Market culture transformation model

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  • 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
  • See next slides for notes on the different elements
  • Chris
  • Market culture transformation model

    1. 1. Visualizing the Path to MarketCulture Transformation THE MARKETCULTURE TRANSFORMATION MODEL
    2. 2. The Culture Challenge <ul><ul><li>Every organization has a culture, whether it’s purposeful or not. </li></ul></ul><ul><ul><li>The real challenge is building a winning culture, capable of achieving sustainable competitive advantage. </li></ul></ul><ul><ul><li>But what does a winning culture look like? </li></ul></ul>“ I came to see in my time at IBM, that culture isn’t just one aspect of the game – it is the game.” -- Lou Gerstner, Former CEO of IBM
    3. 3. Creating a Culture that Wins <ul><ul><li>A culture that wins is one in which every employee is focused on creating value for customers </li></ul></ul><ul><ul><li>We call this a Market-Driven Culture – a company’s capacity to understand and respond to customers, competitors and external market forces. </li></ul></ul>Bethlehem (Steel) declined … “ because it was a culture wherein people focused their efforts on negotiating the nuances of an intricate social hierarchy, not on customers, competitors or changes in the external world.” – Jim Collins, Author of Good to Great.
    4. 4. 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
    5. 5. Our Transformation Model
    6. 6. The MarketCulture Model MarketCulture Strategies provides the model, metrics and advisory services across every phase of the market culture development and transformation process
    7. 7. 3 Year Timeline Overview Start 3 yr 18 mth 9 mth 27 mth Communicate the Vision – Communicate Wins! MRI, assessments, Results & Planning Kick-off / Short-term wins Use of stories, symbols, rituals and artifacts to leverage change Change focus from short-term wins to systemized reward systems Programs to assimilate new employees into culture Ongoing initiatives to connect with the market and unleash latent performance Shift responsibility for culture from the Guiding Coalition/leadership to all employees Culture Flame-keepers Program MRI, Results & Planning Exec /Employee Summits Longer-term initiatives to connect with market and unleash latent performance Analysis & Planning Culture Transformation Embedded Culture Continuous Market Sense-Ability
    8. 8. MarketCulture Transformation Case Studies
    9. 9. Telstra Case Study <ul><li>Solution: Multi-year engagement working with senior management to measure and embed new Market Culture Mindset, customer responsiveness and best practices </li></ul><ul><li>Key Market Culture Initiatives: Working with non-marketing functions to instill greater “customer service mindset” and practices, including among internally focused departments; development of cross-functional collaboration processes; set to begin Market Responsive Index benchmark for enterprise cultural transformation </li></ul><ul><li>Key Marketing Initiatives: Development of best marketing practices in market focused processes, data-driven decision making and marketing strategies; identification of customer needs among internal and external audiences; improved market segmentation and optimization of marketing mix. </li></ul><ul><li>Results: Improving profit growth and customer retention; development of stronger customer and market responsiveness </li></ul>Business Context: Dominant telecommunications and media service provider with strong national brand. Facing increased competition in growing markets, poor customer retention, declining market share; must instill greater customer focus and market agility; evolve from process driven to market driven culture. Core Need: Business-wide transformation to market and customer focus
    10. 10. <ul><li>“ Price” Focus  “Value” Focus </li></ul>The Telstra Story <ul><li>Largest National Telecommunications Provider </li></ul><ul><ul><li>$20B ($23.7B AUD), 2007 Revenue </li></ul></ul><ul><ul><li>35,000+ employees </li></ul></ul><ul><li>Evidence is in the results </li></ul>Jun 06 - 418k Jun 05 - 32% Jun 06 - 38% Jun 08 - 60% Aug 06 - 628k 3G Subscribers* % of multi-product customers* *Total Telstra *Consumer Only <ul><li>Already this year in Consumer </li></ul><ul><ul><li>Mobile Revenue 10% ↑ </li></ul></ul><ul><ul><li>Homeline subscribers 120k ↑ </li></ul></ul><ul><ul><li>PSTN Churn 80% ↓ </li></ul></ul>
    11. 11. HP Case Study Business Context: Powerful global IT brand with high quality products. However, technical and engineering focus lead to lagging competitiveness in PC markets and slowing growth in core printing markets Core Need: To build a global professional marketing function with greater clout across the organization Solution: Worked with the executive team to benchmark, enhance, embed and measure marketing excellence Key Marketing Excellence Initiatives: Marketing excellence survey evaluation of existing curriculum versus identified skill gaps; created relevant world-class marketing curriculum with associated embedding and evaluation tools Results: Improved market analysis, value proposition development and technology adoption lifecycle skills contributed to regaining leading position in the PC business and increased growth and expansion in the printing division
    12. 12. James Hardie Case Study <ul><li>Business Context: Strong global building products company with dominant market share was suffering declining share in one key growth market and poorly timed reactive responses to competitive initiatives in another. </li></ul><ul><li>Core Need: Business-wide development of a MarketCulture Mindset </li></ul>Solution: Worked with business unit presidents to benchmark, enhance, embed and measure marketing excellence, develop marketing strategies and preempt competitive innovations. Key MarketCulture Initiatives: Formation of a senior team with representatives from each business unit designed to implement insights, process improvements, new tools and successful market strategy experiences across business units. Key Marketing Excellence Initiatives: Marketing audits, development and implementation of marketing planning process and education program; implementation of marketing development and training programs to close gaps in marketing profitability and pricing, market segmentation and competitive marketing strategy. Results: Business unit with declining market share developed strategies to reverse share decline; business unit with poorly timed competitive responses developed ‘pre-emptive competitive strategies; demonstrated world-class marketing excellence metrics -- went from below the benchmark level to best in class.
    13. 13. Speedo Case Study <ul><li>Business Context: Strong global consumer brand. Yet manufacturing focus and lack of MarketCulture Mindset was leading to declines in margins, profit levels and market share </li></ul><ul><li>Core Need: Business-wide transformation to a market focus </li></ul>Solution: Worked with executive team to build a new MarketCulture Mindset and instill a Market-Driven Culture Key MarketCulture Initiatives: customer observation and value identification programs for non-marketing functions, individual value building initiatives by functional teams, development of cross-functional value proposition projects Key Marketing Initiatives: marketing excellence in the marketing function, including skill building, development of strategic marketing planning processes, customer research and channel management Results: Sales growth, market share gains and profit growth
    14. 14. Blue Shield Case Study <ul><li>Business Context: A leading non-profit health insurer that had no marketing function for 3 years </li></ul><ul><li>Core Need: Drive profitable growth. Build a world-class marketing organization that would provide strategic market insights for new product development, drive customer demand and create a differentiated market position </li></ul>Solution: Identified key inhibitors to marketing excellence, built a Marketing Competency Model and designed customized workshops to address key skill gaps Implemented a series of workshops to build marketing competencies that resulted in improved capabilities and marketing performance. Results: Sales growth, market share gains and profit growth. In the depth of the economic downturn in 2008 Blue Shield grew by more than 25%
    15. 15. Our Company Overview <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>Definitive model, diagnostic services and methodology for advancing a company’s MarketCulture Mindset </li></ul></ul><ul><ul><li>Services span cultural benchmarking, management guidance, strategic planning, marketing skills assessment and training </li></ul></ul><ul><ul><li>Global team of business experts and academics with unique understanding of the corporate DNA of winning companies </li></ul></ul><ul><ul><li>Deep insights and rich consulting experiences across leading corporations around the world </li></ul></ul>
    16. 16. 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>
    17. 17. Client Portfolio <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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