Steve towers process excellence _africa_2012_cape_town
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The document discusses how some organizations are able to prosper even during economic recessions by adopting an "outside-in" approach. It suggests that the traditional hierarchical organizational structure is no longer appropriate for today's business environment. The presentation will identify leading companies that utilize outside-in approaches, examine why this model is effective, and describe the key aspects of what these companies do differently to put the customer first and adapt to changes in technology and business trends.
Steve towers process excellence _africa_2012_cape_town
- 1. 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
- 2. “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
- 3. 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
- 4. www.bpcommunity.org COMMUNITY • Global – 61,000 • LinkedIn – 8,300+ BUSINESS CARD www.bpmbox.com = • Accreditation LATEST BOOK CPP Practitioner CPP Professional TRAINING CPP Master • Open & In house Learning • Online Support www.bpgroup.org BUSINESS • Support Groups PROCESS PROFESSIONAL • Mentoring & Coaching • Articles, News INFORMATION & • Discussion RESEARCH • Conferences & Seminars www.successfulcustomeroutcomes.net Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 5. 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
- 6. Who Are the Leading Companies? Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 7. Why is this happening? Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 8. 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 Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 9. 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
- 10. 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) Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 11. Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 12. Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 13. 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 Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 14. 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. . Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 15. Outside-In The Secret – what is it? Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 16. 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
- 17. 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
- 18. The Pyramid Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 19. Our organisations all look the same... CEO Marketing Sales Customer Operations Finance Service Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 20. Processes wend and meander their way around these rigid structures... CEO Marketing Sales Customer Operations Finance Service Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 21. And hey ho – we nearly forgot the customer! Now where do they go? CEO Marketing Sales Customer Operations Finance Service Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 22. CEO Marketing Sales Customer Operations Finance Service Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 23. 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
- 24. What’s Missing? Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 25. 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
- 26. 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
- 27. How are they doing it? Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 28. "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
- 29. Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 30. 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. Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 31. Can we do it also? Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 32. Where should we start? Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 33. The Customer Experience Is the Process Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 34. 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
- 35. BOOKING TO CAROUSEL? Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 36. 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 Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 37. 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
- 38. 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 Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 39. 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 Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 40. 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 Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 41. 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 Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 42. Where should we start? Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 43. 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 Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 44. Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 45. 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? Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 46. 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
- 47. BUSINESS PROCESS PROFESSIONAL ACCREDITATION Two or Five Day www.bpgroup.org programs Est. 1992 and Since 2007 CPP Master® 18,000+ global with South Africa May 7-11 400+ people qualified as Johannesburg Certified Process Professional ® BUSINESS CARD In addition South Africa now has CPP Master® = LATEST BOOK 72 CPP Masters ® May 21-25 Dedicated global leadership with Cape Town in country Coaches “By Professionals for Professionals” Process Excellence Africa 2012 - BP Group February 2012 © BPGroup – All Rights Reserved www.bpgroup.org
- 48. 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