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The age of multi ... sourcing channel services faith age


          Change Management has left
          traditional company borders


          Bert Van Bergen
          bert.van.bergen@kiteconsultants.eu

          January 26th, 2012.
A couple of things we have come to accept

             Co-Production
               Services are produced together with the customer.




             Multi-Sourcing
                Services from the optimal blend of internal and external
                suppliers.
A couple of things we have come to accept
                         unication s” issue.
Cus        a re a “comm
    tomers Co-Production
               Services are produced together with the customer.


                              ed but not involved.
       S uppliers a re inform
            Multi-Sourcing
                Services from the optimal blend of internal and external
                suppliers.
service co-production

   “... the firm can outsource any proportion of the whole service task to the
   customer...”
   Source: Mei Xue, Patrick T. Harker, “Service Co-Production, Customer Efficiency and Market Competition”, Wharton Financial Institutions Center, 2003
an
                                        . Moynih
                            EO   Brian T
                    Corp. C
B ank of
         Am   erica
                                                         Missio n: re b u i l d
                                                         bank’s reputation

                                                     “I, like you, get a little in
                                                                                   censed when
                                                     you think about how mu
                                                                                 ch good all of
                                                     you do, whether it’s vo
                                                                                 lunteer hours,
                                                     charitable giving we do,
                                                                                serving clients
                                                     and customers well,”



                                             t
     “You ought  to think a little about tha
                                 us.”
     before you start yelling at



  BofA CEO Brian Moynihan 'Incensed' People Don't Recognize
  'How Much Good' His Employees Do.
Co-production Framework

                                                                                             Special
   Social
                                                                                           Treatment
Interaction                                                                                 Benefits



                                                 Co-                                         Social     Customer
       Trust                                                                                Benefits     Loyalty
                                              Production


     Shared                                                                                Confidence
                                                                                            Benefits
     Vision

Source: Li-Wei Wu, “A Framework and Propositions for Managing the Co-production Process”
Shared
                                        Customers demand
    Vision
                                        changes
“Earlier this year, Bank of
                                 America was
named the country’s second-w
                                orst company
by Consumerist.com after BP
                                 Plc, the fir m
blamed for the worst U.S. offshor
                                 e oil spill. “

                                                                                                 k
                                                                       nked   lowest in a 24-ban
                                                      nk of America ra                           n
                                                  “Ba
                                                                        ess c ustomer satisfactio
                                                  survey of small busin                    nth.”
                                                                   nd  Associates this mo
                                                  from J.D. Power a
          Customers
         have a vision
Establish Sense of
Urgency

Form a Powerfull
Guiding Coalition

Create a vision

Communicate the      Imaginable Focused
Vision
                     Desirable Flexible
Empower others
to act on Vision     Feasible Communicable


Plan for and
Create Short Term
Wins

Consolidate
Improvements

Institutionalize
Kotter (1995)
Image as in Mental Image

          Determine your priorities


       Get to know your customer      REPEAT
                                      => different levels
     Determine stakeholders
                                      => different
    Workshops Service Blueprint
                                      customer groups
   Customer Experience Roadmap

    Form a mental image

    Share a common vision
Tilt the balance!

           Just choosing the right sponsor is not enough.



       Talk desired outcome, not proposals or solutions



         Managers make decisions from their “mental image”

                 of a service

                 of the company
It’s in the interaction!

             Don’t “evangelize” before capturing a shared vision




     Services are not delivered by the manager




               Requirements for change are to be determined by both the
               company and the client
Relationships matter... at every level!




                           Foster the right attitude LISTEN

                               Deliver the message... personally

                                     Direct contact is key!

                                          Set Customer based KPIs
multi-sourcing        in Change Mgmt.
    ... >80% of Fortune500 companies outsource part of their
    business ...


    ... in reality, it is impossible for one company to offer one
    service completely one their own ...

             ... outsourcing for cost-efficiency ...

             ... outsourcing for innovation ...


           front office outsourcing
                                       trust
                                data

                   relationships       shared vision
Bert	
  Van	
  Bergen
+32	
  473	
  712	
  721
bert.van.bergen@kiteconsultants.eu
Kiteconsultants.eu

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Co-Production of services: Change Management has left traditional company borders

  • 1. The age of multi ... sourcing channel services faith age Change Management has left traditional company borders Bert Van Bergen bert.van.bergen@kiteconsultants.eu January 26th, 2012.
  • 2. A couple of things we have come to accept Co-Production Services are produced together with the customer. Multi-Sourcing Services from the optimal blend of internal and external suppliers.
  • 3. A couple of things we have come to accept unication s” issue. Cus a re a “comm tomers Co-Production Services are produced together with the customer. ed but not involved. S uppliers a re inform Multi-Sourcing Services from the optimal blend of internal and external suppliers.
  • 4. service co-production “... the firm can outsource any proportion of the whole service task to the customer...” Source: Mei Xue, Patrick T. Harker, “Service Co-Production, Customer Efficiency and Market Competition”, Wharton Financial Institutions Center, 2003
  • 5. an . Moynih EO Brian T Corp. C B ank of Am erica Missio n: re b u i l d bank’s reputation “I, like you, get a little in censed when you think about how mu ch good all of you do, whether it’s vo lunteer hours, charitable giving we do, serving clients and customers well,” t “You ought to think a little about tha us.” before you start yelling at BofA CEO Brian Moynihan 'Incensed' People Don't Recognize 'How Much Good' His Employees Do.
  • 6. Co-production Framework Special Social Treatment Interaction Benefits Co- Social Customer Trust Benefits Loyalty Production Shared Confidence Benefits Vision Source: Li-Wei Wu, “A Framework and Propositions for Managing the Co-production Process”
  • 7. Shared Customers demand Vision changes “Earlier this year, Bank of America was named the country’s second-w orst company by Consumerist.com after BP Plc, the fir m blamed for the worst U.S. offshor e oil spill. “ k nked lowest in a 24-ban nk of America ra n “Ba ess c ustomer satisfactio survey of small busin nth.” nd Associates this mo from J.D. Power a Customers have a vision
  • 8. Establish Sense of Urgency Form a Powerfull Guiding Coalition Create a vision Communicate the Imaginable Focused Vision Desirable Flexible Empower others to act on Vision Feasible Communicable Plan for and Create Short Term Wins Consolidate Improvements Institutionalize Kotter (1995)
  • 9. Image as in Mental Image Determine your priorities Get to know your customer REPEAT => different levels Determine stakeholders => different Workshops Service Blueprint customer groups Customer Experience Roadmap Form a mental image Share a common vision
  • 10.
  • 11. Tilt the balance! Just choosing the right sponsor is not enough. Talk desired outcome, not proposals or solutions Managers make decisions from their “mental image” of a service of the company
  • 12. It’s in the interaction! Don’t “evangelize” before capturing a shared vision Services are not delivered by the manager Requirements for change are to be determined by both the company and the client
  • 13. Relationships matter... at every level! Foster the right attitude LISTEN Deliver the message... personally Direct contact is key! Set Customer based KPIs
  • 14. multi-sourcing in Change Mgmt. ... >80% of Fortune500 companies outsource part of their business ... ... in reality, it is impossible for one company to offer one service completely one their own ... ... outsourcing for cost-efficiency ... ... outsourcing for innovation ... front office outsourcing trust data relationships shared vision
  • 15. Bert  Van  Bergen +32  473  712  721 bert.van.bergen@kiteconsultants.eu Kiteconsultants.eu