Change Leadership-Understanding the Role of Management in Achieving Business Process Excellence

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http://totallyunrelatedrandomanddebatable.blogspot.com/
Change Leadership
:Understanding the Role of Management in Achieving Business Process Excellence
Case Study, Concepts, and Debatable Ideas
Kenny Ong
Unilever Network Malaysia

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Today…
13th April 2009
•Two Domino’s employees
•YouTube
•Apology from Domino’s after 48 hours
•1 million hits
•Twitter: questions on silence
•LinkedIn: suggestions by users in forum
BusinessWeek, May 4, 2009

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Domino’s GPS Tracker

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€50 Billion
Worldwide sales in 2011
2 billion people Use Unilever’s products Each day worldwide
400 Brands
Sold in 180 countries
167,000 employees
Work for Unilever
130 YEARS & STILL GROWING

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Understanding Your Business Model and Strategy
What EXACTLY Do You Want To Change?

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The McPlaybook*
Make it easy to eat
•50% drive-thru
•Meals held in one hand
Make it easy to prepare
•High Turnover
•Tasks simple to learn & repeat
Make it quick
•“Fast Food”
•Tests new products for Cooking Times
Make what customers want
•Prowls market for new products
•Monitored field tests
*Adapted from: Businessweek , Februrary 5th 2007

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What is the Business Model?
USP
Market Discipline
Profit Model
•Google
•Tata Nano

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Business Model: USP
Unique Selling Proposition (USP)
=
Targeted Customer
=
Core Buying Purpose/ Customer Value Proposition/ Job To Be Done (JBTD)

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Business Model: USP
“The Product is Not the Product”
•What is the customer really buying?
•What is the “Core Buying Purpose”?

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Business Model: Profit Model
Revenue
Cost
Margin
Cash
Flow
Assets

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What is the Business Model?
USP
Market
Discipline
Profit Model

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Market Discipline
"They are the most innovative"
"Constantly renewing and creative"
"Always on the leading edge"
"A great deal!"
Excellent/attractive price
Minimal acquisition cost and hassle
Lowest overall cost of ownership
"A no-hassles firm"
Convenience and speed
Reliable product and service
"Exactly what I need"
Customized products
Personalized communications
"They're very responsive"
Preferential service and flexibility
Recommends what I need
"I'm very loyal to them"
Helps us to be a success
Product Leadership
Operational
Excellence
Customer
Intimacy
•Cost
•Convenience
•TCO
•Features, Benefits
•Limited Range
•Solutions
•Customization
•Breadth & Depth

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Market Discipline
"They are the most innovative" "Constantly renewing and creative" "Always on the leading edge"
"A great deal!"
Excellent/attractive price
Minimal acquisition cost and hassle
Lowest overall cost of ownership
"A no-hassles firm"
Convenience and speed
Reliable product and service
"Exactly what I need"
Customized products
Personalized communications
"They're very responsive"
Preferential service and flexibility
Recommends what I need
"I'm very loyal to them"
Helps us to be a success
Product Leadership
Operational
Excellence
Customer
Intimacy
•Air Asia
•LV
•Ramly

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Operational Excellence
(low cost producer)
Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
Product Leadership (best product)
Customer Intimacy (best total solution)
Alignment & Consistency: Market Disciplines

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Operational Excellence (low cost producer)
Customer Intimacy
(best total solution)

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(low cost producer)

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•Competitive price
•Error free, reliable
•Fast (on demand)
•Simple
•Responsive
•Consistent information for all
•Transactional
•'Once and Done'
Customer Intimacy
•Management by Fact
•Easy to do business with
•Have it your way (customization)
•Market segments of one
•Proactive, flexible
•Relationship and consultative selling
•Cross selling
Product Leadership
•New, state of the art products or services
•Risk takers
•Meet volatile customer needs
•Fast concept-to- counter
•Never satisfied - obsolete own and competitors' products
•Learning organization
Alignment & Consistency: Disciplines, Priorities, and KPIs

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Customer Intimacy
(best total solution)
Alignment & Consistency

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(low cost producer)
Alignment & Consistency
HP well-balanced portfolio, mass customization
Acer super lean cost structure, aggressive pricing
Apple powerful products, premium pricing, limited range
Still Doing well in 2009/2011

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Market Disciplines: Hardware
Samsung well- balanced portfolio, mass customization
‘Locals’ super lean cost structure, aggressive pricing
Still Doing well in 2012- 2014

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Market Disciplines: Technology
Google well- balanced portfolio, mass customization
Amazon super lean cost structure, aggressive pricing
Still Doing well in 2012- 2013

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Alignment & Consistency: Business Model
USP
Market
Discipline
Profit Model

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Change & Culture
Developing A Change Culture In The Organization

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“Cow don’t drink water cannot push cow head down”

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Change: 4-Wheels Model
Culture
Business
Model
Strategic Planning
Structure
Person
Leadership
Resources

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Change: Framework
•Org Structure
•Job Design
•C&B
•Policies & procedures
•Decision making
•Job fit
•Management Systems
•BSC and KPIs
•Decentralized & Empower
Structure

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Change: Framework
•Role modeling
•Vision/Mission/Philosophy
•Leadership Style
•Delegation & Empowerment
•C&B, Promotions
•Sense of Urgency
•Speak regularly about Performance
Leadership

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Change: Framework
•Recognition
•Recruitment
•Training
•Attitude
•Values
•Motivation
•Self Efficacy
•Awareness
•Useful Competencies
•Career aspirations
•Attribution (control)
Person

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Change: Framework
Enablers or Obstacles
•Technology
•Equipment
•Materials
•Human
•Intellectual Property
•Partners
•Property
Resources
Funding
•CAPEX
•OPEX

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Change: Framework
•Focus point
•Alignment
•Quality
•Innovation & Differentiation
•Risk taking
•Performance Management
•Corporate obsession
•Decision making
Culture

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4-Wheels Model
Culture
Business Model
Strategic Planning
Structure
Person
Leadership
Resources

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Curse of the Bell Curve
‘A’ Staff
‘B’ Staff
‘D’ Staff
‘E’ Staff
‘C’ Staff

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Role Of The Leader
You Are Paid To Do What You Need To Do, Not What You Like To Do

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Role #1: Study

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Which Company?
American Customer Satisfaction Index (ACSI)
•64 out of100-point scale: lower than IRS (Tax)
•2nd last among 30 companies surveyed
•Lowest 5% among 223 companies surveyed
•Bottom 5% of all measured private sector companies
•500 million customers
2010 American Customer Satisfaction Index (ACSI) E-Business Report

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Which Company?
American Customer Satisfaction Index (ACSI)
•64 out of100-point scale: lower than IRS (Tax)
•2nd last among 30 companies surveyed
•Lowest 5% among 223 companies surveyed
•Bottom 5% of all measured private sector companies
•500 million customers
2010 American Customer Satisfaction Index (ACSI) E-Business Report

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Popularly Unpopular
Popularity
≠
Affection

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Where Are We?
Upturn
Flat
Downturn
Fight Complacency
Sharpen Edge
Keep Momentum
Conquer
NPD Cycle Time Improve Edge Extensions Counter Competitor
Innovation
Acquire
Profits
Build momentum
Sales Cash Flow
Focused on ‘Breakthrough’ JV, In-source, Out- source Eliminate bottom 20%
Improve Top 15% revenue-generating products
↓ R&D, ↑Sales
Example: Business Situation vs. R&D Priorities

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Role #2: Focus

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Customer Intimacy
Product Leadership
Organization, jobs, skills
Management systems
Information and
systems
Culture, values,
norms
Each Discipline Requires Different Priorities & Resources

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•Central authority, low level of empowerment
•High skills at the core of the organization
•Disciplined Teamwork
•Process, product- driven
•Conformance, 'one size fits all' mindset
•Integrated, low cost transaction systems
•The system is the process
•Command and control
•Quality management
Management systems
Information and
systems
Culture, values, norms

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Management
systems
Information and
systems
Product Leadership
•Ad hoc, organic and cellular
•High skills abound in loose-knit structures
•Concept, future-driven
•Experimentation and 'out of the box' mindset
•Person-to-person communications systems
•Technologies enabling cooperation
•Rewarding individuals' innovative capacity
•Risk and exposure management
•Product Life Cycle profitability

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Organization, jobs,
skills
Management systems
Information and systems
Customer Intimacy
•Empowerment close to point of customer contact
•High skills in the field and front-line
•Customer-driven
•Variation and 'have it your way' mindset
•Strong customer databases, linking internal and external information
•Strong analytical tools
•Customer equity measures like life time value
•Satisfaction and share management
•Focus on ‘Share of Wallet’

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Role #3: Motivate

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People Today…
$19.90

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The Reverse Pyramid
Top Mgmt
Managers
Frontline
Customers
Customers
Frontline
Leaders
Top Mgmt

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1.Bridge building
2.Beg & allocate resources
3.Cheer leader
4.Doctor
5.Complaints sounding board
6.Passing down of experience
7.Shoulder to cry on
8.Inspire ideas
9.People developer
10.Parent
Change Leaders

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Role #4: Point

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4-Wheels Model
Culture
Business
Model
Strategic Planning
Structure
Person
Leadership
Resources

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End Notes

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Don’t forget…
“The business of business is Business”

Thank You.
soft copy of slides: http://totallyunrelatedrandomanddebatable. blogspot.com/

Change Leadership-Understanding the Role of Management in Achieving Business Process Excellence

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