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AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org Steve Towers [email protected] www.bpgroup.org | www.towersassociates.com OUTSIDE-IN - THE SECRET OF THE 21 ST CENTURIES LEADING COMPANIES www.bpgroup.org What is the Secret and Who are the companies?

Outside in The Secret_Architects_World_keynote_2011

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Outside-In The Secret was published in early 2010. Now in its 5th revision this is the story of those companies apparent 'magic' and their tricks for achieving success. This key note was delivered at the iCMG's 6th Architecture World Conference in Bangalore.

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Page 1: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

Steve Towers

[email protected]

www.bpgroup.org | www.towersassociates.com

OUTSIDE-IN - THE SECRET OF THE 21ST CENTURIES LEADING COMPANIES

www.bpgroup.org

What is the Secret and

Who are the companies?

Page 2: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

www.stevetowers.com

www.bpgroup.org

www.bp2010.com

www.towersassociates.com

www.oibpm.com

Page 3: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

www.stevetowers.com

www.bp2010.com

www.towersassociates.com Outside-In:

The Secret of the leading 21st Century Companies

• Outside-In The Secret – what is it?

• Who Are the Leading Companies?

• What is it that they are doing?

• How are they doing it?

• Can we do it also?

• Where should we start?

Page 4: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

Outside-In The Secret – what is it?

Page 5: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

Who Are the Leading Companies?

Page 6: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

What is it that they are doing?

First let‟s review quickly what they don‟t do

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AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

We have inherited an industrial legacy

What shape are our organisations in?

Page 8: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

The Pyramid

Page 9: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

CEO

Marketing Sales Customer Service

Operations Finance

Our organisations all look the same...

Page 10: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

CEO

Marketing Sales Customer Service

Operations Finance

Processes wend and meander their way around these

rigid structures...

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AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

CEO

Marketing Sales Customer Service

Operations Finance

And hey ho – we nearly forgot the customer!

Now where do they go?

Page 12: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

What‟s Missing?

Page 13: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

What they are doing and

What they know and act upon is different

The reason we are doing work is to deliver product and service to the customer (through that we create the profits)

The rules of work have changed forever as a consequence of the „always on world‟

It is NOT about what the customer wants

The imperative is to reconfigure everything we do around the needs of the customer – simply put not everything should look like a manufactory

The Customer Experience is the process

And it is all about what causes the work we do, rather than the effect

It is essential to manage Customer Expectations

Page 14: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

The Always on World of the 21st century - 1998

Source BBCworld

The Always on World – It has all happened in the last 13 years! Mapping the Growth of the Internet

Page 15: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

Source BBCworld

The Always on World of the 21st century Now it is anytime, any place anywhere

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AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

Page 17: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

Over 40 years of launching new products and services, we have striven to listen very carefully to what our customers think they want and then set about giving them something that is often very different, but always a little better. If your business proposition is innovative, your ultimate goal has to be, “The customer always thinks that we are right.”

It is NOT about what the customer wants

Page 18: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

The needs of the Customer

have changed forever

Inspiration:

Udayan Banerjee

CTO,

NIIT Technology (India)

Page 19: Outside in The Secret_Architects_World_keynote_2011

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It‟s a Copernican Moment

Copernicus - 19 February 1473 – 24 May 1543

He died 467 years ago

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AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

How are they doing it?

Page 21: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

Understand & Develop Successful Customer Outcomes

TOOLS

Layer 1:

Who is the

Customer?

Layer 2:

What is the

Customers

current

Expectation?

Layer 3: What is the

process the customer

thinks they are involved

with?

Layer 4:

How does

what

We do impact

Customer

Success?

Layer 5:

The Successful

Customer

Outcome – what

does the

customer really

need from us?

The primary purpose of crafting Successful Customer Outcomes is create a fundamental focus for a

process, set of processes or indeed complete enterprise strategy. The SCO extends way beyond legacy

inside-out thinking to create an actionable strategic and operational objective for the entire organisation.

CRAFTING THE

SUCCESSFUL CUSTOMER OUTCOME

Understanding the real Customer Need

The One liner

SCO:

One line

statement that

explains the

actual SCO

Page 22: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

The Causes of Work

Break Points

Business Rules

MOT

BR

Action the Causes of Work

Moments of Truth

BP

Page 23: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

MOT

MOT MOT

MOT MOT

MOT MOT MOT

Any interaction with the CUSTOMER

is a

MOMENT OF TRUTH

Page 24: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

MOT

MOT MOT

MOT MOT

MOT MOT MOT

And every

MOMENT OF TRUTH Ripples and reverberates through the organisation

Page 25: Outside in The Secret_Architects_World_keynote_2011

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MOT

MOT MOT

MOT MOT

MOT MOT MOT

And

MOMENTS OF TRUTH Create complexity, cost, wastefulness and failure

Page 26: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

MOT

MOT MOT

MOT

MOT

MOT MOT

MOT THE CAUSE OF WORK

THE EFFECT

Page 27: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

Can we do it also? Yes we can!! It’s child play….

Page 28: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

However…. Where should we start?

Page 29: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

Where should we start?

Page 30: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

You gotta start where you are! Once commitment is made the transition is rapid

Functional

Trans Silo

Enterprise Wide Execution

“The Customer Experience is the Process”

6-12

months

Examples include: Gilead, Allied Pickfords, Tesco, State Farm, Emirates, China Mobile

Page 31: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

Page 32: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

Integrating at the enterprise level?

Process - the Beginning and

the End

Where does the process start and finish?

What IT systems support the process?

Are our processes and systems aligned to

achieve the Successful Customer Outcome?

The Successful Customer

Outcome

What is it and how can it reshape our processes

and enterprise?

Process Points of Failure

Moments of Truth | Breakpoints | Rules

What and Where are they?

What business are you (really)

in?

Can you deliver a compelling 21st century

Enterprise?

Take-aways for you to think on

Page 33: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

Motivation

Inspire

Inspire

Explore

Handhold

Experience

Reflect

Evangelise

I deserve

something

special

VG Online

VG Online

Book

Online Welcome

Preference

& Personalization

Optimised Touch

Medical Exam

Space Suit

Fitting

Training

The Launch

Sign-Up

The Virgin Galactic Customer Experience

A unified Enterprise

offering

VG Astronauts

Live Feed

FAQs

VG Club

Share All Level Access

All Level Access

All Level Access

Blog

Video

The Club

Page 34: Outside in The Secret_Architects_World_keynote_2011

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The Customer is the Centre

Live the life of your customer. Become a customer.

Do business with your company from the outside.

Scott Struminger, FedEx's SVP of IT

Page 35: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

Questions?

Page 36: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org Source: Fanzine

April 2011…

The upcoming transformation of our

society presents one of the greatest

business opportunities of the next

100 years.

This will require patience as well as

perseverance; to anticipate what‟s

next and plan for that situation as

well as taking advantage of what‟s

immediately before you.

Our efforts in this field are part of

our strategy for this future.

What‟s yours?

Thank you.

Now it shouldn’t seem like magic anymore ;-)

Page 37: Outside in The Secret_Architects_World_keynote_2011

AW 2011 BP Group Conference - July 2011 © BPGroup – All Rights Reserved www.bpgroup.org

Steve Towers

[email protected]

www.bpgroup.org | www.towersassociates.com

OUTSIDE-IN - THE SECRET OF THE 21ST CENTURIES LEADING COMPANIES

What is the Secret and

Who are the companies?