Steve towers process excellence _africa_2012_cape_town

Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org

Why Outside-In organisations prosper even in recession

[email protected]

www.bpgroup.org www.towersassociates.com

What is the Secret,

Who are the companies,

and

How do they do it?


“It’s true the

questions

Are the same…

But this year

the answers

Are very

different”


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Discussion:

Why outside-in organisations prosper even in recession

In difficult times, we see companies downsizing and

losing ground, whilst others continue to grow and

make profit. Why is the traditional approach to

organisational structure and hierarchy no longer

appropriate for and how adopting the Outside-in

approach can secure the future of your business,

your career and your processes


Who Are the Leading Companies?


Why is this happening?


The Always on World of the 21st century - 1998

Source BBCworld

The Always on World – It has all happened in the last 14 years! Mapping the Growth of the Internet

1998


Source BBCworld

The Always on World of the 21st century Mapping the Growth of the Internet

2008


Gadget Ownership

Over Time

Source:

The PEW Centre

American Life Project

April-May 2011

(2,277 adults)

Use Of Social Networks

The Always on World of the 21st century Mapping the Growth of the Internet


Dee Hock, Founder & CEO--Visa “A Global tipping point”

We are at the

very point in time

when a 400-year

old age is dying

and another is

struggling to be

born, a shifting

of culture,

science, society,

and institutions

enormously

greater than the

world has ever

experienced.


Source: Fanzine

The upcoming transformation of our society

presents one of the greatest business

opportunities of the next 100 years.

This will require patience as well as

perseverance; to anticipate what’s next and

plan for that situation as well as taking

advantage of what’s immediately before

you.

.

Our efforts in this field are part of our

strategy for this future. What’s yours?


Outside-In The Secret – what is it?


What is it that they are doing that is different?

First let’s review quickly at what they aren’t doing anymore…


We have inherited an industrial legacy

What shape are our organisations in?


The Pyramid


CEO

Marketing Sales Customer Service

Operations Finance

Our organisations all look the same...


CEO


Operations Finance

Processes wend and meander their way around these

rigid structures...


CEO


Operations Finance

And hey ho – we nearly forgot the customer!

Now where do they go?


CEO


Operations Finance


In other words... Everything looks like a Scottish pin factory!

And the way we describe everything can be just as inside-out…


What’s Missing?


The needs of the Customer

have changed forever

Inspiration:

Udayan Banerjee

CTO,

NIIT Technology (India)


It’s a Copernican Moment

Copernicus - 19 February 1473 – 24 May 1543

He died 467 years ago


How are they doing it?


"We can't solve problems

by using the same kind

of thinking we used

when we created them."


TOOLS

Layer 1:

Who is

the

Customer

?

Layer 2:

What is

the

Customer

s current

Expectatio

n?

Layer 3: What is

the process the

customer thinks

they are involved

with?

Layer 4:

How does

what

We do

impact

Customer

Success?

Layer 5:

The

Successful

Customer

Outcome –

what does

the

customer

really need

from us?

The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a

process, set of processes or indeed complete enterprise strategy. The SCO extends way beyond legacy

inside-out thinking to create an actionable strategic and operational objective for the entire organisation.

CRAFTING THE

SUCCESSFUL CUSTOMER OUTCOME

Understanding the real Customer Need

The One liner

SCO:

One line

statement

that explains

the actual

SCO


Can we do it also?


Where should

we start?


The

Customer

Experience

Is the Process


We have got to get Scientific

about the Customer Experience


BOOKING TO CAROUSEL?


Enquire about a trip

Navigate to the airport

Experiencing hospitality

Baggage transportation

Enjoying the trip Relaxing in the

hotel Returning Home

Enjoying a Coffee at Home

Where does the process start and finish?

Shifting our focus to the Customer Experience and improving that

Through Moments of Truth, Breakpoints & Rules lets us

FIX the Causes of Work and REMOVE the Points of Failure


Outside In– Successful Customer Outcomes Focus on Doing the Right Thing and Doing Things Right









The

Customer Experience

is the Process

A new perspective.. It’s a seismic shift in focus


Looking at the Process Outside-In Achieves dramatic internal benefits

(typical 40-70%

cost savings)

and extends

our value chain

Enquire about a trip Navigate to the

airport Experiencing hospitality

Baggage transportation Flying the airplane Enjoying the trip Relaxing in the hotel



Check Out and……..





Flying the airplane




Gee..

Wouldn’t it

be great If

as I checkout

of the hotel…


Why should we bother? Outside-In is winning in terms of Revenue,

Profitability & Customer Service

$6.4 Bn First Quarter LOSS

$537 M First Quarter LOSS

Apr. 23--United Airlines said Tuesday that it would eliminate 1,100 jobs

…..it would reduce capacity by shedding 30 airplanes, UAL shares

plummeted 37 percent to $13.55

Houston-based Continental Airlines Inc.

reported Apr 17 that it lost $80 million

$80 M First Quarter LOSS Apr. 18--Southwest Airlines Co. said Thursday

it earned $34 million in the first quarter

Southwest now plans to take delivery of 14

new Boeing 737-700 aircraft next year

$34 M First Quarter PROFIT

58 Successive Quarters

of PROFIT

$4.1 Bn First Quarter LOSS


Where should

we start?


You gotta start where you are!

Once commitment is made the transition is rapid

Functional

Trans Silo

Enterprise Wide Execution

“The Customer Experience is the Process”

6-12

months

Examples include: Gilead, Allied Pickfords, Tesco, State Farm, Emirates, China Mobile


ANALYSE THE FOLLOWING…

Process - the Beginning and

the End

Where does the process start and finish?

What IT systems support the process?

Are our processes and systems aligned to

achieve the Successful Customer Outcome?

The Successful Customer

Outcome

What is it and how can it reshape our processes

and enterprise?

Process Points of Failure

Moments of Truth | Breakpoints | Rules

What and Where are they?

What business are you (really)

in?

Can you deliver a compelling 21st century

Enterprise?


The future isn’t a place

we’re going to go.

It’s the place that you

get to create.

Nancy Duarte


ww

w.b

pg

roup

.org

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Why Outside-In organisations prosper even in recession

[email protected]

www.bpgroup.org www.towersassociates.com

What is the Secret,

Who are the companies,

and

How do they do it?

Steve towers process excellence _africa_2012_cape_town

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