“Most companies remain stymied by the challenges of optimizing complexity ó managing the trade-off between customersí demands for variety in products and services, and the ballooning costs of meeting those needs. Firms tend to add complexity to their product or service mix for one of two reasons: to create value for a customer segment, or in response to competitive activity. But because they often donít refresh their ‘participation choices’ ó the decisions about the markets they serve and the ways they serve them ó companies can lose sight of the true value of a customer segment and the cost impact of the programs they develop. They donít target customer needs well enough to provide products and services that either are true ‘order winners’ ó offerings that set one company apart from another in the quest for customers ó or provide continuing value to existing customers.”

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