16 Unblock Growth - cdn.ymaws.com

Position Design Reinvent

Sixteen essential actions to unblock growth

Chairman's Network hosted by Investec

Sikander Shaukat – Management Scientist

Corporate Background

• 25 years in Sales, Marketing and Product Management

• Helping corporates to grow, developing new products and ventures…

• Ericsson digital exchanges

• NCR ATMs into banks

• BT/ICL Call Centres into banks

• Credit Suisse’s client servicing

• Sloan Masters from the London Business School

Current Consulting

• Barclays customer value and sales

• Emirates NBD customer servicing

• Barclays Corporate Bank strategy for BRIC

• Sales and servicing in the PO

• NHS acute trust business planning

• Private Banking Private Banking Private Banking Private Banking training design to gain European level 6 certification

• Business planning and valuations for Private Equity investments

2Copyright© 2018 Value Dynamics LLP

Limitations to growth….

and actions to resolve

Brief introductions - experiences and expectations (15 mins)

Set the Context and Scope

Sixteen actions - presentation (30 min)

Discussion (20 mins)

Cases of real situations encountered and discussion (30 min)

Copyright© 2018 Value Dynamics LLP 3

Expectations from this session

Growth management experiences

Introduction


Context

The scope

of this

discussion

is

Post start-up business, in the growth

phase

Large organisations

with aspirations to

grow

A proven market that

exists

Market plans and

competitive strategy are all in place


Seeing business from a different lens

How business that grow How business that grow How business that grow How business that grow

successfully see themselvessuccessfully see themselvessuccessfully see themselvessuccessfully see themselves

Business Organisation

Ethos Desire Capability Blueprint Assets

• Goals

• Product-markets

• Basis of competition

• Drivers of value

• How people evolve

• How the business

evolves

• Beliefs

• Values

• Decision-making

• Working groups and

teams

• Coordination

• Corporation

• Group competence

• Structure

• Processes

• Targets and KPI

• Volumes and Scale

• Targets

• Plant and Machinery

• Infrastructure

• Intellectual Property

and Recipes

• Partners

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Ethos, culture - blockers


Decision-making

bottleneck.

Decision-making dispersed.

Usually in line with responsibility for value

drivers.1

Leaders focus on products.

Focus instead on enhancing customers, internal capability and

organizational development, and

governance.

2Key staff, begin

to lose their association and commitment.

Career progression pathways, and job

families.3Changes driven by the leader, disillusions the

other stakeholders.

A model of change; socialized, tested, learned from, and

refined, that engages and brings along all key

stakeholder.

4

Desire, business motivation, strategy - blockers


Excessive selling.

Stop selling. Customer retention is what lays the

golden egg.5

Direction – ‘lost in translation’

Leaders need to create listening mechanisms and ‘walk the floor’.6

Competitors retaliate.

Predefine offensive and defensive strategies.7

Capability - blockers


Everyone doing everything.

Shift from concentrated, agglomerated capability

to differentiated, bounded, specialised

capability teams. 8

Insulated leaders.

Use the solution to six –listening mechanisms

and ‘walking the floors’9

Blue print - blockers


Change vs keep conflict.

Formal change leadership and decision-

making expertise.12Customer

disruptions and complaints.

Authority and latitude for the first line staff

needs boosting.13

Efficiency measures show inefficiencies.

That's OK.

Scaling lag, differentiated capability, demand

response lag.10

Process changes.

Dedicated management.11

Asset - Blockers


Original infrastructure.

Upgrade.14

Recipes and equipment.

Change under a informed leadership of change.15

Runaway and misguided technology

changes

Asset strategies with optimisation of OPEX/CAPEX.16

Case one – decision making clock-speed

Late 1990s early 2000s when working in Asset Management

• A well informed and established industry prevailed in the city.

• They managed money and public trusts.

• Important people met every 3 months.

• They controlled risks.

• Made decisions about rebalancing portfolios.

• Performance measures and NAV took up to 30 days to publish.

• Portfolio managers had a celebrity status.

• Highly regulated.

About the same time

• Some mavericks decided to

• Take high risk differently (shorter duration),

• Making decisions within a day (if not within an hour).

• They registered offshore (if at all) – e.g. unregulated.

• They traded on price mismatches - arbitrage, shorting, hedging and events.

• They made a lot of money for themselves and their investors.

• They became the new masters of the Universe – the Hedge Funds.


Case two – borrowed Desire

• Demise of Laker led to the rise of Dan Air and Easy Jet.

• These were relatively successful.

• BA responded by introducing Go? To compete in the low-cost airline space.

• They failed.

Ethos

• Decision makers were not available when delays occurred.

• How things were done around here was not amenable to agility of a low cost provider.

Capability

• Manging large, complex routes- managing huge knock-on effect down stream vs managing point to point travel, short

haul travel and limited routes.

Blueprint

• Long complex processes with many rules and approvals vs simple, short, responsive processes.

Assets

• Many complex assets, large army of skills, scheduling and organisation vs fewer - requiring less variation in skills,

learning.

• Complex routing and ticketing system vs simple almost bus like service.


Case three - borrowed Blueprint

Issues in the Post Office

• Customer satisfaction, staff morale and income issues in a postal and banking services provider.

• Large management team including Unions and a consultancies involved.

• The usual focus on optimising the blue-print and further automation.

Our response

• Modelled stakeholders position, framed problem, researched customer missions, reviewed front line

staff issues.

• Real problem was aggressive branch level sales-targets issued weekly. A model borrowed form the

telco. industry by the new management.

• Overselling by front line staff and extreme discomfort doing so – had a good feel for the absorption

capacity of customers.

• Customers complaining and uncomfortable about pressured.

• Reversed the sales model to a pull model, removed targets. Overdelivered on objectives.


Mini cases – my Asset

My customers – BT

• When building a Systems Integration business for BT.

• Account Manager/s: “My customer relationship is the Telco manager and we only sell up to the socket in the wall. He will be

upset if we spoke to more senior management.”

My money – Banks

• When permeating banking with ATMS.

• Branch Manager/s: “I get interest by putting cash in the vault. Putting £40000 in ATM cannisters every night looses me income.”

My way of scanning files – Insurer

• When putting in imaging for documents management.

• Underwriter: “I scan a file very quickly this way” – keeping selected pages turned around a number of different fingers. “I flick

back and forth between the pages to get a full view of the risk. Imaging will deprive me of this facility and speed.”

My KPI system – Bank

• When permeating Call Centre technology and services in Banking.

• Operations Director: “I don’t want to loose my KPI and related management system that I got a major consultancy to develop.”


Final Thoughts

Recognise that a business has many dimensions that interconnect and these influence each other.

For example, a business is in five markets at the same time – for customers, for skilled staff, for funds,

for regulation, and for suppliers.

Taking a one-dimensional view combined with isolated cause and effect approach, without looking at

knock-on implications may produce the impacts below.

• Large ramifications downstream of the business.

• Unintended consequences.

• An equal and opposite reaction to every action.

Good luck!


The small print

Confidential. This document is provided for the purposes of your discussions with Value Dynamics LLP. This document, and extracts

from it and the ideas contained within it, may not be used for any other purpose and may not be disclosed to any third parties.

Copyright © 2018 Value Dynamics LLP. All rights reserved.

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A list of members is available at the registered office.

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www.valuedynamics.uk.com

Value dynamics LLP is a London based innovation services firm. We helps clients grow their top-line profitably. Our services include New Product and Services Design, offerings, and pricing.

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16 Unblock Growth - cdn.ymaws.com