Business Skills for a Changing Economy
       Collaborating for Better Business Performance
                           Pre...
HDI Motown Presentation                                        Business Skills for a Changing Economy


Today’s Agenda



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HDI Motown Presentation                                          Business Skills for a Changing Economy


Our Experience
B...
Presentation                                                 Business Skills for a Changing Economy




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HDI Motown Presentation                                                    Business Skills for a Changing Economy
I. The C...
HDI Motown Presentation                                                   Business Skills for a Changing Economy
I. The Ch...
Presentation                                                 Business Skills for a Changing Economy




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HDI Motown Presentation                                                              Business Skills for a Changing Econom...
HDI Motown Presentation                                                  Business Skills for a Changing Economy
II. The Ch...
HDI Motown Presentation                                                    Business Skills for a Changing Economy
II. The ...
HDI Motown Presentation                                                                                  Business Skills f...
Presentation                                                          Business Skills for a Changing Economy




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HDI Motown Presentation                                                                  Business Skills for a Changing Ec...
HDI Motown Presentation                                                 Business Skills for a Changing Economy
III. Busine...
HDI Motown Presentation                                                                                                   ...
HDI Motown Presentation                                           Business Skills for a Changing Economy
III. Business Ski...
HDI Motown Presentation                                          Business Skills for a Changing Economy
III. Business Skil...
HDI Motown Presentation                                                                                      Business Skil...
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January 2009 - Business Skills For A Changing Economy

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Presentation by David Baker or Baker Strategy for the HDI Motown Chapter 1-8-09

Published in: Economy & Finance, Business

January 2009 - Business Skills For A Changing Economy

  1. 1. Business Skills for a Changing Economy Collaborating for Better Business Performance Presentation MAKE IT HAPPEN BAKER STRATEGY GROUP Wednesday, January 08, 2009 CORT – Novi MI
  2. 2. HDI Motown Presentation Business Skills for a Changing Economy Today’s Agenda The Changing Economy The Changing/Changed Role of IT Support Talking Strategy BAKER STRATEGY GROUP Page 1 January 8, 2009
  3. 3. HDI Motown Presentation Business Skills for a Changing Economy Our Experience Baker Strategy Group has had experience conducting programs for a number of organizations in a variety of industries Client Engagements BAKER STRATEGY GROUP Page 2 January 8, 2009
  4. 4. Presentation Business Skills for a Changing Economy I. The Changing Economy A quick look at these remarkable times BAKER Page 3 January 8, 2009
  5. 5. HDI Motown Presentation Business Skills for a Changing Economy I. The Changing Economy A Sample from Today’s Headlines The world is reeling from the economic collapse, and most economist expect a “U-shaped” recovery that isn’t expected to pick up until late 2009 or even 2010 or 2011 The Wall Street Journal CNN.com/US • Wal-Mart Cuts View Amid Retail Slump • Crisis and plan to fix it 'unprecedented' • Madoff Is a 'Danger,' Argue Prosecutors • A $2 trillion bet on powering America • Walgreen to Cut 1,000 Jobs • Warning! Warning! Weak profits ahead • Kuwait Bank Defaults on Debt • Detroit Auto Show: The party's over • Commercial Property Loses Shelter • Auto execs expect more bankruptcies • Cardinal Health Lowers Outlook • Unsafe? Unsound? A taxpayer bailout • Satyam Scrambles to Assess Finances • Will Obama's tax cuts work? • Lenovo Plans Major Revamp • Radical cheap: $1,000 homes • OECD: Cleanse Banks of Bad Loans • Mortgage rates dip to new all-time low • Home Depot Ends Olympic Program • From Wal-Mart to the mall, a tough holiday • Gadgets for Leaner Times • Windy City's retail downdraft • Europe Stocks Track Overseas Losses BAKER Source: HDI STRATEGY GROUP Page 4 January 8, 2009
  6. 6. HDI Motown Presentation Business Skills for a Changing Economy I. The Changing Economy Michigan’s Ills Michigan, as we know, is experiencing more than its share of economic difficulty Recent Developments Michigan’s outbound migration highest in US Detroit’s credit rating reduced to junk bond status Furniture manufacturer to cut 200 white collar workers Iron mine in the UP to let go over 350 employees Unemployment system inundated with activity Forecast for 2009 Michigan state revenues (taxes) was decreased by $870 million Coal plants projects may get stalled Borders struggling Kuwait pulled out of $17.4B joint venture with Dow Chemical Co Automotive suppliers can’t get access to credit for new projects BAKER Source: HDI STRATEGY GROUP Page 5 January 8, 2009
  7. 7. Presentation Business Skills for a Changing Economy I. The Changing/Changed Role of IT Support What we can expect for the near future BAKER Page 6 January 8, 2009
  8. 8. HDI Motown Presentation Business Skills for a Changing Economy II. The Changing Role of IT Support IT Support Below are is a an humorous old IBM commercial that shows smart, reactive support personnel who complicate the issues due to a disconnection with the end user experience IBM Commercial: http://www.youtube.com/watch?v=hoj5Scm7HaY&feature=related Unrelated but funny IT video: http://www.youtube.com/watch?v=0eIFoz-Tjf8 BAKER STRATEGY GROUP Page 7 January 8, 2009
  9. 9. HDI Motown Presentation Business Skills for a Changing Economy II. The Changing Role of IT Support The New Customer Support The IT help desk of old has changed/is changing its role within the organization It's time to profoundly reinvent the profession of Customer Support. From the beginning of the technology industry to the present time, support has been the department of break/fix; quot;when something breaks, we fix it.quot; As such, the quot;professionquot; offers no real economic value to anyone; it never has. Even more significantly, as we move deeper into the gathering recession and farther into the rapidly unfolding SaaS era, support as it is currently defined has no future. There are two paths that lead away from this point for companies and support reps. One is downward into obscurity, obsolescence and ultimately extinction. The other is towards an authentic profession based on the exchange of true economic value. During the 1/8/09 presentationn, it was generally agreed that this description of the service desk employees is somewhat outdated, and the role, development , and performance of the agents has grown significantly over the last several years BAKER Source: “The Redefinition of Customer Support” by Mikael Blaisdell STRATEGY GROUP Page 8 January 8, 2009
  10. 10. HDI Motown Presentation Business Skills for a Changing Economy II. The Changing Role of IT Support HDI’s Position Service desk managers should be actively involved in organizations such as HDI in order to further develop and grow and managers Ron Munz on why HDI is an important association for service desk managers: “The reality is you don’t even need to join an association to get facts. If you go to Google and you spend enough time you can get facts. But you don’t change behavior just with facts. You change behavior, and you change strategy, and you change vision, and you increase motivation when you’re around other professionals that are doing thing similar to yours. “ Service desk managers also can play a key role in helping the service desk agents grow and develop in their understanding of the organization’s businesss issues BAKER Source: HDI STRATEGY GROUP Page 9 January 8, 2009
  11. 11. HDI Motown Presentation Business Skills for a Changing Economy II. The Changing Role of IT Support Example: Starbucks CIO Gillett’s appointment represents the changing role of IT –deep IT experience meshed with a business proficiency that enables him to better align IT with the “customer experience” Gillett's mission is to create and implement the technology vision of quot;anything that touches the consumer, whether it's in back-end [IT operations] or in how a customer interacts in a physical Starbucks store,quot; says Chet Kuchinad, EVP of Starbucks partner resources, who lead the team that hired Gillett. quot;Stephen's not just about legacy systems and not just about efficiency. He's about how we take technology and connect with Starbucks' consumers in a different way. Frankly, we've just begun, and there's a lot of work to be done yet.quot; quot;You'll meet a lot of technology people who are extremely intelligent but they have really stunted social skills,quot; Cahall says. quot;They don't have an ability to sell their ideas and don't have the ability to ingratiate themselves with key leaders. (Ted Cahall is VP of the platforms business unit and technologies division at AOL) BAKER Source: CIO Magazine STRATEGY GROUP Page 10 January 8, 2009
  12. 12. Presentation Business Skills for a Changing Economy III. Business Skills: Strategy The organization’s chosen approach to how it will conduct business BAKER Page 11 January 8, 2009
  13. 13. HDI Motown Presentation Business Skills for a Changing Economy III. Business Skills: Strategy Different Views of Strategy There has been a proliferation of strategy frameworks over the years Thought Leader Contribution Peter Drucker Organizations and Society Michael Porter Five Forces/Value Chain Kaplan & Norton Balanced Scorecard C.K. Prahalad Core Competencies Gary Hamel Customer Collaboration Strategy Rabbis Peppers & Rogers Return on Customer Bruce Henderson Strategic Competition Tom Peters Back to Basics Kenichi Ohmae Strategic Thinking August 1, 2006 Clayton Christensen Disruptive Technologies David Aaker Brand Portfolios Fred Reichheld Net Promoter Score (NPS) Jack Trout Brand Differentiation Adrian Slywotzky Strategic Business Design McKinsey & Company Business Valuation BAKER STRATEGY GROUP Page 12 January 8, 2009
  14. 14. HDI Motown Presentation Business Skills for a Changing Economy III. Business Skills: Strategy The BSG 5C Framework Our particular view is that of customer strategy: integrating the Five Cs situation analysis: context, customers, company, competitors, and collaborators BAKER STRATEGY GROUP Page 13 January 8, 2009
  15. 15. HDI Motown Presentation Business Skills for a Changing Economy III. Business Skills: Strategy Strategy Maps Here is an example of a Strategy Map (also known as Balanced Scorecard), an effective and commonly-used strategic planning tool that starts with measures and the customers Financial EBITDA Measures $xx Revenue Expenses xx% $xx $xx Current New Operating Allocated Students Students Expenses Costs Retention/ Customer Acquisition Development Perspective Current Customers New Customer Portfolios Priority Portfolios Secondary Portfolios A Customers B Customers Group A Group B Group C Group D Group E Group F C Customers Internal Operations Offerings/Core Capabilities Processes Strategy Execution Area A Area B Area C Initiative A Initiative B Initiative C Initiative D Initiative E Staff Development Development A Development B Development C Development D Development E BAKER Note: This framework is derived from the Balanced Scorecard by Norton and Kaplan STRATEGY GROUP Page 14 January 8, 2009
  16. 16. HDI Motown Presentation Business Skills for a Changing Economy III. Business Skills: Strategy Case Study: Thomas Nelson Thomas Nelson had previously operated with a structure that organized around their own brands, trades, and specialties – an internal, outside-in perspective BAKER Source: Michael Hyatt Book Expo Presentation STRATEGY GROUP Page 15 January 8, 2009
  17. 17. HDI Motown Presentation Business Skills for a Changing Economy III. Business Skills: Strategy Case Study #1: Thomas Nelson In 2007, Thomas made the bold strategic move to organize the entire company around the customers – the essence of customer strategy Source: Michael Hyatt Book Expo Presentation BAKER Source: Michael Hyatt Book Expo Presentation STRATEGY GROUP Page 16 January 8, 2009
  18. 18. HDI Motown Presentation Business Skills for a Changing Economy III. Business Skills: Strategy Demystifying Strategy Many of the terms to know related to strategy tend to be economic and finance related The Value Proposition looking at and defining ―value‖ not by inputs or an internal perspective but, Value Proposition/ 1 rather, the value perceived and received by the customer. The Value Chain, or Value Stream, is the Value Chain/Stream series of organizations, groups, and processes that make up the final Value Proposition. TCO – Total Cost of Instead of simply looking at the purchase price, TCO considers all current and future direct, indirect, 2 and shadow costs associated with the option. Ownership ROI – Return on This calculation comes in many similar forms, such as ROA, ROCI, and ROMI. Calculating ROI 3 basically ensures that the return or gain for a project is worth the capital expenditure. Investment WACC – Weighted Not all companies have the same opportunities before them. If a company faces many promising 4 Average Cost of project opportunities, their WAAC will be high. Therefore, a viable project will need to project a greater return in order to be considered. Capital Some argue that NPV is the best measure for assessing the value of a engaging a project. All cash NPV – Net Present flow—both outbound and inbound—are discounted back to today’s dollar value using WACC If NPV 5 Value is positive, it’s a worthwhile project to pursue. IRR calculates the WACC at which NPV would reach break-even point. If the IRR is above WACC, IRR – Internal Rate of then it’s a project worth the investment of the firm. IRR works best if inbound cash flows come only at 6 Return the end of the project. BAKER STRATEGY GROUP Page 17 January 8, 2009
  19. 19. Helping Organizations Excel through Effective Customer Strategy MAKE IT HAPPEN Baker Strategy Group | 2232 S. Main St. #173 | Ann Arbor MI 48103 | +1 888 BAKER-13 | info@bakerstrategy.com| www.bakerstrategy.com

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