Category: Outside-In

Outside-In Sales – by James Dodkins

Moving Outside-In effects every aspect of how an organisation manages itself. This is especially true at the ‘point of sale’ where we as customers interact with companies selling us product or service.
This article explores the shift in perspective and how organisations and sales teams can rethink their role.
The Game is changing, are you?
There has been a perspective shift in sales over the last five years, the 21st Century selling environment has changed drastically. Many businesses are finding it hard to adapt, while others are thriving and achieve record profits. How is this possible?
Let’s go back five years and examine the sales profession. The customer’s desire for knowledge was such that sales tactics such as emails or cold calls were reaping benefits hand over fist and were considered key in the sales process. Many a time the customer would not know what they wanted until it was suggested and if they did know and wanted to find out information for themselves, they had to get in front of a sales agent; this allowed for the ‘hard sell’ to begin.

The main goal of many sales agents was to get the sale at any cost. Sales agents were able to say what they wanted in order to close the sale and the customer, none the wiser, would invariably believe what they were being fed and hand over their money. 

Companies could be accused of putting many other aspects above a customer’s needs, however five years ago, while not the most effective way, it didn’t drastically effect a businesses success. Customers had money to spend and time to spend it; and sales agents rubbed their hands together, happy to take it from them. Result? Company wins, Customer loses.

 
Today there is a new breed of customer, a customer who knows what they want, an enlightened customer if you will. The immense growth of the internet has allowed customers to get the information they need at the drop of a hat. The customer’s desire for knowledge is still there, however they now know where to discover this. On average, according to ‘The Bupa Health Pulse’ survey, 58% of patients now go to the doctor after ‘self-diagnosing’. This is largely down to how readily available the information is online. This is the same with customers, they search and gain extensive knowledge around the product and ‘self-diagnose’ what they need and no longer can be told what they want.
In a complete shift from five years ago; customers now have more information yet less disposable income and as a result are now thought on as harder to sell to. What’s the solution? Don’t sell to them; let them sell to themselves! 
Let’s look at Apple for example; their sales agents are there to facilitate and support the sales process, taking a more consultative approach. The customer walks into an Apple shop knowing exactly what they want; the sales agent’s responsibility is to make sure the customer gets exactly want they want and that they leave after having a positive experience with Apple. The customer wants to buy, not to be sold to.
If you are a sales agent reading this you may well ask; what can I do to change?

Taking all into account there are many ways to become more effective. To name a few, firstly you need to make sure your product knowledge is faultless; if a customer knows more about the product than the staff, how much confidence will they have in you or the company for that matter?  Use their knowledge of the product to support them as they buy. Never be annoyed that they know as much about your product as you, show that you are impressed and complement them on this, be happy that they have practically done your job for you and given you something in common straight away. Use this to build rapport, get them involved with the product, don’t sell to them; ask them the questions that will make them sell to them self. Focus on making the customer experience a great one and you will outperform any agent stuck in the ‘hard sell’ mentality.

If you are otherwise involved in a company you may well ask; how can we rise above the rest? The best advice I can give is to move quickly, capitalise on other company’s shortfalls during this harsh economic climate, overtake them while they stagnate and become truly customer focused. Remember it’s no longer what you tell the customer about your product that matters to them; it’s what Google tells them, it’s what Facebook tells them, it’s what their friends and co-workers tell them. So leave all customers with a brilliant image of your company and you will grow exponentially more than with a website bragging about your greatness. People’s attention spans are decreasing in the digital age and according to the BBC, most internet users will spend less than one minute on an average website, so make your information quick, informative and user friendly. 
You can monitor how far along the customer has taken themselves in the sales process by how specific their search is. Common sense would dictate that the more specific the search, the further along the sales process they are. Make sure everything you do is customer-centric. Result? Company wins, Customer wins.
The planned introduction of internet sales tax, more likely than not, will bring some sales back out into the field, this allows a company’s representatives to interact face to face and deliver a truly fantastic customer experience that will perpetuate growth on all levels, however the amount of information available on the internet is still constantly increasing and is unlikely to stop, so this 21st century sales perspective shift, in my opinion, is here to stay.
To thrive in this environment companies need to take an Outside-in sales approach. Compared to five years ago many people may regard this as an ‘uneven playing field’ however the playing field is just as even as before, the game is changing, are you?
James Dodkins, Head Coach, The Alexander John Group
Review James LinkedIn profile at: http://uk.linkedin.com/in/jamesdodkins
Contact James at: james.dodkins@gmail.com
Visit Company website: http://www.alexanderjohngroup.com/
                      
 
About James:
Sales and Business Performance Transformation Coach specialising in the development of individuals and organizations.

James has a proven track record of success working with over 700 business professionals across the UK within award winning FTSE 100 companies.

He has been largely involved with high priority contracts with approximate contributions of £10.4 million a year, while continually demonstrating a high level of performance motivation.
James is currently looking to work with individuals interested in goal realisation and implementation to bring about immediate changes and long-term results towards business and life success.
As a field innovator, James has contributed regular development of coaching methodology aids to enhance
effectiveness for positive client results.

James is in the process of creating ‘Begin to Win: The Flip-it Guide to Sales and Success©’

Specialties:

  • Sales Performance
  • One to one and Group Coaching
  • Motivational Coaching
  • Goal realisation
  • Goal implementation

Are you in control of your processes (or is someone else?)

We are considering these questions:
Are your processes reactive or proactive? Do you exercise control through process, or is the process managing you? What role does the customer play in your processes – passive onlooker or active participant? Do you have a plan for maturing your processes in order to significantly reduce costs, enhance service and grow revenues?
In the ground-breaking book “The principles of Scientific Management” (published in 1911) Frederick Winslow Taylor observed “The first step in gaining control over an Organisation is to know and understand the basic processes.” One hundred years later this has never been more important and is a central theme for progressive organisations i.e. getting and maintaining control of all activities and tasks that contribute to the delivery of a Successful Outcome. 
1.    Are your processes reactive or proactive?
For those familiar with the ‘Moments of Truth’ concept (see here) we understand that all work is ultimately caused by customer interactions. Frequently negative and often unsatisfactory interactions create the work we see every day within our companies. If we examine the Moments of Truth we understand the very nature and shape of work that will result. Will the process be simple and create positive outcomes? Does the process appear convoluted with many checkpoints and possible errors? There is a secret known to leading companies such as Apple, Bestbuy and Google.
2.    Who is in control – or is the process managing you?
With all the talk in the process world of ‘process owner’ you could believe there was a science to identifying, managing and maturing processes. Is this so? Some would claim to have process repositories with well documented and indexed processes accessible at the touch of a button. Process ownership and records do not mean control. Consider this as an example. Customer Call Centre processes are to a very great extent initiated and pushed by customer interactions. We track calls, measure cycle times, identify waits, reduce talk time, optimise scripts and try to answer queries. All this activity is driven by customer behaviour. There is an illusion of control because we measure, some would say excessively, everything that moves. Gaining control of a process involves more that measures acted on retrospectively. True process control involves a series of specific and easy to apply techniques that transform and redefine the process landscape.
3.    What role does the customer play in your process (and is it important)?
“My job isn’t the customer. That is for the guys in sales and marketing and customer service and collections. I do the accounts/program/manage people/motivate/create strategy…” This is an accepted reality for many. It appears to be true that the customers do not figure directly in their work. However the only reason the job exists is to contribute to product or service bought by customers. Through that we collect revenue that ultimately results in profit for the share-holder. It is therefore logical to suggest that everything the organisation does should be explicitly linked to a Successful Customer Outcome.  Accordingly you should be able to articulate what contribution any activity or task makes to the ultimate outcome. If you can understand the role of the customer in every process you can eradicate all that stuff that doesn’t contribute positively. There is a systematic way to do this with immediate positive results for the people, process, enterprise and customer.
4.    Do you need to improve your processes and if so how do you?
All work is process. Whether we have a structure or means of capturing activities and tasks it comes down to the same thing. Creating a picture of what is happening and then managing that picture to a better place than now. Is that part of your process world, and how do you approach it? Are all processes viewed as virtual productions lines trapped inside functional specialist silo’s. How many processes cut across the organisation and extend to the customer experience? Where does the process start and end? When the phone rings (reactive) or at your initiation (pro-active?). Developing a process maturity model aligned to your business can deliver quantifiable results quickly. After all you don’t want to leave it to chance.

We’ll discuss the ‘solutions’ in the next update.
Meanwhile what is your view?See the latest at http://linkd.in/ProcessControl

The Secret of the 21st century leading companies
The title of the book[i] last year suggested that the ‘secret’ was a relentless focus on Outside-In thinking and practice. Let’s dig deeper and understand the essence of Outside-In, in other words let’s unfold what makes the secret so profound, practical and accessible by anyone who wishes to progress their roles and organisations to new levels of achievement.

1.     Seek – Focus on what you do want, rather than on what you don’t
Outside-In approaches such as the CEMMethod® emphasize applying attention on what you need to be doing to deliver Successful Customer Outcomes (SCO).
Clearly articulating the customer’s needs and aligning processes to achieving them delivers the Triple Crown – reduced costs, enhanced service and revenue growth. It is radically different compared to traditional improvement approaches that concentrate effort and resources to figuring out what you don’t want to be doing. There is also often the assumption with traditional approaches that the process is a given – it is there and should be fixed. Not so with Outside-In companies. If the process and all the associated activities and tasks do not contribute to the SCO then stop doing them. There is no need to optimise something that can be eradicated.
·         How are you approaching performance improvement?
·         Do you continue to search for things to stop doing?
·         Can you refocus and identify the things you should be doing? 

2.     Shape – Identify the customers and staff you require and trust them
This is a big ask for many. “How on earth can we trust our customers?” “We could never trust our staff”. Ask yourself a more pertinent question – who on earth recruited those customers and staff in the first place? What was the criteria for that and what were you thinking about?

Making customer service key to your organisation will keep your employees motivated and your customers happy.
Richard Branson


Outside-In companies believe in their people and the customer. They actively recruit customers by creating and managing customer expectations[ii]. In doing so less desirable customers can be actively managed away. Naturally you need the people within the organisation to deliver the means to the SCO and that is through the processes. If you develop trust and competency within your people they will shape the customer experience to deliver success. On the other hand if you assume your people are untrustworthy you establish a ‘checkers checking checkers’ mindset which is expensive, slow and ultimately provides a sub-optimal customer experience.
What steps could you immediately take to:
·         recruit the customers you desire, and
·         ensure your staff are motivated, engaged and trusted?
3.     Execute – Progressively align everything to Successful Customer Outcomes
If you have a choice go for the biggest current challenge within the organisation.
Within 45 days the process can be transformed to significantly reduce costs (typically 40-50%) and simultaneously improve service. In revenue generating processes turnover will begin to grow as service improves and turnaround times reduce. Train all your people in basic techniques so they can contribute directly from the ‘get-go’ (rather than exclusively rely on a cadre of colored belted statisticians). 

Faith is taking the first step even when you don’t see the whole staircase..
Martin Luther King Jr.

If your choice of starting point and actions are limited in scope do not be disheartened. Know that it is sufficient to take the first step and the staircase will unfold as you move forward. Fix the stuff you can as you do you will achieve results significantly better that traditional inside-out techniques. Within weeks you will produce the justification to move upstream and downstream from your starting point to eventually connect all processes.
Ultimately mature Outside-In companies embrace “the customer experience is the process” and the activities move beyond the boundaries of the organisation into the relationships and partnerships that deliver customer success. Working those relationships and building value through partners creates a differentiation way beyond the capabilities of traditional organisations.
As you start the journey:
·         How could you grow your capability immediately?
·         What steps can you take to begin the journey?
·         Where should you focus those immediate resources?
·         Can you take a half day for everyone to learn three simple techniques that will produce a tangible measureable deliverable immediately?
Outside-In Next Steps
Training – www.bp2010.com
Consultancy – www.towersassociates.com
Community – www.bpgroup.org and http://bit.ly/joinbpgroup (LinkedIn)
Resources – www.oibpm.com
References:

[i] Outside-In The Secret of the 21st century leading companies –
[ii] Customer Expectation Management – Success without Exception –
http://www.amazon.com/exec/obidos/ASIN/092965207X/httpwwwstevet-20

The Road to Hell is Paved with good intentions


This series of commentary is addressing the challenges faced by Certified Process Professionals® as they progress their organisations Outside-In.

We start with what is now a classic denial strategy and will progress over the coming weeks to review TEN (sometimes deliberate) misconceptions that seek to stop you on your journey to Successful Customer Outcomes.

‘The company has to get its own processes right first’.

In the context of Outside-In this is clearly a major mistake. As the Southwest Airlines and Apple examples demonstrate you fix the internal processes by understanding and acting on “the Customer Experience is the process”. In doing so eveything changes internally to better align to successful customer outcomes. That reduces complexity, removes costs, improves service and grows revenue.

Now if you brief is ‘in the box’ and does not yet extend to the Customer Experience the approach should be around optimisation through understanding the causes of work – moments of truth, breakpoints and business rules. Even though this is at best sub optimisation (recall the US banks Customer query process) it will take you to a much better place with significant performance improvements as you highlight and eradicate the ‘dumb stuff’.

Often times this has to be the starting point as, by definition, the way inside-out works is by the sub division of labour. You can only see the immediate walls around you and looking beyond maybe beyond your brief. Do not lose heart. Go with Optimisation (and if necessary stealth) as you introduce through existing projects the concepts of moments of truth, breakpoints and business rules. You will catch the eye of those responsible for the numbers as the changes you introduce go way beyond the traditional expectations.

Ciao, Steve

Next week… Changing the picture ‘My job doesn’t really involve the end customer. But I do have a mass of internal customers!’

Advancing Outside-In update, resources and links

MAJOR MILESTONE ACHIEVED 5,400 members on BP Group Linked-In
BPGroup (est 1992. 43,000+ members | LinkedIn est. Oct 2008.)
Reflecting the growth and interest in all things process

The BP Group are Sponsors of the Business Process Professional® pathway –

http://www.businessprocessprofessional.com

News | Events | Coaching & Certification | Discussions | Conferences | BPGroup Personnel |

** News & Events**
The CEMMethod® WEBINAR with Martina Beck-Friis (CPP Master®) and Steve Towers
– http://bit.ly/CEMMOverview
Enterprise Architecture CONNECTIONS subgroup exceed 340 in three months
– http://linkd.in/EAandProcess

BP Group 18th Annual CONFERENCE Heads-up | Book your diary in Orlando Jan 17-21, 2010
– http://bit.ly/BPGroupUR18

** Top DISSCUSSIONS **
When you’re in a support department like IT, Finance, or HR who is your end customer, the rest of the organisation or customers outside…
– http://linkd.in/at8hcB (Hussein)

How far down should process drill?
– http://linkd.in/ProcessDrilldown (Dick Lee)

Are corporate silo’s like castles? http://linkd.in/ProcessSilos (Karl Walter Keirstead)

Outside-in at Trader Joes http://linkd.in/ProcessTraderJoes (thanks to Patrick Ryder)
** New Sub Groups **

Welcome to the BP Group led by Charles Bennett – http://bit.ly/9FDzJk
Certified Process Practitioner | Professional | Master | – http://linkd.in/CPP_subgroups

** David Mottershead Hosts ANZ CPP Programme in November | (spaces strictly limited)
Auckland – http://aucklandcpp.eventbrite.com
Wellington – http://wellingtoncpp.eventbrite.com/

** New Articles **
Outside-In is a business imperative (Steve Towers)
– http://bit.ly/cbszHM

** 2011 Certification & Training programme**
– http://www.bp2010.com

Cheers, Steve Towers, BP Group Founder

BIG thanks to the BP Group Advisors, Managers & Sundowner Directors including:
Dick Lee | John Corr  | Sunil Dutt Jha | Charles Bennett | David Mottershead | Erika Westbay | Janne Ohtonen | Nick Harvard | Stephane Haelterman | Paul Bailey | Martina Beck-Friss | Mark Barnett | Steve Melville | Stephen Nicholson | Marjolein Towler |  Jennifer van Wyk (South Africa)  |
See them at http:://www.oibpm.com |

Dedicated BPGroup discussions – apply via the links!

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Certified Process Practitioner® – for those qualified to CPP Level 1
http://www.linkedin.com/groups?mostPopular=&gid=2929539

Certified Process Professional® – for those qualified to CPP Level 3
http://www.linkedin.com/groups?mostPopular=&gid=2515784

Certified Process Master® – for those qualified to CPP Level 5
http://www.linkedin.com/groups?mostPopular=&gid=2741121

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EA Connections – interested in Enterprise Architecture & BPM?
http://www.linkedin.com/groups?mostPopular=&gid=3180325

Outside-In Process – Advanced & Enterprise BPM takes centre stage
http://www.linkedin.com/groups?mostPopular=&gid=2057992

Advanced BPM – it says what it does on the tin
http://www.linkedin.com/groups?mostPopular=&gid=2056169

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BPGroup Sweden – led by Martina Beck-Friis
http://www.linkedin.com/groups?mostPopular=&gid=2678614

BPGroup Germany – Led by Paul Bailey
http://www.linkedin.com/groups?mostPopular=&gid=2669692

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Best Buy is a poster boy of Outside-In, Are they done yet?

Although Best Buy gets its fair share of customer complaints online, it responds to them in a different way due to its Outside-In philosophy. Take Twelpforce. This system lets Best Buy employees see and respond to Best Buy-related issues that Twitter uses express, and over 2,500 people are taking part. The Twelpforce system brings together several groups: customer service representatives, in-store salespeople (called blueshirts), and the Geek Squad, technicians that visit homes to render technical assistance.

To see Twelpforce in action, consider this: Earlier in the year, Josh Korin purchased an iPhone and insurance plan from a Chicago Best Buy. His iPhone stopped working one day, and the store’s staff gave him a loaner BlackBerry to replace it. He didn’t want this — especially since he bought insurance — so he tweeted his disapproval. He did this on the weekend, but even so, customer service representative Coral Biegler tweeted back at him. The very next day, she had managed to find a replacement iPhone for him. From then on, Korin tweeted about how impressed he was with the service he received from Best Buy. His wife did too — and she has over 3,000 people following her on Twitter. Twelpforce grew out of Best Buy’s commitment to technological innovation from employees.

The idea was the brainchild of Gary Koelling, a member of Best Buy’s marketing group and a social-media guru. Ben Hendrington, a technology staffer in the e-commerce division, spent a week thinking about how he could harness the Google cloud computing platform to create a Twitter app to serve many employees at once. Marketing manager John Bernier was in charge of the project and successfully managed legal challenges like labor laws. The leaders at Best Buy support innovation, no matter where it originates inside the organization. CMO Barry Judge places a strong emphasis on innovations such as Twelpforce. We are nearly constantly in a half-baked mode, as for ideas, Judge states. Half-baked ideas let individuals [on the inside as well as the outside] offer you feedback. There is always an education going on in Judges department of marketing. If you’re not inquisitive, you will not last for very long in marketing, he stated. You must have some that aren’t successful to notice that.

The results of this mindset are easy to see in Best Buys marketing. One way Judge does this is posting television commercials on his blog prior to airing them. In one instance, commenters beyond the company expressed displeasure claiming a lack of sensitivity in a commercial that tells how a Blue Shirt assisted a customer in the armed forces. There was no airing of the commercial. Another innovation from Best Buy is opening the programming interfaces on its site, www.bestbuy.com, which lets other sites know about things like changes in price. The staffers in marketing made up all of these activities.
They were all risky. And they all proceeded.

Sources of Information for Advanced BPM aka Outside-In

If you wish to read and listen more on these themes the following references are useful.
Join the community discussing these issues, challenges and opportunities.


Community and social networking
Networking

http://bit.ly/I0tvw


Customer Capitalization – Roger Martin, Dean of Faculty, Rottman Business School
Article

HBReview, Feb 2010

Don’t give customers what they think they want
Steve Towers
Article

http://bit.ly/3xUIn4

Evolution of Approaches
BP Group
Research

http://bit.ly/Fw5Kv

Outside-In
Interview with Blog Radio

Podcast

Outside-In (15 mins)

The Best Performing companies
Millward Optimoor
Research

http://bit.ly/uAyVW