Post on 02-Nov-2014
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Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
Why Outside-In organisations prosper even in recession
steve.towers@bpgroup.org
www.bpgroup.org www.towersassociates.com
What is the Secret,
Who are the companies,
and
How do they do it?
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
“It’s true the
questions
Are the same…
But this year
the answers
Are very
different”
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
www.stevetowers.com
www.bpgroup.org
www.cityprocessmanagement.com
www.towersassociates.com
www.oibpm.com
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
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Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
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
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
Who Are the Leading Companies?
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
Why is this happening?
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
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
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
Source BBCworld
The Always on World of the 21st century Mapping the Growth of the Internet
2008
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
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
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
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.
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
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?
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
Outside-In The Secret – what is it?
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
What is it that they are doing that is different?
First let’s review quickly at what they aren’t doing anymore…
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
We have inherited an industrial legacy
What shape are our organisations in?
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
The Pyramid
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
CEO
Marketing Sales Customer Service
Operations Finance
Our organisations all look the same...
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
CEO
Marketing Sales Customer Service
Operations Finance
Processes wend and meander their way around these
rigid structures...
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
CEO
Marketing Sales Customer Service
Operations Finance
And hey ho – we nearly forgot the customer!
Now where do they go?
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
CEO
Marketing Sales Customer Service
Operations Finance
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
In other words... Everything looks like a Scottish pin factory!
And the way we describe everything can be just as inside-out…
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
What’s Missing?
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
The needs of the Customer
have changed forever
Inspiration:
Udayan Banerjee
CTO,
NIIT Technology (India)
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
It’s a Copernican Moment
Copernicus - 19 February 1473 – 24 May 1543
He died 467 years ago
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
How are they doing it?
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
"We can't solve problems
by using the same kind
of thinking we used
when we created them."
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
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
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
Can we do it also?
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
Where should
we start?
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
The
Customer
Experience
Is the Process
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
We have got to get Scientific
about the Customer Experience
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
BOOKING TO CAROUSEL?
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
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
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
Outside In– Successful Customer Outcomes Focus on Doing the Right Thing and Doing Things Right
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
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
The
Customer Experience
is the Process
A new perspective.. It’s a seismic shift in focus
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
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
Enjoying a Coffee at Home
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
Check Out and……..
Enquire about a trip
Navigate to the airport
Experiencing hospitality
Baggage transportation
Flying the airplane
Enjoying the trip Relaxing in the
hotel Returning Home
Enjoying a Coffee at Home
Gee..
Wouldn’t it
be great If
as I checkout
of the hotel…
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
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
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
Where should
we start?
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
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
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
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?
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
The future isn’t a place
we’re going to go.
It’s the place that you
get to create.
Nancy Duarte
Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
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w.b
pg
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.org
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Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
Why Outside-In organisations prosper even in recession
steve.towers@bpgroup.org
www.bpgroup.org www.towersassociates.com
What is the Secret,
Who are the companies,
and
How do they do it?