The yellow boxes on each slide contain asummary of my notes for the presentation.
• • • • • In Lean Thinking: Banish Waste and Create Wealth in Your Corporation, Revisedand Updated by Womack and Jones, the authors introduced the five core concepts.
• • • • • • • •Many would introduce the 8 types of Waste and5s as the first step.
The next step would be to apply Lean on a project by project basis to thesales and marketing activities. Extending the waste and cost cutting focusof Lean efforts to marketing in an attempt to make these activities moreefficient. Everyone knows that sales and marketing offers an opportunityfor cost savings when made more disciplined and structured. This is not what sales and marketing needs! But can Lean grow market share or top-line revenues?
Value Chain is a concept from business management that was first describedand popularized by Michael Porter in his 1985 best-seller, CompetitiveAdvantage. The chain of activities gives the products more added value thanthe sum of the independent activitys value. Is this still true?
The customer plays a significant role in determining value but many us are stillgrounded in the value chain when determining price and the value that we deliver.Is our revenue still growing?
• • •As described in The Discipline of Market Leaders: by Treacy and Wiersma, wedecide on which one of their three value disciplines will become our valueproposition. Understanding this Value Proposition relative to our competitionis how we create our growth strategies. Does this still work?
Our buyers are now being influenced differently. Funnels arebasically flawed as customers are anything but predictable.
Have we really done anything besides change the name? Do we really understandwhat pull is? Evaluate your marketing budget, how many dollars are spent onpush and on pull. Are sales people told to wait for someone to call them? 4 Ps 3Cs & V • Product • Collaboration • Promotion • Content • Price • Value • Place • Community
Smart companies haves started to change trying to createexperiences versus traditional methods. Have you?
Customers require more touch points and interaction.
And have we changed the tools – you have to be a marketing technologist. Funnything is now we have these marketing technologist sometimes called Geekstelling us about marketing, content, strategy, context and value?
•• • • • • The latest quarterly report from McKinsey tells us these tools have come up short. Most of us have hardly even started?
McKinsey sums it up by saying:The major barrier to engagement is organizational ratherthan conceptual: given the growing number of touch pointswhere customers now interact with companies, marketingoften can’t do what’s needed all on its own. CMOs and theirC-suite colleagues must collaborate intensively to adapttheir organizations to the way customers now behave and,in the process, redefine the traditional marketingorganization. If companies don’t make the transition, theyrun the risk of being overtaken by competitors that havemastered the new era of engagement. Overtaken! As I said many have not even started. And the ones that have, are they that far ahead?.
McKinsey’s answer is make everyone a marketer, Forrester says touch pointswithout channels, Pine/Gilmore says create experiences. Does anyone reallyunderstand collaboration, community, content and specifically customervalue. Are we going to wait for a customer to pull us in?
So Marketing is getting squeezed. Inone case the Supply Chain as we knowit is gone. Marketing is becoming moreand more about tools. The pressure ison and many of us to catch up rely wayto much on the tools!.
The two pillars of Lean are Respect for people and Continuous Improvement.It is not about tools, it is about empowerment and Lean is our enabler for this.
In a Supply Driven Economy the customer did not ignore these value-addedservices. A lot of people have focused on the fact that the Economic times rightnow are really bad. What a lot of people are missing is the fact that the worldaround us has fundamentally changed. What we see now across the world isthat we have excess capacity.
We are seeing volatility like never before and at the same time they no longerhave the reliability of understanding what the customers are going todemand and when they’re going to demand, because customers areincreasingly fickle. So what we’ve got is the perfect storm that has cometogether of excess capacity and incredible product variety.
•••• More people, More touch points, More Tools?
• • • •There are many marketing “systems” in the world. When you think about asystem it is just a series of functions or activities within an organization thatwork together for the aim or the organization. However, most of them haverelatively little value towards improvement or optimization as a whole. Demingbelieves that the journey continuous improvement requires the understanding ofsystems which is emphasized in his own system of Profound Knowledge.
How true Deming was when you apply his thoughts to sales and marketing.Our natural resource was that demand always exceeded supply. Sure, it wasnot handed to us on a silver platter and not all of us were successful. But for themost part, there was a demand. That demands has diminished or cease to existin many markets. We are competing in a state where there is excess supply.There is a scarcity of sales and marketing’s natural resource, customers!.
Can Lean work? Can it be about getting rid of waste and efficiencies?
• • • • •Five core concepts are still there: • Specify value from the standpoint of the end customer. • Identify all the steps in the customers value stream. • Make value-creating steps occur in tight sequence for better flow. • As flow is introduced, let customers pull value from the next upstream activity. • As value is specified, wasted steps are removed, iterate and continue it until a state of perfection is reached in which perfect value is created with no waste.
• • • • •But you must think about Lean as a knowledge creation model. It is very common as acustomer goes through a decision making process that their minds will change. ThePDCA provides feedback to justify our hypotheses and increase our knowledge. Thisallows both the customer and us not to be perfect the first time. The rate of change orthe speed of the improvement is a key competitive factor in today’s world. PDCAallows for major jumps in performance not through massive breakthroughs but throughfrequent small improvements.
The term Experience Economy was first described in an article published in 1998 byJoe Pine and though this chart has taken a fair amount of abuse over the years, Ilike it because it depicts the hierarchy of what a customer is willing to pay for. Asyou go up the pyramid shows that a customer values wisdom/knowledge overproduct. Though not entirely true – it depends on the business that your in, itdoes provide a baseline relative to the competition.
The drawing is reflective of a Scrum sprint. Scrum is an iterative, incrementalframework for project management and agile software development. I use theloops to demonstrate a higher level of intimacy with a prospect. The top loop isfor existing customers to nurture an even stronger relationship.
•••• Mimicking the customer buying process is at the heart of Lean Marketing. This marketing channel or Value Stream would equate to one of the pillars in the Lean Marketing House. As you build the relationship with the customer the cycles typically get smaller and faster.
The Lean practice of PDCA is ideal for learning and creating knowledge activities.Following this process allows individuals and teams to recognize and takeadvantage of opportunities, make decisions faster, and be more responsive
This is a diagram from the book This is Service Design Thinking that couldserve as an outline for a specific iteration or even a very simple marketing channel.
Focusing on the customer decision marking process allows you to create a systemof purposeful interactions and flexibility versus benefits and features. Most peoplestruggle with this idea. But is it much simpler than first perceived.
Our Plan Offer Order Loyalty StepsMapping the customer steps and your matching resources allows you to build aninternal and external network of support.
The mapping exercise allows you to create a sales andmarketing team to deliver the require support needed.
• • •What a system needs to do is help you developcertain touch points that will identify and linkyour product or services to your customer base.How well you can make this authentic and eventransparent can be very important.
• • •The book, The Power of Pull: discusses the elements of a successful journeytowards pull: trajectory (where you are going), leverage (the ability to mobilizethe passions and efforts of other people), and the best pace (the speed at whichyou progress).
Trust Real value with all stakeholdersThe only competitive advantage you have is ability to learn more efficiently andmore effectively from your customers. Positioning your organization in yourcustomers playground is the most important role marketing has.
When you first think about co-creation you jump to innovation. There aremany other parts to co-creation and how you co-create depends very muchon the level of trust you have with a customer.
Your product/service is relatively unimportant. Even a company like Caterpillarrecognizes that it has become their dealer network that provides the value to thecustomer.
From the book Design Thinking for Growth, the above chart provides a different setof tools for a value stream providing a culture of co-creation.
People are mystified at times thinkingthat mapping a customer decisionprocess would work for them or alarge customer. Co-authors JeffreyLiker and David Meir, co-authors ofThe Toyota Way Fieldbook createdthis pyramid of the SupplierPartnering Hierarchy of Toyota thatconsisted of these 7 steps.
• • Map Value Stream • Create Flow • Establish Pull •We have walked through the pillars of the Lean Marketing House and discussed 3 ofthe 5 core principles of Lean.
We must now look at identifying value for the customer and for the organization.
You can modify this to fit your needs but the standard canvas is a great starting point.
The canvas when completed serves as a guide for the sales and marketing team. Itprovides the clarity and empowers the team.
There should be a canvas created for every value streamand sometimes for every Sales and Marketing team.
You can have as many pillars(channels) as needed The teams can beorganized vertically, horizontally or even in a combination of both.
Seeking perfection requires that continuous improvement is practiced inthe interaction with customers in the pillar section.
• Identify Value • Map Value Stream • Create Flow • Establish Pull •Seeking perfection requires that continuous improvement is practiced in the interactionwith customers in the pillar section. But the pillars must be supported by a foundationof marketing activities (blocks).
These blocks are made up of the tactics we will employ to move prospects from onestage to another. As we move the forward, a more formal collection and reportingsystem will emerge. We can improve these tactics through the traditional Lean toolssuch as a checklist and A3s. .
Tools for the sake of tools are rather ineffective. In Lean, we provide tools in a contextthat can be recorded, measured and as part of a continuous improvement process.
••••• Using A3 in the marketing process provides a standard method of developing and creating your marketing programs. It will recap the thoughts, efforts, and actions that take place for a particular campaign, such as advertising or public relations or even a launch.
ResourcesBooks:This is Service Design Thinking: Basics - Tools - CasesThe Power of Pull: How Small Moves, Smartly Made, Can Set Big Things inMotionBusiness Model Generation: A Handbook for Visionaries, Game Changers,and ChallengersLean Thinking: Banish Waste and Create Wealth in Your Corporation,Revised and UpdatedThe Experience Economy: Work Is Theater & Every Business a StageThe Toyota Way FieldbookThe Service-dominant Logic of Marketing: Dialog, Debate, And DirectionsDesigning for Growth: A Design Thinking Toolkit for ManagersWebsites:Value Co-Creation: Wim Rampen SlideshareMcKinsey Quarterly: We’re all marketers nowForrester: Welcome To The Era Of Agile CommerceScott Brinker: 8 things every marketing technologist should knowJanet R. McColl-Kennedy: Co-creation of Value and S-D logic
••• Our Mission is to bring Continuous Improvement to Sales and Marketing.