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1
Leadership Challenges and a
Management Perspective in Achieving
Market Dominance
Professor Michael D OliffDirector Enterprise 2020University of Texas DallasMichaelOliffUTDallasedu
October 22 2008
2
Backgroundhellip Dominance or Death
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
3
The 1st Generationhellip
1989 - 1993
Based on a proven successhellip
At the leading International Business School in the World
IMDLausanne Switzerland
4
Enterprise Transformation ndash what is ithellip
ldquoSignificant changes in the strategy structure and human systems of the Corporationhellip
ldquohellipthe rapid redeploymentreallocation of resourceshellip
hellip purposed to create significant sustained customer valuerdquo
MichaelOliffUTDallasedu All Rights Reserved
55
State of the North American Pulp amp State of the North American Pulp amp Paper Industry Paper Industry
ndashndash An Update amp Outlook An Update amp Outlook ndashndash
Unstable Times Unstable Times ndashndash Problems or OpportunitiesProblems or Opportunities---- Q2 2006 DataQ2 2006 Datandashndash
The quality of The quality of pending investment decisions basic economic and pending investment decisions basic economic and demand factors and the industrydemand factors and the industryrsquorsquos motivation to pursue s motivation to pursue innovative innovative
structural change via enterprise transformationstructural change via enterprise transformationwill drive industry performance in the midwill drive industry performance in the mid--to longto long--termterm
6
Dominance or Death
7
What do You Believehellip
Popular Business Press
Manufacturing Improvement Programs
(Execution)Academic
Strategy ResearchContinuous
Improvement
Forces
amp
Resources
Strategy Structure
and Human Systems
Customers Leadership Employees and Innovation
BPR
8
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer
ValueDistinctive
CompetencyEmployee
Value
9
The 1st Generationhellip hellipIMD 1989 - 1993
hellip90 of the original 2000 Board Members have
sustained Dominance in their chosen markets
10
11
Increasing Turbulence hellipImpacting You
The CustomerConsumer ExperienceWellness Security InfotainmentAnything Anytime Anywhere
Corporate InsourcingOutsourcingFirms build and market Distinctive Competencies
Human Capital Development Gen Y Trust Employee Engagement
12
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
13
eTMM-Leadership Dimensions DefinitionsDimensionsDEFINITIONS
1 CUSTOMER VALUE VISION ndash The relentless overriding focus on and preoccupation with the firmrsquos customers (and their customers) their business growth and value creation
2STRATEGIC INTENT ndash Corporate resource allocation and reallocation (competency bundling and unbundling) driven by a balanced view of external forces and internal resources The focus on sustainable and differentiable development versus transient imperatives or initiatives alone
3 COMMUNICATION PROGRAM ndash A corporate campaign that formally and informally creates awareness understanding and commitment to customer value vision strategic intent and individual roles
4COMPLEX PROGRAM MANAGEMENT - Formal comprehensive planning management and execution of customer value vision competency builds culture development and KPI implementation
5 STRETCH CULTURE PROGRAM ndash An environment where individuals and teams routinely and voluntarily set stretch goals and consistently achieve them
6 DISTINCTIVE COMPETENCY DEVELOPMENT - Corporate wide abilities that customers value and competitors fear Built on capabilities processes people technology and assets
7 KPI PROGRAM ndash Key Performance Indicators are todayrsquos predictors of tomorrowrsquos performance
All rights reserved Dr Michael D Oliff
14
eTMM-Leadership Dimensions Future Importance
Part 2
Please rank each of the 7 eTMM-Leadership Dimensions (your view of there future importance) on the scale of 1 to 5 Where 5 is the most Important and 1 is the least Important
DIMENSIONS
1 2 3 4 5 CUSTOMER VALUE VISION
1 2 3 4 5 STRATEGIC INTENT
1 2 3 4 5 COMMUNICATION PROGRAM
1 2 3 4 5 COMPLEX PROGRAM MANAGEMENT
1 2 3 4 5 STRETCH CULTURE PROGRAM
1 2 3 4 5 DISTINCTIVE COMPETENCY DEVELOPMENT
1 2 3 4 5 KPI PROGRAM
15
eTMM-Leadership Dimensions Current Performance
Part 3
Given this scale where would you place your firm on the Customer Value Vision Dimension
Customer Value Vision5 Exceeding Customer Expectations and
creating value With customers drives enterprise initiatives actions and behaviors
4 Exceeding Customer Expectations and creating value priorities in place but with limited span of influence
3 Quality customer service and customer satisfaction priorities are formally evidenced but not consistently
2 Quality customer service and customer satisfaction priorities are evidenced in general
1 Little or no Customer Value focus is evident in communications actions or behaviors
16
0
05
1
15
2
25
3
35
4
45
5
Customer ValueVision
Stretegic Intent CommunicationProgram
ComplexProgram
Management
Stretch CultureProgram
DistinctiveCompetencyDevelopment
KPI Program
Future Importance Current Performance
Importance vs Performance ndash Paper Products
17
32
47
46
32
32
71
25
36
49
56
raquoRight products not pricing
raquoRight packages
raquoPrivate label
Category 2001 Recession Today
Average Unit Price Change vs Prior Year
Eggs
Milk
Natural Cheese
Flour
Baby Formula
Juice
Pasta
Bread
Gastrointestinal Tablets
Shampoo 35
43
66
94
94
102
108
113
183
331
Unprecedented Price Increases
Core Consumer Products
Alan Beach 7-Eleven 08
18
16
24
44
56
$100K+
$55-$999K
$35-$549K
lt$35K
Sources IRI Economic Trend Databasetrade IRI AttitudeLinktrade Survey of 1000 Consumers May 2008 US Census Bureau
A high proportion of consumers can no longer afford the branded staple items they need of Consumers Who Are Having Difficulty Buying the Staples they need by income
60 Of US Households Earn Under $55K per Year
Ability to Afford Staples
7-Elevenrsquos$47500
19
Consumer Pressure
Housing values decliningTighter credit (banks freezing home equity lines tightening mortgage qualifications raising credit card rates)Flat incomeUnemployment increasingWeak dollar = less buying power
Personal debt servicing (mortgage credit cardsHome energy (oil electricity)Transportation (gasoline oil tires)Food costsEducation
Average US Consumer Getting Squeezed
Rising Living and Household Expenses
Rising Costs
Lower Spending Power
Falling Wealth Income and Credit
Alan Beach 7-Eleven 08
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
2
Backgroundhellip Dominance or Death
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
3
The 1st Generationhellip
1989 - 1993
Based on a proven successhellip
At the leading International Business School in the World
IMDLausanne Switzerland
4
Enterprise Transformation ndash what is ithellip
ldquoSignificant changes in the strategy structure and human systems of the Corporationhellip
ldquohellipthe rapid redeploymentreallocation of resourceshellip
hellip purposed to create significant sustained customer valuerdquo
MichaelOliffUTDallasedu All Rights Reserved
55
State of the North American Pulp amp State of the North American Pulp amp Paper Industry Paper Industry
ndashndash An Update amp Outlook An Update amp Outlook ndashndash
Unstable Times Unstable Times ndashndash Problems or OpportunitiesProblems or Opportunities---- Q2 2006 DataQ2 2006 Datandashndash
The quality of The quality of pending investment decisions basic economic and pending investment decisions basic economic and demand factors and the industrydemand factors and the industryrsquorsquos motivation to pursue s motivation to pursue innovative innovative
structural change via enterprise transformationstructural change via enterprise transformationwill drive industry performance in the midwill drive industry performance in the mid--to longto long--termterm
6
Dominance or Death
7
What do You Believehellip
Popular Business Press
Manufacturing Improvement Programs
(Execution)Academic
Strategy ResearchContinuous
Improvement
Forces
amp
Resources
Strategy Structure
and Human Systems
Customers Leadership Employees and Innovation
BPR
8
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer
ValueDistinctive
CompetencyEmployee
Value
9
The 1st Generationhellip hellipIMD 1989 - 1993
hellip90 of the original 2000 Board Members have
sustained Dominance in their chosen markets
10
11
Increasing Turbulence hellipImpacting You
The CustomerConsumer ExperienceWellness Security InfotainmentAnything Anytime Anywhere
Corporate InsourcingOutsourcingFirms build and market Distinctive Competencies
Human Capital Development Gen Y Trust Employee Engagement
12
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
13
eTMM-Leadership Dimensions DefinitionsDimensionsDEFINITIONS
1 CUSTOMER VALUE VISION ndash The relentless overriding focus on and preoccupation with the firmrsquos customers (and their customers) their business growth and value creation
2STRATEGIC INTENT ndash Corporate resource allocation and reallocation (competency bundling and unbundling) driven by a balanced view of external forces and internal resources The focus on sustainable and differentiable development versus transient imperatives or initiatives alone
3 COMMUNICATION PROGRAM ndash A corporate campaign that formally and informally creates awareness understanding and commitment to customer value vision strategic intent and individual roles
4COMPLEX PROGRAM MANAGEMENT - Formal comprehensive planning management and execution of customer value vision competency builds culture development and KPI implementation
5 STRETCH CULTURE PROGRAM ndash An environment where individuals and teams routinely and voluntarily set stretch goals and consistently achieve them
6 DISTINCTIVE COMPETENCY DEVELOPMENT - Corporate wide abilities that customers value and competitors fear Built on capabilities processes people technology and assets
7 KPI PROGRAM ndash Key Performance Indicators are todayrsquos predictors of tomorrowrsquos performance
All rights reserved Dr Michael D Oliff
14
eTMM-Leadership Dimensions Future Importance
Part 2
Please rank each of the 7 eTMM-Leadership Dimensions (your view of there future importance) on the scale of 1 to 5 Where 5 is the most Important and 1 is the least Important
DIMENSIONS
1 2 3 4 5 CUSTOMER VALUE VISION
1 2 3 4 5 STRATEGIC INTENT
1 2 3 4 5 COMMUNICATION PROGRAM
1 2 3 4 5 COMPLEX PROGRAM MANAGEMENT
1 2 3 4 5 STRETCH CULTURE PROGRAM
1 2 3 4 5 DISTINCTIVE COMPETENCY DEVELOPMENT
1 2 3 4 5 KPI PROGRAM
15
eTMM-Leadership Dimensions Current Performance
Part 3
Given this scale where would you place your firm on the Customer Value Vision Dimension
Customer Value Vision5 Exceeding Customer Expectations and
creating value With customers drives enterprise initiatives actions and behaviors
4 Exceeding Customer Expectations and creating value priorities in place but with limited span of influence
3 Quality customer service and customer satisfaction priorities are formally evidenced but not consistently
2 Quality customer service and customer satisfaction priorities are evidenced in general
1 Little or no Customer Value focus is evident in communications actions or behaviors
16
0
05
1
15
2
25
3
35
4
45
5
Customer ValueVision
Stretegic Intent CommunicationProgram
ComplexProgram
Management
Stretch CultureProgram
DistinctiveCompetencyDevelopment
KPI Program
Future Importance Current Performance
Importance vs Performance ndash Paper Products
17
32
47
46
32
32
71
25
36
49
56
raquoRight products not pricing
raquoRight packages
raquoPrivate label
Category 2001 Recession Today
Average Unit Price Change vs Prior Year
Eggs
Milk
Natural Cheese
Flour
Baby Formula
Juice
Pasta
Bread
Gastrointestinal Tablets
Shampoo 35
43
66
94
94
102
108
113
183
331
Unprecedented Price Increases
Core Consumer Products
Alan Beach 7-Eleven 08
18
16
24
44
56
$100K+
$55-$999K
$35-$549K
lt$35K
Sources IRI Economic Trend Databasetrade IRI AttitudeLinktrade Survey of 1000 Consumers May 2008 US Census Bureau
A high proportion of consumers can no longer afford the branded staple items they need of Consumers Who Are Having Difficulty Buying the Staples they need by income
60 Of US Households Earn Under $55K per Year
Ability to Afford Staples
7-Elevenrsquos$47500
19
Consumer Pressure
Housing values decliningTighter credit (banks freezing home equity lines tightening mortgage qualifications raising credit card rates)Flat incomeUnemployment increasingWeak dollar = less buying power
Personal debt servicing (mortgage credit cardsHome energy (oil electricity)Transportation (gasoline oil tires)Food costsEducation
Average US Consumer Getting Squeezed
Rising Living and Household Expenses
Rising Costs
Lower Spending Power
Falling Wealth Income and Credit
Alan Beach 7-Eleven 08
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
3
The 1st Generationhellip
1989 - 1993
Based on a proven successhellip
At the leading International Business School in the World
IMDLausanne Switzerland
4
Enterprise Transformation ndash what is ithellip
ldquoSignificant changes in the strategy structure and human systems of the Corporationhellip
ldquohellipthe rapid redeploymentreallocation of resourceshellip
hellip purposed to create significant sustained customer valuerdquo
MichaelOliffUTDallasedu All Rights Reserved
55
State of the North American Pulp amp State of the North American Pulp amp Paper Industry Paper Industry
ndashndash An Update amp Outlook An Update amp Outlook ndashndash
Unstable Times Unstable Times ndashndash Problems or OpportunitiesProblems or Opportunities---- Q2 2006 DataQ2 2006 Datandashndash
The quality of The quality of pending investment decisions basic economic and pending investment decisions basic economic and demand factors and the industrydemand factors and the industryrsquorsquos motivation to pursue s motivation to pursue innovative innovative
structural change via enterprise transformationstructural change via enterprise transformationwill drive industry performance in the midwill drive industry performance in the mid--to longto long--termterm
6
Dominance or Death
7
What do You Believehellip
Popular Business Press
Manufacturing Improvement Programs
(Execution)Academic
Strategy ResearchContinuous
Improvement
Forces
amp
Resources
Strategy Structure
and Human Systems
Customers Leadership Employees and Innovation
BPR
8
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer
ValueDistinctive
CompetencyEmployee
Value
9
The 1st Generationhellip hellipIMD 1989 - 1993
hellip90 of the original 2000 Board Members have
sustained Dominance in their chosen markets
10
11
Increasing Turbulence hellipImpacting You
The CustomerConsumer ExperienceWellness Security InfotainmentAnything Anytime Anywhere
Corporate InsourcingOutsourcingFirms build and market Distinctive Competencies
Human Capital Development Gen Y Trust Employee Engagement
12
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
13
eTMM-Leadership Dimensions DefinitionsDimensionsDEFINITIONS
1 CUSTOMER VALUE VISION ndash The relentless overriding focus on and preoccupation with the firmrsquos customers (and their customers) their business growth and value creation
2STRATEGIC INTENT ndash Corporate resource allocation and reallocation (competency bundling and unbundling) driven by a balanced view of external forces and internal resources The focus on sustainable and differentiable development versus transient imperatives or initiatives alone
3 COMMUNICATION PROGRAM ndash A corporate campaign that formally and informally creates awareness understanding and commitment to customer value vision strategic intent and individual roles
4COMPLEX PROGRAM MANAGEMENT - Formal comprehensive planning management and execution of customer value vision competency builds culture development and KPI implementation
5 STRETCH CULTURE PROGRAM ndash An environment where individuals and teams routinely and voluntarily set stretch goals and consistently achieve them
6 DISTINCTIVE COMPETENCY DEVELOPMENT - Corporate wide abilities that customers value and competitors fear Built on capabilities processes people technology and assets
7 KPI PROGRAM ndash Key Performance Indicators are todayrsquos predictors of tomorrowrsquos performance
All rights reserved Dr Michael D Oliff
14
eTMM-Leadership Dimensions Future Importance
Part 2
Please rank each of the 7 eTMM-Leadership Dimensions (your view of there future importance) on the scale of 1 to 5 Where 5 is the most Important and 1 is the least Important
DIMENSIONS
1 2 3 4 5 CUSTOMER VALUE VISION
1 2 3 4 5 STRATEGIC INTENT
1 2 3 4 5 COMMUNICATION PROGRAM
1 2 3 4 5 COMPLEX PROGRAM MANAGEMENT
1 2 3 4 5 STRETCH CULTURE PROGRAM
1 2 3 4 5 DISTINCTIVE COMPETENCY DEVELOPMENT
1 2 3 4 5 KPI PROGRAM
15
eTMM-Leadership Dimensions Current Performance
Part 3
Given this scale where would you place your firm on the Customer Value Vision Dimension
Customer Value Vision5 Exceeding Customer Expectations and
creating value With customers drives enterprise initiatives actions and behaviors
4 Exceeding Customer Expectations and creating value priorities in place but with limited span of influence
3 Quality customer service and customer satisfaction priorities are formally evidenced but not consistently
2 Quality customer service and customer satisfaction priorities are evidenced in general
1 Little or no Customer Value focus is evident in communications actions or behaviors
16
0
05
1
15
2
25
3
35
4
45
5
Customer ValueVision
Stretegic Intent CommunicationProgram
ComplexProgram
Management
Stretch CultureProgram
DistinctiveCompetencyDevelopment
KPI Program
Future Importance Current Performance
Importance vs Performance ndash Paper Products
17
32
47
46
32
32
71
25
36
49
56
raquoRight products not pricing
raquoRight packages
raquoPrivate label
Category 2001 Recession Today
Average Unit Price Change vs Prior Year
Eggs
Milk
Natural Cheese
Flour
Baby Formula
Juice
Pasta
Bread
Gastrointestinal Tablets
Shampoo 35
43
66
94
94
102
108
113
183
331
Unprecedented Price Increases
Core Consumer Products
Alan Beach 7-Eleven 08
18
16
24
44
56
$100K+
$55-$999K
$35-$549K
lt$35K
Sources IRI Economic Trend Databasetrade IRI AttitudeLinktrade Survey of 1000 Consumers May 2008 US Census Bureau
A high proportion of consumers can no longer afford the branded staple items they need of Consumers Who Are Having Difficulty Buying the Staples they need by income
60 Of US Households Earn Under $55K per Year
Ability to Afford Staples
7-Elevenrsquos$47500
19
Consumer Pressure
Housing values decliningTighter credit (banks freezing home equity lines tightening mortgage qualifications raising credit card rates)Flat incomeUnemployment increasingWeak dollar = less buying power
Personal debt servicing (mortgage credit cardsHome energy (oil electricity)Transportation (gasoline oil tires)Food costsEducation
Average US Consumer Getting Squeezed
Rising Living and Household Expenses
Rising Costs
Lower Spending Power
Falling Wealth Income and Credit
Alan Beach 7-Eleven 08
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
4
Enterprise Transformation ndash what is ithellip
ldquoSignificant changes in the strategy structure and human systems of the Corporationhellip
ldquohellipthe rapid redeploymentreallocation of resourceshellip
hellip purposed to create significant sustained customer valuerdquo
MichaelOliffUTDallasedu All Rights Reserved
55
State of the North American Pulp amp State of the North American Pulp amp Paper Industry Paper Industry
ndashndash An Update amp Outlook An Update amp Outlook ndashndash
Unstable Times Unstable Times ndashndash Problems or OpportunitiesProblems or Opportunities---- Q2 2006 DataQ2 2006 Datandashndash
The quality of The quality of pending investment decisions basic economic and pending investment decisions basic economic and demand factors and the industrydemand factors and the industryrsquorsquos motivation to pursue s motivation to pursue innovative innovative
structural change via enterprise transformationstructural change via enterprise transformationwill drive industry performance in the midwill drive industry performance in the mid--to longto long--termterm
6
Dominance or Death
7
What do You Believehellip
Popular Business Press
Manufacturing Improvement Programs
(Execution)Academic
Strategy ResearchContinuous
Improvement
Forces
amp
Resources
Strategy Structure
and Human Systems
Customers Leadership Employees and Innovation
BPR
8
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer
ValueDistinctive
CompetencyEmployee
Value
9
The 1st Generationhellip hellipIMD 1989 - 1993
hellip90 of the original 2000 Board Members have
sustained Dominance in their chosen markets
10
11
Increasing Turbulence hellipImpacting You
The CustomerConsumer ExperienceWellness Security InfotainmentAnything Anytime Anywhere
Corporate InsourcingOutsourcingFirms build and market Distinctive Competencies
Human Capital Development Gen Y Trust Employee Engagement
12
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
13
eTMM-Leadership Dimensions DefinitionsDimensionsDEFINITIONS
1 CUSTOMER VALUE VISION ndash The relentless overriding focus on and preoccupation with the firmrsquos customers (and their customers) their business growth and value creation
2STRATEGIC INTENT ndash Corporate resource allocation and reallocation (competency bundling and unbundling) driven by a balanced view of external forces and internal resources The focus on sustainable and differentiable development versus transient imperatives or initiatives alone
3 COMMUNICATION PROGRAM ndash A corporate campaign that formally and informally creates awareness understanding and commitment to customer value vision strategic intent and individual roles
4COMPLEX PROGRAM MANAGEMENT - Formal comprehensive planning management and execution of customer value vision competency builds culture development and KPI implementation
5 STRETCH CULTURE PROGRAM ndash An environment where individuals and teams routinely and voluntarily set stretch goals and consistently achieve them
6 DISTINCTIVE COMPETENCY DEVELOPMENT - Corporate wide abilities that customers value and competitors fear Built on capabilities processes people technology and assets
7 KPI PROGRAM ndash Key Performance Indicators are todayrsquos predictors of tomorrowrsquos performance
All rights reserved Dr Michael D Oliff
14
eTMM-Leadership Dimensions Future Importance
Part 2
Please rank each of the 7 eTMM-Leadership Dimensions (your view of there future importance) on the scale of 1 to 5 Where 5 is the most Important and 1 is the least Important
DIMENSIONS
1 2 3 4 5 CUSTOMER VALUE VISION
1 2 3 4 5 STRATEGIC INTENT
1 2 3 4 5 COMMUNICATION PROGRAM
1 2 3 4 5 COMPLEX PROGRAM MANAGEMENT
1 2 3 4 5 STRETCH CULTURE PROGRAM
1 2 3 4 5 DISTINCTIVE COMPETENCY DEVELOPMENT
1 2 3 4 5 KPI PROGRAM
15
eTMM-Leadership Dimensions Current Performance
Part 3
Given this scale where would you place your firm on the Customer Value Vision Dimension
Customer Value Vision5 Exceeding Customer Expectations and
creating value With customers drives enterprise initiatives actions and behaviors
4 Exceeding Customer Expectations and creating value priorities in place but with limited span of influence
3 Quality customer service and customer satisfaction priorities are formally evidenced but not consistently
2 Quality customer service and customer satisfaction priorities are evidenced in general
1 Little or no Customer Value focus is evident in communications actions or behaviors
16
0
05
1
15
2
25
3
35
4
45
5
Customer ValueVision
Stretegic Intent CommunicationProgram
ComplexProgram
Management
Stretch CultureProgram
DistinctiveCompetencyDevelopment
KPI Program
Future Importance Current Performance
Importance vs Performance ndash Paper Products
17
32
47
46
32
32
71
25
36
49
56
raquoRight products not pricing
raquoRight packages
raquoPrivate label
Category 2001 Recession Today
Average Unit Price Change vs Prior Year
Eggs
Milk
Natural Cheese
Flour
Baby Formula
Juice
Pasta
Bread
Gastrointestinal Tablets
Shampoo 35
43
66
94
94
102
108
113
183
331
Unprecedented Price Increases
Core Consumer Products
Alan Beach 7-Eleven 08
18
16
24
44
56
$100K+
$55-$999K
$35-$549K
lt$35K
Sources IRI Economic Trend Databasetrade IRI AttitudeLinktrade Survey of 1000 Consumers May 2008 US Census Bureau
A high proportion of consumers can no longer afford the branded staple items they need of Consumers Who Are Having Difficulty Buying the Staples they need by income
60 Of US Households Earn Under $55K per Year
Ability to Afford Staples
7-Elevenrsquos$47500
19
Consumer Pressure
Housing values decliningTighter credit (banks freezing home equity lines tightening mortgage qualifications raising credit card rates)Flat incomeUnemployment increasingWeak dollar = less buying power
Personal debt servicing (mortgage credit cardsHome energy (oil electricity)Transportation (gasoline oil tires)Food costsEducation
Average US Consumer Getting Squeezed
Rising Living and Household Expenses
Rising Costs
Lower Spending Power
Falling Wealth Income and Credit
Alan Beach 7-Eleven 08
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
55
State of the North American Pulp amp State of the North American Pulp amp Paper Industry Paper Industry
ndashndash An Update amp Outlook An Update amp Outlook ndashndash
Unstable Times Unstable Times ndashndash Problems or OpportunitiesProblems or Opportunities---- Q2 2006 DataQ2 2006 Datandashndash
The quality of The quality of pending investment decisions basic economic and pending investment decisions basic economic and demand factors and the industrydemand factors and the industryrsquorsquos motivation to pursue s motivation to pursue innovative innovative
structural change via enterprise transformationstructural change via enterprise transformationwill drive industry performance in the midwill drive industry performance in the mid--to longto long--termterm
6
Dominance or Death
7
What do You Believehellip
Popular Business Press
Manufacturing Improvement Programs
(Execution)Academic
Strategy ResearchContinuous
Improvement
Forces
amp
Resources
Strategy Structure
and Human Systems
Customers Leadership Employees and Innovation
BPR
8
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer
ValueDistinctive
CompetencyEmployee
Value
9
The 1st Generationhellip hellipIMD 1989 - 1993
hellip90 of the original 2000 Board Members have
sustained Dominance in their chosen markets
10
11
Increasing Turbulence hellipImpacting You
The CustomerConsumer ExperienceWellness Security InfotainmentAnything Anytime Anywhere
Corporate InsourcingOutsourcingFirms build and market Distinctive Competencies
Human Capital Development Gen Y Trust Employee Engagement
12
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
13
eTMM-Leadership Dimensions DefinitionsDimensionsDEFINITIONS
1 CUSTOMER VALUE VISION ndash The relentless overriding focus on and preoccupation with the firmrsquos customers (and their customers) their business growth and value creation
2STRATEGIC INTENT ndash Corporate resource allocation and reallocation (competency bundling and unbundling) driven by a balanced view of external forces and internal resources The focus on sustainable and differentiable development versus transient imperatives or initiatives alone
3 COMMUNICATION PROGRAM ndash A corporate campaign that formally and informally creates awareness understanding and commitment to customer value vision strategic intent and individual roles
4COMPLEX PROGRAM MANAGEMENT - Formal comprehensive planning management and execution of customer value vision competency builds culture development and KPI implementation
5 STRETCH CULTURE PROGRAM ndash An environment where individuals and teams routinely and voluntarily set stretch goals and consistently achieve them
6 DISTINCTIVE COMPETENCY DEVELOPMENT - Corporate wide abilities that customers value and competitors fear Built on capabilities processes people technology and assets
7 KPI PROGRAM ndash Key Performance Indicators are todayrsquos predictors of tomorrowrsquos performance
All rights reserved Dr Michael D Oliff
14
eTMM-Leadership Dimensions Future Importance
Part 2
Please rank each of the 7 eTMM-Leadership Dimensions (your view of there future importance) on the scale of 1 to 5 Where 5 is the most Important and 1 is the least Important
DIMENSIONS
1 2 3 4 5 CUSTOMER VALUE VISION
1 2 3 4 5 STRATEGIC INTENT
1 2 3 4 5 COMMUNICATION PROGRAM
1 2 3 4 5 COMPLEX PROGRAM MANAGEMENT
1 2 3 4 5 STRETCH CULTURE PROGRAM
1 2 3 4 5 DISTINCTIVE COMPETENCY DEVELOPMENT
1 2 3 4 5 KPI PROGRAM
15
eTMM-Leadership Dimensions Current Performance
Part 3
Given this scale where would you place your firm on the Customer Value Vision Dimension
Customer Value Vision5 Exceeding Customer Expectations and
creating value With customers drives enterprise initiatives actions and behaviors
4 Exceeding Customer Expectations and creating value priorities in place but with limited span of influence
3 Quality customer service and customer satisfaction priorities are formally evidenced but not consistently
2 Quality customer service and customer satisfaction priorities are evidenced in general
1 Little or no Customer Value focus is evident in communications actions or behaviors
16
0
05
1
15
2
25
3
35
4
45
5
Customer ValueVision
Stretegic Intent CommunicationProgram
ComplexProgram
Management
Stretch CultureProgram
DistinctiveCompetencyDevelopment
KPI Program
Future Importance Current Performance
Importance vs Performance ndash Paper Products
17
32
47
46
32
32
71
25
36
49
56
raquoRight products not pricing
raquoRight packages
raquoPrivate label
Category 2001 Recession Today
Average Unit Price Change vs Prior Year
Eggs
Milk
Natural Cheese
Flour
Baby Formula
Juice
Pasta
Bread
Gastrointestinal Tablets
Shampoo 35
43
66
94
94
102
108
113
183
331
Unprecedented Price Increases
Core Consumer Products
Alan Beach 7-Eleven 08
18
16
24
44
56
$100K+
$55-$999K
$35-$549K
lt$35K
Sources IRI Economic Trend Databasetrade IRI AttitudeLinktrade Survey of 1000 Consumers May 2008 US Census Bureau
A high proportion of consumers can no longer afford the branded staple items they need of Consumers Who Are Having Difficulty Buying the Staples they need by income
60 Of US Households Earn Under $55K per Year
Ability to Afford Staples
7-Elevenrsquos$47500
19
Consumer Pressure
Housing values decliningTighter credit (banks freezing home equity lines tightening mortgage qualifications raising credit card rates)Flat incomeUnemployment increasingWeak dollar = less buying power
Personal debt servicing (mortgage credit cardsHome energy (oil electricity)Transportation (gasoline oil tires)Food costsEducation
Average US Consumer Getting Squeezed
Rising Living and Household Expenses
Rising Costs
Lower Spending Power
Falling Wealth Income and Credit
Alan Beach 7-Eleven 08
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
6
Dominance or Death
7
What do You Believehellip
Popular Business Press
Manufacturing Improvement Programs
(Execution)Academic
Strategy ResearchContinuous
Improvement
Forces
amp
Resources
Strategy Structure
and Human Systems
Customers Leadership Employees and Innovation
BPR
8
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer
ValueDistinctive
CompetencyEmployee
Value
9
The 1st Generationhellip hellipIMD 1989 - 1993
hellip90 of the original 2000 Board Members have
sustained Dominance in their chosen markets
10
11
Increasing Turbulence hellipImpacting You
The CustomerConsumer ExperienceWellness Security InfotainmentAnything Anytime Anywhere
Corporate InsourcingOutsourcingFirms build and market Distinctive Competencies
Human Capital Development Gen Y Trust Employee Engagement
12
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
13
eTMM-Leadership Dimensions DefinitionsDimensionsDEFINITIONS
1 CUSTOMER VALUE VISION ndash The relentless overriding focus on and preoccupation with the firmrsquos customers (and their customers) their business growth and value creation
2STRATEGIC INTENT ndash Corporate resource allocation and reallocation (competency bundling and unbundling) driven by a balanced view of external forces and internal resources The focus on sustainable and differentiable development versus transient imperatives or initiatives alone
3 COMMUNICATION PROGRAM ndash A corporate campaign that formally and informally creates awareness understanding and commitment to customer value vision strategic intent and individual roles
4COMPLEX PROGRAM MANAGEMENT - Formal comprehensive planning management and execution of customer value vision competency builds culture development and KPI implementation
5 STRETCH CULTURE PROGRAM ndash An environment where individuals and teams routinely and voluntarily set stretch goals and consistently achieve them
6 DISTINCTIVE COMPETENCY DEVELOPMENT - Corporate wide abilities that customers value and competitors fear Built on capabilities processes people technology and assets
7 KPI PROGRAM ndash Key Performance Indicators are todayrsquos predictors of tomorrowrsquos performance
All rights reserved Dr Michael D Oliff
14
eTMM-Leadership Dimensions Future Importance
Part 2
Please rank each of the 7 eTMM-Leadership Dimensions (your view of there future importance) on the scale of 1 to 5 Where 5 is the most Important and 1 is the least Important
DIMENSIONS
1 2 3 4 5 CUSTOMER VALUE VISION
1 2 3 4 5 STRATEGIC INTENT
1 2 3 4 5 COMMUNICATION PROGRAM
1 2 3 4 5 COMPLEX PROGRAM MANAGEMENT
1 2 3 4 5 STRETCH CULTURE PROGRAM
1 2 3 4 5 DISTINCTIVE COMPETENCY DEVELOPMENT
1 2 3 4 5 KPI PROGRAM
15
eTMM-Leadership Dimensions Current Performance
Part 3
Given this scale where would you place your firm on the Customer Value Vision Dimension
Customer Value Vision5 Exceeding Customer Expectations and
creating value With customers drives enterprise initiatives actions and behaviors
4 Exceeding Customer Expectations and creating value priorities in place but with limited span of influence
3 Quality customer service and customer satisfaction priorities are formally evidenced but not consistently
2 Quality customer service and customer satisfaction priorities are evidenced in general
1 Little or no Customer Value focus is evident in communications actions or behaviors
16
0
05
1
15
2
25
3
35
4
45
5
Customer ValueVision
Stretegic Intent CommunicationProgram
ComplexProgram
Management
Stretch CultureProgram
DistinctiveCompetencyDevelopment
KPI Program
Future Importance Current Performance
Importance vs Performance ndash Paper Products
17
32
47
46
32
32
71
25
36
49
56
raquoRight products not pricing
raquoRight packages
raquoPrivate label
Category 2001 Recession Today
Average Unit Price Change vs Prior Year
Eggs
Milk
Natural Cheese
Flour
Baby Formula
Juice
Pasta
Bread
Gastrointestinal Tablets
Shampoo 35
43
66
94
94
102
108
113
183
331
Unprecedented Price Increases
Core Consumer Products
Alan Beach 7-Eleven 08
18
16
24
44
56
$100K+
$55-$999K
$35-$549K
lt$35K
Sources IRI Economic Trend Databasetrade IRI AttitudeLinktrade Survey of 1000 Consumers May 2008 US Census Bureau
A high proportion of consumers can no longer afford the branded staple items they need of Consumers Who Are Having Difficulty Buying the Staples they need by income
60 Of US Households Earn Under $55K per Year
Ability to Afford Staples
7-Elevenrsquos$47500
19
Consumer Pressure
Housing values decliningTighter credit (banks freezing home equity lines tightening mortgage qualifications raising credit card rates)Flat incomeUnemployment increasingWeak dollar = less buying power
Personal debt servicing (mortgage credit cardsHome energy (oil electricity)Transportation (gasoline oil tires)Food costsEducation
Average US Consumer Getting Squeezed
Rising Living and Household Expenses
Rising Costs
Lower Spending Power
Falling Wealth Income and Credit
Alan Beach 7-Eleven 08
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
7
What do You Believehellip
Popular Business Press
Manufacturing Improvement Programs
(Execution)Academic
Strategy ResearchContinuous
Improvement
Forces
amp
Resources
Strategy Structure
and Human Systems
Customers Leadership Employees and Innovation
BPR
8
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer
ValueDistinctive
CompetencyEmployee
Value
9
The 1st Generationhellip hellipIMD 1989 - 1993
hellip90 of the original 2000 Board Members have
sustained Dominance in their chosen markets
10
11
Increasing Turbulence hellipImpacting You
The CustomerConsumer ExperienceWellness Security InfotainmentAnything Anytime Anywhere
Corporate InsourcingOutsourcingFirms build and market Distinctive Competencies
Human Capital Development Gen Y Trust Employee Engagement
12
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
13
eTMM-Leadership Dimensions DefinitionsDimensionsDEFINITIONS
1 CUSTOMER VALUE VISION ndash The relentless overriding focus on and preoccupation with the firmrsquos customers (and their customers) their business growth and value creation
2STRATEGIC INTENT ndash Corporate resource allocation and reallocation (competency bundling and unbundling) driven by a balanced view of external forces and internal resources The focus on sustainable and differentiable development versus transient imperatives or initiatives alone
3 COMMUNICATION PROGRAM ndash A corporate campaign that formally and informally creates awareness understanding and commitment to customer value vision strategic intent and individual roles
4COMPLEX PROGRAM MANAGEMENT - Formal comprehensive planning management and execution of customer value vision competency builds culture development and KPI implementation
5 STRETCH CULTURE PROGRAM ndash An environment where individuals and teams routinely and voluntarily set stretch goals and consistently achieve them
6 DISTINCTIVE COMPETENCY DEVELOPMENT - Corporate wide abilities that customers value and competitors fear Built on capabilities processes people technology and assets
7 KPI PROGRAM ndash Key Performance Indicators are todayrsquos predictors of tomorrowrsquos performance
All rights reserved Dr Michael D Oliff
14
eTMM-Leadership Dimensions Future Importance
Part 2
Please rank each of the 7 eTMM-Leadership Dimensions (your view of there future importance) on the scale of 1 to 5 Where 5 is the most Important and 1 is the least Important
DIMENSIONS
1 2 3 4 5 CUSTOMER VALUE VISION
1 2 3 4 5 STRATEGIC INTENT
1 2 3 4 5 COMMUNICATION PROGRAM
1 2 3 4 5 COMPLEX PROGRAM MANAGEMENT
1 2 3 4 5 STRETCH CULTURE PROGRAM
1 2 3 4 5 DISTINCTIVE COMPETENCY DEVELOPMENT
1 2 3 4 5 KPI PROGRAM
15
eTMM-Leadership Dimensions Current Performance
Part 3
Given this scale where would you place your firm on the Customer Value Vision Dimension
Customer Value Vision5 Exceeding Customer Expectations and
creating value With customers drives enterprise initiatives actions and behaviors
4 Exceeding Customer Expectations and creating value priorities in place but with limited span of influence
3 Quality customer service and customer satisfaction priorities are formally evidenced but not consistently
2 Quality customer service and customer satisfaction priorities are evidenced in general
1 Little or no Customer Value focus is evident in communications actions or behaviors
16
0
05
1
15
2
25
3
35
4
45
5
Customer ValueVision
Stretegic Intent CommunicationProgram
ComplexProgram
Management
Stretch CultureProgram
DistinctiveCompetencyDevelopment
KPI Program
Future Importance Current Performance
Importance vs Performance ndash Paper Products
17
32
47
46
32
32
71
25
36
49
56
raquoRight products not pricing
raquoRight packages
raquoPrivate label
Category 2001 Recession Today
Average Unit Price Change vs Prior Year
Eggs
Milk
Natural Cheese
Flour
Baby Formula
Juice
Pasta
Bread
Gastrointestinal Tablets
Shampoo 35
43
66
94
94
102
108
113
183
331
Unprecedented Price Increases
Core Consumer Products
Alan Beach 7-Eleven 08
18
16
24
44
56
$100K+
$55-$999K
$35-$549K
lt$35K
Sources IRI Economic Trend Databasetrade IRI AttitudeLinktrade Survey of 1000 Consumers May 2008 US Census Bureau
A high proportion of consumers can no longer afford the branded staple items they need of Consumers Who Are Having Difficulty Buying the Staples they need by income
60 Of US Households Earn Under $55K per Year
Ability to Afford Staples
7-Elevenrsquos$47500
19
Consumer Pressure
Housing values decliningTighter credit (banks freezing home equity lines tightening mortgage qualifications raising credit card rates)Flat incomeUnemployment increasingWeak dollar = less buying power
Personal debt servicing (mortgage credit cardsHome energy (oil electricity)Transportation (gasoline oil tires)Food costsEducation
Average US Consumer Getting Squeezed
Rising Living and Household Expenses
Rising Costs
Lower Spending Power
Falling Wealth Income and Credit
Alan Beach 7-Eleven 08
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
8
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer
ValueDistinctive
CompetencyEmployee
Value
9
The 1st Generationhellip hellipIMD 1989 - 1993
hellip90 of the original 2000 Board Members have
sustained Dominance in their chosen markets
10
11
Increasing Turbulence hellipImpacting You
The CustomerConsumer ExperienceWellness Security InfotainmentAnything Anytime Anywhere
Corporate InsourcingOutsourcingFirms build and market Distinctive Competencies
Human Capital Development Gen Y Trust Employee Engagement
12
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
13
eTMM-Leadership Dimensions DefinitionsDimensionsDEFINITIONS
1 CUSTOMER VALUE VISION ndash The relentless overriding focus on and preoccupation with the firmrsquos customers (and their customers) their business growth and value creation
2STRATEGIC INTENT ndash Corporate resource allocation and reallocation (competency bundling and unbundling) driven by a balanced view of external forces and internal resources The focus on sustainable and differentiable development versus transient imperatives or initiatives alone
3 COMMUNICATION PROGRAM ndash A corporate campaign that formally and informally creates awareness understanding and commitment to customer value vision strategic intent and individual roles
4COMPLEX PROGRAM MANAGEMENT - Formal comprehensive planning management and execution of customer value vision competency builds culture development and KPI implementation
5 STRETCH CULTURE PROGRAM ndash An environment where individuals and teams routinely and voluntarily set stretch goals and consistently achieve them
6 DISTINCTIVE COMPETENCY DEVELOPMENT - Corporate wide abilities that customers value and competitors fear Built on capabilities processes people technology and assets
7 KPI PROGRAM ndash Key Performance Indicators are todayrsquos predictors of tomorrowrsquos performance
All rights reserved Dr Michael D Oliff
14
eTMM-Leadership Dimensions Future Importance
Part 2
Please rank each of the 7 eTMM-Leadership Dimensions (your view of there future importance) on the scale of 1 to 5 Where 5 is the most Important and 1 is the least Important
DIMENSIONS
1 2 3 4 5 CUSTOMER VALUE VISION
1 2 3 4 5 STRATEGIC INTENT
1 2 3 4 5 COMMUNICATION PROGRAM
1 2 3 4 5 COMPLEX PROGRAM MANAGEMENT
1 2 3 4 5 STRETCH CULTURE PROGRAM
1 2 3 4 5 DISTINCTIVE COMPETENCY DEVELOPMENT
1 2 3 4 5 KPI PROGRAM
15
eTMM-Leadership Dimensions Current Performance
Part 3
Given this scale where would you place your firm on the Customer Value Vision Dimension
Customer Value Vision5 Exceeding Customer Expectations and
creating value With customers drives enterprise initiatives actions and behaviors
4 Exceeding Customer Expectations and creating value priorities in place but with limited span of influence
3 Quality customer service and customer satisfaction priorities are formally evidenced but not consistently
2 Quality customer service and customer satisfaction priorities are evidenced in general
1 Little or no Customer Value focus is evident in communications actions or behaviors
16
0
05
1
15
2
25
3
35
4
45
5
Customer ValueVision
Stretegic Intent CommunicationProgram
ComplexProgram
Management
Stretch CultureProgram
DistinctiveCompetencyDevelopment
KPI Program
Future Importance Current Performance
Importance vs Performance ndash Paper Products
17
32
47
46
32
32
71
25
36
49
56
raquoRight products not pricing
raquoRight packages
raquoPrivate label
Category 2001 Recession Today
Average Unit Price Change vs Prior Year
Eggs
Milk
Natural Cheese
Flour
Baby Formula
Juice
Pasta
Bread
Gastrointestinal Tablets
Shampoo 35
43
66
94
94
102
108
113
183
331
Unprecedented Price Increases
Core Consumer Products
Alan Beach 7-Eleven 08
18
16
24
44
56
$100K+
$55-$999K
$35-$549K
lt$35K
Sources IRI Economic Trend Databasetrade IRI AttitudeLinktrade Survey of 1000 Consumers May 2008 US Census Bureau
A high proportion of consumers can no longer afford the branded staple items they need of Consumers Who Are Having Difficulty Buying the Staples they need by income
60 Of US Households Earn Under $55K per Year
Ability to Afford Staples
7-Elevenrsquos$47500
19
Consumer Pressure
Housing values decliningTighter credit (banks freezing home equity lines tightening mortgage qualifications raising credit card rates)Flat incomeUnemployment increasingWeak dollar = less buying power
Personal debt servicing (mortgage credit cardsHome energy (oil electricity)Transportation (gasoline oil tires)Food costsEducation
Average US Consumer Getting Squeezed
Rising Living and Household Expenses
Rising Costs
Lower Spending Power
Falling Wealth Income and Credit
Alan Beach 7-Eleven 08
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
9
The 1st Generationhellip hellipIMD 1989 - 1993
hellip90 of the original 2000 Board Members have
sustained Dominance in their chosen markets
10
11
Increasing Turbulence hellipImpacting You
The CustomerConsumer ExperienceWellness Security InfotainmentAnything Anytime Anywhere
Corporate InsourcingOutsourcingFirms build and market Distinctive Competencies
Human Capital Development Gen Y Trust Employee Engagement
12
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
13
eTMM-Leadership Dimensions DefinitionsDimensionsDEFINITIONS
1 CUSTOMER VALUE VISION ndash The relentless overriding focus on and preoccupation with the firmrsquos customers (and their customers) their business growth and value creation
2STRATEGIC INTENT ndash Corporate resource allocation and reallocation (competency bundling and unbundling) driven by a balanced view of external forces and internal resources The focus on sustainable and differentiable development versus transient imperatives or initiatives alone
3 COMMUNICATION PROGRAM ndash A corporate campaign that formally and informally creates awareness understanding and commitment to customer value vision strategic intent and individual roles
4COMPLEX PROGRAM MANAGEMENT - Formal comprehensive planning management and execution of customer value vision competency builds culture development and KPI implementation
5 STRETCH CULTURE PROGRAM ndash An environment where individuals and teams routinely and voluntarily set stretch goals and consistently achieve them
6 DISTINCTIVE COMPETENCY DEVELOPMENT - Corporate wide abilities that customers value and competitors fear Built on capabilities processes people technology and assets
7 KPI PROGRAM ndash Key Performance Indicators are todayrsquos predictors of tomorrowrsquos performance
All rights reserved Dr Michael D Oliff
14
eTMM-Leadership Dimensions Future Importance
Part 2
Please rank each of the 7 eTMM-Leadership Dimensions (your view of there future importance) on the scale of 1 to 5 Where 5 is the most Important and 1 is the least Important
DIMENSIONS
1 2 3 4 5 CUSTOMER VALUE VISION
1 2 3 4 5 STRATEGIC INTENT
1 2 3 4 5 COMMUNICATION PROGRAM
1 2 3 4 5 COMPLEX PROGRAM MANAGEMENT
1 2 3 4 5 STRETCH CULTURE PROGRAM
1 2 3 4 5 DISTINCTIVE COMPETENCY DEVELOPMENT
1 2 3 4 5 KPI PROGRAM
15
eTMM-Leadership Dimensions Current Performance
Part 3
Given this scale where would you place your firm on the Customer Value Vision Dimension
Customer Value Vision5 Exceeding Customer Expectations and
creating value With customers drives enterprise initiatives actions and behaviors
4 Exceeding Customer Expectations and creating value priorities in place but with limited span of influence
3 Quality customer service and customer satisfaction priorities are formally evidenced but not consistently
2 Quality customer service and customer satisfaction priorities are evidenced in general
1 Little or no Customer Value focus is evident in communications actions or behaviors
16
0
05
1
15
2
25
3
35
4
45
5
Customer ValueVision
Stretegic Intent CommunicationProgram
ComplexProgram
Management
Stretch CultureProgram
DistinctiveCompetencyDevelopment
KPI Program
Future Importance Current Performance
Importance vs Performance ndash Paper Products
17
32
47
46
32
32
71
25
36
49
56
raquoRight products not pricing
raquoRight packages
raquoPrivate label
Category 2001 Recession Today
Average Unit Price Change vs Prior Year
Eggs
Milk
Natural Cheese
Flour
Baby Formula
Juice
Pasta
Bread
Gastrointestinal Tablets
Shampoo 35
43
66
94
94
102
108
113
183
331
Unprecedented Price Increases
Core Consumer Products
Alan Beach 7-Eleven 08
18
16
24
44
56
$100K+
$55-$999K
$35-$549K
lt$35K
Sources IRI Economic Trend Databasetrade IRI AttitudeLinktrade Survey of 1000 Consumers May 2008 US Census Bureau
A high proportion of consumers can no longer afford the branded staple items they need of Consumers Who Are Having Difficulty Buying the Staples they need by income
60 Of US Households Earn Under $55K per Year
Ability to Afford Staples
7-Elevenrsquos$47500
19
Consumer Pressure
Housing values decliningTighter credit (banks freezing home equity lines tightening mortgage qualifications raising credit card rates)Flat incomeUnemployment increasingWeak dollar = less buying power
Personal debt servicing (mortgage credit cardsHome energy (oil electricity)Transportation (gasoline oil tires)Food costsEducation
Average US Consumer Getting Squeezed
Rising Living and Household Expenses
Rising Costs
Lower Spending Power
Falling Wealth Income and Credit
Alan Beach 7-Eleven 08
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
10
11
Increasing Turbulence hellipImpacting You
The CustomerConsumer ExperienceWellness Security InfotainmentAnything Anytime Anywhere
Corporate InsourcingOutsourcingFirms build and market Distinctive Competencies
Human Capital Development Gen Y Trust Employee Engagement
12
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
13
eTMM-Leadership Dimensions DefinitionsDimensionsDEFINITIONS
1 CUSTOMER VALUE VISION ndash The relentless overriding focus on and preoccupation with the firmrsquos customers (and their customers) their business growth and value creation
2STRATEGIC INTENT ndash Corporate resource allocation and reallocation (competency bundling and unbundling) driven by a balanced view of external forces and internal resources The focus on sustainable and differentiable development versus transient imperatives or initiatives alone
3 COMMUNICATION PROGRAM ndash A corporate campaign that formally and informally creates awareness understanding and commitment to customer value vision strategic intent and individual roles
4COMPLEX PROGRAM MANAGEMENT - Formal comprehensive planning management and execution of customer value vision competency builds culture development and KPI implementation
5 STRETCH CULTURE PROGRAM ndash An environment where individuals and teams routinely and voluntarily set stretch goals and consistently achieve them
6 DISTINCTIVE COMPETENCY DEVELOPMENT - Corporate wide abilities that customers value and competitors fear Built on capabilities processes people technology and assets
7 KPI PROGRAM ndash Key Performance Indicators are todayrsquos predictors of tomorrowrsquos performance
All rights reserved Dr Michael D Oliff
14
eTMM-Leadership Dimensions Future Importance
Part 2
Please rank each of the 7 eTMM-Leadership Dimensions (your view of there future importance) on the scale of 1 to 5 Where 5 is the most Important and 1 is the least Important
DIMENSIONS
1 2 3 4 5 CUSTOMER VALUE VISION
1 2 3 4 5 STRATEGIC INTENT
1 2 3 4 5 COMMUNICATION PROGRAM
1 2 3 4 5 COMPLEX PROGRAM MANAGEMENT
1 2 3 4 5 STRETCH CULTURE PROGRAM
1 2 3 4 5 DISTINCTIVE COMPETENCY DEVELOPMENT
1 2 3 4 5 KPI PROGRAM
15
eTMM-Leadership Dimensions Current Performance
Part 3
Given this scale where would you place your firm on the Customer Value Vision Dimension
Customer Value Vision5 Exceeding Customer Expectations and
creating value With customers drives enterprise initiatives actions and behaviors
4 Exceeding Customer Expectations and creating value priorities in place but with limited span of influence
3 Quality customer service and customer satisfaction priorities are formally evidenced but not consistently
2 Quality customer service and customer satisfaction priorities are evidenced in general
1 Little or no Customer Value focus is evident in communications actions or behaviors
16
0
05
1
15
2
25
3
35
4
45
5
Customer ValueVision
Stretegic Intent CommunicationProgram
ComplexProgram
Management
Stretch CultureProgram
DistinctiveCompetencyDevelopment
KPI Program
Future Importance Current Performance
Importance vs Performance ndash Paper Products
17
32
47
46
32
32
71
25
36
49
56
raquoRight products not pricing
raquoRight packages
raquoPrivate label
Category 2001 Recession Today
Average Unit Price Change vs Prior Year
Eggs
Milk
Natural Cheese
Flour
Baby Formula
Juice
Pasta
Bread
Gastrointestinal Tablets
Shampoo 35
43
66
94
94
102
108
113
183
331
Unprecedented Price Increases
Core Consumer Products
Alan Beach 7-Eleven 08
18
16
24
44
56
$100K+
$55-$999K
$35-$549K
lt$35K
Sources IRI Economic Trend Databasetrade IRI AttitudeLinktrade Survey of 1000 Consumers May 2008 US Census Bureau
A high proportion of consumers can no longer afford the branded staple items they need of Consumers Who Are Having Difficulty Buying the Staples they need by income
60 Of US Households Earn Under $55K per Year
Ability to Afford Staples
7-Elevenrsquos$47500
19
Consumer Pressure
Housing values decliningTighter credit (banks freezing home equity lines tightening mortgage qualifications raising credit card rates)Flat incomeUnemployment increasingWeak dollar = less buying power
Personal debt servicing (mortgage credit cardsHome energy (oil electricity)Transportation (gasoline oil tires)Food costsEducation
Average US Consumer Getting Squeezed
Rising Living and Household Expenses
Rising Costs
Lower Spending Power
Falling Wealth Income and Credit
Alan Beach 7-Eleven 08
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
11
Increasing Turbulence hellipImpacting You
The CustomerConsumer ExperienceWellness Security InfotainmentAnything Anytime Anywhere
Corporate InsourcingOutsourcingFirms build and market Distinctive Competencies
Human Capital Development Gen Y Trust Employee Engagement
12
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
13
eTMM-Leadership Dimensions DefinitionsDimensionsDEFINITIONS
1 CUSTOMER VALUE VISION ndash The relentless overriding focus on and preoccupation with the firmrsquos customers (and their customers) their business growth and value creation
2STRATEGIC INTENT ndash Corporate resource allocation and reallocation (competency bundling and unbundling) driven by a balanced view of external forces and internal resources The focus on sustainable and differentiable development versus transient imperatives or initiatives alone
3 COMMUNICATION PROGRAM ndash A corporate campaign that formally and informally creates awareness understanding and commitment to customer value vision strategic intent and individual roles
4COMPLEX PROGRAM MANAGEMENT - Formal comprehensive planning management and execution of customer value vision competency builds culture development and KPI implementation
5 STRETCH CULTURE PROGRAM ndash An environment where individuals and teams routinely and voluntarily set stretch goals and consistently achieve them
6 DISTINCTIVE COMPETENCY DEVELOPMENT - Corporate wide abilities that customers value and competitors fear Built on capabilities processes people technology and assets
7 KPI PROGRAM ndash Key Performance Indicators are todayrsquos predictors of tomorrowrsquos performance
All rights reserved Dr Michael D Oliff
14
eTMM-Leadership Dimensions Future Importance
Part 2
Please rank each of the 7 eTMM-Leadership Dimensions (your view of there future importance) on the scale of 1 to 5 Where 5 is the most Important and 1 is the least Important
DIMENSIONS
1 2 3 4 5 CUSTOMER VALUE VISION
1 2 3 4 5 STRATEGIC INTENT
1 2 3 4 5 COMMUNICATION PROGRAM
1 2 3 4 5 COMPLEX PROGRAM MANAGEMENT
1 2 3 4 5 STRETCH CULTURE PROGRAM
1 2 3 4 5 DISTINCTIVE COMPETENCY DEVELOPMENT
1 2 3 4 5 KPI PROGRAM
15
eTMM-Leadership Dimensions Current Performance
Part 3
Given this scale where would you place your firm on the Customer Value Vision Dimension
Customer Value Vision5 Exceeding Customer Expectations and
creating value With customers drives enterprise initiatives actions and behaviors
4 Exceeding Customer Expectations and creating value priorities in place but with limited span of influence
3 Quality customer service and customer satisfaction priorities are formally evidenced but not consistently
2 Quality customer service and customer satisfaction priorities are evidenced in general
1 Little or no Customer Value focus is evident in communications actions or behaviors
16
0
05
1
15
2
25
3
35
4
45
5
Customer ValueVision
Stretegic Intent CommunicationProgram
ComplexProgram
Management
Stretch CultureProgram
DistinctiveCompetencyDevelopment
KPI Program
Future Importance Current Performance
Importance vs Performance ndash Paper Products
17
32
47
46
32
32
71
25
36
49
56
raquoRight products not pricing
raquoRight packages
raquoPrivate label
Category 2001 Recession Today
Average Unit Price Change vs Prior Year
Eggs
Milk
Natural Cheese
Flour
Baby Formula
Juice
Pasta
Bread
Gastrointestinal Tablets
Shampoo 35
43
66
94
94
102
108
113
183
331
Unprecedented Price Increases
Core Consumer Products
Alan Beach 7-Eleven 08
18
16
24
44
56
$100K+
$55-$999K
$35-$549K
lt$35K
Sources IRI Economic Trend Databasetrade IRI AttitudeLinktrade Survey of 1000 Consumers May 2008 US Census Bureau
A high proportion of consumers can no longer afford the branded staple items they need of Consumers Who Are Having Difficulty Buying the Staples they need by income
60 Of US Households Earn Under $55K per Year
Ability to Afford Staples
7-Elevenrsquos$47500
19
Consumer Pressure
Housing values decliningTighter credit (banks freezing home equity lines tightening mortgage qualifications raising credit card rates)Flat incomeUnemployment increasingWeak dollar = less buying power
Personal debt servicing (mortgage credit cardsHome energy (oil electricity)Transportation (gasoline oil tires)Food costsEducation
Average US Consumer Getting Squeezed
Rising Living and Household Expenses
Rising Costs
Lower Spending Power
Falling Wealth Income and Credit
Alan Beach 7-Eleven 08
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
12
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
13
eTMM-Leadership Dimensions DefinitionsDimensionsDEFINITIONS
1 CUSTOMER VALUE VISION ndash The relentless overriding focus on and preoccupation with the firmrsquos customers (and their customers) their business growth and value creation
2STRATEGIC INTENT ndash Corporate resource allocation and reallocation (competency bundling and unbundling) driven by a balanced view of external forces and internal resources The focus on sustainable and differentiable development versus transient imperatives or initiatives alone
3 COMMUNICATION PROGRAM ndash A corporate campaign that formally and informally creates awareness understanding and commitment to customer value vision strategic intent and individual roles
4COMPLEX PROGRAM MANAGEMENT - Formal comprehensive planning management and execution of customer value vision competency builds culture development and KPI implementation
5 STRETCH CULTURE PROGRAM ndash An environment where individuals and teams routinely and voluntarily set stretch goals and consistently achieve them
6 DISTINCTIVE COMPETENCY DEVELOPMENT - Corporate wide abilities that customers value and competitors fear Built on capabilities processes people technology and assets
7 KPI PROGRAM ndash Key Performance Indicators are todayrsquos predictors of tomorrowrsquos performance
All rights reserved Dr Michael D Oliff
14
eTMM-Leadership Dimensions Future Importance
Part 2
Please rank each of the 7 eTMM-Leadership Dimensions (your view of there future importance) on the scale of 1 to 5 Where 5 is the most Important and 1 is the least Important
DIMENSIONS
1 2 3 4 5 CUSTOMER VALUE VISION
1 2 3 4 5 STRATEGIC INTENT
1 2 3 4 5 COMMUNICATION PROGRAM
1 2 3 4 5 COMPLEX PROGRAM MANAGEMENT
1 2 3 4 5 STRETCH CULTURE PROGRAM
1 2 3 4 5 DISTINCTIVE COMPETENCY DEVELOPMENT
1 2 3 4 5 KPI PROGRAM
15
eTMM-Leadership Dimensions Current Performance
Part 3
Given this scale where would you place your firm on the Customer Value Vision Dimension
Customer Value Vision5 Exceeding Customer Expectations and
creating value With customers drives enterprise initiatives actions and behaviors
4 Exceeding Customer Expectations and creating value priorities in place but with limited span of influence
3 Quality customer service and customer satisfaction priorities are formally evidenced but not consistently
2 Quality customer service and customer satisfaction priorities are evidenced in general
1 Little or no Customer Value focus is evident in communications actions or behaviors
16
0
05
1
15
2
25
3
35
4
45
5
Customer ValueVision
Stretegic Intent CommunicationProgram
ComplexProgram
Management
Stretch CultureProgram
DistinctiveCompetencyDevelopment
KPI Program
Future Importance Current Performance
Importance vs Performance ndash Paper Products
17
32
47
46
32
32
71
25
36
49
56
raquoRight products not pricing
raquoRight packages
raquoPrivate label
Category 2001 Recession Today
Average Unit Price Change vs Prior Year
Eggs
Milk
Natural Cheese
Flour
Baby Formula
Juice
Pasta
Bread
Gastrointestinal Tablets
Shampoo 35
43
66
94
94
102
108
113
183
331
Unprecedented Price Increases
Core Consumer Products
Alan Beach 7-Eleven 08
18
16
24
44
56
$100K+
$55-$999K
$35-$549K
lt$35K
Sources IRI Economic Trend Databasetrade IRI AttitudeLinktrade Survey of 1000 Consumers May 2008 US Census Bureau
A high proportion of consumers can no longer afford the branded staple items they need of Consumers Who Are Having Difficulty Buying the Staples they need by income
60 Of US Households Earn Under $55K per Year
Ability to Afford Staples
7-Elevenrsquos$47500
19
Consumer Pressure
Housing values decliningTighter credit (banks freezing home equity lines tightening mortgage qualifications raising credit card rates)Flat incomeUnemployment increasingWeak dollar = less buying power
Personal debt servicing (mortgage credit cardsHome energy (oil electricity)Transportation (gasoline oil tires)Food costsEducation
Average US Consumer Getting Squeezed
Rising Living and Household Expenses
Rising Costs
Lower Spending Power
Falling Wealth Income and Credit
Alan Beach 7-Eleven 08
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
13
eTMM-Leadership Dimensions DefinitionsDimensionsDEFINITIONS
1 CUSTOMER VALUE VISION ndash The relentless overriding focus on and preoccupation with the firmrsquos customers (and their customers) their business growth and value creation
2STRATEGIC INTENT ndash Corporate resource allocation and reallocation (competency bundling and unbundling) driven by a balanced view of external forces and internal resources The focus on sustainable and differentiable development versus transient imperatives or initiatives alone
3 COMMUNICATION PROGRAM ndash A corporate campaign that formally and informally creates awareness understanding and commitment to customer value vision strategic intent and individual roles
4COMPLEX PROGRAM MANAGEMENT - Formal comprehensive planning management and execution of customer value vision competency builds culture development and KPI implementation
5 STRETCH CULTURE PROGRAM ndash An environment where individuals and teams routinely and voluntarily set stretch goals and consistently achieve them
6 DISTINCTIVE COMPETENCY DEVELOPMENT - Corporate wide abilities that customers value and competitors fear Built on capabilities processes people technology and assets
7 KPI PROGRAM ndash Key Performance Indicators are todayrsquos predictors of tomorrowrsquos performance
All rights reserved Dr Michael D Oliff
14
eTMM-Leadership Dimensions Future Importance
Part 2
Please rank each of the 7 eTMM-Leadership Dimensions (your view of there future importance) on the scale of 1 to 5 Where 5 is the most Important and 1 is the least Important
DIMENSIONS
1 2 3 4 5 CUSTOMER VALUE VISION
1 2 3 4 5 STRATEGIC INTENT
1 2 3 4 5 COMMUNICATION PROGRAM
1 2 3 4 5 COMPLEX PROGRAM MANAGEMENT
1 2 3 4 5 STRETCH CULTURE PROGRAM
1 2 3 4 5 DISTINCTIVE COMPETENCY DEVELOPMENT
1 2 3 4 5 KPI PROGRAM
15
eTMM-Leadership Dimensions Current Performance
Part 3
Given this scale where would you place your firm on the Customer Value Vision Dimension
Customer Value Vision5 Exceeding Customer Expectations and
creating value With customers drives enterprise initiatives actions and behaviors
4 Exceeding Customer Expectations and creating value priorities in place but with limited span of influence
3 Quality customer service and customer satisfaction priorities are formally evidenced but not consistently
2 Quality customer service and customer satisfaction priorities are evidenced in general
1 Little or no Customer Value focus is evident in communications actions or behaviors
16
0
05
1
15
2
25
3
35
4
45
5
Customer ValueVision
Stretegic Intent CommunicationProgram
ComplexProgram
Management
Stretch CultureProgram
DistinctiveCompetencyDevelopment
KPI Program
Future Importance Current Performance
Importance vs Performance ndash Paper Products
17
32
47
46
32
32
71
25
36
49
56
raquoRight products not pricing
raquoRight packages
raquoPrivate label
Category 2001 Recession Today
Average Unit Price Change vs Prior Year
Eggs
Milk
Natural Cheese
Flour
Baby Formula
Juice
Pasta
Bread
Gastrointestinal Tablets
Shampoo 35
43
66
94
94
102
108
113
183
331
Unprecedented Price Increases
Core Consumer Products
Alan Beach 7-Eleven 08
18
16
24
44
56
$100K+
$55-$999K
$35-$549K
lt$35K
Sources IRI Economic Trend Databasetrade IRI AttitudeLinktrade Survey of 1000 Consumers May 2008 US Census Bureau
A high proportion of consumers can no longer afford the branded staple items they need of Consumers Who Are Having Difficulty Buying the Staples they need by income
60 Of US Households Earn Under $55K per Year
Ability to Afford Staples
7-Elevenrsquos$47500
19
Consumer Pressure
Housing values decliningTighter credit (banks freezing home equity lines tightening mortgage qualifications raising credit card rates)Flat incomeUnemployment increasingWeak dollar = less buying power
Personal debt servicing (mortgage credit cardsHome energy (oil electricity)Transportation (gasoline oil tires)Food costsEducation
Average US Consumer Getting Squeezed
Rising Living and Household Expenses
Rising Costs
Lower Spending Power
Falling Wealth Income and Credit
Alan Beach 7-Eleven 08
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
14
eTMM-Leadership Dimensions Future Importance
Part 2
Please rank each of the 7 eTMM-Leadership Dimensions (your view of there future importance) on the scale of 1 to 5 Where 5 is the most Important and 1 is the least Important
DIMENSIONS
1 2 3 4 5 CUSTOMER VALUE VISION
1 2 3 4 5 STRATEGIC INTENT
1 2 3 4 5 COMMUNICATION PROGRAM
1 2 3 4 5 COMPLEX PROGRAM MANAGEMENT
1 2 3 4 5 STRETCH CULTURE PROGRAM
1 2 3 4 5 DISTINCTIVE COMPETENCY DEVELOPMENT
1 2 3 4 5 KPI PROGRAM
15
eTMM-Leadership Dimensions Current Performance
Part 3
Given this scale where would you place your firm on the Customer Value Vision Dimension
Customer Value Vision5 Exceeding Customer Expectations and
creating value With customers drives enterprise initiatives actions and behaviors
4 Exceeding Customer Expectations and creating value priorities in place but with limited span of influence
3 Quality customer service and customer satisfaction priorities are formally evidenced but not consistently
2 Quality customer service and customer satisfaction priorities are evidenced in general
1 Little or no Customer Value focus is evident in communications actions or behaviors
16
0
05
1
15
2
25
3
35
4
45
5
Customer ValueVision
Stretegic Intent CommunicationProgram
ComplexProgram
Management
Stretch CultureProgram
DistinctiveCompetencyDevelopment
KPI Program
Future Importance Current Performance
Importance vs Performance ndash Paper Products
17
32
47
46
32
32
71
25
36
49
56
raquoRight products not pricing
raquoRight packages
raquoPrivate label
Category 2001 Recession Today
Average Unit Price Change vs Prior Year
Eggs
Milk
Natural Cheese
Flour
Baby Formula
Juice
Pasta
Bread
Gastrointestinal Tablets
Shampoo 35
43
66
94
94
102
108
113
183
331
Unprecedented Price Increases
Core Consumer Products
Alan Beach 7-Eleven 08
18
16
24
44
56
$100K+
$55-$999K
$35-$549K
lt$35K
Sources IRI Economic Trend Databasetrade IRI AttitudeLinktrade Survey of 1000 Consumers May 2008 US Census Bureau
A high proportion of consumers can no longer afford the branded staple items they need of Consumers Who Are Having Difficulty Buying the Staples they need by income
60 Of US Households Earn Under $55K per Year
Ability to Afford Staples
7-Elevenrsquos$47500
19
Consumer Pressure
Housing values decliningTighter credit (banks freezing home equity lines tightening mortgage qualifications raising credit card rates)Flat incomeUnemployment increasingWeak dollar = less buying power
Personal debt servicing (mortgage credit cardsHome energy (oil electricity)Transportation (gasoline oil tires)Food costsEducation
Average US Consumer Getting Squeezed
Rising Living and Household Expenses
Rising Costs
Lower Spending Power
Falling Wealth Income and Credit
Alan Beach 7-Eleven 08
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
15
eTMM-Leadership Dimensions Current Performance
Part 3
Given this scale where would you place your firm on the Customer Value Vision Dimension
Customer Value Vision5 Exceeding Customer Expectations and
creating value With customers drives enterprise initiatives actions and behaviors
4 Exceeding Customer Expectations and creating value priorities in place but with limited span of influence
3 Quality customer service and customer satisfaction priorities are formally evidenced but not consistently
2 Quality customer service and customer satisfaction priorities are evidenced in general
1 Little or no Customer Value focus is evident in communications actions or behaviors
16
0
05
1
15
2
25
3
35
4
45
5
Customer ValueVision
Stretegic Intent CommunicationProgram
ComplexProgram
Management
Stretch CultureProgram
DistinctiveCompetencyDevelopment
KPI Program
Future Importance Current Performance
Importance vs Performance ndash Paper Products
17
32
47
46
32
32
71
25
36
49
56
raquoRight products not pricing
raquoRight packages
raquoPrivate label
Category 2001 Recession Today
Average Unit Price Change vs Prior Year
Eggs
Milk
Natural Cheese
Flour
Baby Formula
Juice
Pasta
Bread
Gastrointestinal Tablets
Shampoo 35
43
66
94
94
102
108
113
183
331
Unprecedented Price Increases
Core Consumer Products
Alan Beach 7-Eleven 08
18
16
24
44
56
$100K+
$55-$999K
$35-$549K
lt$35K
Sources IRI Economic Trend Databasetrade IRI AttitudeLinktrade Survey of 1000 Consumers May 2008 US Census Bureau
A high proportion of consumers can no longer afford the branded staple items they need of Consumers Who Are Having Difficulty Buying the Staples they need by income
60 Of US Households Earn Under $55K per Year
Ability to Afford Staples
7-Elevenrsquos$47500
19
Consumer Pressure
Housing values decliningTighter credit (banks freezing home equity lines tightening mortgage qualifications raising credit card rates)Flat incomeUnemployment increasingWeak dollar = less buying power
Personal debt servicing (mortgage credit cardsHome energy (oil electricity)Transportation (gasoline oil tires)Food costsEducation
Average US Consumer Getting Squeezed
Rising Living and Household Expenses
Rising Costs
Lower Spending Power
Falling Wealth Income and Credit
Alan Beach 7-Eleven 08
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
16
0
05
1
15
2
25
3
35
4
45
5
Customer ValueVision
Stretegic Intent CommunicationProgram
ComplexProgram
Management
Stretch CultureProgram
DistinctiveCompetencyDevelopment
KPI Program
Future Importance Current Performance
Importance vs Performance ndash Paper Products
17
32
47
46
32
32
71
25
36
49
56
raquoRight products not pricing
raquoRight packages
raquoPrivate label
Category 2001 Recession Today
Average Unit Price Change vs Prior Year
Eggs
Milk
Natural Cheese
Flour
Baby Formula
Juice
Pasta
Bread
Gastrointestinal Tablets
Shampoo 35
43
66
94
94
102
108
113
183
331
Unprecedented Price Increases
Core Consumer Products
Alan Beach 7-Eleven 08
18
16
24
44
56
$100K+
$55-$999K
$35-$549K
lt$35K
Sources IRI Economic Trend Databasetrade IRI AttitudeLinktrade Survey of 1000 Consumers May 2008 US Census Bureau
A high proportion of consumers can no longer afford the branded staple items they need of Consumers Who Are Having Difficulty Buying the Staples they need by income
60 Of US Households Earn Under $55K per Year
Ability to Afford Staples
7-Elevenrsquos$47500
19
Consumer Pressure
Housing values decliningTighter credit (banks freezing home equity lines tightening mortgage qualifications raising credit card rates)Flat incomeUnemployment increasingWeak dollar = less buying power
Personal debt servicing (mortgage credit cardsHome energy (oil electricity)Transportation (gasoline oil tires)Food costsEducation
Average US Consumer Getting Squeezed
Rising Living and Household Expenses
Rising Costs
Lower Spending Power
Falling Wealth Income and Credit
Alan Beach 7-Eleven 08
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
17
32
47
46
32
32
71
25
36
49
56
raquoRight products not pricing
raquoRight packages
raquoPrivate label
Category 2001 Recession Today
Average Unit Price Change vs Prior Year
Eggs
Milk
Natural Cheese
Flour
Baby Formula
Juice
Pasta
Bread
Gastrointestinal Tablets
Shampoo 35
43
66
94
94
102
108
113
183
331
Unprecedented Price Increases
Core Consumer Products
Alan Beach 7-Eleven 08
18
16
24
44
56
$100K+
$55-$999K
$35-$549K
lt$35K
Sources IRI Economic Trend Databasetrade IRI AttitudeLinktrade Survey of 1000 Consumers May 2008 US Census Bureau
A high proportion of consumers can no longer afford the branded staple items they need of Consumers Who Are Having Difficulty Buying the Staples they need by income
60 Of US Households Earn Under $55K per Year
Ability to Afford Staples
7-Elevenrsquos$47500
19
Consumer Pressure
Housing values decliningTighter credit (banks freezing home equity lines tightening mortgage qualifications raising credit card rates)Flat incomeUnemployment increasingWeak dollar = less buying power
Personal debt servicing (mortgage credit cardsHome energy (oil electricity)Transportation (gasoline oil tires)Food costsEducation
Average US Consumer Getting Squeezed
Rising Living and Household Expenses
Rising Costs
Lower Spending Power
Falling Wealth Income and Credit
Alan Beach 7-Eleven 08
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
18
16
24
44
56
$100K+
$55-$999K
$35-$549K
lt$35K
Sources IRI Economic Trend Databasetrade IRI AttitudeLinktrade Survey of 1000 Consumers May 2008 US Census Bureau
A high proportion of consumers can no longer afford the branded staple items they need of Consumers Who Are Having Difficulty Buying the Staples they need by income
60 Of US Households Earn Under $55K per Year
Ability to Afford Staples
7-Elevenrsquos$47500
19
Consumer Pressure
Housing values decliningTighter credit (banks freezing home equity lines tightening mortgage qualifications raising credit card rates)Flat incomeUnemployment increasingWeak dollar = less buying power
Personal debt servicing (mortgage credit cardsHome energy (oil electricity)Transportation (gasoline oil tires)Food costsEducation
Average US Consumer Getting Squeezed
Rising Living and Household Expenses
Rising Costs
Lower Spending Power
Falling Wealth Income and Credit
Alan Beach 7-Eleven 08
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
19
Consumer Pressure
Housing values decliningTighter credit (banks freezing home equity lines tightening mortgage qualifications raising credit card rates)Flat incomeUnemployment increasingWeak dollar = less buying power
Personal debt servicing (mortgage credit cardsHome energy (oil electricity)Transportation (gasoline oil tires)Food costsEducation
Average US Consumer Getting Squeezed
Rising Living and Household Expenses
Rising Costs
Lower Spending Power
Falling Wealth Income and Credit
Alan Beach 7-Eleven 08
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
20
Paper products drivers
China Korea Indiahellip supply and demandUS Governmenthelliplevel playing fieldEnergyhellip cost and availabilityLaborhellip quality and availabilityTechnologyhellip cost and competitiveness
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
Page 21 copy Copyright 2008 Truco Enterprises LP
SynchronizationStrategic Transformationin a Perfect Storm
copy Copyright 2008 Truco Enterprises LPPage 21
External Challenges
Transforming Strategies real time
synchronicity
TRUCO
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
copy Copyright 2008 Truco Enterprises LPPage 22
Rising Cost of Goods
Page 22 copy Copyright 2008 Truco Enterprises LP
= Greatest Increases
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
copy Copyright 2007 Arbor Private Investment Company LLCPage 23
National Partnerships in Retail
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
copy Copyright 2007 Arbor Private Investment Company LLCPage 24
Retail Environment - A Perfect StormRetailers manufacturers and consumers are in the midst of a ldquoperfect stormrdquo of underlying forces that are transforming the economy and mandating new go-to-market strategies
Industry
Com
mod
ities
Diesel Costs
Packaging
Gas amp Energy Costs
Food Costs
Stagnant Income
New Strategies for a
Transforming Economy
Increased value selection
Intense margin pressure
Declining consumerloyalty
Consumer
Changing what they buy
where they shop and how
they eat
Source IRI 62508
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
25
United SupermarketsUnited Supermarkets
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
26
NEWS RELEASE April 16 2007
Verizon to Take Lead Role in lsquoEnterprise 2020rsquo BusinessEducation Partnership at The University of
Texas at DallasNew Program to Bring Together Leading Business
Thinkers and Educators to Create and Enhance Corporate and Customer Value Through
Transformation
NEW YORK -- Verizon Communications (NYSEVZ) announced Monday (April 16) that it has become the first Board Company Member of The University of Texas at Dallas School of Managementrsquos innovative new global business and education consortium Enterprise 2020
Markets change quickly making it increasingly important for companies to identify and develop distinctive competencies that are applicable across all industry segments as well as corporate- wide functions The Enterprise 2020 program a partnership between the university and industry leaders is designed to develop new approaches to creating and enhancing corporate and customer value through transformation
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
27
ConsumersWellness
Security
Entertainment
Education
Information
Enterprise
InfoCom
Enterprise
Health Care
CHOSEN
MARKETS
amp
DISTINCTIVE
COMPETENCIES
EnterpriseCyber-Security
MDOliffEnterprise 2020
Enterprise Transformationhellip
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
Ed CantwellPresident amp CEO
22 May 2008
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
29
Customer Value hellip
UbiquityAlways On
Always SynchronizedAlways With You
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
30
Capacity
Signal Strength
Coverage
Distinctive Competencies
Desi
gn
Pla
tfo
rm
Pro
vis
ion
Gu
ara
nte
e
Eco
-syst
em
Wide AreaNetwork
Wireless LocalArea Network
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
31
Customer Value
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
32
Dominancehellip the key requirementshellip
ldquoSignificant changes in the strategy structure and human systems
of the Corporationhellip
hellipEnterprise and IndividualTransformation
MichaelOliffUTDallasedu All Rights Reserved
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
33
3 Keys to Dominance
Creating Value With Customers
Building Distinctive Competencies
Developing Stretch Cultures
MD Oliff all rights reserved 2008
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
34
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive
CompetencyEmployee
Value
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
35
The First Principlehellip in Creating Value
hellip is a Focus on Expectations
What Do You Do To Anticipate InfluenceAnd Exceed Your Customersrsquo Expectations
How Do You ldquoManagehelliprdquo
Your Customersrsquo Expectations
MichaelOliffUTDallasedu All Rights Reserved
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
36
Future Consumer Expectations
Low carb low calorie low sugar content
Health benefits
Wider product selection and choice
Future Customer Expectations
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
37
Consumer Expectations
24-hr availabilityLow cost
Unlimited selectionConvenience
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
38
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
39
Customer Activity Cycles
REACHNG YOUR GOAL
Purchase
Pre-Purchase
Post-Purchase
GIVE BONUS PROMOTION DEALS
TRIAL PERIOD
TOUR OF FITNESS CENTER
GET INFORMATION
CONTRACT STARTSPAYMENT
GOAL IS REACHED
SET ANOTHER GOAL
SET GOAL
PERSONAL TRAINER
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
40
What Bundle Of Value And Benefits
Do You
Create With Your Customer
The Third Principlehellip in Creating Value
Developing Value Propositions
MichaelOliffUTDallasedu All Rights Reserved
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
41
What Is Your Value Proposition
An Offerhellip
ldquoThe Customer Cannot Refuserdquo
ldquoThe Compelling Consumer Experiencerdquo
MichaelOliffUTDallasedu All Rights Reserved
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
August 4 2008 42
Source Team Generated
Customer Consumer Business
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
VBB VBB VBB
Value Benefit Bundles
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
August 4 2008 43
Source Team Generated
Loyalty program More meaningful and personalized communicationsbull Promotions Sales coupons special offersbull Rewards Increased options store credit rewardsbull Improve consumer shopping experience rankings to match best in classbull Increase customer delight ratings by 10bull Increase reward redemption rate by 20bull Customer surveys monitor promotion conversionbull KPIrsquos to monitor consumer shopping experience
Continual review of KPIs associated with the consumer activity cycle to ensure consumer delight
Adjust service offerings as needed
Identifying the VBB
Estimating Potential
Measuring Delivery
Assuring Capture
Consumer VBB
Value Benefits Bundle Consumer
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
44
What Is Your Value Proposition
A central challenge has becomehellip
How do you measure the customer value you help createhellip
hellip and assure proportionate capture
MichaelOliffUTDallasedu All Rights Reserved
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
45
What Is Your Value Proposition
Which Customershellip
Can You NOT Afford To Serve
Your Customer Choicehellip
MichaelOliffUTDallasedu All Rights Reserved
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
46
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
47
A Distinctive Competency is a
corporate-wide ability that
Competitors Fear and
Customers Value
MD Oliff all rights reserved 2008
Definition
Dominance or Death
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
MichaelOliffutdallasedu
Dominance or Death
Building Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
The CONTINUUMThe CONTINUUMOver 60 percent of firms are aware of
The Competency Continuum
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
49
Strategic Intent
Future Trends
amp
Discontinuities
Future Customer
Expectations
Current
Competencies
Future Distinctive
CompetenciesAll Rights Reserved
MDOliff 2008
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
50Source Group Development
Future Trends Future Customer Expectations
Current Competencies
FutureTargeted
Competencies
bullbullCustom Look and FeelCustom Look and FeelbullbullFlexible FinancingFlexible FinancingbullbullInnovationInnovation
bullbullWarranty ManagementWarranty ManagementbullbullConstruction ManagementConstruction ManagementbullbullCustomer Value DevelopmentCustomer Value DevelopmentbullbullTechnology ManagementTechnology Management
bullbullIncreased Buyer IncentivesIncreased Buyer IncentivesbullbullMaster Planned CommunitiesMaster Planned CommunitiesbullbullCost EfficiencyCost Efficiency
Strategic Intent
bullbullBrand ManagementBrand ManagementbullbullResource ManagementResource ManagementbullbullSupply Chain ManagementSupply Chain Management
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
51
Group 9
Future discontinuities
and trends
Targeted future
competencies
Current Competencies
bullDecreasing Family Sizes (US)bullChange in Consumer SpendingbullGlobalizationbullHygiene ConsciousnessbullLonger Life ExpectancybullSpin-off of Neenah Paper
bullConvenient Bulk PackagingbullComfortableReliable ProductsbullLow CostbullCustomer ServicebullConvenienceAvailabilitybullVariety
bullBrand ManagementbullProduct InnovationsbullSupply Chain ManagementbullHR ManagementbullMarketing bullCost Management
bullGlobal Brand ManagementbullCustomer Value FocusbullGlobal Cost ManagementbullPortfolio ManagementbullProduct Innovation
Strategic Intent Model
Future Customer
Expectations
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
52
Future Target Market Future Target Market AnalysisAnalysis
First-Time Home Buyers
25
Established Home Buyers
30
Active Adult Living40
Resort Housing5
As of 2010
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
53
The Competency Continuum
Distinctive Core Corporate Contracted
Operational Processes
Partnership amp AllianceManagement
HR Management
BrandMarketDevelopment
SalesServiceManagement
MampA Growth Management
Product Innovation
Knowledge Management
Installation amp Network Support Services
Financial Management amp
Margin Development
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
54
Dominancehellip key requirementshellip
ldquoThe rapid allocation
hellipreallocation of resourcesrdquo
MichaelOliffUTDallasedu All Rights Reserved
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
55
hellip Focus on Distinctive Competencies
Nokia
ProductInnovation
GlobalBrand
Management
RapidResponse
Connecting Peoplehellip
MichaelOliffUTdallasedu All Rights Reserved
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
56
Determining Distinctive Competencieshellip
Wal-Mart
LogisticsManagement
Brand amp MerchandisingManagement
Customer Value
Development
Delivering Customer Valuehellip
MichaelOliffUTDallasedu All Rights Reserved
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
57
Verizon Distinctive Competencyhellip
Health Care Ecosystem Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
58
Verizon Distinctive Competencyhellip
Health Care Ecosystems Enablement
CareDeliverySupport
CareManagement
Support
CareCoverageSupport
Service
Integration
Consumer Experience
Development
Product
Development
Multiple Platform
Management
Customer Experience
Development
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
59
hellip Focus on Distinctive Competencies
BahlsenDemand
ChainManagement
EuropeanBrand
Management
Product Innovation
Omnipresence and
consumer delighthellip
MichaelOliffUTdallasedu All Rights Reserved
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
60
Constructing Distinctive Competencies
The Phoenix Performance Group Michael D OliffAll Rights Reserved
THE BASIC COMPONENTS OF COMPETENCIES
Resources Resources Resources
Behaviors Behaviors Behaviors
Processes Processes Processes
Capabilities Capabilities
Competencies
Source Michael D Oliff The Phoenix Group SA 1993
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
61
Dominance or Death
Constructing Distinctive Competencies
Source Michael D Oliff The Phoenix Group SA 1995
The Phoenix Performance Group Michael D OliffAll Rights Reserved
A Consumer Products Competency MapCompetency
Capabilities
Processes
Sub-Processes
Resources
Customer
Care
Trade
PartneringService
ExcellenceEnd Customer
Delight
Trade
Marketing
Delight amp Loyalty
Measures
Expectation
ManagementService
Innovation
Electronic Data
Interchange
Space amp
Management
Category
Management
Space
Management
Promo
Management
Customer
ldquoPartnersrdquo
Customer
Database
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
62 AAPPEXEX
Sales and Marketing Development -
Competency Map
Sales amp Marketing
Development
IncreaseInternational
BrandAwareness
CrossFunctional
SalesForce
Leverage Multi-National
Customers
Increase Customer Interaction
Brand Breadth
Sales Force Automation
Sales ForceAutomation
Consumer Interviews
Develop International
MarketingStrategy
3rd Party Marketing
Organization
Capabilities
Processes
Resources
Source Team 6 Analysis
Competency
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
63
Distinctive Competencies ndash The Core Capabilities
Set StrategicDirection
Market Intimacy
Create amp DevelopProducts amp Processes
ManageEuropean Concepts
Brand PortfolioStrategy
Grow and BuildProfitable Brands
Manage the BestCustomer Value
Strategy
Strategic managementOf InfrastructureAnd Technology
Manage EffectivelyCustomer Partnering
ManageMerchandising
Demand forecasting
Integrated Demand Planning
Alliance and Partnering Management
Manage Van Selling
Produce amp Deliver to Demand
I
BR
CV
DC
B a h l s e n
MichaelOliffUTDallasedu All Rights Reserved
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
64
A Framework and 3 Principleshellip
Enterprise amp Individual Transformation
Strategy Structure Systems
MichaelOliffUTDallasedu All Rights Reserved
Purpose
Focus
Discipline
Customer Value
Distinctive Competency
Employee Value
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
65
bull The prevailing business culture is broken
bull The focus should be on the future not the past
bull The best culture promotes a higher purpose
Dan Sanders CEO United Supermarkets
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
66
BUILDING A STRETCH CULTURE
ldquoA culture wherein Teams and individuals voluntarily set lsquoStretchrsquo targets and meet them routinely and consistently rdquo
lsquoStretchrsquo Target ndash is defined as a target being lsquothe best of the bestrsquo
better than internal expectations and better than external competitive benchmarks
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
67
Building A Stretch Culture
Current State
Trust
Support
Discipline
bull Perceived fairness
bull Performance based rewards with consistency
bull Mentor fast track programs
bull Clear and concise best practices
bull Transparent expectations
bull Culture of fairness and high ethics starting from executive management amp all the way down
bull Professional autonomy proper delegation of responsibility by management
bull Professional development and guidance
bull Clear career advancement routes
Current average stretch culture ratings = 07 on a scale of 4 Diagnostic Current impediments to growing the business
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
68
Trust and Engagement SurveyRate on a scale of -2 to +2 (-2=Strongly Disagree -1=Disagree +1=Agree +2=Strongly Agree
About My ManagerFosters a culture of integrity throughout the department -2 -1 +1 +2 NAFocuses on solutions rather than blame when things go -2 -1 +1 +2 NA Gives me enough freedom to do my job and allows me -2 -1 +1 +2 NAAddresses issues honestly and directly -2 -1 +1 +2 NAClarifies why decisions are made amp how they affect me -2 -1 +1 +2 NADiscusses my professional ambitions amp aspirations -2 -1 +1 +2 NAGives recognition amp expresses appreciation appropriately -2 -1 +1 +2 NAMakes my priorities clear with well-defined expectations -2 -1 +1 +2 NAShows concern for me as an individual -2 -1 +1 +2 NACreates a climate which encourages excellence -2 -1 +1 +2 NA
About My WorkplacePeople here are honest and treat each other with respect -2 -1 +1 +2 NAI can see how my performance affects organizational goals-2 -1 +1 +2 NAWe have a competitive compensation system -2 -1 +1 +2 NAI am part of a team and we can depend on each other -2 -1 +1 +2 NAMy work is challenging -2 -1 +1 +2 NAMy capabilities are fully utilized at work -2 -1 +1 +2 NAAt the end of day I feel good about my accomplishments -2 -1 +1 +2 NI would recommend this company to my closest friends -2 -1 +1 +2 NALittle in this organization prevents me from performing -2 -1 +1 +2 NAat optimum levels every day
Enterprise 2020 and Performisys
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
69 AAPPEXEX
TrustEngagement -
Manager
Source Management Survey ndash Team 6
Average for all statements
086
047
085
082
-200 -150 -100 -050 000 050 100 150 200
Fewer than 5 years (23)
5 - 10 years (9)
11 - 15 years (16)
More than 15 Years (17)
Total Respondents 66
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
70 AAPPEXEX
About My Workplace
Source Management Survey ndash Team 6
Av e ra g e o f All Re s p o n d e n ts
-2 -1 5 -1 -0 5 0 0 5 1 1 5 2
No thing in this o rganiza tion p revents m e from pe rfo rm ing a top tim um leve ls eve ry day
M y capab ili tie s a re fully uti lized
W e have a com parab le com pensa tion system conside ring o the rcom panies and o rganiza tions
P eop le he re a re honest fo rthright and trea t each o the r w ithrespect
I would recom m end a job w ith this com pany to m y c losest friends
I am pa rt o f a team and we can depend on each o the r
A t the end o f the day I fee l good about wha t I have accom p lished
I c lea rly see how m y pe rfo rm ance a ffec ts the o rganiza tions ab ili tyto m ee t i ts goa ls
M y wo rk is cha lleng ing
Total R es pondents 66
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
71
Culture Grid- Before 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
72
Culture Grid- Before 2001 After 2001
Rituals amp Routines
Structure amp Decision Making Process
Measures Power amp Control
Career Assumption
Roles
StoriesInformation
Policy
Values amp Culture
bullPure sales goalbullCustomer notIncl in surveyingDelight
bullOutright growth
bullProduct and geography focus
bullIndividualRecognition amp reward
bullTraining not driven on Customer Delight
bullAt mgmt level only
bullVague
bullOnly top mgmt knew direction
bullMiddle mgrs not accountable for their team
bullConsistent Transparent
bullRisk mgmt at all levels
bullTeam building bullTeam rewardsmdash performance based
bullBank of America Spirit training
bullEmployee empowered
bullProfit and customer value focusedbullAcross all levels
bullProcess KPIrsquosbullRelationship BuildingbullRapid feedbackbullSpirit PointsbullShareholder value added
bullStructured comm of corp goals
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
73
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies
All rights reserved Prof M D OliffMichaelOliffutdallasedu
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
74
StrategicIntent amp
ResourceAllocation
Employee ValueDevelopment
Brand ValueDevelopment
Partner ValueDevelopment
Customer Value Development
2020 Distinctive Competencies CapabilitiesOffer Innovation And Development
Key Value Driver Management amp Feedback
Demand Chain OptimizationDemand Generation
Communications amp ConnectivityComplex Program Mgt
All rights reserved Prof M D OliffMichaelOliffutdallasedu
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
75
Dominancehellip
ldquoThe ability to sustain influence hellipin your chosen marketsrdquo
MichaelOliffUtdallasedu All Rights Reserved
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
76
1 Customer Value Vision (or Burning Platform)
2 Strategic Intent
3 Communication Campaign
4 Complex Program Management
5 Competency Build
6 Stretch Culture Program
7 Key Performance Indicator (KPI) System
All Rights Reserved M D Oliff 1996
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
77
Dominance or Death
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
78
Dominancehellip The need to transform the enterprise
By leveraging DCrsquoshellipresource re-allocationBy doubling human capitalhellipstretch cultureBy creating ever increasing value with customershellipthe mandate of every operation and individual
and The need to transform yourselfhellip
By aligning individual purpose with corporate strategyBy hellip relentless individual focusBy hellipconsistent personal discipline
Both require you to focus on Potentialhellipnot only Performancehellip
79
79
