Service Delivery and Value Disciplines

A Strategy and Change Management Presentation

The Era of Service Economy

Excellent Service Hallmarks In raising service quality, the following must be noted:

5 Variable Model of Service Quality

1. Assurance

2. Empathy

3. Responsiveness

4. Reliability

5. Tangibles

Case Study from Fast-Company:

“Change Agent” by Seth Godin

““Drop your Competence, Drop your Competence, Adopt the Right Attitude”Adopt the Right Attitude”

Managing a Building Project – A Story by Seth Gordin

"My wife and I decided to add a couple of rooms onto our house." Our criteria for the project were, in order, "fast," "good," and "cheap." We were clear about our goals.

We were determined to avoid disaster. So we took our time and found a competent architect. That was our first mistake.

Then we searched until we found a competent contractor. Great references, solid reputation. That was our second mistake.

The Customer’s Expectation Versus The Service Provider’s Competence

Unfortunately, our contractor and our architect had both built their reputation around "good." "Fast" was not a concept that they really understood.

Try as we might, nothing would change their focus. Order windows before the building permit comes through? Too radical. Have two teams working on the project at the same time -- one upstairs, the other in the basement? "Well, I guess some might do it that way, but you hired us for our reputation. So you've got to trust that our way is the best way.“

If these guys were building a skyscraper, it would take them 40 years to complete it.

Competent people have a predictable, reliable process for solving a particular set of problems. They solve a problem the same way, every time. That's what makes them competent.

The Take-out

What is Competence Anyway?

Competent people are quite proud of the status and success that they get out of being competent. They like being competent. They guard their competence, and they work hard to maintain it.

In fact, competence is the enemy of change!

Competence and Change Competent people resist change. Why? Because change

threatens to make them less competent. And competent people like being competent. That's who they are, and sometimes that's all they've got. No wonder they're not in a hurry to rock the boat.

Just think of the risks that come with embracing anything other than competence. What would that mean to my contractor? A fresh approach to project management -- one that could prevent me from standing in my house as snow blows in through that hole in the wall where the window should be -- would expose his team to all sorts of risks. It would mean that his reputation as a competent builder would be threatened.

The New Perspective: Young against the Old?

So many of the new companies that are creating wealth today are run and staffed by very young people.

Because they have very little work history, these people haven't fallen prey to becoming competent.

They don't have to unlearn bad habits. They're not interested in maintaining their competencies -- because, frankly, they don't have any.

The Flip-side

But this reliance on the young is dangerous. Why? Because as these new companies get locked into

a successful business model, they create a layer of very successful, very young, and in some cases very arrogant managers.

And these managers are the most dangerous competents of all: the ones who will do everything in their power to fight the next round of necessary changes, because they're in love with their newfound competence

What Does it Take for Service Excellence It doesn't take a lot of time to change your

business plan radically, to reinvent your marketing proposition totally, or to redesign the way you deal with consumers completely.

No, it doesn't take time; it takes will. The will to change. The will to take a risk. The will to become incompetent -- at least for a while.

The Abridged Case-Study on slide 2 – 10 was culled from

“The Change Agent” By Seth Godin (Fast-Company Magazine, Issue 31, December 1999, Page 230)

Strategy and Value Propositions

What is Strategy?

It is about plotting and executing sustainable superior performance over competition.

It is about delivering superior value above competition and gaining a higher market mileage.

Levels Of Strategy Making

Corporate Strategy

Business Strategies

Functional Strategies

Operating Strategies

Two-Way Influence

Two-Way Influence

Two-Way Influence

Corporate-Level Managers

Business-Level Managers

OperatingManagers

Functional Managers

Understanding Corporate Strategy

CorporateStrategy

Approach tocapital allocation

Scope ofgeographicoperations

Moves to add newnew businesses

Moves to build positionsin new industries

Efforts to capturecross-businessstrategic fits

Moves to divestweak business units

Is diversificationrelated, unrelatedor a mix?

From Corporate to Business Strategy

Efforts to buildcompetitiveadvantage

Responses to changingconditions

Scope ofgeographiccoverage

R&D strategy

Supply chain management strategy

Manufacturing strategy

Humanresources strategy

Finance strategy

BusinessStrategyFunctional Strategies

Marketing / PRstrategy

Aligning Strategy to Value Delivery

SERVICE PROVIDER CLIENTVALUE-SELLING

A Clientdriven Value Proposition

An EfficiencyExpectant Value Equation

PROFIT

How To Sell on Value Value delivery is the basis of the existence of

Advertising Practice

However, given the gradual decline in the differentiation of Brands based on quality, value delivery in most industry began to wear the toga of monotony and stasis.

Value delivery soon became defined in terms of Client service innovation.

This because Advertising is based on the understanding of Clients changing needs and attitude

Selling on Value: Cases from the Masters

DELL Cut off the middleman in the distribution of Computer

Hardware and Customized Brands to suit individual Consumers, thereby beating competitors like HP, Compaq and IBM.

PEPSICO Shifted emphasis from the production of carbonated

soft drinks to production of energy drinks and other related Brands in order to take advantage of changes in trends and consumption attitude, thereby beating a competitor like Coca-Cola in terms of profit.

Selling on Value: The Nigerian ExperienceZENITH BANK Redefined the concept of Banking in Nigeria by

introducing On-Line-Real-Time Banking and Convenience Banking before it became the minimum standard of entry thereby beating Competitors like Guaranty Trust and Diamond Bank.

EKOCORP Redefined health care delivery in Nigeria by being the first

publicly quoted Hospital. Through its access to funds from the capital market, it was able to raise enough funds to procure state of the art medical equipment and hire experienced personnel thereby raising the bar in private health care delivery.

How to Get There It is proven that innovation based on technology or

efficiency in service not targeted at the Client do not positively affect the bottom-line

Most profitable innovation therefore are built around the Client.

This is because the Client is at the core of Value Delivery and Profit Maximization

It is therefore essential to build a Client centric value delivery process in order to engender loyalty.

What Does it Take to get there?

Understand What The Client Really Value

You may find that product cost is a small component of the Client’s total cost and that price is only one of the many variables that Clients consider. To build loyalty you must understand the Client’s Life Time Value (LTV) and align this with your Product’s Lifecycle.

Develop Flexible Market Brands

No PR Firm can satisfy all Client segments with the same Brand. PR Firms need to create flexible market Brands. These are bundles of products, service and information that Clients can configure and customize to suit their priorities. PR Firms sometimes bundle extra benefits with their product, but the truth is that not all Clients value these services. Allow Clients to choose the service they value and pay for only what they use.

Communicate your Value Proposition

PR Firms need to educate Clients about the elements of their value proposition in order for them to fit these into their equation. Without this, the PR sales force will only use price as its competitive weapon. There is therefore the need to educate the Clients on the economic benefits of the Non-Price-Variables embedded in PR Brands.

Be Open and Honest

A lot of People believe that transparency is an enemy of profit. They reason that Clients will take advantage of better information to drive down prices and profit, but the truth is that there can be no loyalty where there is no trust and trust is better built in an open and honest relationship.

Develop a Client Data-Mining Process

Client data and models based on this data can help inform you of Clients most likely to respond and become loyal, no matter what kind of front-end marketing program you are running or how you "wrap it up" and present it to the Client.  The data will tell you who to  promote to, and how to save precious marketing naira in the process of creating Clients who are loyal to you.

How does Value Delivery Connect with me?

What Helps to Add Value? Why do organisations

craft vision and mission statements?

What drives shared values and corporate culture?

What is at the core of Strategy and Execution?

PEOPLE Staff Human Capital Me…

It’s All About Value Delivery

Business Strategy is all about the delivery of superior value.

What Are Value Disciplines? These are the platforms for the delivery of value. These are:

It’s All About Winning Value discipline establishes the criteria for charting

the course to market success:

Let’s Begin a Dialogue!

What’s Our Value Proposition? In today’s work-place, each Staff needs to ask the

question: Do I understand the demands of our Value Proposition and the Customer’s expectation?

Managers need to ask the question: How do I make my direct reports more effective and competitive?

To deliver on our Value Proposition and satisfy the needs of the customer, we need to individually ask ourselves what our interests are, what motivates us and what potentials do we have to make the change?

What’s in it for Me? Your work determines your survival

Your work defines your goals and aspirations

Your work defines your future

Your work define who you are and where you are going.

Who are You? Are you conservative and uptight? Are you free-spirited and outgoing? How does this fit into the aspiration of

Quadrant? Before coming to Quadrant, we all came

from diverse backgrounds, with different experiences and aspirations.

Can we bury our individual experiences, norms and habits and merge with the group?

What Does Quadrant Mean to You?

Where do you think you are collectively going?

What’s your place in this race? Are we really on the race track? Who are we running with? What will it take for us to win?

Lets Bury Our Difference

“Non of us is as important as all of us”.

Lets combine our talents and skills to build our collective dream.

Team-work wins.

Delivering our Value Proposition

OUR CUSTOMER SERVICE MODEL

the approach we use to deliver our promise

e. How do we do the things we do?

OUR ACCOMPLISHMENTSHow far are we in the achievement of our aspiration

d. Where are we?

OUR PROMISEthe benefits we deliverc. Why we do the thing we do?

OUR PRODUCTSour Brands to this targetb. What do we do?

OUR MARKETour primary targeta. Who are we?

What We Need to Consider An organisation can boost productivity by restructuring and

removing bureaucracy , but it cannot sustain high productivity without having a motivated and committed work-force.

Your emotional energy must be focused on the competitive war out there.

The new psychological contract which you should have with your job, is: “THIS IS THE BEST JOB IN THE WORLD” and you are going to do all within your power to keep it.

For Management, its time to reward you according to your performance, because good people are an organisation’s greatest asset.

Mindset and Skill-sets Constantly ask questions when in doubt.

Strive to develop yourself on the Job.

Stay focused on delivering the goods.

Be prompt and punctual at your duty post.

You have the freedom to be constructively creative.

Think up new ways of improving the process and make suggestions.

Don’t be a laggard.

The New Rule of the Game Lateness is a cardinal sin

No more odd Break Hours.

Give more than a fair day’s work for a good pay.

Avoid conflicting interests

Let the Fun Begin…

The ExpectationThe AttitudeThe Understanding

Our Vision Our Mission Our Values

Remember: “Change Begins with me”

Thank you