Mastering digital marketing – McKinsey’s David Edelman shares his thoughts

McKinsey are pushing out their interpretation of Outside-In.

Pretty much on point there is still however a legacy thought or two in there; on the other hand we know the senior executive team listen to these guys so get ahead of the game with this 10 minute video.

1. Breakpoints – those insidious internal handoffs

insidious – Proceeding in a gradual, subtle way, but with harmful effects:

Yup that is Breakpoints.


Most process improvement techniques focus on only a small portion of the improvement potential in every process… the tip of the iceberg if you will. 
How big is the opportunity resting out of our sight, hidden below the waterline of current process improvement practices? 
Recent research shows that as much as 70 to 90 percent of the work people do on a daily basis comes directly from Causes of Work and this work is NOT part of the “job” for which these people were hired! Instead, this is non-value added work that takes away from people’s ability to do their job.
Does this sound familiar? Can you identify places in your work or life where these Causes of Work are distracting you from what you really want to be doing?
Are you required to fill out this form, check up on that order, follow-up on those activities, fix the thing that is broken, find what got lost, or explain why this was done that way? 
Do you get tasked with finding the answer, knowing the rules, going to meetings (because), pushing something through, chasing down what really happened, explaining why you did this or that? The list goes on and on but you shouldn’t need to look very far in any part of your life to find all kinds of examples of non-value add work you are doing every single day!
The Break Points Toolkit explicitly targets these “hidden” wasters of time and money. Causes of Work are the “rest of the iceberg” for process improvement that, when addressed, lead to dramatic process improvement results regardless of what kind of process is involved or what kind of organization the process is in.
Can you envisage reducing the costs of your operations by 20%, 30%, 40% or even more than 50%?

5. Moments of Truth and their link to Strategy

The Five Steps to Winning the Triple Crown with MOT’s
Identify your Goal
Of course the overall goal is to improve customer satisfaction. But to achieve that goal we need to know what role we are acting within. This helps us know if we are educating, leading, directing or doing.
Describe your Target
The target is the “area” we are seeking to improve. Most often this would be thought of in terms of a “process” but there is no restriction on how we define the target areas we are working on.
Identify Moments of Truth
For the target area, all of the Moments of Truth that exist need to be identified. They also need to be described well enough that what was meant is easily recognizable to others or when we come back to our work at a later date.
“Blink” your Analysis
Judging the impact of Moments of Truth on Customer Satisfaction is a very subjective thing. It’s relatively easy for people to do, but very difficult to codify. It can best be done by looking at the Goal, the Target and the Moments of Truth all together. In most cases the Moments of Truth that are problematic will immediately become obvious.
Describe your Actions
Describing your actions is the way you build the direction, leadership vision or specific activities that need to be done for improvement to take place. Depending on what your Goal is, your Actions need to take the form that will help get the work you know needs doing, done.
It’s important to have a goal. If we don’t have a goal then it’s very hard to play the game to win! So in your MOT Plan you need a goal.
What is your goal?
While Improving Customer Satisfaction is the overall goal, the specific goals for people to help us achieve that are what is needed to get results.

Those specific goals could be several things depending on who you are and what you do. Let’s look at some examples and see how they change the nature of the MOT Plan goal.

Who do you want your customers to become?

According to MIT innovation expert and thought leader Michael Schrage, if you aren’t asking this question, your strategic marketing and innovation efforts will fail.

In this latest HBR Single, Schrage provides a powerful new lens for getting more value out of innovation investment. He argues that asking customers to do something different doesn’t go far enough—serious marketers and innovators must ask them to become something different instead. Even more, you must invest in their capabilities and competencies to help them become better customers.

Schrage’s primary insight is that innovation is an investment in your client, not just a transaction with them. To truly innovate today, designing new products or features or services won’t get you there. Only by designing new customers—thinking of their future state, being the conduit to their evolution—will you transform your business.

Schrage explains how the above question (what he calls “The Ask”) will incite you and your team to imagine and design ideal customer outcomes as the way to drive your business’s future. The Single is organized around six key insights and includes practical exercises to help you apply the question to your current situation. Schrage also includes examples from well-known companies—Google, Facebook, Disney, Starbucks, Apple, IKEA, Dyson, Ryanair, and others—to illustrate just what is possible when you apply “The Ask.”

Marketing executives, brand managers, strategic innovators, and entrepreneurs alike should understand how successful innovation rebrands the client and not the product. A requisite question for its time, Who Do You Want Your Customers To Become will liberate you and your team from ‘innovation myopia’—and turn your innovation efforts on their head.

He argues that asking customers to do something different doesn’t go far enough—serious marketers and innovators must ask them to become something different instead. Even more, you must invest in their capabilities and competencies to help them become better customers.

As we say here at BPM Towers – If you can figure what the right thing to do is you will innovate to do it!

A good read for gaining even more Customer Insight.

http://www.amazon.com/Want-Your-Customers-Become-ebook/dp/B008UCBB1C/httpwwwstevet-20

Advanced BPM – Case Studies for download

The following casestudies from Toyota and Virgin Mobile tell the unfolding story of a quest for Outside-In.

Download the PDF’s
> Toyota http://bit.ly/1IymL <
> Virgin Mobile http://bit.ly/EkImH <

Business Process and Complexity from Raju Oak

 
An insightful and often times amusing presentation steers us through the stormy waters of complexity. (beware the cannibals)


In praise of the Customer focused organization (and the best at what they do!)

When is a good business model a really good business model?

When (perhaps)
… the customers keep coming back for more (76 million per year)?[i]
… you are consistently outperforming you industry rivals (record breaking profits in Q1 2012)[ii]?
… the shareholder value is growing year on year?[iii]
… you consistently drive out costs and grow revenues?[iv… receive positive feedback from yourchosen customer base?
… when your strategy is clearly stated and easy to understand by employees, management, shareholders and customers alike[v]?
 
By all the above criteria Ryanair the Irish airline is a terrific and much envied success. And yet you may hear many criticisms of Ryanair however as Michael O’Leary, their ebullient CEO points out, they are not Ryanairs customers.
In fact he wishes they never darken his door again as the Ryan Air offering is specifically not aligned with “picky, choosy time wasters” (his words not mine).
What is the secret?
Part of the magic is a complete focus on understanding their chosen customers successful outcome, and while that may not include you or me, it is certainly the bulk of travellers in Europe whose repeat business has helped Ryan Air outperform the sector for the last decade.

So have you personally and has your business really clearly articulated who is your customer and then defined the business you are in?


[iv] BBC News 21 May 2012: Budget airline Ryanair has reported record profits as fare rises helped to offset a sharp rise in fuel costs. Net profit for the year to March was 503m euros ($643m; £406m), up 25% on a year earlier. Revenue rose by 19% to 4.3bn euros.
[v]Ryanair’s objective is to firmly establish itself as Europe’s leading low-fares scheduled
passenger airline through continued improvements and expanded offerings of its low-fares
service. Ryanair aims to offer low fares that generate increased passenger traffic while
maintaining a continuous focus on cost-containment and operating efficiencies. (http://www.ryanair.com/doc/investor/Strategy.pdf)