CORPORATE UNIVERSITY INFRASTRUCTURE for SUCCESS

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Evolving Corporate Universities (ECU) Webinar
December 2011

• The importance of embedding a best practice management infrastructure in the organisation structure and administrative systems at an early stage in the formation of a CU
• how a company's best practice administrative infrastructure systems ensure that the best practices are visible
• how best practices can be applied and possibly how they can also leave opportunities for innovations in relation to the company's strategic vision and objectives

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  • Example of successful customer loyalty strategy focusing on Operational Excellence and Product Leadership while maintaining market standard on Customer Service without indulging in it
  • Example: Google USP – Search, Free! Profit Model – Ad revenue MKt Discipline – Operational Excellence Example: Air Asia USP – Budget Profit Model – Lowest Cost, Maximum Seats Mkt Discipline – Operational Excellence
  • Example: Google USP – Search, Free! Profit Model – Ad revenue MKt Discipline – Operational Excellence Example: Air Asia USP – Budget Profit Model – Lowest Cost, Maximum Seats Mkt Discipline – Operational Excellence
  • How does the Customer define “Great Experience”? - It depends on their own perceptions. Problem is…this differs depending on the Customer! If you are very good in something that the Customer does not value, it will not improve the Experience.
  • To Excel – Must be a Leader in ONE of the disciplines but the other two must be at least at industry standard
  • OPTION 1
  • To Excel – Must be a Leader in ONE of the disciplines but the other two must be at least at industry standard
  • To Excel – Must be a Leader in ONE of the disciplines but the other two must be at least at industry standard
  • Refer to Handout 1: Value Disciplines
  • OPTION 1
  • OPTION 2 But…. I cannot tell you which path CNI has taken!
  • Resources happen to be ONE part of the alignment process in an organization. Resource allocation will very much depend on the other variables illustrated here. Resources must follow the Business Model: USP, Profit Model, Market Discipline
  • CNI:
  • Resources happen to be ONE part of the alignment process in an organization. Resource allocation will very much depend on the other variables illustrated here.
  • CORPORATE UNIVERSITY INFRASTRUCTURE for SUCCESS

    1. 1. CORPORATE UNIVERSITY INFRASTRUCTURE for SUCCESS Case Study, Concepts and Debatable Ideas Kenny Ong Takaful Ikhlas Sdn Bhd
    2. 2. Objectives of this presentation <ul><li>How a company's best practice administrative infrastructure systems: </li></ul><ul><ul><li>ensure that the best practices are visible and can be applied, and </li></ul></ul><ul><ul><li>how they can also leave opportunities for innovations in relation to the company's strategic vision and objectives </li></ul></ul>
    3. 3. <ul><li>Best Practices </li></ul><ul><li>Infrastructure </li></ul><ul><li>Innovation </li></ul><ul><li>Strategic Vision and Objectives </li></ul>
    4. 4. Understanding Your Business Model and Strategy How to fit Best Practices to your Corporate University model
    5. 8. The McPlaybook* <ul><li>Make it easy to eat </li></ul><ul><li>50% drive-thru </li></ul><ul><li>Meals held in one hand </li></ul><ul><li>Make it easy to prepare </li></ul><ul><li>High Turnover </li></ul><ul><li>Tasks simple to learn & repeat </li></ul><ul><li>Make it quick </li></ul><ul><li>“ Fast Food” </li></ul><ul><li>Tests new products for Cooking Times </li></ul><ul><li>Make what customers want </li></ul><ul><li>Prowls market for new products </li></ul><ul><li>Monitored field tests </li></ul>*Adapted from: Businessweek , Februrary 5 th 2007
    6. 9. What is the Business Model? USP Market Discipline Profit Model <ul><li>Google </li></ul><ul><li>Tata Nano </li></ul>
    7. 10. Business Model: Profit Model Revenue Cost Margin Cash Flow Assets
    8. 11. What is the Business Model? USP Market Discipline Profit Model
    9. 12. Market Discipline <ul><li>&quot;Exactly what I need&quot; </li></ul><ul><li>Customized products </li></ul><ul><li>Personalized communications </li></ul><ul><li>&quot;They're very responsive&quot; </li></ul><ul><li>Preferential service and flexibility </li></ul><ul><li>Recommends what I need </li></ul><ul><li>&quot;I'm very loyal to them&quot; </li></ul><ul><li>Helps us to be a success </li></ul>&quot;They are the most innovative&quot; &quot;Constantly renewing and creative&quot; &quot;Always on the leading edge&quot; &quot;A great deal!&quot; Excellent/attractive price Minimal acquisition cost and hassle Lowest overall cost of ownership &quot;A no-hassles firm&quot; Convenience and speed Reliable product and service Product Leadership Operational Excellence Customer Intimacy <ul><li>Air Asia </li></ul><ul><li>LV </li></ul><ul><li>Ramly </li></ul>
    10. 13. Alignment & Consistency: Market Disciplines 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) Eg. Google Tata Nano
    11. 14. Alignment & Consistency: Market Disciplines 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)
    12. 15. Alignment & Consistency: Market Disciplines 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)
    13. 16. <ul><li>Product Leadership </li></ul><ul><li>New, state of the art products or services </li></ul><ul><li>Risk takers </li></ul><ul><li>Meet volatile customer needs </li></ul><ul><li>Fast concept-to- counter </li></ul><ul><li>Never satisfied - obsolete own and competitors' products </li></ul><ul><li>Learning organization </li></ul>Alignment & Consistency: Disciplines, Priorities, and KPIs <ul><li>Operational Excellence </li></ul><ul><li>Competitive price </li></ul><ul><li>Error free, reliable </li></ul><ul><li>Fast (on demand) </li></ul><ul><li>Simple </li></ul><ul><li>Responsive </li></ul><ul><li>Consistent information for all </li></ul><ul><li>Transactional </li></ul><ul><li>'Once and Done' </li></ul><ul><li>Customer Intimacy </li></ul><ul><li>Management by Fact </li></ul><ul><li>Easy to do business with </li></ul><ul><li>Have it your way (customization) </li></ul><ul><li>Market segments of one </li></ul><ul><li>Proactive, flexible </li></ul><ul><li>Relationship and consultative selling </li></ul><ul><li>Cross selling </li></ul>
    14. 17. Alignment & Consistency: Market Disciplines 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)
    15. 18. Alignment & Consistency Operational Excellence (low cost producer) Product Leadership (best product) Customer Intimacy (best total solution) IBM 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
    16. 19. ALIGNING YOUR BEST PRACTICES AND INFRASTRUCTURE TO YOUR CORPORATE UNIVERSITY BUSINESS MODEL
    17. 20. Strategy: Disciplines, Priorities, and KPIs 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)
    18. 21. <ul><li>Product Leadership </li></ul><ul><li>New, state of the art products or services </li></ul><ul><li>Risk takers </li></ul><ul><li>Meet volatile customer needs </li></ul><ul><li>Fast concept-to- counter </li></ul><ul><li>Never satisfied - obsolete own and competitors' products </li></ul><ul><li>Learning organization </li></ul>Strategy: Disciplines, Priorities, and KPIs <ul><li>Operational Excellence </li></ul><ul><li>Competitive price </li></ul><ul><li>Error free, reliable </li></ul><ul><li>Fast (on demand) </li></ul><ul><li>Simple </li></ul><ul><li>Responsive </li></ul><ul><li>Consistent information for all </li></ul><ul><li>Transactional </li></ul><ul><li>'Once and Done' </li></ul><ul><li>Customer Intimacy </li></ul><ul><li>Management by Fact </li></ul><ul><li>Easy to do business with </li></ul><ul><li>Have it your way (customization) </li></ul><ul><li>Market segments of one </li></ul><ul><li>Proactive, flexible </li></ul><ul><li>Relationship and consultative selling </li></ul><ul><li>Cross selling </li></ul>
    19. 22. Strategy: Value Disciplines 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)
    20. 23. Strategy: Value Disciplines 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)
    21. 24. Infrastructure Alignment: 4-Wheels Model Culture Business Model Strategic Planning Structure Person Leadership Resources
    22. 25. Important Note: <ul><li>You can never directly ‘manage’ Culture </li></ul><ul><li>But you can control factors that determine the culture </li></ul>
    23. 26. Alignment: Framework <ul><li>Org Structure </li></ul><ul><li>Job Design </li></ul><ul><li>C&B </li></ul><ul><li>Policies & procedures </li></ul><ul><li>Decision making </li></ul><ul><li>Job fit </li></ul><ul><li>Management Systems </li></ul><ul><li>BSC and KPIs </li></ul><ul><li>Decentralized & Empower </li></ul>Structure
    24. 27. Strategy: Framework <ul><li>Role modeling </li></ul><ul><li>Vision/Mission/Philosophy </li></ul><ul><li>Leadership Style </li></ul><ul><li>Delegation & Empowerment </li></ul><ul><li>C&B, Promotions </li></ul><ul><li>Sense of Urgency </li></ul><ul><li>Speak regularly about Performance </li></ul>Leadership
    25. 28. Strategy: Framework <ul><li>Recognition </li></ul><ul><li>Recruitment </li></ul><ul><li>Training </li></ul><ul><li>Profit sharing </li></ul><ul><li>Values </li></ul><ul><li>Motivation </li></ul><ul><li>Self Efficacy </li></ul><ul><li>Awareness </li></ul><ul><li>Useful Competencies </li></ul><ul><li>Career aspirations </li></ul><ul><li>Attribution (control) </li></ul>Person
    26. 29. Strategy: Framework <ul><li>Enablers </li></ul><ul><li>Technology </li></ul><ul><li>Equipment </li></ul><ul><li>Materials </li></ul><ul><li>Human </li></ul><ul><li>Intellectual Property </li></ul><ul><li>Partners </li></ul><ul><li>Property </li></ul><ul><li>Funding </li></ul><ul><li>CAPEX </li></ul><ul><li>OPEX </li></ul>Resources
    27. 30. Alignment: Framework <ul><li>Focus point </li></ul><ul><li>Alignment </li></ul><ul><li>Quality </li></ul><ul><li>Innovation & Differentiation </li></ul><ul><li>Risk taking </li></ul><ul><li>Performance Management </li></ul><ul><li>Corporate obsession </li></ul><ul><li>Decision making </li></ul>Culture
    28. 31. Alignment: 4-Wheels Model Culture Business Model Strategic Planning Structure Person Leadership Resources
    29. 32. Aligning Infrastructure to Corporate University Goals Implementing Best Practices via Infrastructure and Systems
    30. 33. <ul><li>Product Leadership </li></ul>Each Discipline Requires Different Priorities & Resources Operational Excellence Customer Intimacy Organization, jobs, skills Management systems Information and systems Culture, values, norms
    31. 34. Each Discipline Requires Different Priorities & Resources <ul><li>Operational Excellence </li></ul><ul><li>Central authority, low level of empowerment </li></ul><ul><li>High skills at the core of the organization </li></ul><ul><li>Disciplined Teamwork </li></ul><ul><li>Process, product- driven </li></ul><ul><li>Conformance, 'one size fits all' mindset </li></ul><ul><li>Integrated, low cost transaction systems </li></ul><ul><li>The system is the process </li></ul><ul><li>Command and control </li></ul><ul><li>Quality management </li></ul>Organization, jobs, skills Management systems Information and systems Culture, values, norms
    32. 35. <ul><li>Product Leadership </li></ul><ul><li>Ad hoc, organic and cellular </li></ul><ul><li>High skills abound in loose-knit structures </li></ul><ul><li>Concept, future-driven </li></ul><ul><li>Experimentation and 'out of the box' mindset </li></ul><ul><li>Person-to-person communications systems </li></ul><ul><li>Technologies enabling cooperation </li></ul><ul><li>Rewarding individuals' innovative capacity </li></ul><ul><li>Risk and exposure management </li></ul><ul><li>Product Life Cycle profitability </li></ul>Each Discipline Requires Different Priorities & Resources Organization, jobs, skills Management systems Information and systems Culture, values, norms
    33. 36. Each Discipline Requires Different Priorities & Resources Organization, jobs, skills Management systems Information and systems Culture, values, norms <ul><li>Customer Intimacy </li></ul><ul><li>Empowerment close to point of customer contact </li></ul><ul><li>High skills in the field and front-line </li></ul><ul><li>Customer-driven </li></ul><ul><li>Variation and 'have it your way' mindset </li></ul><ul><li>Strong customer databases, linking internal and external information </li></ul><ul><li>Strong analytical tools </li></ul><ul><li>Customer equity measures like life time value </li></ul><ul><li>Satisfaction and share management </li></ul><ul><li>Focus on ‘Share of Wallet’ </li></ul>
    34. 37. END NOTES
    35. 38. Which Company? <ul><li>American Customer Satisfaction Index (ACSI) </li></ul><ul><li>64 out of100-point scale: lower than IRS (Tax) </li></ul><ul><li>2 nd last among 30 companies surveyed </li></ul><ul><li>Lowest 5% among 223 companies surveyed </li></ul><ul><li>Bottom 5% of all measured private sector companies </li></ul><ul><li>500 million customers </li></ul>2010 American Customer Satisfaction Index (ACSI)  E-Business Report
    36. 39. Which Company? <ul><li>American Customer Satisfaction Index (ACSI) </li></ul><ul><li>64 out of100-point scale: lower than IRS (Tax) </li></ul><ul><li>2 nd last among 30 companies surveyed </li></ul><ul><li>Lowest 5% among 223 companies surveyed </li></ul><ul><li>Bottom 5% of all measured private sector companies </li></ul><ul><li>500 million customers </li></ul>2010 American Customer Satisfaction Index (ACSI)  E-Business Report
    37. 40. Popularly Unpopular <ul><li>Popularity </li></ul><ul><li>≠ </li></ul><ul><li>Affection </li></ul>
    38. 41. Don’t forget… <ul><li>“ The business of business is Business, not Best Practices” </li></ul>
    39. 42. Corporate Universities Blueprint Corporate University Management Action Learning Programmes Published Works: The Chronology of Corporate University Thinking Corporate University Intelligence Services Corporate Licensing Entrepreneurial Platform Self-Assessment and Peer Review Programme (SAPR) DYNAMIC SWOT ANALYSIS Strategically-focused Corporate University Design & Application Reviews Seminars & Workshops Feasibility Studies Global Best Practice Evaluation & Reporting User Surveys and Tracking Studies Multi-client Research Studies Providing Corporate University Management Services world-wide References for: management models and toolkits http://couniversity.com/corporate-university-consulting-services/corporate-university-blueprint/
    40. 43. Thank You. soft copy of slides: http://totallyunrelatedrandomanddebatable.blogspot.com/

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