From the desk of James Dodkins There is no easy way to introduce a new order of things however there are some principles that can be followed based on this type of mind shift. 1. Objective and immediate. The results we achieve with Outside-In are significant and substantive e.g. Triple Crown*. Accordingly any effort should first of all identify the clear tangible benefits. 2. Talk is cheap. Fine words and phrases will not win hearts and minds without substance. Delivery is key, hence the ‘start where you are’ sentiment. In current projects (where support may be lacking) introduce the techniques within the CEMMethod by stealth. Lift the heads of those around you to think of Moments of Truth, Break Points and Business Rules for instance. “Nothing new mate, just some stuff other guys have used within… Six Sigma../..Lean../..EA../..compliance etc. (delete as appropriate)” 3. Build support. With (2) underway you will build support. That is the point to shift focus and begin the more practical discussion of where and how. 4. Go for broke. If you are extremely lucky/persuasive and have the top team already onboard go for broke. Discover the worst most problematic issues and set to righting em. By fixing the Cause you will remove the Effect.
5. Move on. It is a 400 year shift in mindset (Dee Hock, VISA founder). It will ultimately transform the planet. The jury is in fact back and the results speak for themselves. So when all looks desolate and casting your pearls before swine is depressing, remind the swine that they are part of the problem and move on.
6. Make it so. YOU ARE NOT ALONE it just feels that way when surrounded by flat-landers (doh). Learn, exchange and do.
Training and Certification with BP Group Chennai – Amsterdam –Orlando – London – Bangalore – Dubai – Brisbane – Cape Town – Denver – Sydney – Singapore
This is gentle reminder about our upcoming 2014 CPP Professional Global Training. Classes book quickly so please reserve soon. http://www.bpgroup.org/certification-by-city.html Course Overview: The CPP Professional qualification is an acknowledgement of the understanding and practical skill set associated with Outside In, Enterprise BPM and the effective implementation of the CEMMethod. The CPP Professional role is to guide and maximize the organization’s efforts toward its operational and strategic goals while removing the impediments the industrial age artefacts that stand in their way.
CEMMethod is an advanced approach for undertaking process change and transformation. In traditional approaches the emphasis has often been exclusively on efficiency and effectiveness and as a consequence businesses were struggling in terms of cost, quality and customer’s satisfaction. The BP Groups CEMMethod is a process framework, which is now replacing traditional industrial age approaches of process change and transformation in order to deliver first and foremost Successful Customer Outcomes. Introduced in 2006 in the book Customer Expectation Management, the CEMMethod is the process industry’s standard in designing, developing and delivering Outside In process transformation, as it overcomes the many shortcomings of traditional inside out thinking.
Benefits of Training & Certification: Caters to high demand in industry for Managers and Senior Executives with Certified Process Professional qualifications and Experience.
All our Instructors are practical proven experienced professionals working with the BP Group which has over 20 years of direct hands-on experience with real world companies in Process and Business Transformation and Change consulting and training
Individual attention and group interactions over the CEMMethod, processes and tools
In this blended model of training you will get online and classroom training
Online reading course content, videos and support materials
All BP Group certified participants will also earn 10 PDU’s Certificates
This five-day advanced course, you will apply the advanced features of the CEMMethod across a range of case studies, including your own work (if you prefer) to completely re-envisage a process, reduce costs, enhance customer service, grow revenues and consolidate customer experience.
You will learn what it feels like to access some of the most advanced toolkits from the worlds leading organisations experiencing many of the challenges you’re likely to face–while being coached by world leading Gurus actively involved with the application of CEMMethod at many organizations. This “learning by doing” style of instruction demands your open mind and active participation.
Rachel Smith | Business Development Manager | BP Group
Tel No: 00 44 20 3286 4248
************************************************************************************************************ BP Group, New Bond House, 124 New Bond Street, London W1S 1DX Offices in London – Houston – Denver – Bangalore – Sydney – Associates in 118 countries Office: US: +1 303 800-0924 | UK: +44 20 3286 4248 | Fax: +44 20 7691 7664
I am delighted to be working with PEX Asia on their 2014 summit. The event is designed for process management professionals who want to be at the forefront of change, champion excellence in their organisation and collaborate on creating the next generation of process transformation strategies.
Process Excellence is being redefined in this digital age, transforming organisations and revolutionising how business is conducted globally. To be competitive your company needs to continually evolve and move beyond just Lean Six Sigma.
Process Excellence today draws on a raft of evolving methodologies including Lean, Six Sigma, Business Process Management, Enterprise Architecture, Total Quality Management and Statistical Process Controls to enable organisations to improve the way they operate and deliver. Notable organisations such as the Singapore Exchange, ANZ, Shell, Nokia and the BP Group will be sharing the different ways they have blended and harmonised approaches within their ranks to enable their teams to connect more swiftly to relevant information, improve workflow automation and meet the ever changing consumer and market needs.
Excitingly, as part of this year’s event we have provided delegates with an exclusive opportunity to undertake our certification training programme.
This is designed as two in-depth workshops which will give you the essential skills to take on process change and lead with excellence.
Completing the course will also qualify you as a Certified Process Professional (CPP Levels 1 & 2).
The process professionals we researched with during production of PEX Asia identified their core challenges as how to core challenges as how to:
1. Differentiate their organisation by continually meeting and exceeding process quality and customer service 2. Capture, synthesise and align their client and business needs 3. Continuously improve workflow automation and project turnaround times 4. Swiftly adapt, evolve and improve global supply chain management in ever changing markets 5. Better manage multiple PEX projects
All within reduced timeframes and budgets and still meeting the expected outcomes from reporting executives and boards!
At the PEX ASIA 2014 you will find presenters, delegates, information and ideas which pose solutions to resolving these exact challenges. Using PEX to drive business growth, increase profitability and competitive advantage is more critical than ever.
This is your chance to revitalise, strengthen and accelerate your process strategies. We hope that you will be able to join us in Singapore at our PEX Asia 2014
Please do take a moment to look through the brochure or go to our PEX Asia website for more details. I look forward to meeting you in February in Singapore!
Steve Towers Lead Coach and Co-Founder BP GROUP, UK
I also want to touch on the hurdles these companies using OI as their route to customer-centricity faced or are facing. While achieving customer-centricity is a noble goal even a necessity for many companiesit’s not easy. It requires transformational change. On the flip side, sticking to incremental change doesn’t get you there. Not even close.
Amazon.com may have achieved Jeff Bezos’s dream of becoming the world’s most customer-centric company. And Amazon had the advantage of starting from scratch with nothing preexisting in the way, except for a pervasive business culture that believes companies went broke by trying to be too nice to customers and became successful by rigorous cost control and a laser-like focus. But Bezos understood the comfort level customers would feel with Amazon sourcing whatever they need to buy (almost) instead of dealing with scores of online merchants, including some not trustworthy. He also understood that the best way to keep customers is by continually finding new ways to offer them value. These were hardly popular concepts when he started Amazon. And for straying from conventional “wisdom,” Bezos and Amazon took a pounding from pundits and analysts before proving them wrong.
Best Buy senior execs banked on their understanding of how customers really wanted to buy electronics.
Best Buy made a major shift from a “cash and carry” electronics discounter to a combined product/service provider that supports every facet of customers enjoying high-tech electronics, with some appliances thrown in for good measure. To get there, Best Buy had to re-staff the stores with better trained, higher paid employees; bring in substantial new management expertise, redesign stores from the ground up, go to store plans that flexed with local demographics and take a huge financial risk on a then untested concept of “higher touch” electronics retailing. Best Buy senior execs banked on their understanding of how customers really wanted to buy electronics. Customers rewarded them by leaving competitors in droves, until the two primary U.S. competitors collapsed.
Fed-X has been an Outside-In company from the day the first Dassault Falcon flew off from Memphis back in 1971, and it has reaped the rewards. But in 1998 Fed-X chose to break its own air courier business model by acquiring the parent of both Roadway trucking and RPS (Roadway Parcel Express, formed to compete against UPS). The customer problem the acquisition solved was visible every day at hundreds of thousands of shipping docksone pile of small parcels for priority air shipping by Fed-X; a 2nd pile of small parcels for routine ground shipping by UPS; and a 3rd pile of larger shipments, including single packages over 60lbs., to be picked up by various LTL (less-than-truckload) carriers that serviced varying city pairs.
For logistics managers this meant: multiple types of waybills and manifests to complete; multiple tracking systems (or no tracking); angst and errors from trying to price shipments to attach shipping charges to invoices; and three different pick-up vans, often jockeying for space at a single loading dock at the same time. But once Fed-X melded the three service into one, logistics could have just one pile of shipments for ground and air, including packages up to 150lbs.
UPS, a totally inside-out company at the time, never saw the opportunity, despite seeing the three piles every day, because they were seeing the piles from their point of view, not the customer’s.
All these cases represent achieving customer-centricity through transformational change from inside-out business practicesplus, overcoming inertia and defying yet more conventional “wisdom.” In the CRM space, there’s a pejorative term, “boiling the ocean,” to describe asking companies to change too much. Supposedly, attempting “excessive” change leads to certain failure and death by firing squad. Yet any company striving to achieve customer-centricity has to switch from the inside-out perspective to Outside-In. And that takes “boiling the ocean.”
Feeling the urgency for change will help some companies clear the hurdles. Not feeling the urgency for change will cause others to take face plants on the trackor wither away at the starting blocks.
UPS was forced Outside-In (or else it would have gone upside down) by Fed-X’s ground transportation acquisition. For an extraordinarily routinized and standardized company, that meant adopting a new business model requiring disruptive process change.
More recently, Sprint was on the slippery slope, put there by inside-out thinking, including deplorable customer service. Its new CEO is taking an Outside-In view of the business to try to dig out of the hole. Too late? Maybe, maybe not. Forgiveness doesn’t always come easy. Sometimes it doesn’t come at all.
And speaking of forgiveness, General Motors is struggling for life after bankruptcyand trying to overcome an almost impermeable inside-out culture. Getting to Outside-In is a prerequisite for winning back customer trust. So far, reports coming out of GM have been mixed. What are you waiting for?
Sure Outside-In takes work. But don’t wait for an industry competitor to go there first. Forced change is so much harder than proactive change. And don’t wait until it’s too late and suffer the ultimate change. The Outside-In train is leaving the station, likely populated by a competitor or two or four. It’s time you hopped on board for the journey to Outside-In.
It was a great pleasure visiting San Francisco for the 4th time this year and hosting the CPP Masters session at the Waterfront. We had a terrific time consolidating Outside In.
From l>r: Grace, Angela, Mark, Steve, Kandice, Jamie, Moosa, Nivesh
This was one of those sessions that transcends what we did in a few days. Moosa and Nivesh will return to Qatar, Jamie to Phoenix, Kandice to Denver (yay!), Steve to Singapore, Mark to the world of education, Angela here in the Bay, and Grace to Washington DC.
The purpose of the Business Rules Tool Kit is to give you an actionable approach to identifying and optimizing the process-based behavior in your organization, thereby Increasing Revenues and Enhancing Customer service.
In 1996, Gilead introduced a “next phase” AIDS medication patients could take in a single daily dose. The new drug, Atripla, vastly improved patient quality of life. It vastly improved compliance. And it has given Gilead an 80% market share of medication prescribed to newly identified AIDS and HIV positive patients, despite introduction of directly competing, single dose products from larger competitors.
Atripla has dramatically grown Gilead’s revenue, along with producing near 40% profit margins. Plus, manufacturing one medication is far less expensive than making 17, matching revenue gains with cost reduction. But Gilead was not finished. Since 2006, Gilead has introduced single dosage treatment for hepatitis-B patients, who had to follow a similarly complex medication schedule, and has initiated development of a similar medication for hepatitis-C.
Through Outside-In, Gilead has become a customer-centric company specializing in quality of life and compliance as well as quality efficacious treatments. However, a common first reaction might be, “How obvious.” And a second might be, “Nothing much to it.”
Gilead did experience a blinding flash of the obvious. But untold numbers of “obvious” solutions to major customer problems go unnoticed because companies can’t see through customer eyes or are afraid to do so. Outside-In forces the issue by starting with the customer not the product or the company or sales goals or profits.
“Nothing much to it?” Au contraire, there was a whole lot to it. Having helped many a company through this type of transformative change, I can reel off a list of likely barriers Gilead faced: reorganizing R&D to focus on drug delivery, a very different discipline than traditional pharmaceutical research; changing support staff roles; laying off manufacturing staff and management; repositioning the company; and that’s just for starters. What Gilead achieved required transformational change, which stresses organizations and often tests their resiliency? No surprise that so many organizations limit themselves to incremental change.
What’s new here?
As you’ve almost certainly recognized, some organizations have employed Outside-In thinking since their inception, as has U.S. department store chain Nordstrom’s, or at least for many years. But two things have changed.
First, Outside-In today extends far beyond identifying opportunities. While full scale OI starts by aligning strategy with customers,it continues by next aligning process with strategies and then technology with process. In that order. More specifically, following opportunity identification OI determines “what” work has to be done by “who” in order to turn opportunity into reality. This strategic step defines organizational change as well as changes to workflow and information flow. Then OI defines “how” the work should be done and the technology enablement required, the tactical side. Not only does Outside-In expand the scope of customer-centric thinking to include implementation; but it also stretches traditional boundaries of process to include the “what” and the “who” plus technology support beyond just addressing the “how.” And that’s why we call it “Outside-In Process.”
The second change is the volume of Outside-In occurring. A number of organizations have already completed the migration from “inside-out” (company-centric) to Outside-In (customer-centric). Others are opportunistically starting to migrate. And some laggards within their own industries have moved or are moving defensively, to avoid the fate of Circuit City, CompUSA, WAMU (Washington Mutual Bank), General Motors and Northwest Airlines all notoriously inside-out companies insensitive to customer needs.
Entries will be accepted until Friday 8 November – there is still time to enter!
Due to unprecedented demand the deadline has been extended to 8 November.
Demonstrate how you used the power of process to transform your business and enter. The winners will be announced at PEX Week USA in Orlando, Florida on Tuesday 21 January 2014. ______________________________________________ >> Download your application kit
Enter each category for $100. Recognize your process excellence efforts and enter. All shortlisted finalists will be announced mid-December.
If you have any questions ahead of entering please don’t hesitate to contact us on firstname.lastname@example.org .
Celebrate your project and program excellence with PEX.