These two value chains explain why great organisations can exist in rubbish businesses and why I’m not going to worry too much if I present case studies from businesses which are going to or have gone to the wall!
The organisation value chain produces organisational capability and having the right capability is going to boost everything in the business value chain which follows it. But it doesn’t guarantee success.
A good organisation value chain helps stacks the odds of success in your favour. But if your business value chain is a mess, particularly if your business model is unsound, you’re still going to go out of business fairly quickly.
You do need both.
Picture credit - Twice25
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