The document discusses change leadership and business process excellence. It covers various frameworks for analyzing an organization's business model, including its unique selling proposition, market discipline, and profit model. The document also presents a 4-wheels model for managing change, with each wheel representing a different component of an organization: culture, business model, strategic planning, structure, people, and leadership. It provides examples of how different market disciplines require prioritizing different components. The role of leadership in change management and motivating employees is also discussed.
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Today…
13th April 2009
•Two Domino’s employees
•YouTube
•Apology from Domino’s after 48 hours
•1 million hits
•Twitter: questions on silence
•LinkedIn: suggestions by users in forum
BusinessWeek, May 4, 2009
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€50 Billion
Worldwide sales in 2011
2 billion people Use Unilever’s products Each day worldwide
400 Brands
Sold in 180 countries
167,000 employees
Work for Unilever
130 YEARS & STILL GROWING
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The McPlaybook*
Make it easy to eat
•50% drive-thru
•Meals held in one hand
Make it easy to prepare
•High Turnover
•Tasks simple to learn & repeat
Make it quick
•“Fast Food”
•Tests new products for Cooking Times
Make what customers want
•Prowls market for new products
•Monitored field tests
*Adapted from: Businessweek , Februrary 5th 2007
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Market Discipline
"They are the most innovative"
"Constantly renewing and creative"
"Always on the leading edge"
"A great deal!"
Excellent/attractive price
Minimal acquisition cost and hassle
Lowest overall cost of ownership
"A no-hassles firm"
Convenience and speed
Reliable product and service
"Exactly what I need"
Customized products
Personalized communications
"They're very responsive"
Preferential service and flexibility
Recommends what I need
"I'm very loyal to them"
Helps us to be a success
Product Leadership
Operational
Excellence
Customer
Intimacy
•Cost
•Convenience
•TCO
•Features, Benefits
•Limited Range
•Solutions
•Customization
•Breadth & Depth
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Market Discipline
"They are the most innovative" "Constantly renewing and creative" "Always on the leading edge"
"A great deal!"
Excellent/attractive price
Minimal acquisition cost and hassle
Lowest overall cost of ownership
"A no-hassles firm"
Convenience and speed
Reliable product and service
"Exactly what I need"
Customized products
Personalized communications
"They're very responsive"
Preferential service and flexibility
Recommends what I need
"I'm very loyal to them"
Helps us to be a success
Product Leadership
Operational
Excellence
Customer
Intimacy
•Air Asia
•LV
•Ramly
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Operational Excellence
(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership (best product)
Customer Intimacy (best total solution)
Alignment & Consistency: Market Disciplines
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Operational Excellence (low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership (best product)
Customer Intimacy
(best total solution)
Alignment & Consistency: Market Disciplines
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Operational Excellence
(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership (best product)
Customer Intimacy (best total solution)
Alignment & Consistency: Market Disciplines
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Operational Excellence
•Competitive price
•Error free, reliable
•Fast (on demand)
•Simple
•Responsive
•Consistent information for all
•Transactional
•'Once and Done'
Customer Intimacy
•Management by Fact
•Easy to do business with
•Have it your way (customization)
•Market segments of one
•Proactive, flexible
•Relationship and consultative selling
•Cross selling
Product Leadership
•New, state of the art products or services
•Risk takers
•Meet volatile customer needs
•Fast concept-to- counter
•Never satisfied - obsolete own and competitors' products
•Learning organization
Alignment & Consistency: Disciplines, Priorities, and KPIs
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Operational Excellence
(low cost producer)
Product Leadership (best product)
Customer Intimacy (best total solution)
Alignment & Consistency
HP well-balanced portfolio, mass customization
Acer super lean cost structure, aggressive pricing
Apple powerful products, premium pricing, limited range
Still Doing well in 2009/2011
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Operational Excellence (low cost producer)
Product Leadership (best product)
Customer Intimacy (best total solution)
Market Disciplines: Hardware
Samsung well- balanced portfolio, mass customization
‘Locals’ super lean cost structure, aggressive pricing
Apple powerful products, premium pricing, limited range
Still Doing well in 2012- 2014
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Operational Excellence (low cost producer)
Product Leadership (best product)
Customer Intimacy (best total solution)
Market Disciplines: Technology
Google well- balanced portfolio, mass customization
Amazon super lean cost structure, aggressive pricing
Apple powerful products, premium pricing, limited range
Still Doing well in 2012- 2013
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Which Company?
American Customer Satisfaction Index (ACSI)
•64 out of100-point scale: lower than IRS (Tax)
•2nd last among 30 companies surveyed
•Lowest 5% among 223 companies surveyed
•Bottom 5% of all measured private sector companies
•500 million customers
2010 American Customer Satisfaction Index (ACSI) E-Business Report
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Which Company?
American Customer Satisfaction Index (ACSI)
•64 out of100-point scale: lower than IRS (Tax)
•2nd last among 30 companies surveyed
•Lowest 5% among 223 companies surveyed
•Bottom 5% of all measured private sector companies
•500 million customers
2010 American Customer Satisfaction Index (ACSI) E-Business Report
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Operational Excellence
•Central authority, low level of empowerment
•High skills at the core of the organization
•Disciplined Teamwork
•Process, product- driven
•Conformance, 'one size fits all' mindset
•Integrated, low cost transaction systems
•The system is the process
•Command and control
•Quality management
Organization, jobs, skills
Management systems
Information and
systems
Culture, values, norms
Each Discipline Requires Different Priorities & Resources
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Organization, jobs, skills
Management
systems
Information and
systems
Culture, values, norms
Product Leadership
•Ad hoc, organic and cellular
•High skills abound in loose-knit structures
•Concept, future-driven
•Experimentation and 'out of the box' mindset
•Person-to-person communications systems
•Technologies enabling cooperation
•Rewarding individuals' innovative capacity
•Risk and exposure management
•Product Life Cycle profitability
Each Discipline Requires Different Priorities & Resources
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Organization, jobs,
skills
Management systems
Information and systems
Culture, values, norms
Customer Intimacy
•Empowerment close to point of customer contact
•High skills in the field and front-line
•Customer-driven
•Variation and 'have it your way' mindset
•Strong customer databases, linking internal and external information
•Strong analytical tools
•Customer equity measures like life time value
•Satisfaction and share management
•Focus on ‘Share of Wallet’
Each Discipline Requires Different Priorities & Resources