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© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking www.stevetowers.com www.bp2010.com www.towersassociates.com Outside-In: The Secret of the leading 21 st Century Companies Outside-In v. Inside-Out Process Management Building the next generation of Lean Six Sigma Assessing different strategies for creating Successful Customer Outcomes How each and every person can contribute to Customer Success

Outside In The Secret Of The Leading 21st Century Companies Show

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A review of the latest evolution of process thinking based on the practices within 'leading companies' such as Virgin, Southwest AIrlines, BestBuy, Emirates, Gilead Sciences etc.Dedicated 'Outside-In' group on LinkedIn at http://bit.ly/aefRJ7

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Page 1: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

www.stevetowers.com www.bp2010.com

www.towersassociates.com Outside-In: The Secret of the leading 21st Century Companies

• Outside-In v. Inside-Out Process Management • Building the next generation of Lean Six Sigma • Assessing different strategies for creating

Successful Customer Outcomes • How each and every person can contribute to

Customer Success

Page 2: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

“It’s true the questions Are the same… But this year the answers are different”

Page 3: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Page 4: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

COMMUNITY • Global – 37,000

• LinkedIn – 3,000+

TRAINING

• Certification (7 Levels)

• Open & In house Learning

• Online Support

BUSINESS PROCESS

PROFESSIONAL

• Support Groups

• Mentoring & Coaching

INFORMATION &

RESEARCH

• Articles, News

• Discussion

• Conferences & Seminars

www.bpcommunity.org

www.bp2010.com

www.bpgroup.org

www.successfuloutcomes.blogspot.com

Page 5: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Page 6: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

www.stevetowers.com www.bp2010.com

www.towersassociates.com Outside-In: The Secret of the leading 21st Century Companies

• Building the next generation of Lean Six Sigma • Assessing different strategies for creating

Successful Customer Outcomes • How each and every person can contribute to

Customer Success

Page 7: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

www.stevetowers.com www.bp2010.com

www.towersassociates.com Outside-In: The Secret of the leading 21st Century Companies

• Outside-In v. Inside-Out Process Management

• Assessing different strategies for creating Successful Customer Outcomes

• How each and every person can contribute to Customer Success

Page 8: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

www.stevetowers.com www.bp2010.com

www.towersassociates.com Outside-In: The Secret of the leading 21st Century Companies

• Outside-In v. Inside-Out Process Management • Building the next generation of Lean Six Sigma

• How each and every person can contribute to Customer Success

Page 9: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

www.stevetowers.com www.bp2010.com

www.towersassociates.com Outside-In: The Secret of the leading 21st Century Companies

• Outside-In v. Inside-Out Process Management • Building the next generation of Lean Six Sigma • Assessing different strategies for creating

Successful Customer Outcomes

Page 10: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

What’s the difference between

Inside-Out v. Outside-In?

Page 11: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

We have inherited an industrial legacy in thought and

action...

Page 12: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

What shape are you in?

Page 13: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

CEO

Marketing Sales Customer

Service Operations Finance

Our organizations all look the same...

Page 14: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

CEO

Marketing Sales Customer

Service Operations Finance

Processes wend and meander their way around these

rigid structures...

Page 15: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

CEO

Marketing Sales Customer

Service Operations Finance

And hey ho – we nearly forgot the customer!

Now where do they go?

Page 16: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

What’s missing in our

Inside-Out world view?

Page 17: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

This can be overwhelming for many

people and their organizations because the processes and systems in place are complex, expensive and constrain our agility… they were built for a different era

…. And that’s everywhere!

What about changing the way we work then?

Page 18: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

However...

Page 19: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Page 20: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

We are at the very point in time when a 400-year old age is dying and another is struggling to be born, a shifting of culture, science, society, and institutions enormously greater than the world has ever experienced.

Ahead, the possibility of the regeneration of relationships, liberty, community, and ethics such as the world has never known, and a harmony with nature, with one another, and with the divine intelligence such as the world has never dreamed.

Dee Hock, Founder & CEO--Visa

The Tipping Point, from Inside-Out to Outside-In

Page 21: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

What Business Are you In?

Page 22: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

“ we are not in the pill Business. We are not in The injections business. When our reps present Products they aren’t Pills. They’re selling What the pills will do for our patients” Joe Scordari, former Worldwide Chairman J&J

Page 23: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Questions in an Outside-In world.. Who are these

companies?

What Business Are you in? Roundtable.... Lifestyle management Moving people Fixing people Gratification Expression Always-On

Page 24: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Questions in an Outside-In world

What Business Are you in?

Roundtable....

1. Choose one company per table..

2. What is their Inside-Out business?

3. Now what are you really? (or should you be)?

Page 25: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Are you Inside-Out or

Outside-In?

Page 26: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Why should we bother?...well

The 21st century is a very different place

Enlightened Customer

Choice

Customer Promiscuity

Customer Rebellion!

Customer

Expectations

Multiple Channels

Prosumer (Customer

Sophistication)

Inspiration: Udayan Banerjee CTO, NIIT Technology (India)

81% Americans Online, 78% Europeans, 77% SE Asia (2008)

US$39.6 bn online advertising sales (2009) - $131 per person

Page 27: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Page 28: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

A Copernican Moment

Page 29: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

A New Way of doing

stuff has arrived

Page 30: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

www.stevetowers.com www.bp2010.com

www.towersassociates.com Outside-In: The Secret of the leading 21st Century Companies

• Outside-In v. Inside-Out Process Management

• Assessing different strategies for creating Successful Customer Outcomes

• How each and every person can contribute to Customer Success

Page 31: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

1970 1975 1980 1985 1990 1995 2000 2005 2010

Be

ne

fits

Waves of Benefits from Business Process Evolution

based on Towers Associates & BPGroup Research 2006-7 (800+ organizations)

1

2

3

4

Enlightened Customer

Choice

Promiscuity

Groundswell

Expectations

Multiple Channels

Prosumer

Page 32: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

1970 1975 1980 1985 1990 1995 2000 2005 2010

Be

ne

fits

Waves of Benefits from Business Process Evolution

based on BPGroup Research 2006-7 (800+ organizations) – published at the IQPC BPE Event, London 2007

1

2

3

4

CUSTOMER SENSITIVE

CUSTOMER CONSIDERATE

CUSTOMER DRIVEN

Page 33: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

www.stevetowers.com www.bp2010.com

www.towersassociates.com Outside-In: The Secret of the leading 21st Century Companies

• Outside-In v. Inside-Out Process Management • Building the next generation of Lean Six Sigma

• How each and every person can contribute to Customer Success

Page 34: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Who said this? (Inspired SCO thinking)

“You can't always get what you want But if you try sometimes you just might find You get what you need”

Page 35: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Question

• How do you find out what the customer wants?

• Discuss, feedback, review and Vote!

Page 36: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Page 37: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Moments of Truth – they’re everywhere

• Moments of Truth permeate our lives in every product and service

Page 38: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Power-book

Original iPod

iLife

MAC OSX

Cinema Displays

iPod Shuffle

Nike & iPod

MacBook Air

iPod Classic

iPhone 3GS

07 02 05 06 03 04 01 00 08 09

iTablet?

FREE iPhone?

A decade of Apple Innovation

Page 39: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Conclusion – Optimize Process

MOT MOT MOT

MOT MOT

MOT MOT MOT

Page 40: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

www.stevetowers.com www.bp2010.com

www.towersassociates.com Outside-In: The Secret of the leading 21st Century Companies

• Outside-In v. Inside-Out Process Management • Building the next generation of Lean Six Sigma • Assessing different strategies for creating

Successful Customer Outcomes

Page 41: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

The biggest enemy of thinking is complexity, for that leads to confusion. Edward de Bono

Page 42: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

We can help our

organizations align

to Successful

Customer

Outcomes

The

Process

Performance

Landscape

Page 43: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

SUCCESSFUL CUSTOMER OUTCOMES CUSTOMER OUTCOMES OUTCOMES OUTPUTS ACTIVITIES TASKS

Everything we do

can contribute!

Oc Oc Oc

CO CO

SCO

Customer

Page 44: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

1. Who is your

customer?

Oc Oc Oc

CO CO

SCO

Customer

2. What is their SCO?

3. What are the key

Activities that

contribute to the

SCO?

Page 45: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

AND HERE

IS THE KICKER

Oc Oc Oc

CO CO

SCO

Customer

Can You think of

things that happen

that do NOT

contribute to the

SCO?

That is part of the

Opportunity..

It’s Potentially

DUMB STUFF =

complexity, cost &

inefficiency

Page 46: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

“And the Size of the prize? It is between 40-70% cost reduction across your critical and core processes” John Corr, Alix Partners (London)

Page 47: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Page 48: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

DISCOVERY

ASSESSMENT

REVIEW

EXECUTE

ww

w.cem

meth

od.com

Page 49: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Some elements that change …

Inside-Out Outside-In

Processes Complex Simple

People Controlled Empowered

Structure Hierarchy/ Functional

Team

Systems Prescriptive Adaptive

Measurement Activities Results

Customer End of chain Segmented

Inclusive Individual

Page 50: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Page 51: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Page 52: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Next Steps

• Download the Slides • Exchange a Business Card for a free

Moments of Truth Toolkit & the new book “Outside-In” • Go do Outside-In within your existing projects!

• Sign-up Upcoming Certified Process Professional Training:

www.bp2010.com (120+ two-three day sessions) Los Angeles – March 22-24 SOLD OUT Boston – May 4-6 San Diego – April 22-23 San Francisco – April 19-20 New York – Aug 30-31 Atlanta – Sep 2-3 Denver – Sep 6-8

Page 53: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Page 54: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Page 55: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

www.stevetowers.com www.bp2010.com

www.towersassociates.com Outside-In: The Secret of the leading 21st Century Companies

• Outside-In v. Inside-Out Process Management • Building the next generation of Lean Six Sigma • Assessing different strategies for creating

Successful Customer Outcomes • How each and every person can contribute to

Customer Success

Page 56: Outside In The Secret Of The Leading 21st Century Companies Show

© MMX www.bpgroup.org – [email protected] Steve Towers – Creating A Successful Customer Outcome with Outside-In Thinking

Power-book

Original iPod

iLife

MAC OSX

Cinema Displays

iPod Shuffle

Nike & iPod

MacBook Air

iPod Classic

iPhone 3GS

07 02 05 06 03 04 01 00 08 09

iTablet?

FREE iPhone?

A decade of Apple Innovation