co-production of services: change management has left traditional company borders
DESCRIPTION
Let's face it: we pay for services we actually produce with a company. Never have we been so actively involved in "creating value" it has changed our vision on how companies should function. This affects how we look at Change Management. Presented at the (LinkedIn) Organizational Change Practitioners, January 26th @ The House of Marketing, Mechelen.TRANSCRIPT
The age of multi ...
Change Management has left traditional company borders
Bert Van Bergen
channelsourcing faith ageservices
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.