Looking Outside-In

The BP Group is 20 years old in September. Over the last two decades people who have participated in our training and consultancy and have captured some of my comments. There are over 200, many clearly inspired by my heroes ‘giants’ in business and life. The list here are the ones most often referred back to me 🙂

How much do you need to know, to know you know, you know enough?

The Customer Experience is the process (Steve Jobs)

If things are changing faster outside than in, you will fail.

You don’t have a choice about where to start. You can only start where you are now!

Are you aligned to Successful Customer Outcomes (SCO’s)? Or are you just moving the chairs on the deck of the Titanic?

If you do not know who your customer is you do not know what you are doing.

Stop managing and measuring outputs. Start managing Customer Expectations and measuring the SCO.

Can your people clearly articulate their contribution to the SCO?

This is a once in a 600 year thing. The invention of the printing press (1436) and now Outside-In (1997).

Does your technology help with the SCO? If it doesn’t scrap it!

Technology is the emans to the end, not the end in itself. It is just the same with pen and paper.

To link process with performance we need to rethink what we mean by performance.

We shouldn’t keep looking back at the past to define the possibilities for the future.

Does your process start and end with the customer? If it doesn’t you are fixing the wrong thing.

Someone said the Chinese are coming. They are wrong. The Chinese have been and gone. This is what you are left with as a consequence!

Moving Outside-In isn’t a choice. It is a pre-requisite for success in the 21st century.

Are you measuring Activities and Tasks (Inside-Out), or Outputs and SCO’s (Outside-In)?

The only reason a process exists to is to help achieve a Successful Customer Outcome.

Can you connect every single task with the Successful Customer Outcome?

Who pays your salary? Yes it is the Customer.

Check your companys reports. How often is the customer mentioned? If they are not it shouldn’t surprise you that the business is failing.

If you aren’t managing Customer Outcomes you aren’t managing the most aspect of your business.

Look beyond the Output. How does it contribute to the Customer Outcome? If it doesn’t stop producing it.

The customer is not my job? Get Real. The customer is everyones job!

Evolving Outside-In is not a destination. It is a journey.

The process map is not real. It is a collective hallucination.

New www.bpgroup. org features FIVE Outside-In Blogs

The BPGroups new website now features five blogs from leading thinkers and CPP Masters in the field of Enterprise BPM & Outside-In.

To visit the blogs: click http://www.bpgroup.org/blogs.html and review the drop down menu -enjoy!

Successful Customer Outcomes
Steve Towers – 160 articles on the theme of Outside-In

BP Community
the original BPM community – Events, Resources, community & Links

Outside-In from Janne Ohtonen
Words from the wise from the author of OIDash

The Process Ninja
Craig Reid Scottish through and through however now from down-under

OutsideIn Service Management
Ian Clayton shows us the way with Service Management

If you recognise a good Outside-In location let us know: rachel.smith@bpgroup.org

The Future of Business Process Part 2: Outside-In, Lean Six Sigma, BPM and all that….

“Not everything old is bad and antiquated and not everything new is shiny and good. The real secret to success is to combine the best of both.”
Rene Carayol (left),  Senior Executive & Former Board Member for Pepsi, Marks & Spencer, IPC Media & The Inland Revenue

The world’s leading companies have come to realize that only when their customers are successful, will they be successful. In pursuit of their market leadership not only they need to spend time to look inside their business to know how things are getting done but also look outward to get deep understanding of their customers.

Process has indeed come a long way from it humble routes amidst the early industrial revolution and Adam Smiths ‘Wealth of Nations’.

Although many in Western
economies are (still) in a state of denial, we are undergoing the greatest reorganization in the business world since the Industrial Revolution.

No matter what industry you are in, no matter how successful you are, it’s time to get ready for the world as it will be –a world where your customers have new choices
from a sea of suppliers from
across the globe.

Peter Fingar
  Author of Extreme Competition: Innovation and the Great 21st Century Business Reformation
 

One of the first people to describe process was Smith who in 1776 describes a new way for process in a Scottish pin factory. He outlines the production methods and created one of the first objective and measureable enterprise process designs. The consequence of ‘labour division’ in Smith’s example resulted in the same number of workers making 240 times as many pins as they had been before the introduction of his innovation.

Adam Smith participated in a revolution that transformed the planet. He lived at a time when the confluence of factors, political change, emergence of the New World, industrialization and a new optimism that the world could move from the shackles of the past.

In heralding a movement that developed into Scientific Management the foundation was laid that established a way of working that has survived and thrived for 200 years.

And yet now, more than ever, is a time to perhaps take a careful glance back to the past to guide the way for not only surviving the current economic turmoil but to also prepare us to thrive in the seismic shifts of the 21st century ‘new world’ order where the customer has become central to everything we do.

Leading global corporations are now evolving their tried and tested approaches into methods suited to the changed challenges of customer promiscuity, globalisation, IT innovation and the Prosumer. That is the essence of what we call Outside-In.

“The Customer Experience is the Process”
Outside-In can really be summarised in the statement that “the customer experience is the process”.  We can no longer just look within our organisation boundary to create a sustainable competitive advantage. We have to extend our scope and embrace a broader view of optimising process by understanding, managing and developing customer expectations and the associated experience. We need to articulate Successful Customer Outcomes and let those guide our product and service development as we move beyond the limiting scope of silo pyramidal based left to right thinking.

In 2006 BP Group Research identified the ‘Evolution of Approaches’ and how steps can be taken to grow Lean Six Sigma’s influence and success into a strategic Outside-In toolkit. In fact the last 4 years are seeing the fruition of these advances with Best in Class 2009 & 2010 Award winners PolyOne, a dyed in the wool Lean outfit, advancing their stock price six fold in 18 months on the back of radical and innovative changes across its customer experience.

Some see Outside-In as the death knell for approaches such as for old style BPM, BPR, TQM and Lean Six Sigma. This is not so. This narrow and simplistic view does not acknowledge the stepping stones available to embrace the new customer centric order. In fact the foundations of our futures are always laid on the learnings of the past with those innovators who recognise the need to evolve leading that charge.

Victory will go to the brave who seize the moment and push forward their approaches into the brave new world of Outside-In. The sector leaders have set a precedent – can you embrace the challenge?

All the Best, Steve

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

Community and social networking – Join the BP Group
LinkedIn
Outside-In The Secret of the 21st Centuries leading companies
Book


Interview Harvard Business Review with HBS
Professor Ranjay Gullati
Video


http://bit.ly/RanjayOutside-In
Interview Wharton Business School with WBS Professor George Day
Video


http://bit.ly/WhartonGeorgeDay
Interview Affecto University with Steve Towers
Video


http://bit.ly/SteveTowersOutside-In
Interview by Megan James (IQPC)
Video


http://bit.ly/MeganJamesOutside-In
Downloadable keynotes and slide shows
Presentations
http://www.slideshare.net/stowers/
Professional – Certified Process Professional program
Qualifications
Don’t give customers what they think they want – Steve Towers
 Article
Evolution of Process Excellence Approaches – BP Group
Research
Outside-In – Interview with Blog Radio’s Gienn Weiss
Podcast
The Best Performing companies Millward Optimoor
Research
UPCOMING CONFERENCES ON THE THEME OF PROCESS EXCELLENCE, ENTERPRISE BPM AND OUTSIDE-IN
Resources

Public Services and Enterprise BPM aka Outside-In

In many countries, the phrase public service is considered something of an anachronism. At all levels of government and government led services, customers perceive that overall they get a raw deal when compared to the levels of service they now regularly expect from privately held organizations. In this article we will explore how Customer Age thinking and the concepts of Successful Customer Outcomes and Next Practice are helping to change that perception and lead to increased efficiency in public services around the globe.

With regard to the issues of local, regional, or national government we firstly need to remember that in a democracy government is of the people, by the people, with the will of the people. As governments increasingly raise taxes and start to play a more active role in the everyday lives of people there is a real risk that if they do not focus on their “customer” and what the customer wants, that they might lose that will. So for government departments at all levels there needs to be very clear on who the customer is and what they want. In this they are no different from a private enterprise, customers do not care about your internal bureaucracy or your policies and procedures, they do care about being able to access your services in an efficient manner and know that they are being cared for.

Nobody is suggesting for one moment that you can please everybody. But if those that you are not pleasing are displeased through poor service or overly complicated procedures and policies then they have in most cases good cause to complain. Indeed, employees in the public sector would do well to remember that it is their tax money that is being potentially wasted too!
Many people might feel that government and public sector is “different” and that the same rules cannot apply. To a small extent this may be right, but in the majority of cases fresh thinking can still lead to increased service and efficiency.

Take the case of a police force. While recently working with a regional police department the point was raised, that they are a very different business, and unlike anything in the private sector. This is typical of the inside out thinking that tends to occur in public service. It we look at it from the outside in, the police force could be considered rather like an insurance company. The parallel is quite a simple one. With insurance we pay a monthly or annual premium to a company on the promise that if something goes wrong we can contact them and they will sort it out – cars, home, or life. So in the case of the police we pay taxes each month (our premium) so that if something goes wrong we can contact them and they will send someone to help us – surely this is just the same, from the customer point of view, as the insurance scenario? The same also of course can be said of the fire and ambulance services. Why then can such services not look at what insurance companies are doing in order to improve service and responsiveness?
As a side issue in another discussion with a different police service the issue of customer became apparent in a different way. In this force they felt that the way they had been organized was to ensure that they provided the best service to their customer, it was just that in their case they saw the criminal as the customer, not the victim! So when identifying your customer you do need to be clear on your purpose in order that you are serving the right customers.

The example of the emergency services given here is a good example of how “Outside-In” can be applied in the public service and how in looking for new and innovative ways to improve service and increase efficiency the public sector can benefit from looking at how the very best people are handling that situation, regardless of geography or industry sector.

The parallels do not end there though. Those familiar with the Beatles may recall a song from Sergeant Peppers Lonely Hearts Club Band (an older but a goody) and a track mentioning 4,000 pot-holes in Blackburn, Lancashire. The song related John Lennon’s curiosity at how many pot-holes would it take to fill the Albert Hall (a particular large musical venue in central London) and indeed why were there so many holes? Well clearly at that time he had never visited Chicago as they have enough holes to fill the Grand Canyon!

The story of how the Chicago Works Department transformed a moribund public service (fixing said potholes) which typically took 6-8 weeks, involved up to 30 people, and on average cost an incredible $42,000 USD is now becoming legend in BPM parlance.

The full story of the fix will wait for another day however the quantum leap here with Outside-In and Successful Customer Outcomes drew its inspiration from Expedia. Daniel Pink (A Whole New Mind) would be proud of the right brain thinking which imported Expedia’ scheduling ‘idea’ to let citizens define the problem, chose a suitable repair and select a convenient date for the repair team fix from a two screen web based system. Problem fixed. Now on average 4 days, 5 people and $2,000 USD. That still seems a lot (especially for tax payers) for filling a hole but boy is it giant step in the right direction!

Of course we can extend this thinking even further into many walks of public service. Where would you start your Outside-In endeavors?

Process Excellence & BPM State of the Industry – Steve Towers Keynote

Process Excellence & BPM State of the Industry Keynote