The difference between Inside-out and Outside-In thinking.

A couple of weeks ago we started our look at the difference between Inside-out and Outside-In thinking.

If we scoot to the bottom of the table…. and let’s start with the review of changes to customers

Industrial/Information Age Customer Age

People Silo’s Multi functional
Specialist Multi skilled
Isolated Relationships
Awards – Time served Awards – Value Created
Autocratic Dynamic (to suit the needs)
Processes Doing things right Doing the right things and doing things right
Manufacturing mindset Customer Experience
Tasks/Activities and Outputs Outcomes and SCO’s
Stocks Flows
Products Services
Left to Right, Top to Bottom Customer Centric
IT Algorithmic Heuristic
Hierarchical Hyperlinked
Analytical Understanding
Ownership Access
Strategy Top Down Inclusive
Structured and Rigid eg 5 yr plans Agile and Adaptive
Tablets of stone Continual Alignment to SCO’s
Market/product focus Customer/expectation focus
Customers Uninformed Prosumer
Loyal Promiscuous
Forgiving Rebellious
Locked-In Demand Flexibility
Compliant and managed High Expectations and fickle
Single channel Multi channel

We can probably reasonably observe, without fear of understatement, that the customer has changed forever. The reason our organisations exist, the people who pay our wages, the cause of all the work we do has evolved beyond recongnition.

  • And yet has your organsation changed in response to this evolution? 
  • Do we do our work in a different way from the last century?
  • Is work still flowing top to bottom and left to right?
  • Are we thinking about how our processes connect with customer success? 

In the BP Groups research and experience with the leading companies of the 21st century the answer is … YES, some in fact do understand and act on this new imperative. However the majority, including some previously prestigious names are not getting it. Look at the troubles of Nokia, Kodak, Sony, British Airways, Air India, United… the list is extensive and disturbing.

For our examples of successful transformation and realignment we can include Emirates, Zappos, Zara, Apple, Indigo, Hallmark and BMW. A wide selection from different industries, cultures and operating models. We will get to sepcifics later, for now let’s review the reason for their successful adoption of Advanced BPM, otherwise known as Outside-In. The customer!

If things are changing faster Outside than in you will fail


The acccepted business wisdom until the end of the last century was the adoption and exploration of ideas originally described by Adam Smith in the Wealth of Nations, published in 1776. This seminal work introduced the world to the concept of the sub division of labour.

Written during the advent of the industrial revolution the ‘Wealth of Nations’ created a framework for organising manufactories and people into similar skills and disciplines. In fact the original work in a Scottish pin factory demonstrated 20 fold improvements to productivity and as such became a template for achieving industrial and commercial success. Two and a half centuries later the model is still taught in business schools and academia as the way to structure and organise work. After all it worked for 200+ years?

We can’t solve problems by using the same kind of thinking we used when we created them (Einstein)

And there is the rub. The challenges we face in the 21st century are very different to those being addressed by Adam Smith and the industrialists of the Napoleonic era. Let’s get to grips with some of the shifts…

to be continued……

Image courtesy of: 

www.flickr.com/photos/mwichary/2356663850/

CPP Masters in UAE

The April program provided the latest batch of new Certified Process Professional Masters in Dubai.

Since 2007 more than 600 CPP Masters have progressed through CPP Levels 1-5. Some of the latest to qualify can be reviewed at www.oibpm.com

The latest courses for 2012-13 are now available at http://www.bpgroup.org/certification-by-city.html

The Focus has shifted from Inside-Out to Outside-In

I am frequently asked to summarise the difference between the inside-out industrial/information age mindset, and that of Outside-In (think Apple, Google, Zara, Zappos, Emirates etc.) thinking and practice. So here to answer that request (and from a section in my upcoming new book) is the overview.

Over the following weeks we will delve into each area and I will provide examples and case studies of each aspect of this Copernican shift.

The Focus has shifted from Inside-Out to Outside-In

Industrial/Information Age Customer Age

People Silo’s Multi functional
Specialist Multi skilled
Isolated Relationships
Awards – Time served Awards – Value Created
Autocratic Dynamic (to suit the needs)
Processes Doing things right Doing the right things and doing things right
Manufacturing mindset Customer Experience
Tasks/Activities and Outputs Outcomes and SCO’s
Stocks Flows
Products Services
Left to Right, Top to Bottom Customer Centric
IT Algorithmic Heuristic
Hierarchical Hyperlinked
Analytical Understanding
Ownership Access
Strategy Top Down Inclusive
Structured and Rigid eg 5 yr plans Agile and Adaptive
Tablets of stone Continual Alignment to SCO’s
Market/product focus Customer/expectation focus
Customers Uninformed Prosumer
Loyal Promiscuous
Forgiving Rebellious
Locked-In Demand Flexibility
Compliant and managed High Expectations and fickle
Single channel Multi channel
(c) 2012 Steve Towers

Next week we’ll start by reviewing the Customer Aspect
 

Join us at IT Web South Africa http://bit.ly/AfricaSixSigmaOnSteroids
Join us at PEX Week London http://bit.ly/PEXLondon2012

Join us at the CPP Master Class London http://londonmasters2012-estw.eventbrite.com 

Motivation and the 21st century difference

More on the shift to Outside-In described very effectively by Dan Pink discussing how inside-out motivational ideas (carrot and stick) have ceased to work.
Watch and then ask yourself the question – how does my company motivate me?

Moments of Truth and dumb assed hotels

Watch this entertaining expose of everthing wrong with international hotels frequented by fellow Road Warriors. Of course I am sure your business isn’t as half as dumb as some like the hotel trade? Or is it?

(let’s acknowldge a great spot by Samir Asaf CPP Master)

Process Excellence in Africa – keynote presentation

The second global Process Excellence conference completed this week in Cape Town, South Africa. The IQPC team are noted for their organisation and excellent speaker profiles and this event was a great example of the very latest thinking, in depth technical reviews and guidance for Process people throughout Africa.

Highly recommended for any conference the next in the global series Europe with London in April. You can review that event here: http://bit.ly/PEXLondon2012

The following is Steve Towers presentation which examines how some organisations seem to defy the recession and achieve ongoing success for their customers, employees and shareholders.
It looks like magic until you know the trick!

Reduce Costs – Improve Revenue – Enhance Service simultaneously

From the PEX Network event in Florida, January 2012. Ten minutes 🙂

You have the Power to change the world (and that aint no cliche)

Helping people to see the possibilities and getting them there isn’t a part time task. 

In our training, coaching and consultancy we encourage Certified Process Professionals and CPP Masters to relate this message of transformation in a constructive practical way. It is what makes the difference when you are doing it in your organisations for real.
Part of my personal inspiration comes from someone who relates ideas phenomenally well, and gives us the means to do it ourselves.

That person – Nancy Duarte.
 

This ten minute video will, if you give yourself permission, change the way you relate your ideas and create success forever.