Outsmarting the Competition,James Champy, Chairman, Consulting Practice, Perot Systems Corporation


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Outsmarting the Competition,James Champy, Chairman, Consulting Practice, Perot Systems Corporation

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Outsmarting the Competition,James Champy, Chairman, Consulting Practice, Perot Systems Corporation

  1. 1. OUTSMARTING THE COMPETITION or… There’s Not Much New In Management, But There Is A Lot New In Business Jim Champy
  2. 2. Where Smart Companies Find Opportunity <ul><li>Compete by seeing what others don’t. </li></ul><ul><li>Compete by thinking outside the bubble. </li></ul><ul><li>Compete by using all you know. </li></ul><ul><li>Compete by changing your frame of reference. </li></ul><ul><li>Compete by doing everything yourself. </li></ul><ul><li>Compete by tapping the success of others. </li></ul><ul><li>Compete by creating order out of chaos. </li></ul><ul><li>Compete by simplifying complexity. </li></ul>
  3. 3. The Flavor or Leadership in Smart Companies <ul><li>Leaders are inspired and engage others in their inspiration. The engagement goes deep into the organization. (Under Armour and Smith & Wesson) </li></ul><ul><li>Leaders are open, transparent, and vulnerable – prepared to be proven wrong and ready to change course. (Sonicbids) </li></ul><ul><li>Leaders sense no risk – there is a “just-do-it” sensibility. </li></ul>
  4. 4. <ul><li>What it does: Provides access to a global community of over 120,000 performers. </li></ul><ul><li>What it saw: A global love for music, but an inability to globally access performers; a “cottage” industry that could be transformed. </li></ul><ul><li>How it operates: </li></ul><ul><ul><li>Performers register with their portfolios </li></ul></ul><ul><ul><li>Customers subscribe to the service </li></ul></ul><ul><ul><li>Services are booked over the Internet </li></ul></ul>
  5. 5. <ul><li>What it does: Provides non-critical, clinical care from a storefront facility. </li></ul><ul><li>What it saw: Most healthcare providers have focused on diagnosis and treatment. Minute Clinic’s founders saw the opportunity to change how healthcare is delivered. </li></ul><ul><li>How it operates: </li></ul><ul><ul><li>A retailer mentality </li></ul></ul><ul><ul><li>Staffed by nurse practitioners </li></ul></ul><ul><ul><li>Enabled by information technology </li></ul></ul><ul><ul><li>Open 7 days a week </li></ul></ul><ul><ul><li>Patients are seen in ten to fifteen minutes </li></ul></ul><ul><ul><li>Complements the healthcare system </li></ul></ul>
  6. 6. <ul><li>What it does: Manufactures pistols and revolvers. </li></ul><ul><li>What it saw: The value of its brand and the need to return to operating basics. </li></ul><ul><li>How it operates: </li></ul><ul><ul><li>Utilizes continuous improvement techniques </li></ul></ul><ul><ul><li>Adopts state-of-the art manufacturing processes </li></ul></ul><ul><ul><li>Maintains a strong focus on product quality </li></ul></ul><ul><ul><li>Builds brand loyalty </li></ul></ul><ul><ul><li>Leverages its brand awareness to expand product segments </li></ul></ul>
  7. 7. <ul><li>What it does: Publishes, packages, and distributes photographs in various forms. Growing at 50% a year. </li></ul><ul><li>What it saw: Shutterfly’s competitors see themselves as photo finishers. Shutterfly thinks of itself as a social expression and personal publishing service. </li></ul><ul><li>How it operates: </li></ul><ul><ul><li>Provides dozens of ways for customers to use and share their photos </li></ul></ul><ul><ul><li>Easy-to-use Internet site </li></ul></ul><ul><ul><li>Superior customer service </li></ul></ul><ul><ul><li>Vertically integrated capability </li></ul></ul>
  8. 8. <ul><li>What it does: Designs and manufactures handling equipment for high- risk environments (e.g., nuclear waste). </li></ul><ul><li>What it saw: An underserved market that attracted little interest. </li></ul><ul><li>How it operates: </li></ul><ul><ul><li>A fully integrated manufacturing capability </li></ul></ul><ul><ul><li>A willingness to solve tough delivery problems </li></ul></ul><ul><ul><li>A commitment to the safety of its customers (e.g., cleaning oil tanks) </li></ul></ul><ul><ul><li>Zero employee attrition!! </li></ul></ul>
  9. 9. <ul><li>What it does: Designs and manufactures decorations to fill the holes in Crocs. </li></ul><ul><li>What it saw: A fashion phenomena in which people could actively participate, customize, and enjoy. </li></ul><ul><li>How it operates: </li></ul><ul><ul><li>Constant flow of new releases </li></ul></ul><ul><ul><li>1,100 products now available </li></ul></ul><ul><ul><li>Expanded to other “charms” </li></ul></ul>
  10. 10. <ul><li>What is does: Provides access to 8 million parts and accessories for more than 560 brands covering consumer electronics, major appliances, wireless devices, and outdoor power equipment. </li></ul><ul><li>What it saw: The complexity of the electronics industry and the futility of finding a replacement part. </li></ul><ul><li>How it operates: </li></ul><ul><ul><li>Rationalized the cataloging process in a chaotic market </li></ul></ul><ul><ul><li>Provides services through major retail channels – and directly to consumers </li></ul></ul><ul><ul><li>An internet-based service, complemented by a competent, high-touch service center </li></ul></ul>
  11. 11. <ul><li>What it does: Provides customized, pre-packaged supplements and medications for horses. </li></ul><ul><li>What it saw: Most barn operations fail to manage the complexity of providing a horse with multiple supplements and medications on a daily basis. The potency of supplements and medications were also being reduced. </li></ul><ul><li>How it operates: </li></ul><ul><ul><li>Delivers a 30-day supply of supplements and medications customized for each horse </li></ul></ul><ul><ul><li>Substances are contained in a single plastic container for each day, clearly marked with the horse’s name </li></ul></ul><ul><ul><li>Works with suppliers to achieve efficiencies and bulk discounts </li></ul></ul><ul><ul><li>Provides a high-level of customer service </li></ul></ul>
  12. 12. What I liked about… <ul><li>Sonicbids : Inventing a new business to tap a 13 billion dollar market / organizes the marketplace </li></ul><ul><li>Minute Clinic : Challenges an industry’s sacred cows </li></ul><ul><li>Smith & Wesson : The application of management basics and fundamental skills / the inspiration of a brand revival / engagement of all it’s people </li></ul><ul><li>Shutterfly : A simple shift in lense / perspective opens broad opportunity </li></ul><ul><li>S.A. Robotics : A tightly integrated design and delivery process creates higher value for the customer </li></ul>
  13. 13. What I liked about… (cont’d) <ul><li>Jibbitz : A quirky idea is elevated to a real business </li></ul><ul><li>Partsearch : The ambition to solve a real hairy problem and the persistence to do it </li></ul><ul><li>Smartpak : How a personal (but shared need) is turned into a business </li></ul><ul><li>(There is no single business formula!) </li></ul>
  14. 14. How Smart Companies Behave <ul><li>Ambition matters </li></ul><ul><li>Intuition reigns </li></ul><ul><li>Focus prevails </li></ul><ul><li>Customers rule </li></ul><ul><li>Calm enables </li></ul><ul><li>Innovation lives </li></ul><ul><li>Culture drives </li></ul><ul><li>Everyone plays </li></ul>
  15. 15. From Reengineering to OUTSMART <ul><li>Next to ENGAGE , </li></ul><ul><ul><li>- Under Armour </li></ul></ul><ul><ul><li>- Honest Tea </li></ul></ul><ul><ul><li>- Big Green Egg </li></ul></ul><ul><li>INSPIRE , </li></ul><ul><li>and DELIVER </li></ul>