The Bezos mandate – is it still working?

Back in the day (well 2002 to be precise) Jeff Bezos rallied Amazon with the following directive:

1) All teams will henceforth expose their data and functionality through service interfaces.

2) Teams must communicate with each other through these interfaces.

3) There will be no other form of interprocess communication allowed: no direct linking, no direct reads of another team’s data store, no shared-memory model, no back-doors whatsoever

4) It doesn’t matter what technology they use

5) All service interfaces, without exception, must be designed from the ground up to be
externalizable. That is to say, the team must plan and design to be able to expose the interface to developers in the outside world. No exceptions.

6) Anyone who doesn’t do this will be fired.

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)

ɯoʇʇoq oʇ doʇ puɐ ʇɥƃıɹ oʇ ʇɟǝl ʇou sı plɹoʍ ǝɥʇ

There is a saying that the map is not the territory. And yet so many treat their representation of the world as fact and reality. When you draw a process and agree with others that is how it looks just because you may all agree doesn’t make it real. It is just a collective hallucination. It is an abstract of reality. Does your world always flow top to bottom and left to right, or is it more real than that?

Great illustraton of Outside-In thinking and practice.

Jeff Bezos provides his viewpoint..

.”I would hope people would say that Amazon is earth’s most customer-centric company, and that we work backwards from customers. Many companies sort of look at what their skills are and they work forward from their skills. They say this is what we’re good at, and this is what we’ll do. It’s a very different approach from saying here is what our customers need, and we will learn whatever skills we need.”

That really describes the dfference between inside-out thnking (examine your capabilities and figure out how to optimise them) to Outside-In – figure out the Customer needs and align everthing to deliver the Successful Customer Outcome.
http://bit.ly/AmazonOutsideIn

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 🙂