Lean Six Sigma Marketing

Define the Expectation, Delight the Customer

business901 — Fri, 17 Feb 2012 03:30:00 +0000

In tomorrow’s podcast with Marc Stickdorn, co-author of This is Service Design Thinking,I asked my typical “last question” and it went like this:

Joe: Is there something that I didn’t ask that you would like to expand on or mention about service design thinking?

Marc: Maybe I would like to add one thing and that’s about expectations. We talked a lot about experiences now and one really; really important thing is the expectations. If you’re thinking about what advertisements do and communications if you go online and read reviews about said product and so forth it’s all affecting expectations. That is something really, really important.

If you’re thinking what satisfaction is, customer satisfaction, it really depends on the expectation. You level your expectations against your experiences. That’s what still many companies don’t really get to level their expectation that right manner. Expectation management is one thing which needs to be included in service design.

Joe: The expectation of what a customer should know and what an organization should do. Having that commonality really is what makes the product experience great. I think that’s a great point.

Marc: Definitely. That’s why low‑cost carriers are working so good because they promise you nothing and at the end of the day you get from A to B and that’s all you want and that’s all they promise and that’s all they do. That’s why they work. They can have an awful customer experience but if they don’t promise anything else, fair enough.

If you promise to have an awesome customer experience and you just provide an average experience that’s something negative. That’s what I meant with a shift from advertising to experiences as well.

How many of us really spend time on expectations? How many of us over promise and under deliver? We spend time on defining customer needs and how we can deliver on them but do we ever go back and defining his expectations? Most sales teachings employ techniques that are manipulative and tied to customer emotions. You try to guide them down a certain path. I have written about this before in Kill the Sales and Marketing Funnel where I said:

The Sales and Marketing Funnel is a theory that needs to be laid to rest. A linear approach to predict, plan, and proceed is a precarious way to advance. This approach prematurely foresees a solution for the customer without ever understanding their problem. And if you consider addressing the application of social media, it does nothing to support inbound marketing. As we work our way down the funnel, it is just as likely evidence will mount that the proposed solution is wrong. However, we have so much invested we attempt to sway the course of action in our favor. Linear planning will increase the risk for a customer to engage in an inappropriate course of action.

I find expectations are closely rooted to empathy. You have to truly take interest in the customer’s well-being in able to assist them in defining the minimum level of performance needed and the amount of effort they are willing to put forth. The key is listening with empathy. Your persona is more important than the customers at this point. Before you begin teaching the customer what they need to know, start thinking of this process a little differently. Think of it as you being the pupil rather than the teacher. Think about you having that “aha” moment or that moment when you “get it” versus when your customer gets it. When that “Aha” moment arrives – delighting the customer may not be all that difficult.

P.S. Review the The Lean Engagement Team

What’s new in Business Model Generation? Customer Value Canvas and more

business901 — Wed, 15 Feb 2012 15:25:00 +0000

Need a collection of tools to help generate business model ideas! The Business Model Canvas is an analytical tool outlined in the book Business Model Generation. It is a visual template preformatted with the nine blocks of a business model, which allows you to develop and sketch out new or existing business models. This book has sold over 220,000 copies the past two years and has established itself as one of the leading sources of modeling for both startups and established businesses.

If you’re ready to change the rules, you belong to "the business model generation!" Listen to Alex discuss this concept and he latest extensions to the BMGen platform such as the Customer Value Canvas plugin.

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Download Podcast: Click and choose options: BMGen or go to the Business901 iTunes Store.

About: Dr. Alexander Osterwalder is a sought-after author, speaker, workshop facilitator and adviser on the topic of business model design and innovation. He has established himself as a global thought leader in this area, based on a systematic and practical methodology to achieve business model innovation. Executives and entrepreneurs all over the world apply Dr. Osterwalderʼs approach to strengthen their business model and achieve a competitive advantage through business model innovation. Organizations that use his approach include 3M, Ericsson, IBM, Telenor, Capgemini, Deloitte, Logica, Public Works and Government Services Canada, and many more.

Competitive Advantage Through Business Model Innovation
Aligning Business Model Innovation and Information Technology
From Business Model to Business Plan
Private Banking Business Models – discover, understand, define
Business Models in the Media Industry
Business Models at the Bottom of the Pyramid
Social Entrepreneurship Business models
Design Thinking in Business

Alex’s Websites:
http://www.businessmodelalchemist.com
http://businessmodelhub.com/
http://www.businessmodelgeneration.com/

Service Design concepts for the Future of Banking

business901 — Wed, 15 Feb 2012 03:30:00 +0000

Conversations with twitter companion @flinchbaugh surfaced several frustrations with banking

From @flinchbaugh Lending by the nation’s top 4 banks is down over $150 Billion – we still have a lending crisis that is hurting the ability to create jobs.

@flinchbaugh is that a lending issue or if companies had a demand could they get the money – #justwondering #chicken&egg

@business901 I see what were traditionally loan-worthy companies trying to get a loan but banks won’t do it. They’re setting a very high bar

@flinchbaugh not denying that, so they do have demand for product/service – that’s my question?

I understand, what I am saying if there is a "demand" there is capital (private) available but not want 2 use alternative? #collaboration

I am questioning if traditional works, I am not even sure the purpose of banks since they don’t loan money anymore.

@business901 Well, the big 4 still loaned $3 Trillion, it’s just down a big chunk. Less relevant, but still critical cog in economy

Yes, these are company that are already operating, not business-plan-and-a-dream companies. Constrained cash is biggest limiter in growth

I was not considering that these are startups or new innovation. I think this the time for a disruptive element to take place in traditional financing. When you review the successes of a model such as Kiva for example. Review how non-profits solicit donations, is that to far of a stretch for businesses?

Another twitter companion @ServiceDesigns sent me over an example of how Service Design Thinking has been applied for funding.

Is Lucky Ant the future of funding model for Social Innovation? Looks amazing: http://luckyant.com

Corporations are sitting on tons of cash. Should they not take an interest in both their suppliers and customers to co-produce and co-create products/services with them? Is this the future of banking? Could we develop another word for loans like collaboration?

Can the Lean Knowledge Worker cope with Leader Standard Work?

business901 — Tue, 31 Jan 2012 03:45:00 +0000

Leader Standard Work is becoming more commonplace and the standard for the development of a Lean Culture. It is extremely adaptable and found both in trade and professional services. It excels in experienced based professions but it may struggle in what I would call knowledge-based services. The problem is there are more knowledge-based jobs being created every day. The experience based jobs either get automated or outsourced. For more information on that subject, read Dan Pink’s, A Whole New Mind: Why Right-Brainers Will Rule the Future.

Since Lean is so intrinsically tied to standard work, many believe Lean cannot apply to their “Knowledge Based” occupation. In fact, it is often resisted in these circles.

When met with resistance, I have found that typically there is a good reason why. As I review most Leader Standard Work for knowledge workers, I still find them heavily laden with specific instructions and very results based focus. In Sales and Marketing (I am considering Sales and Marketing to be knowledge work) , you will see instructions such as make 25 calls, send out 15 e-mails, 3 blog posts a week, etc. On the other hand, I do see slack time allowed under the disguise of daily or weekly Kaizen. So Leader Standard Work can apply to Sales and Marketing, or can it?

Leader Standard Work will fizzle out quickly in the Sales and Marketing arena if you simply try to practice Leader Standard Work through Lean Training, coupled with your experience and try to become more proficient through iteration after iteration. It doesn’t work that way. In fact, it may take years, certainly months, to acquire the skills needed. What stops you is that you not only have to learn new skills but these skills and learning are not stagnant. They are in constant turmoil; developing, adapting and evolving while obsoleting the existing structure.

Many companies may fall short as a result of not creating the internal collaboration structure needed for learning. The organization must develop as a whole and this can only be accomplished by developing their personnel by providing the necessary resources and opportunities. We also need to promote individual differences. Instead of teaching the way to do some things, we may need to step back and determine the key points that are required, as Simon Sinek says the “Why” while leaving the how alone (Start with Why: How Great Leaders Inspire Everyone to Take Action).

What will drive Leader Standard Work in Lean Sales and Marketing is the “Why” more so than the “How”. The “Why” provides the clear strategic intent which will provide the fuel for Leader Standard Work. This analogy is wonderfully described in David Mann’s Book Creating a Lean Culture: Tools to Sustain Lean Conversions, Second Edition where he uses the automotive analogy to describe the four principles of the Lean Management System:

Leader Standard Work – Engine
Daily Accountability Process – Gas Pedal and Steering Wheel
Visual Controls – Transmission
Discipline – Fuel

When developing your Leader Standard work for Lean Sales and Marketing address these three items;

Clarification – Minimum standard is explicit
Commitment – Level of commitment is expected from the individual
Connection – A path for support through conversation is provided.

Can your Leader Standard Work pass the 3 C Test?

Marketing with Lean Series – 4 Pack

business901 — Mon, 23 Jan 2012 16:40:00 +0000

Special Offer

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Lean Marketing House (More Info): A starting point for creating true iterative marketing cycles based on not only Lean principles but more importantly Customer Value. Recommended 1st reading of series.

Marketing with PDCA (More Info): Targeting what your Customer Values at each stage of the cycle will increase your ability to deliver quicker, more accurately and with better value than your competitor. It is a moving target and the principles of Lean and PDCA facilitates the journey to Customer Value. Recommended 2nd reading of series.

Lean Engagement Team(More Info): The ability to share and create knowledge with your customer is the strongest marketing tool possible. Recommended 3rd reading of series.

Marketing with A3(More Info): Enables sales and marketing to use the Lean tool of A3 as a structured approach for their problem solving, strategies and tactics. Recommended 4th reading of series.

Save when buying all 4

This series of books are about developing a continuous improvement culture in your sales and marketing and re-positioning your customer as the center of your organization. The further we are from our customers’ knowledge base the more effort has to be made to create a larger and larger supply of prospects. The ability to share and create knowledge with your customer is the strongest marketing tool possible. Successful Sales and Marketing are no longer trying to get their message out but developing strategies to get the message in.

Disclaimer: There is no silver bullet introduced in these books.

Turning Leader Standard Work Upside Down

business901 — Fri, 20 Jan 2012 03:55:00 +0000

I find one of the problems that exist in Leader Standard Work practices is not at the Team Leader Level nor even the Supervisor Level but many times right at the top. In David Mann’s book Creating a Lean Culture: Tools to Sustain Lean Conversions, Second Edition (which I consider the bible for Leader Standard Work), he states that Leader Standard Work should break down in this percentage for standard work:

Operator – 95% their time might be devoted to completing leader standard work
Team Leaders – 80%
Department Supervisors – 50%
Value Stream Managers – 25%
Executives – 10%

These numbers will differ according to the environment and whether it is production, office or development work but Leader Standard Work should be consciously designed to be layered from bottom up. The act is what produces results, not the thinking. There should even be a degree of redundancy between the layers to ensure accountability.

This is where I believe that the problem starts developing. Trace Richardson wrote a blog post, You want a tangible action for your leaders trying to do Lean? Try this! GTS "squared" where she states that one of the fallacies of problem solving is the inability of Leaders to “Go See”. I find that true outside of the factory as well. Leaders seldom do the 10% or 25% of Standard Work required. They even will sit down in a meeting and go over the subordinate’s standard work and instruct him on how to improve without ever observing the process. Even more importantly that shared accountability through redundancy is seldom instituted.

In Lean Sales and Marketing, Standard Work will have a difficult time achieving 95%. In fact, most “front-line” Sales and Marketing workers will have responsibilities that clearly cannot be defined as Standard Work. Leader Standard Work may often only border around 50 to 80% or lower. I think immediately of the conversation I had with Joseph Michelli on Zappos company culture. Joseph’s latest book, The Zappos Experience: 5 Principles to Inspire, Engage, and WOW discusses the relationship of employee and customer experience as demonstrated in my blog post, Is Zappos the Next Toyota?.

As we progress up through leaders, supervisors, etc., the percentage of Leader Standard Work should not drastically be reduced as it does in a manufacturing environment. It is the Servant Leadership role that must surface. Empowering the front line staff with the necessary resources to enable their actions to deliver an outstanding customer experience becomes Leadership’s primary function. The Leader Standard Work may actually become more standard as we move away from the main influencer and/or disruptor – the Customer.