co-production of services: change management has left traditional company borders

The age of multi ...

Change Management has left traditional company borders

Bert Van Bergen

channelsourcing faith ageservices

bert.van.bergen@kiteconsultants.eu

January 26th, 2012.

Services are produced together with the customer.

Services from the optimal blend of internal and external suppliers.

A couple of things we have come to accept

Co-Production

Multi-Sourcing

Services are produced together with the customer.

Services from the optimal blend of internal and external suppliers.

A couple of things we have come to accept

Co-Production

Multi-Sourcing

Customers are a “communications” issue.

Suppliers are informed but not involved.

“... the firm can outsource any proportion of the whole service task to the customer...”

service co-production

Source: Mei Xue, Patrick T. Harker, “Service Co-Production, Customer Efficiency and Market Competition”, Wharton Financial Institutions Center, 2003

BofA CEO Brian Moynihan 'Incensed' People Don't Recognize 'How Much Good' His Employees Do.

Bank of America Corp. CEO Brian T. Moynihan

“I, like you, get a little incensed when you think about how much good all of you do, whether it’s volunteer hours, charitable giving we do, serving clients and customers well,”

Mission: rebuild

bank’s reputation

“You ought to think a little about that

before you start yelling at us.”

Social Interaction

Trust

Shared Vision

Co-Production

Special Treatment Benefits

Social Benefits

Confidence Benefits

Customer Loyalty

Co-production Framework

Source: Li-Wei Wu, “A Framework and Propositions for Managing the Co-production Process”

“Earlier this year, Bank of America was named the country’s second-worst company by Consumerist.com after BP Plc, the firm blamed for the worst U.S. offshore oil spill. “

Customers demand changes

“Bank of America ranked lowest in a 24-bank

survey of small business customer satisfaction

from J.D. Power and Associates this month.”

Shared Vision

Customers have a vision

Establish Sense of Urgency

Form a Powerfull Guiding Coalition

Create a vision

Communicate the Vision

Empower others to act on Vision

Plan for and Create Short Term Wins

Consolidate Improvements

Institutionalize

Imaginable

Desirable

Feasible

Focused

Flexible

Communicable

Kotter (1995)

as in Mental ImageImage

Determine your priorities

Get to know your customer

Determine stakeholders

Service BlueprintWorkshops

Customer Experience Roadmap

Form a mental image

Share a common vision

REPEAT=> different levels=> different customer groups

Tilt the balance!

Just choosing the right sponsor is not enough.

Talk desired outcome, not proposals or solutions

Managers make decisions from their “mental image”

of a service

of the company

It’s in the interaction!

Don’t “evangelize” before capturing a shared vision

Services are not delivered by the manager

Requirements for change are to be determined by both the company and the client

Relationships matter... at every level!

Foster the right attitude

Direct contact is key!

Set Customer based KPIs

Deliver the message... personally

LISTEN

... >80% of Fortune500 companies outsource part of their business ...

multi-sourcing

... in reality, it is impossible for one company to offer one service completely one their own ...

front office outsourcing

... outsourcing for cost-efficiency ...

... outsourcing for innovation ...

data

relationships

trustshared vision

in Change Mgmt.

Bert  Van  Bergen

+32  473  712  721bert.van.bergen@kiteconsultants.eu

Kiteconsultants.eu