Steve towers process excellence _africa_2012_cape_town

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”

www.stevetowers.com
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www.towersassociates.com
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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 – It has all happened in the last 14 years!
Mapping the Growth of the Internet st
The Always on World of the 21 century - 1998
1998


The Always on World of the 21st century
Mapping the Growth of the Internet
2008


The Always on World of the 21st century
Mapping the Growth of the Internet
Use Of Social Networks

Gadget Ownership
Over Time

Source:
The PEW Centre
American Life Project
April-May 2011
(2,277 adults)


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


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.
.


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


Our organisations all look the same...

CEO
Marketing Sales Customer Operations Finance
Service


Processes wend and meander their way around these
rigid structures...

CEO
Service


And hey ho – we nearly forgot the customer!
Now where do they go?

CEO
Service


CEO
Service


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."


CRAFTING THE
SUCCESSFUL CUSTOMER OUTCOME
Understanding the real Customer Need TOOLS

Layer 1:
Layer 4:
Who is
How does
the
what
Customer
We do
?
impact
Layer 2: Customer
What is Success?
the
Customer
Layer 5:
s current
The
Expectatio
Successful
n?
Customer
Outcome –
Layer 3: What is The One liner what does
the process the SCO: the
customer thinks One line customer
they are involved statement really need
with? that explains from us?
the actual
The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a
SCO
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.


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?


Where does the process start and finish?

Enquire about a Navigate to the Experiencing Baggage Enjoying the trip Relaxing in the Returning Home Enjoying a
trip airport hospitality transportation hotel Coffee at Home

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


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

The
Customer Experience
Enquire about a Navigate to the Experiencing Baggage Enjoying the trip Relaxing in the Returning Home Enjoying a
trip airport hospitality transportation hotel Coffee at Home

is the Process

Looking at the Process Outside-In
Achieves dramatic internal benefits
(typical 40-70%
cost savings)
and extends
our value chain

Navigate to the Experiencing Baggage Enjoying a Coffee
Enquire about a trip airport hospitality transportation Flying the airplane Enjoying the trip Relaxing in the hotel at Home


Check Out and……..

Gee..
Wouldn’t it
be great If
as I checkout
of the hotel…
Enquire about a Navigate to the Experiencing Baggage Flying the Relaxing in the Enjoying a Coffee
trip airport hospitality transportation airplane Enjoying the trip hotel Returning Home at Home


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
$34 M First Quarter PROFIT Apr. 23--United Airlines said Tuesday that it would eliminate 1,100 jobs
…..it would reduce capacity by shedding 30 airplanes, UAL shares
Apr. 18--Southwest Airlines Co. said Thursday plummeted 37 percent to $13.55
it earned $34 million in the first quarter
Southwest now plans to take delivery of 14 $80 M First Quarter LOSS
Houston-based Continental Airlines Inc.
new Boeing 737-700 aircraft next year
reported Apr 17 that it lost $80 million

58 Successive Quarters $4.1 Bn First Quarter LOSS
of PROFIT

You gotta start where you are!
Once commitment is made the transition is rapid

Functional
Trans Silo 6-12
months
Enterprise Wide Execution

“The Customer Experience is the Process”
Examples include: Gilead, Allied Pickfords, Tesco, State Farm, Emirates, China Mobile

ANALYSE THE FOLLOWING…
Process - the Beginning and The Successful Customer
the End Outcome

Where does the process start and finish? What is it and how can it reshape our processes
What IT systems support the process? and enterprise?
Are our processes and systems aligned to
achieve the Successful Customer Outcome?

Process Points of Failure What business are you (really)
Moments of Truth | Breakpoints | Rules in?

What and Where are they? 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


BUSINESS PROCESS
PROFESSIONAL ACCREDITATION
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