrics, measure the concentrations of cost, revenue and profitability, and learn how to harness these underlying performance factors to improve the profitability of the enterprise as a whole.
Experimentation & Feedback
Key Adaptive Mechanisms
Success in today's ever-changing world comes not from creating one perfect plan but rather from adapting as the environment changes. This requires incorporating feedback mechanisms and defined experimentation into your processes and improving through a defined process of segmentation, testing, learning and execution.


