23 Mar

Think backwards to create innovations you can sell!

ButtEveryone talks about using INNOVATION to improve companies, products, and services to create a competitive advantage. But how do you innovate knowing that the end result is something your customer will value and is willing to pay more for?

Well the first obvious questions are what does your customer value and how do you innovate value? Many customers cannot find a product or service that meets 100% of their needs so they either develop their own solution or focus on ‘the closest fit’- a suite of products or services that best do the job. Their goal is to find a solution that is cost effective and hassle free.

So how do you find the perfect solution for your customers that offers them better innovative value? The answer is ‘think backwards’…look at your business or product service offer (PSO) from your customers point of view. It will both help you understand your customer better and drive customer centric thinking…the first step to creating a competitive advantage.

Value Innovation is the simultaneous pursuit of differentiation and low cost. There are two LEAN tools that when combined offer a great practical way to focus on developing your VALUE INNOVATION skills. They will also help you to create a new value curve, which not only creates differentiation but also new markets.

The first tool is Value Stream Mapping (VSM), which is designed to look at your business processes, from manufacturing to delivery, as a system and focus on creating flow by reducing waste. Remember that each step in the process has an impact on the other steps and the whole business process.

The second tool is Blue Ocean thinking (Kim & Mauborgne), which has a set of tools to interrogate value stream elements. These tools used with questioning techniques such as brainstorming and 5 Why’s drive innovative thinking.

The7 steps to create VALUE INNOVATION are:

  1. Create an INNOVATION team made up of a representative/s from manufacturing, distribution, administration and sales. Each team member should be chosen by the value they can add to the team. Each team member will be influenced by their own specific business environment and so create diversity when identifying and eliminating waste or interrogating elements.
  2. Invite one customer to each INNOVATION team meeting. This will allow them to get involved in designing a product or service that will add greater value to their business and reduce the ‘purchase hassle’. It will also add the consumer view point.
  3. Innovation teams must meet for 1 hour per week to discuss progress and improvement ideas.
  4. Draw up a flow diagram showing the process starting from when your customer receives the product or service and working backwards. The most effective method is to use post-it’s on a wall chart. Each post-it represents a step in the process and can be moved or eliminated as the new map takes shape. A powerful customer centric tool for creating and reviewing a flow diagram is the Blue Ocean Strategy Canvas. http://homebrewacademy.com/wp-content/uploads/yellow-tail-strategy.png
  5. Interrogate each of your products, services and business process steps using the Blue Ocean 4 Action Framework.
    • ELIMINATE elements that are taken for granted and add no value.
    • REDUCE elements that are higher than industry standards and/or exceed customer expectations.
    • RAISE elements that are below industry standards and/or do not meet customer expectations.
    • CREATE elements that the industry has never offered and/or is on a customer’s ‘wish list’. These elements must add value for the customer.
  6. Draw up an action list showing changes, actions required, person responsible and time lines. All goals set must be SMART and progress measured weekly.
  7. Once the new process is complete make sure it becomes the new best operating practice.

Remember INNOVATION is a process of continuous improvement. Good hunting.

19 Feb

The ‘Glue of life’

trustStephen Covey said that TRUST is the glue of life. The power of trust comes from it’s ability to inspire and influence. It strengthens relationships and is an essential ingredient in effective communication. All of these things are required if you are to be a good leader. People will only follow those that they trust.

There are 8 basic steps in building trust as a leader…none of them mutually exclusive.

  1. Never compromise on matters of principle or standards of excellence, even on matters of minor importance.
  2. Be persistent and never give up.
  3. Have a clear vision of where you are going and communicate it often.
  4. Know what you stand for and set high standards – don’t be afraid to tackle problems despite the risks.
  5. Spend less time managing and more time leading – lead by example.
  6. Bring out the best in others – hire the best people and delegate responsibility – but stay in touch.
  7. Have confidence in yourself and those around you – trust others.
  8. Accept blame for failures and credit others with success – possess integrity and personal courage.

A good test of whether you are trust worthy is to answer the 4 questions linked to the ‘Nature of Trust’ as discussed by William Shoemaker (6 August) at https://thehubcpn.wordpress.com/.

  1. Do you keep your promises? Often promises or commitments are made flippantly and in the heat of the moment. Consider your promise before committing to it. It is often useful to manage expectations by agreeing to a time line and stating any conditions, which would make it difficult to meet your promise.
  2. Are you open in your communication with everyone? I worked with a team who had a communication style of ‘brutal honesty’. Although open and honest this style often led to conflict. Be open in your communication but agree on a communication style with your team and associates. Even suspicion that the communication is less than open will make the listener doubt the message.
  3. Do you always act with honesty and integrity and without hidden agenda’s? Being transparent in your actions not only creates trust but more importantly allows others to focus on their own tasks without having to wonder about what else is happening.
  4. Do you always meet your obligations to look out for other people’s interests as well as your own? People are reluctant to follow instructions or decisions where the outcome will be unfavourable to them. Your decisions and actions will be followed and generally not questioned if others feel that you have their interests at heart.

I have worked with over 500 teams in Africa and Europe and found that one of the most important elements in developing high performance teams is teaching them how to build trust.

 

23 Jan

Noah has the answer…

Ark…not only to strategy and innovation but also to superior customer service with his ‘ARK.’

Noah had a ‘blue ocean strategy’ https://www.youtube.com/watch?v=cpb9UgXWf6Q setting him apart from everyone else, he used disruptive innovation https://www.youtube.com/watch?v=qDrMAzCHFUU in finding solutions that were not expected and typically designed for a different set of customers.

Let us compare the three values Noah used while building the Ark against what we are expected to do for our customers today.

Availability – Noah and his family (team) were involved in planning and building the Ark, sourcing provisions and then collecting the animals. Noah and his family were always available to look after the animals with their needs. Noah did not delegate problems but solved them with the help of his team. Today our customers want the same level of availability from us and our teams. They want us to be there for them to answer questions, help solve problems and offer advice. They also want to know that they can always get the products or services we offer within a reasonable period of time.

Reliability – Noah made a promise to build the Ark and fill it with animals. Even though he went through some difficult times he persevered and delivered on his promise. Reliability is a cornerstone of trust. If our customers can rely on what we say and do it creates a trust relationship leading to a partnership. Customers buy from people they trust.

Knowledge – Noah had specific knowledge that floods were coming and with that knowledge became indispensable in executing the plan. Market and product knowledge can be used in the same way when shared with our customers through training sessions or strategic conversations. The power we gain from sharing knowledge with our customers and teams will lead to them seeking us out for advice. The more knowledge shared the greater our expert power.

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