“Instant Infrastructure: GE Becomes a General Store for Developing Countries” —headline/ NYT
UTC/Otis + UTC/Carrier: boxes* to “integrated building systems” *elevators, air conditioners
I. LAN Installation Co. (3%) II. Geek Squad. (30%.) III. Acquired by Best Buy. IV. FLAGSHIP OF BEST BUY WHOLESALE “SOLUTIONS” STRATEGY MAKEOVER.
“ ‘Results’ are measured by the success of all those who have purchased your product or service” —Jan Gunnarsson & Olle Blohm, The Welcoming Leader
Era #1/Obvious Value: “Our ‘it’ works, is delivered on time” (“Close”) Era #2/Augmented Value: “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”) Era #3/Complex Value Networks: “How our ‘system’ can change you and deliver ‘BUSINESS ADVANTAGE’” (“Culture-Strategic change”) Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale
“Customer Satisfaction” to “Customer Success” “We’re getting better at [Six Sigma] every day. But we really need to think about the customer’s profitability: Are customers’ bottom lines really benefiting from what we provide them?” —Bob Nardelli, then chief of GE Power Systems
Universal Value Added: The PSF Solution (or bust)
“I believe that ninety percent of white-collar jobs in the U.S. will be either destroyed or altered beyond recognition in the next 10 to 15 years.” (22 May 2000/cover/Time magazine)
“ ‘Disintermediation’ is overrated. Those who fear disintermediation-outsourcing should in fact be afraid of irrelevance; ‘outsourcing’ is just another way of saying that … you’ve become irrelevant to your customers.” —John Battelle/Point/AdvertisingAge “A bureaucrat is an expensive microchip.” —Dan Sullivan, consultant and executive coach
Sarah: “ Mom, what do you do?”
Sarah: “ Mom, what do you do?” Mom: “I’m ‘overhead’—the ‘bureaucrat’ who runs the ‘cost center’ called ‘Human Resources.”
Anne: “ Mom, what do you do?”
Mom: “Anne, my human resources team and I are the ‘Rock Stars of the Age of Talent.’ We drive our division’s strategic success.”
Department Head/“Cost center”/“Overhead” to … Managing Partner, HR[IS, R&D, etc.]Inc.
HCare CIO: “Technology Executive” (workin’ in a hospital) Or/to: Full-scale, Accountable (life or death) Member-Partner of XYZ Hospital’s Senior Healing-Services Team (who happens to be a techie)
Fleet Manager Rolling Stock Cost Minimization Officer vs/or Chief of Fleet Lifetime Value Maximization Strategic Supply-chain Executive Customer Experience Director (via drivers, etc.)
PSF Transformation: Credit Department/Trek WasIs Credit Dept Financial Services Hammer on dealers untilMake dealers successful so they pay. they CAN pay.AR sold to 3rd party Trek is the commercial financial commercial co. Company 23 employees 12 employees Oversee peak AR of $70M Oversee peak AR of $160M Identify risky dealers Identify opportunities Cost Center Profit Center No products Products: Consulting, MC/Visa, Stored value of gift cards, Gift card peripherals, Online payments Source: John Burke/0330.06
Are you/your gang the … “Principal Engine of Value Added”
Big Idea: “Corporation” as MEGA-“PSF”
PSF/Professional Service Firm/Beliefs PROFESSION: CALLING/PASSION TO MAKE A DIFFERENCE/EXCELLENCE (ALWAYS) POINT OF VIEW: KNOW EXACTLY WHAT WE STAND FOR/“DRAMATIC DIFFERENCE” CLIENT: ENDURING, TEST-THE-LIMITRELATIONSHIP/“TRUSTED ADVISOR” SOLUTION: ROCK HIS-HER WORLD/ “WOW”/IMPLEMENTED “CULTURE CHANGE”/ >>> “SATISFACTION”
Iron Innovation Equality Law: The Quality and Quantity and Imaginativeness of Innovation [and “R & D” per se] … shall be the same in all functions —e.g., in HR and purchasing as much as in marketing or product development.*
Every “PSF” musthave a formal & formidable R&D budget. PERIOD.
The Professional Service Firm50: Fifty Ways to Transform Your “Department” into a Professional Service Firm Whose Trademarks Are Passion and Innovation!
Photographer: Louise Roach
Photographer: Louise Roach
Best (Beats Being the Biggest)
“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious … Source: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics
“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious: Buy a very large one and just wait.” —Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics
Dick Kovacevich: YOU DON’T GET BETTER BY BEING BIGGER. YOU GET WORSE.”
“Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. They found thatNONEof the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.” —Financial Times
“It’s just a fact: Survivors underperform.” —Dick Foster