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Co-Production of services: Change Management has left traditional company borders

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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.

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Co-Production of services: Change Management has left traditional company borders

  1. 1. The age of multi ... sourcing channel services faith age Change Management has left traditional company borders Bert Van Bergen bert.van.bergen@kiteconsultants.eu January 26th, 2012.
  2. 2. A couple of things we have come to accept Co-Production Services are produced together with the customer. Multi-Sourcing Services from the optimal blend of internal and external suppliers.
  3. 3. A couple of things we have come to accept unication s” issue.Cus a re a “comm tomers Co-Production Services are produced together with the customer. ed but not involved. S uppliers a re inform Multi-Sourcing Services from the optimal blend of internal and external suppliers.
  4. 4. service co-production “... the firm can outsource any proportion of the whole service task to the customer...” Source: Mei Xue, Patrick T. Harker, “Service Co-Production, Customer Efficiency and Market Competition”, Wharton Financial Institutions Center, 2003
  5. 5. an . Moynih EO Brian T Corp. CB ank of Am erica Missio n: re b u i l d bank’s reputation “I, like you, get a little in censed when you think about how mu ch good all of you do, whether it’s vo lunteer hours, charitable giving we do, serving clients and customers well,” t “You ought to think a little about tha us.” before you start yelling at BofA CEO Brian Moynihan Incensed People Dont Recognize How Much Good His Employees Do.
  6. 6. Co-production Framework Special Social TreatmentInteraction Benefits Co- Social Customer Trust Benefits Loyalty Production Shared Confidence Benefits VisionSource: Li-Wei Wu, “A Framework and Propositions for Managing the Co-production Process”
  7. 7. Shared Customers demand Vision changes“Earlier this year, Bank of America wasnamed the country’s second-w orst companyby Consumerist.com after BP Plc, the fir mblamed for the worst U.S. offshor e oil spill. “ k nked lowest in a 24-ban nk of America ra n “Ba ess c ustomer satisfactio survey of small busin nth.” nd Associates this mo from J.D. Power a Customers have a vision
  8. 8. Establish Sense ofUrgencyForm a PowerfullGuiding CoalitionCreate a visionCommunicate the Imaginable FocusedVision Desirable FlexibleEmpower othersto act on Vision Feasible CommunicablePlan for andCreate Short TermWinsConsolidateImprovementsInstitutionalizeKotter (1995)
  9. 9. Image as in Mental Image Determine your priorities Get to know your customer REPEAT => different levels Determine stakeholders => different Workshops Service Blueprint customer groups Customer Experience Roadmap Form a mental image Share a common vision
  10. 10. 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
  11. 11. 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
  12. 12. Relationships matter... at every level! Foster the right attitude LISTEN Deliver the message... personally Direct contact is key! Set Customer based KPIs
  13. 13. multi-sourcing in Change Mgmt. ... >80% of Fortune500 companies outsource part of their business ... ... in reality, it is impossible for one company to offer one service completely one their own ... ... outsourcing for cost-efficiency ... ... outsourcing for innovation ... front office outsourcing trust data relationships shared vision
  14. 14. Bert  Van  Bergen+32  473  712  721bert.van.bergen@kiteconsultants.euKiteconsultants.eu

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