what do customers want? swamfest vi october 13, 2010 ed hess professor of business administration...
TRANSCRIPT
What Do Customers Want?
SWaMFest VI
October 13, 2010
Ed HessProfessor of Business AdministrationBatten [email protected]
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THE DNA OF GROWTH
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Research Findings
5 research projects
The Organic Growth Index ( “OGI”)
The Characteristics of High Organic Growers (“HOGS”)
The Challenges of Managing Private Company High Growth
The Myths of Growth
The Risks of Growth
WORKING ON YOUR BUSINESS
Peter Drucker said it concisely, clearly, and compellingly:
“The sole purpose of business is to serve customers.”
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WHAT DO CUSTOMERS WANT?
All customers no matter what you are selling want the same 3 things:
Defect-free products & services
On-time delivery
Great caring service
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CUSTOMERS WANT
Consistency
Reliability
Ease of doing business
Responsiveness
Needs met
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SUCCESSFUL BUSINESSES
FOCUS on what they can do very, very well “2 inches wide, 2 miles deep”
Are EXECUTION CHAMPIONS
Have a CONSTANT IMPROVEMENT DNA- they get better each day
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HOW? PROCESSES – the recipes, checklists,
the how to do every step in the customer experience
Better, Faster, & Cheaper becomes the objectives everyday
Execution is the blocking & tackling of business
Business is like farming
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YOUR DAILY GOAL FOCUS everyday on doing what you
do EXCEPTIONALLY WELL 99% of the time and quickly fix the other 1% in a caring apologetic manner.
Quality comes first
Reputation comes first
Customers and employees come before you
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THE BIG “W”- WHY YOU? WHY is a customer going to buy from you?
What do you do differently than the competition that really matters to your customer?
What makes you different?
What does your customer need?
“Listen till it hurts”
“You can’t listen while your talking”
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DIFFERENTIATORS Quality
Speed
Ease of doing business
On-time and quality guarantees
Great service
Reliability
Consistency
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YOU DO NOT NEED TO HAVE
Unique products or services
Most innovative products
Cheapest products
But you must have EXECUTION EXCELLENCE
&GREAT SERVICE
That comes from people, processes, and
leadership.
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CUSTOMER CENTRICITY
To be successful, you must have:
CUSTOMER CENTRICITY
&
HIGH EMPLOYEE ENGAGEMENT
&
A HIGH PERFORMANCE CULTURE
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EXECUTION EXCELLENCE TOOLS Morning & afternoon huddles
MBO: Manage by Objectives daily
MBE: Manage by Exceptions daily
“Leave a fire extinguisher” behind
Measure what is important
Reward what is important
Communicate, communicate, communicate
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THE SECRET SAUCE
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Employees Clients
$$$
ENABLING EXECUTION EXCELLENCE The Outback Way: “Teach don’t
punish”
Teams not stars
Money is not enough
Celebrate success
Help people be all they can be
Everyday is SHOWTIME!!!
Cross-train: no single point of failure
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THE 4 PRINCIPLES OF LEADERSHIP
Take care of your people
The Golden Rule
Lead by example
Always do what is right
It is NOT about you – it is about THEM.
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4 WAYS TO GROW YOUR BUSINESS
Improvements: Better, faster, cheaper
Innovation: Doing something new
Scaling: Doing more of what you are
doing
Strategic Acquisitions
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4 WAYS TO SELL MORE STUFF
Expand geographically
Sell complimentary or adjacent products to existing customers
Sell complimentary services to existing customers
Deliver a scaled down version to a different customer segment
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WAYS TO BECOME MORE PROFITABLE
Technology to increase quality, efficiency & productivity
Just-in-time inventory
Reduce waste & mistakes
Discounts for fast payments- get cash faster
Reduce employee turnover
Preferred provider networks to reduce costs
UPS model
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THE KILLERS OF BUSINESS Commoditization
Complacency
Arrogance
Taking your customers & employees for granted
Losing your personal edge-laziness & lack of personal discipline
Bad quality; bad reputation; bad conduct
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