lean thinking for marketing

Lean Thinking for Marketing

Building a customer centric organisation


Apply Lean Thinking to eliminate waste in sales & marketing and continuously add value to customers


Waste adds cost and adding cost that does not add any value will lead to higher price and lower profits

Our world continues to change!

Complexity is increasing

Big data

Customers are in control

Research among hundred American managers who suffer from the recession shows that

61 percent of them never involves customers when in

trouble. While the solution lies with the customer.

Lisa Nirell

Digital darwinism

Mass marketing is dead

Interuption versus engagement

Creating a sustainable business – true competitive advantage

Stop wasting my time

We need to reengineer companies to focus on figuring out who the customer is, what's

the market and what kind of product we should build

Eric Ries

Contrast

90% of all work is drudge workWorking with the same old gangWell defined organizational bordersProducts last for yearsTechnology helps link parts of the organizationWe are proud of being close to our customerWe sell rigorously engineered "great product" Procedure centricPassive: performs tasks as requested"Silos & Stovepipes"Product or ServiceIt worksI'm glad I bought itSatisfied customerAgrees with your wallet You get what you pay for

Microprocessors do most drudge workConstantly expanding one's network of teammatesShifting organizational alliancesProducts last for weeksThe network is the organizationWe are proudly "at one" with our customerWe sell information-enabled "awesome experiences"Client centricActive: creates WOW projects as inspiredOne seamless enterpriseExperienceIt leaves an indelible memoryI want more!Member of the ClubAgrees with your psycheYou are surprised and delighted at every turn

WAS IS

The 7 challenges marketing is facing today

Challenge 7: increase AGILITY, be more FLUID & RESPONSIVE

Challenge 6: CUSTOMER centricity

Challenge 5: RESULTS driven (accountable)

Challenge 4: little or no DIFFERENTIATION

Challenge 3: SILO’d approach & LONG planning cycles

Challenge 2: COLLABORATION

Challenge 1: we build something NOBODY wanted

Note: all are equally important!

Writing a marketing- or business plan is a waste of time. The

chance that your original plan survives first contact with your

customer is very small

Alexander Osterwalder

What is Lean?

From mass production To just in time

Conventional wisdomHow it is done traditionally

Business plan Great men theory Waterfall Sell as hard as

we can

Linear process

• We know• We have the

expertise• We have the

experience• We understand• We can help• We have the

knowledge

• Traditional product development

Failure is an issue

Lean principles

The five-step thought process for guiding the implementation of lean techniques:1. Specify value from the standpoint of the end customer

by product family.2. Identify all the steps in the value stream for each

product family, eliminating whenever possible those steps that do not create value.

3. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer.

4. As flow is introduced, let customers pull value from the next upstream activity.

5. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.

1. identify value

2. map the value stream

3. create flow

4.establish pull

5. seek perfectio

n

Lean steps: easy to remember not always easy to

achieve!

Learnings from Toyota – “the Toyota way”

• Customer focused• People – centered• Safety Quality Delivery Cost

Morale • Process oriented

Accountability• Daily, Weekly, Monthly

checks• Total involvement

Urgency• Escalation System• Speed of response

Leadership• Zone control• Teams

Standard work• 5S & • Job Instruction• Visual Management

Stability• 4 M • Deman & Volume

(Heijunka)• Long term philosophy

Kaizen • GO see• PDCA• 7 waste

Just in time• Takt time• One piece flow• Downstream

pull

SMEDKanban

3P

Jidoka • Build in quality• Harmony of

human & machine

Stop the line5 why

Pokayoke

Thinking• How to think – 12

paradigms• Reflection – face the

facts• Ideas – creativity & craft

The philosophy behind “the Toyota way”

Customers firstThe complete elimination of

all waste

Testing is part of our DNA

Continuous improvement

Why Lean is changing everything

We life in a world of extreme uncertainty

Diffe

renc

es L

ean

and

tradi

tiona

l sy

stem

Lean approach Traditional System approachStrategy• Business model• Hypothesis driven

• Business plan• Implementation driven

New product process• Customer development• Get out of the office and test hypothesis

• Product management• Prepare offering for market following a

linear step by step planEngineering• Agile & Scrum development• Build the product iteratively and

incrementally

• Agile & Waterfall development• Build the product iteratively or fully

specify the product before building it

Organization• Podular organization customer focused• Hire for learning, nimbleness and speed

• Departments by function• Hire for experience and ability to execute

Financial reporting• Metrics that matter• Customer acquisition cost, lifetime

customer value, churn, viralness, share of wallet

• Accounting• Income statement, balance sheet, cash

flow statement

Failure• Expected• Fixed by iterating on ideas and pivoting

away from ones that don’t work

• Exception• Fix by firing executives

Speed• Rapid• Operates on good enough data• “calculated risk”

• Measured• Operates on complete data• “risk averse”

Lean favors

Experimentation

Customer feedback

Iterative design & developement

over

over

over

Elaborate planning

Intuition

Tradtional “Waterfall” development


Key is to start listening, reduce complexity, be less fragmented, and be more relevant

Marketing today

To much fluff in a 4D enterprise

matrix organisation!

Different channels

Online

Business 2 Business (B2B)

Direct

In-direct

Business 2 Consumer

(B2C)People 2 People

(peer 2 peer networks)

Different target audiences

For decades we have been bucketing people using generational classifications

End of demographics! We need to understand people. Their interests, behaviors, beliefs and values always trump demographics.

Using different data:• Social profile data• Behavioral data• Customer life cycle data

Different roles (the modern marketer)

Business

Creative

Performance

Social

• Written content• Visual assets• Video• Social Media• Viral marketing• Storytelling

• Tracking & Monitoring• Operations• Analytics• Data management• Technology usage & procurement• Marketing automation

• Sharing• Character• Personal• Authentic• Social• Engaging• Leadership

• Strategy• Commercial• Entrepreneurship• Business Development• Business model

Different objectives (purpose of marketing)

Proposition & Portfolio

DevelopmentCustomer

ExperienceCustomer Retention

Lead Generation &

NurturingPositioning Customer

Acquisition

Channel Synergy & Readiness

Different marketing activities & media (mix)

Content Marketing

Online & Email

Marketing

Event Marketing

Social Media

Marketing

Mobile Marketing

Print Radio

TV

Direct Mail


From working in silo’s to integrated marketing

Marketing working in silo’s Integrated marketingCh

anne

ls

Audi

ence

Role

s

Obje

ctiv

es

Activ

ities

& M

edia

Linear thinking and to much focus on planning

Linear process

Idea

Launch

Data

Learn

Pivot

Measure Build

MVR*

Continuous process

Customer

* MVR = Minimal Viable Requirement (product or activity)

Customer

JUST DO IT!

Where to apply Lean thinking?

• Create and share meaningful and relevant information to attract and retain customers

• Start a dialogue, fuel your conversations and be more engaging

• Create new opportunities for up-, deep-, and cross selling

• Deliver exactly what customers want for a price they will pay

Proposition & Portfolio

Development

Lead Generation &

Lead Nurturing• Reduce time 2 market• Collect better

feedback faster• Increase agilty within

your organisation• Connect the inside and

outside world• Better and faster

decision making• Improved business

case and better ROI• Treat customers as life

time partners• Co-create the next

proposition

Because these two processes are better aligned and joined up this will lead to:• Better qualified

leads• Improve share of

wallet• Shortening lead

times• Improve win

rates• Improve margin

And in the end you will build trust,

loyalty, and long term strategic relationships

Lean Thinking will lead to more responsive marketing?

An agile and adaptive mentality is badly needed in the marketing arm of

organizations—one that is less dependent on historical data to make decisions and is inclined to parse data

inputs as they come in dailyDavid Armano

Foundation & critical succes factors

• Cross border virtual collaboration• Social business• Highly connective people• Organizing for agility• Leadership• Data driven marketing

Cross border virtual collaboration

Empower people to engage & participate

The inside world

The outside world

Social Business

Social the fabric that links your whole organization?

Connected Collaboration Customised Conversatio

ns

Community Collective Content

Highly Connective People

People make a difference (DNA)

• Think knowledge as a service• Take risks & have a point of view• Keep their promises and never over promise• Say it another way & write it down• Show it – demonstrating works better• Connect actively• Let them know you thought of them• Be present to opportunities• Think beyond their closed circle• Talk “partnerships”• Wire the organisation internal and external

Organizing for Agility

Podular organization

• Working in the open by default• From sharing to collaboration• Creation of boundaryless tribalism• Create a network of linchpins (gamechangers)• Small agile virtual autonomous teams, self managed• Leadership – practice hostmanship• Self assembling dynamic networks• Rapid scaling

Leadership

Enable people to do more

Give up control

Respect the real power

shiftMaster

transparency

Reach out to customers Share Use social

technologiesLearn, relearn

& unlearn

Listen activelyDevelop a flat

& open organisation

Practice hostmanship

Make mistakes and admit when

you are wrong

Data driven marketing

Actionable intelligence & insight

• Customer data• End user data (usage)• Service data• Social Media• DMU• Buyer journey & Buyer persona’s• Customer maturity• Sentiment• Behaviour• Web harvesting & Web mining

Research reports are rear view mirrors

A special thank you:

In order for me to develop this manifest I have used knowledge, experiences, and information from other professionals. Thanks for all the inspiration!

David Armano - @armanoLisa Nirell - @lisa_nirellEric Ries - @ericriesAlexander Osterwalder - @alexanderosterwBrian Solis - @briansolisTom Peters - @tom_petersSteven Blank - @sgblankToyota – www.toyota-global.com

Key wording “the Toyota way”

Heijunka – production smoothingJidoka – automation with human intelligenceKaizen – continiuous improvementKanban – sign, index cardPokayoka – fail safing, avoid errorsGenchi Genbutsu - go to the source to find the facts to make correct decisionsTakt time - work time between two consecutive units

The photos were found on

Alex de Carvalho - @alexdcSarah Joy - @RanPandaJohan Larsson - @kottkrig Bex RossKen TeegardinJon Candy - @jonrcandy

Please contact me to continue the discussion:

[email protected]

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www.linkedin.com/in/jeroenspierings

www.jeroenspierings.nl