[ Words to Live By … “Hierarchy is an organization with its face toward the CEO and its ass toward the customer.” Kjell Nordström and Jonas Ridderstråle, Funky Business]
Anne Busquet/ American Express Not: “Age of the Internet” Is: “Age of Customer Control”
Amen! “The Age of the Never Satisfied Customer” Regis McKenna
“The Web enables total transparency. People with access to relevant information are beginning to challenge any type of authority. The stupid, loyal and humble customer, employee, patient or citizen is dead.” Kjell Nordström and Jonas Ridderstråle, Funky Business
“Parents, doctors, stockbrokers, even military leaders are starting to lose the authority they once had. There are all these roles premised on access to privileged information. … What we are witnessing is a collapse of that advantage, prestige and authority.” Michael Lewis, next
“A seismic shift is underway in healthcare. The Internet is delivering vast knowledge and new choices to consumers—raising their expectations and, in many cases, handing them the controls. [Healthcare] consumers are driving radical, fundamental change.” Deloitte Research, “Winning the Loyalty of the eHealth Consumer”
Welcome to D.I.Y. Nation: “Changes in business processes will emphasize self service. Your costs as a business go down and perceivedservice goes up because customers are conducting it themselves.” Ray Lane, Oracle
Psych 101: Strongest Force on Earth? My need to be in perceived control of my universe!
No! No! No!FT: “The aim [of CRM] is to make customers feel as they did in the pre-electronic age when service was more personal.”
One Person’s Opinion TP to reporter: “Service is MUCH better! Would you go back to bank tellers and phone operators? Value that I place on a “smile”: 3 on a scale of 10. Value I place on fast & accurate “digital” response: 11 on a scale of 10!!
CGE&Y (Paul Cole): “Pleasant Transaction” vs. “Systemic Opportunity.” “Better job of what we do today” vs. “Re-think overall enterprise strategy.”
Here We Go Again: Except It’s Real This Time! Bank online: 24.3M (10.2002); 2X Y2000. Wells Fargo: 1/3rd; 3.3M; 50% lower attrition rate; 50% higher growth in balances than off-line; more likely to cross-purchase; “happier and stay with the bank much longer.” Source: The Wall Street Journal/10.21.2002
III. NEW BUSINESS. NEW VALUE PROPOSITION.
5. The “PSF Solution”: The Professional Service Firm Model.
Sarah: “ Daddy, what do you do?” Daddy: “I’m a ‘cost center.’ ”
Every job done in W.C.W. is also done “outside” …for profit!
Answer: PSF! [Professional Service Firm]Department Head to … Managing Partner, HR [IS, etc.] Inc.
TP to NAPM: Youare the … Rock Stars of the B2B Age!
Message: You are Re-invention Evangelists!
TP to HRMAC: Youare the … Rock Stars of the Age of Talent!
“P.S.F.”: Summary H.V.A. Projects (100%) Pioneer Clients WOW Work (see below) Hot “Talent” (see below) “Adventurous” “culture” Proprietary Point of View (Methodology) W.W.P.F. (100%)/Outside Clients (25%++) When: Now!
BMW’s Designworks/USA: >50% from outside work
G.M. = The Recruitment and Development of Top Talent. [Period!] V.C. = Bets on “Talent.” Bets on Projects. [Period!]
Dept. Head I = Sports G.M. Dept. Head II = V.C.
eHR*/PCC** *All HR on the Web **Productivity Consulting Center Source: E-HR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM
Is There a There There: The Ericsson Case 1. 50+% Mfg to Solectron/Flextronics 2. Substantial R&D to India 3. Division for licensing technology 4. JV with Sony on “crown jewel” handsets 5. Net: “a wireless specialist that depends on services more than manufacturing, on knowledge more than metal” Source: BW/11.04.02
Model PSF …
(1) Translate ALL departmental activities into discrete W.W.P.F. “Products.” (2) 100% go on the Web. (3) Non-awesome are outsourced (75%??). (4) Remaining “Centers of Excellence” are retained & leveraged to the hilt!
“Typically in a mortgage company or financial services company, ‘risk management’ is an overhead, not a revenue center. We’ve become more than that. We pay for ourselves, and we actually make money for the company.”—Frank Eichorn, Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas.com)
What Do I “Do” First? One Minute Excellence!* *Thomas Watson
Culture Change is not “Corporate.” Culture Change is not a “Program.” Culture Change does not take “Years.” Culture Change does not start “Today.” Culture Change starts Right Now! Culture Change Lives in the Moment! Culture Change is Entirely in Your Hands!
6. The Heart of the Value Added Revolution: PSFs Unbound/ The “Solutions Imperative.”
Base Case: The Sameness Trap
“Companies have defined so much ‘best practice’ that they are now more or less identical.” Jesper Kunde, Unique now ... or never