How to be market driven - there's an app for that!

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This is a tool for game changers, heros and movers and shakers. Those who prefer the status quo need not apply.

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  • The goal of this is to get the audience involved and committed. This should be a building slide. First have them write down the answer to #1 and then get people to report what they wrote down. (Pick 2-3 people). Determine how many people were above 5 and below 5 If they say, “I’m not really sure how market-driven we are.” Ask if that is an indicator of something? Next, ask them to write down what “market-driven” means. Once they have written it down, tell them that we’ll come back to what they have written down in a couple of minutes.
  • The goal of this is to get the audience involved and committed. This should be a building slide. First have them write down the answer to #1 and then get people to report what they wrote down. (Pick 2-3 people). Determine how many people were above 5 and below 5 If they say, “I’m not really sure how market-driven we are.” Ask if that is an indicator of something? Next, ask them to write down what “market-driven” means. Once they have written it down, tell them that we’ll come back to what they have written down in a couple of minutes.
  • Ask “What do you think has happened to Return on Assets, as a percentage, over the last ten years? Has it been increasing? Steady? Declining?” Ask “What about over the last 40 or 45 years? Has it been increasing? Steady? Declining?”
  • “ Deloitte looked at all publically traded US firms over this period. The results were amazing.” (If people have questions about the survey, see notes below) Deloitte also found that companies lost their leadership position much more quickly in 2008 as compared to 1965. Its harder to stay on top. Ask “what might be driving this trend? What changes have occurred in this time?” Trade barriers have declined globally. Governments have pursued policies of deregulation. Technology has advanced and prices dropped through the floor causing barriers to entry in virtually all industries to fall. In short, the economy is more competitive and change happens much more rapidly. And companies are having a hard time adapting.
  • These companies have done better than their competitors year-in-and-year-out. Why? Walmart gets bad press from time to time, but they are by far the largest employer in the US. This makes they a frequent target in the press. As does the fact that they have been out performing their competition for decades. Nordstrom is a US-based retailer with a very different value-proposition and strategy than Walmart. And they deliver superior performance to their competitors. Could there be common threads that each of these companies share?
  • Good the Great The Halo Effect - performance
  • It must transcend individual departments and functions and be an integral part of the way all employees behave and perform.
  • The Market-Driven Behaviors are the part of corporate culture that drives business performance. There may well be elements of corporate culture not in our model, these are picked up in other models
  • A simple, web-based benchmarking system to assess your cultural capacity to win Measures your organization’s Market -Driven culture and capacity to execute across seven critical success factors Empowers managers to transform organizations and drive measurable financial performance improvement Tested and validated with 50+ companies across many industries Proven to be highly effective in predicting of customer satisfaction, innovation, new product success and profitable growth
  • Our findings Increased revenues The impact of improving your value proposition Response rates increased from 9% to 33% 2. Lowered costs The impact of removing non-value added 100s of hours spent on developing sales reporting
  • We measure this using a tool called the MRI
  • How do you stack up on these initiatives?
  • The goal of this is to get the audience involved and committed. This should be a building slide. First have them write down the answer to #1 and then get people to report what they wrote down. (Pick 2-3 people). Determine how many people were above 5 and below 5 If they say, “I’m not really sure how market-driven we are.” Ask if that is an indicator of something? Next, ask them to write down what “market-driven” means. Once they have written it down, tell them that we’ll come back to what they have written down in a couple of minutes.
  • The goal of this is to get the audience involved and committed. This should be a building slide. First have them write down the answer to #1 and then get people to report what they wrote down. (Pick 2-3 people). Determine how many people were above 5 and below 5 If they say, “I’m not really sure how market-driven we are.” Ask if that is an indicator of something? Next, ask them to write down what “market-driven” means. Once they have written it down, tell them that we’ll come back to what they have written down in a couple of minutes.
  • Do you know who your internal customers are? Who are the stakeholders in your work? Telstra CFO Frank GM What measures can you use to remain focused on customers? TCE, customer satisfaction Lexus – need to get an outstanding mark on feedback forms to get a bonus margin. Sears customer service bonus if you rate their work highly on the feedback survey.
  • Macpherson Story – wanted their warehouse employees included Top companies in the MRI Other stories – Telstra postal
  • MCS is a leader in helping companies renew and align their organizations around market-centric business practices and skills Definitive model, diagnostic services and methodology for advancing a company’s MarketCulture Mindset Services span cultural benchmarking, management guidance, strategic planning, marketing skills assessment and training Global team of business experts and academics with unique understanding of the corporate DNA of winning companies Deep insights and rich consulting experiences across leading corporations around the world
  • How to be market driven - there's an app for that!

    1. 1. How to be Market-Driven: There’s an App for that!
    2. 2. WARNING! <ul><li>This is a tool for game changers, heroes and movers and shakers. Those who prefer the status quo need not apply. </li></ul>
    3. 3. Today’s Agenda <ul><li>The case for being Market-Driven </li></ul><ul><li>How to benchmark your organization </li></ul><ul><li>What can be done to improve your organization’s or workgroup’s benchmark </li></ul><ul><li>Two case studies </li></ul><ul><li>Q&A/Discussion </li></ul>
    4. 4. Why being market-driven matters <ul><li>What has been the trend in profits over the following periods? </li></ul><ul><li>Last 10 years? </li></ul><ul><li>Last 40 years? </li></ul>
    5. 5. Being Market-Driven is NO LONGER OPTIONAL <ul><li>Source: John Hagel III, John Seely Brown, and Lang Davison “Measuring the forces of long-term change: The 2009 Shift Index,” Deloitte Center for the Edge, p. 92. </li></ul>
    6. 6. What do consistently top firms have in common?
    7. 7. The Evidence <ul><ul><li>Business Books – “Good to Great” </li></ul></ul><ul><ul><li>100+ research studies across 10,000 companies </li></ul></ul><ul><ul><li>Strong positive link between market-driven behaviors and profitability, growth and innovation + </li></ul></ul>
    8. 8. Defining Market-Driven <ul><li>Market-Driven Culture </li></ul><ul><li>The capability of an organization to understand, predict and respond to customer, market and competitor dynamics . </li></ul><ul><li>It is not about marketing </li></ul><ul><li>It must transcend individual departments and functions </li></ul><ul><li>It can be measured and managed </li></ul>
    9. 9. Market Driven Behaviours Drive Business Growth and Profit Customer Experience (Evolving) The Creation Customer Satisfaction (Changing) The Outcome Sales Revenue Growth Profit Growth Profitability New Product Success The Results Market Driven Behaviors The Corporate Culture
    10. 10. Measuring and benchmarking YOUR Market-Driven Culture <ul><ul><li>The Market Responsiveness Index (MRI) </li></ul></ul><ul><ul><li>A simple, web-based benchmarking system </li></ul></ul><ul><ul><li>Measures your organization’s Market -Driven culture </li></ul></ul><ul><ul><li>Empowers managers to drive measurable financial performance improvement </li></ul></ul><ul><ul><li>Tested and validated with 50+ companies across many industries </li></ul></ul><ul><ul><li>Highly effective in predicting customer satisfaction, innovation, new product success and profitable growth </li></ul></ul>
    11. 11. The MRI Business Case <ul><li>What can firms expect to achieve by improving their MRI score? </li></ul><ul><li>Real world examples: </li></ul><ul><li>Increased revenues </li></ul><ul><li>Lowered costs </li></ul>An increase of 10% in the MRI score A 4% increase on Profits
    12. 12. “ Market-driven” consists of 7 behaviors … <ul><li>… in two categories: </li></ul>5 External Drivers 2 Internal Enablers
    13. 13. The External Drivers are: <ul><li>Customer Insight. Does the company understand its customers’ needs? Does it know how satisfied or dissatisfied they are with its products or services? Does it act on this knowledge? </li></ul><ul><li>Customer Foresight. Does the company gather information on potential customers? Does it target them based on its opportunity for competitive advantage? </li></ul><ul><li>Competitor Insight. Does the company monitor, understand, and respond to its competitors’ strengths and weaknesses? </li></ul><ul><li>Competitor Foresight. Does the company consider potential competitors when making decisions? Does it identify industry trends in order to identify potential competitors? </li></ul><ul><li>Peripheral Vision. Does the company monitor, understand, and respond to the political, economic, social, and technological trends emerging on the periphery which could affect its business? </li></ul>
    14. 14. The Internal Enablers are: <ul><li>Cross-Functional Collaboration. Do colleagues from different work groups share information and work together? Are “silos” tolerated or even encouraged? </li></ul><ul><li>Strategic Alignment. Is the firm’s strategic direction discussed regularly with all employees? How quickly are work group priorities changed when the firm’s strategic plans change? </li></ul>
    15. 15. What these 7 Factors Predict <ul><li>Your firm’s performance on each factor predicts your company's performance on the following metrics of business success. </li></ul>Factors Performance Outcomes Customer Insight Customer Satisfaction, New Product Success, Innovation, Sales Revenue Growth, Overall Performance Customer Foresight Innovation Competitor Insight Profitability, Profit Growth, Sales Revenue Growth, Overall Performance Competitor Foresight New Product Success, Innovation Peripheral Vision Innovation Strategic Alignment Profitability, Profit Growth, Sales Revenue Growth, Customer Satisfaction, New Product Success, Innovation, Overall Performance Cross-Functional Collaboration
    16. 16. Performance Examples from Real Companies <ul><li>Circumplex graphics below, which are part of every MRI report, are samples from actual companies. Their relative scores closely correlate with weak and strong business performance metrics. </li></ul>Strong Performer Weak Performer
    17. 17. MRI Assessment Timeline 3 weeks 2 weeks <ul><li>Agree upon purpose & objectives for the assessment </li></ul><ul><li>Determine groups to be assessed </li></ul><ul><li>Test survey delivery </li></ul>Distribute survey with messaging from CEO or sponsor Survey completion by participant groups Close survey Survey scored & analyzed On-site presentation of results Delivery of written report 4 weeks 1. Planning 2. Assessment 3. Analysis and Delivery of Results 9 weeks
    18. 18. “ Widget Inc” - (Fictional) <ul><li>1 st Level Circumplex Charting of the Business </li></ul>
    19. 19. “ Widget Inc” – BIG WIDGET (Fictional) <ul><li>2 nd Level Circumplex Charting of the Business: Showing the ‘Big Widget’ Business Unit </li></ul>
    20. 20. “ Widget Inc” – SALES (Fictional) <ul><li>3 rd Level Circumplex Charting of the Business: Showing the sales group from the ‘Big Widget’ Business Unit </li></ul>
    21. 21. Strategies to Build more Customer Insight <ul><li>Sales force engagement </li></ul><ul><li>Engage channel partners regularly </li></ul><ul><li>Listen in to customers phoning the call centre </li></ul><ul><li>Watch customers use your product </li></ul><ul><li>Measure satisfaction, act on feedback, communicate actions </li></ul>
    22. 22. Strategies to Build more Competitor Insight <ul><li>Talking to new clients that have had experience with your competitors </li></ul><ul><li>Mystery shopping </li></ul><ul><li>Talking to the channel or partners </li></ul><ul><li>Getting on mailing lists </li></ul><ul><li>Attending their events/reviewing their collateral and website </li></ul><ul><li>Analyzing their marketing strategies </li></ul>
    23. 23. You know many of these things but do you do them? <ul><li>Why not? </li></ul><ul><li>Usually the answer is culture, “that’s not how we do things around here” </li></ul><ul><li>As leaders we need to model this behavior and expect it of others. </li></ul>
    24. 24. So how can I influence how Market-Driven my organization is? <ul><li>Be a customer focused function </li></ul><ul><li>As leaders you are uniquely positioned to influence the rest of the organization </li></ul><ul><li>Present the value of true insight, be a cheerleader for market knowledge </li></ul><ul><li>Use a tool like the MRI to simplify complex organizational dynamics and create leverage for change </li></ul><ul><li>Introduce new KPIs that support market-driven behaviors </li></ul>
    25. 25. Two Case Studies
    26. 26. One Division of a Telecommunication’s Firm <ul><li>The Catalyst: Are we there yet? The goal to provide a better customer experience was not being met </li></ul><ul><li>Value Service Culture – directly tackling culture change </li></ul><ul><li>Goal of VSC – to understand our customers’ needs and behaviours better than ever and deliver what is of most value to them </li></ul><ul><li>The task – to get buy-in, change mindsets, infuse new skills and embed new behaviours </li></ul><ul><li>Target – embed a customer-centric culture and produce substantial $ benefits </li></ul>Value Service Culture Initiative (VSC)
    27. 27. Key Actions: High Impact VSC Events Past 2008-2009 Future <ul><li>C-Level Sponsor </li></ul><ul><li>Launch At Offsite </li></ul><ul><li>Culture Audit </li></ul><ul><li>Communications </li></ul><ul><li>Communications </li></ul><ul><li>Steering Committee </li></ul><ul><li>Workshops </li></ul><ul><li>LOB Leadership </li></ul><ul><li>Summits </li></ul><ul><li>Communications </li></ul><ul><li>On-Job Coaching </li></ul><ul><li>Managers </li></ul><ul><li>Customer Satisfaction (CVA) </li></ul><ul><li>Behaviors (Market Driven) </li></ul><ul><li>Employee Performance Targets </li></ul><ul><li>(Customer Satisfaction & Behaviours) </li></ul><ul><li>Cost Savings/Gains - Annuities </li></ul><ul><li>Culture - Behaviours Tracking </li></ul><ul><li>Cost Savings/Gains - Annuities </li></ul><ul><li>Customer Satisfaction </li></ul><ul><li>Communications </li></ul><ul><li>Ongoing Coaching </li></ul><ul><li>Induction </li></ul>Planning Culture Change Systematic Embedding Continuation Measurement Measurement
    28. 28. VSC Results (Pre and Post)
    29. 29. Bottom Line impact – Value Service Culture Initiative <ul><li>This function’s focus on changing its behaviors has yielded an estimated gain of $20m p.a. </li></ul><ul><li>A similar profit gain across the enterprise is estimated to be as much as $500 million p.a. as an annuity which can permanently enhance its culture as an asset. </li></ul>
    30. 30. CMO to CEO – The Franke Case <ul><li>Franke is a $3.5 billion kitchen systems manufacturer </li></ul><ul><li>The CMO of the American consumer business joined and immediately faced the following issues: </li></ul><ul><ul><li>New marketing initiatives were not being supported, there were service and supply chain issues that undermined every new campaign </li></ul></ul><ul><ul><li>The CMO needed a tool to galvanize change </li></ul></ul><ul><ul><li>The MRI provide him with a tool that laid out how everyone felt about where the business was in relation to being market-driven </li></ul></ul><ul><li>The identification of the key issues and inhibitors to Franke’s performance resulted in the CMO being considered for and ultimately getting the US CEO role </li></ul>
    31. 31. How market-driven is your team/function? <ul><li>Next Steps: </li></ul><ul><li>Request a copy of this presentation </li></ul><ul><li>Receive a copy of our new case studies </li></ul><ul><li>Complete a personal MRI </li></ul><ul><li>Trial the MRI with your team </li></ul>
    32. 32. Who we are <ul><li>MCS is a leader in helping companies renew and align their organizations around market-centric business practices and skills </li></ul><ul><ul><li>We build organizational capability </li></ul></ul><ul><ul><li>Services </li></ul></ul><ul><ul><ul><li>Cultural benchmarking </li></ul></ul></ul><ul><ul><ul><li>Management guidance </li></ul></ul></ul><ul><ul><ul><li>Strategic planning </li></ul></ul></ul><ul><ul><ul><li>Skills assessment and training </li></ul></ul></ul><ul><ul><li>Global team of business experts </li></ul></ul>
    33. 33. Our People and Expertise <ul><li>Dr. Linden R. Brown Dr. Brown is a leading management consultant and academic. For over 20 years he has worked with multi-national firms to develop their marketing skill sets and strategies. He has held faculty positions at numerous universities including INSEAD (France) and the University of Technology, Sydney (Australia) and has published over 12 books on marketing and strategy. </li></ul><ul><li>Christopher L. Brown Mr. Brown specializes in internal culture transformations and marketing toolset development. His previous post as Marketing Director for Hewlett-Packard, South Pacific Region provides him the firsthand knowledge of the challenges facing corporate sales and marketing teams. Mr. Brown also serves as Executive Vice President for Programming for the American Marketing Association, Silicon Valley Chapter. </li></ul><ul><li>Sean M. Gallagher Mr. Gallagher is an expert in marketing, business culture, and culture change. He is equally comfortable and effective working with CEOs on strategic issues and front line employees to bring strategies to life. A former Lecturer in Marketing at Boston University, Sean and has been an invited speaker on the topics of leadership, marketing and culture change in Europe, North America, and Australia. </li></ul>
    34. 34. Who we have worked with <ul><li>Our client experiences demonstrate the ability of our benchmarking, upskilling, transformation services and customized programs to meet the diverse needs of a broad range of high profile industries. </li></ul><ul><li>Our clients operate in the following industries: </li></ul><ul><ul><li>Telecommunications </li></ul></ul><ul><ul><li>Information Technology (Hardware and Software) </li></ul></ul><ul><ul><li>Pharmaceuticals and Health </li></ul></ul><ul><ul><li>Hotels and Hospitality </li></ul></ul><ul><ul><li>Mining and Resources </li></ul></ul><ul><ul><li>Retail, Banking, Finance and Insurance </li></ul></ul>

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