So welcome to everyone who's here and
welcome to the webinar around customer
centricity- a very topical and important
issue for organisations- public sector,
private sector not only in Australia but
globally. So just a very brief
introduction in terms of what we do. Yes so you know with the
Strategy Group we are at the leading edge of
innovation of thinking we help
predominantly large organisations in the
corporate space, governments, solve
problems in a very different way. We're
very focused on methodology such as
design thinking, Eric Ries' Lean Startup methodology. We are very focused at the moment
around customer centricity
and most organisations are very focused
on how to put the customer in the centre
and we're working with many
organisations large and small around customer
centric strategy and the even hotter topic
at the moment is around the employee
experience. We're very strong on focusing
on experiences we believe that
organisations today offer not products,
and in fact not services, but experiences
and that customer experience and the
employee experience is key to
organisations successfully moving
forwards. Now just very briefly-
couple of points about myself so
I'm the managing director at The Strategy Group. These are the pillars to my life- we have a
growing and successful organisation in
The Strategy Group which I run. I'm
also adjunct faculty adjunct professor
at the Australian Graduate School of
Management and AGSM fellow. I'm
responsible for innovation and
entrepreneurship at AGSM.
I'm also an angel investor- so I have seven
startup investments which takes me into
the intersection of
the corporate and government world The
Strategy Group, the academic world, AGSM
and the startup world in the
entrepreneurial space and I hope to
bring much of that thinking into this
webinar this morning and in terms of
some of our clients I'll just briefly
show you some of them. They range from across
they range across all verticals-
retail, transport, telecommunications, food
and vegetables. Asia Pacific ,Australia as
well as government, both state government
and federal government, property and
financial services. So wide range of
clients, we're very proud of our client
list. So I'd like to kick off talking
about a topic that's really important
for us to spend a few minutes chatting
about and that's about this power shift. So if you wind the clock back a few years and
you wanted to travel how would we do
that? Well you go to a travel agent for
example the only people who could
actually issue tickets
the only people who you watch that Iran
the only people who could tell you about
hotels- they were the only people that held their power. Of course, that significantly has changed. So now if we want to
travel we can book the flight ourselves
we can understand we could look at
reviews on Trip Advisor.
The power has significantly shifted from the
organisation to us and we're seeing that
shift happen across all verticals so travel's
examples one example, retail is obviously
another one you know if I can't get what I want from a
store at the price that I
want I would go elsewhere. The consumer has got the power.
Financial services- you know I want my
credit card delivered in the next two
hours I want my line of goods in the
next three hours and if you can't do it
organisation I'll go elsewhere. And so in
that power shift from the organisation
to the consumer
we believe it is only going to continue and
we'll you know this will be sort of a
thread through the webinar this morning
because it's very important for us to
understand that the organisation, while
it might think it has the power and
while it might think it knows what the
consumer wants, it actually doesn't have
the power and as you know technology and
online access continues to escalate as
it is doing at the moment so more and
more and more the power will shift to the
consumer which leads us to the view that we have
to not just give the consumer what they want and not what they need, we need to be able to
delight the consumer in a way that you
know astonishes them which leads to
this first concept I want to introduce
which is the concept of strategy from the
outside in. If you think to yourself for
a couple of minutes around
what are your KPIs what do you want to
achieve over the next 5 months for the
organisation you're in and this may be
public, you know in private sector
organisation etc. And if you reflect
just reflect for a minute or two on what are
the goals for the next 6 months in
your organisation. Then I put it to you
that most of you will have goals like
saying we want to grow user cost five
percent, we want to increase our market
share, we want to you know we want to go
into another vertical. With all of those
and they're very valid goals. The challenge with all those is that they are
side strategies. So those are strategies
from within the organisation out to the
customer but the customer has no interest in
an inside-out strategy. So if I'm
standing in Coles, for example, I have no
interest in Coles' growth strategy, Coles'
acquisition strategy,
market share strategy all I'm interested
in is what the organisation is going to
do for me and so we introduced this
concept and this comes from a professor
at Berkeley who wrote a book around this
and it's the concept of strategy from the
outside in vs strategy from the inside out. So
most of us have a strategy from the
inside out. What's important for us to do
is have a corresponding strategy of an
outside-in strategy- a strategy that
comes from the outside in that's
relevant to the customer. Let me give you
let me give you an example. 
just chat if you have problems hearing
 
I'm going to I can continue
So
little story that happened to me a few
months ago them around NRMA. 
one second yeah so apologies I just wanted
to check that we're actually heard. So about four
five months ago I get in the car, start
the car and nothing happens. You know I'm
sure you're all familiar with this you
turn the ignition nothing actually
happens and and so what do i do? I call NRMA
so I pick up the phone and of course what I do I
get I get a message you know your call is
important to us and three minutes to the
you know message of your call is
important to us and I get connected to
an operator I say look my car won't start,
could you please send a van? Then the person
the other end says  what's your
registration number. I give them my
registration number and they say look I'm sorry
sir your membership's expired. And I
reached into my pocket and I said okay
look let me give you my credit card
number and please register me, here's
my credit card number at  reinstigate my
membership. And they say 
unfortunately sir your membership
expired two years ago
and we need to enter you again as a
member okay.
So I say all right let's do it so then she
says well you know what's your first
name, what's your second,
what's your address, I thinking you've got
all of this. So I give them all these
details and then then she says well I'm
now going to play you three recordings of
our terms and conditions and you need to
answer yes to each of these recordings.
So I go, really? What am I doing here? Am i
taking out a home mortgage. So I say
okay play me the recording.
so she says yeah it plays one and I go
yes so I mean you never listen to any of
this stuff, play recording 2, yes, play recording
three, yes, it okay so now how much
is it? And she says well it's like this
it's two hundred thirty dollars for two
years but the first year is free. And I
think to myself what a really weird
pricing strategy but I say ok fine.
Pay my $230 I'm now at home so
well
now can you pass me can you send the
van. They said well no unfortunately you
know I now need to pass you on to
roadside assistance. So 15 minutes later
in the queue
you know your call is important to us
okay can you send the van
I'm now a member they say yes you're now a
member
we'll send the van and they say this
offering is that the van will turn up
within an hour. Okay 45 minutes later the
van turns up, the guy checks the battery says well
I say do I need a new battery? He says
well it depends- well the
batteries is just two days out of
warranty and I can either start the power
for you and you can drive around or I can give you a new battery, what you want to do ?
I said it's 2 days out of warranty surely you can give me a new battery and he says no no our rules that it
needs to be exactly within warranty what
you want to do and I say well start the
car I'll Drive it around we'll see what
happens. So he started the car he left
we went home. Got in the car the next
morning, went to start the
car sure enough, car doesn't start. What do I do? Call in RMA. This is another 20 minutes on the
phone your call is important to us we'll
be with you as soon as you can they
I speak to roadside assistance so I tell them
what happened they say okay we'll send a
battery van. How long will it take for the battery van to come?
Well our service offering is within
the next hour. Okay. I wait for the
battery van, about two people turn up. I tell them this is what happened, I need a new battery
they changed the battery and then they say how much do I owe you? Were you given a quote?
And I think that's another really weird
question you know like if I say
150 dollars and I say I've been given a quote for
you know 170 will they pocket the other
twenty dollars? I don't know. As it was I
looked up the cost of the battery on the
website was $13. And I said the
$130.00 they go okay great it's
an $130. So I paid for the battery with
my credit card they drive off I get in
the car to drive off myself and sure
enough I have no keys. What had happened 
is that I'd given the keys to the NRMA people, the battery people and
they'd used keys to test the battery,
install it and they've driven off with the
keys. What do I do?
Yep, call NRMA. 30 minutes in the
queue um you know your call is important
to us we'll get you as soon as possible
and say this and this and this happened and
the lady says I'm really sorry
haven't you I'll call the the you know
who replaced your battery she comes back
and unfortunately they've gone to a job
away they can't come back you'll just
have to wait till they finish their job
and then they'll bring the keys back and
I said look there's two of them I need to go
Can one of them bring my keys back in the
van while he's doing the other job and
she is that our policy is that there are
always two people on a job at anytime. So
I wait for the hour eventually they return the keys. They're apologetic and I drive off.
Now the inside out
perspective you know from an outside-in
perspective it was a pretty dreadful
experience but I put it to you that
within in NRMA there were high-fives and
cheering and red lights flashing and
confetti from the ceilings from an
inside out perspective. So let's just let's
just try and understand
what went on here. So from an
an outside in perspective, I rang NRMA
and I was put on hold and I waited and
waited. I wanted to renew my
membership
I couldn't renew my membership. I was asked ridiculous questions.
You know, three questions that made no sense to me.
I had to pay two hundred and thirty dollars. I didn't
actually want to pay two hundred thirty
dollars all I really wanted was to pay
for someone to come and look at my
battery. I had to wait 45 minutes for the
van yeah a long time. I had to ring again
because of the car didn't start. I had to
buy a battery on the second call around
and my keys were taken and I had to wait
an hour for the keys to come back. A
pretty dreadful customer experience but
look at it from the outside in view, from
within NRMA. So NRMA would have had
guidelines around which time around you
know how long it should take them to answer the phone and guess what? They answered the phone
I'm sure within the guidelines
that they've set internally. Tick the
box. And you know and the receptionist
has transferred me to sales so she
probably has some KPI's around when
people ring try and get them to sign up
again so there would have been a KPI met
by the receptionist to actually transfer
me to the sales department
So they will have KPI's
internally just get the customer to
answer these three recordings and get
ideas and guess what they made a sale.
I mean high five now another tick another goal towards the KPI's. Someone
will get a bonus, there'll be a mark
against their name- yep you made a sale
today you know - thigh slapping and
back-slapping you know cuz you know in
NRMA memberships not really on the
up it's on the decline and guess what
we've signed up a new member. How
exciting. So you know and I'm sure the
driver of the battery the van arrived in 45 minutes.
Tick that box, they completed the job.
And guess what you know they they've
sent the van and they've sold me a
battery
So the driver came, the first, you know
completed the job started my car, the
battery van got dispatched within the
time again and they sold and I bought the
whole new battery. So on the left-hand
side we have a pretty dreadful customer
experience. From an inside out perspective I'm
sure NRMA is sitting there going yep
we made a sale, we signed up a person we
sent two drivers the job was complete! So
what's really important is to build an
outside-in view. Each of you on the
call when you when you were thinking
inside out view to get away from that
with your team and go yep we understand
what's our inside out strategy but what's our outside in strategy,
What's really important to the customer?
AG Lafley
CEO ofProcter & Gamble- a very large
organisation, global organisation, said if
I'm going to look at the powerpoint and any of
you looked it and you can't show me in the
first slides why this PowerPoint is of any
relevance to our customers I'm not going to look at the
rest of the PowerPoint deck because the issue was unless there in outward-in thinking
built into everything that we do it is
of no relevance. So what we're going to do is look at this pyramid
pyramid and so most organisations spend
a lot of time talking about why our customers
should like us
if only they understood what our
products
good they were they'd buy more, why our
product is in the market and
we just need to market them and why our company
is the industry lead and works so well
and we've got products and services that the
their customers want and
customers should really understand. This
is an inside-out view of the world. The
outside in view of the world is to turn
this upside down. That is look at things in their world, their
themes and begin to feel empathy which there
their world, which is what we actually want to achieve.
There's a significant focus globally on
the customer experience and we're going
to keep using the word experience
throughout this webinar and I went to an
interesting talk in the US by the people
who wrote the book The Power of Moments
it's a new book by Dan and Chip Heath and
Chip Heath was talking about most
customers start off being underwhelmed and
most organisations try and move customers from being
underwhelmed
to being whelmed and most organizations
feel that if they can move customers
from being underwhelmed to whelmed
they've done their job. You know, yep we've
given you what you want yes our service
promises X. We've delivered our
service our value you know we say what's
in the van within an hour if we send the
band within 25 minutes then that's okay.
You know well however the opportunity
for us is overwhelmed the customers.
When I talk about customer I mean both
internal and external customers it's not just a B2C discussion.
Every one of us in our organisation is a
internal customer or external customer
We want to try and work how we move our
customers from being underwhelmed
not just to whelm but to overwhelm so
they're delighted so we actually want to
create experiences that delight the
customer. If you if you have just take a
couple of minutes to think back over the
past year what do we remember? What do we
remember in our lives? You know we don't remember products, we don't remember services, what we
remember are our experiences you know the
experience that we had
a trip. The experience
that we had dealing with a company or
the organisation that delighted us. We
were remember experiences so it's no longer
sufficient in 2018 to be pushing great
products great services what we need is
the think through how can we create
experiences and deight is a really
important word. It's not just satisfying
them it's not just giving them a little
more than what they want. This picture that
you see on the screen
Is an analysis
report from Amazon.
 
How it works is how Amazon on get growth and
I thought you know the two words on the
right of your screen which is customer
experience and the way this works is as
follows
if you know a customer experience that
delights it's customer that will
generate more traffic. More traffic
will bring more sellers into the Amazon
marketplace. Amazon has got sort of the
stuff based on them and the amazon
marketplace. If they're more sellers in the
Amazon marketplace there will generate more
selection for the customer and when you pull
increased selection for the customer
with a lower cost structure and lower
prices you get a delightful custom
experience that in turn drives traffic
and more sellers and more selection and
give you customer experience which combines to
give you outstanding growth.
Growing not just through its traditional
online retail but recently over the past
few days you may have seen my blog post
around physical bookstores that have been
opening, Amazon Fresh, Amazon Go, Amazon's
moving Healthcare, Amazon's Movies
and banking. It's a global behemoth.
The words on the right side which is key
and fundamental to Amazon's success it's not
about the products that they sell you
can get them anywhere. You know, it's not
about the services they deliver, it's a
website but it's about the
overall experience so the question you
might ask at this point is- ok we get it
you really focus on the customer
experience internal and external the
outside in vs the inside out
strategy so what do we do with this? I wanted to
present you with two tools that we use
extensively in the Strategy Group and many
of you will be familiar with design
thinking as a methodology. We'll refresh
your memory around design thinking if
you are familiar with it and introduce
you to it if you're not and then we'll
move on to a related tool. Let's just
quickly touch on design thinking and
give you a brief view of this process
which which is sort of sweeping the
world in power.
How do I want some traditional
approaches to problem solving you know I
said look I've got a problem
you've got oh my gosh we need to solve
it okay let's jump in the room and
seeing what the solutions are so you
know we have a problem
you know people come up with an idea
we need to socialize that within our
organization you know of course
socialization is important you know we
produce lots of powerpoints we then have lots
of PowerPoints we could use a business
case all this takes time maybe several
months.
they need to yep
we need funding, and need them to spend
some time building out you know our
opportunity. We specialise the fact that
have been built out we need to toss this
out over the fence to marketing so we
can release it and guess what we
launched our service. I'm sure for many of you
this sort of waterfall traditional
approach is familiar. We launch it,
take it out to our customers and we realise maybe we
it wasn't quite right in fact maybe
even the business case wasn't quite
right oh you know what maybe from that
we thought was the problem to be solved
is not actually the problem maybe
there's a different problem. So if you
look at this picture what what's
fundamentally wrong with this picture.
Just have a look at this picture and
just think to yourself what I mean there's
a lot wrong with this picture quite frankly
 
The wrong issue in in our view is that the
customer comes at the end we do all this
work- come up with the ideas, we've socialised stuff
that business go to issue funding and
then the customer comes and once we
other the cut think that
he is and of course if it takes two
years then we spend millions of dollars
only has changed the people change the
business case is probably a change we
almost have to start again and I'm sure
that this process will resonate with
many of you so Turner an alternative is
this process called the zion.t and
Design Thinking turns this on it
he says you start you don't start with
trying to jump to the solution you start
with the customer and how do you start
with the customer would you start with
this keyword called M
in the Poseidon approach what are we
trying to answer take a view from the
customers lens you remember we took that
inside out and outside it is
aspirations it's about how do we put
ourselves in the customers shoes so you
actually take their view about us
without baggage without
what you want to do is empathize with
the customer put ourselves in their
shoes and once you've done that and I'll
come back to how we can actually
once we've done that we might actually
find that the solve is not actually the
problem the wretched soul we move into
this the fine cells from all the empathy
that we've done what problem is that
that we actually leave the soul
what's the problem and you know I could
give you can
so they said well this is the problem
Jeffrey
after we've done the empathy empathy
color of the empathize component we've
actually they actually realize that the
problem that they thought they needed
solvers of the problem and in fact is
actually a much better problem that if
they solve that problem then in fact we
can actually deliver the experience for
the customer that remove the mic so we
empathize with the time now we've
actually worked out the problem to be
solved it's only now we come up with
solutions and this is very
showed you where normally you are you
jump into a room and go oh yeah I'm an
expert I'm a subject better in Burien
trade and bill mailing for the subject
better expert we go okay you know that
the issue so we don't do that we empathy
empathize we define the problem
and yet stage we go very worried and
then there are as possible with his men
- what the Bible people and wants to
know you apply a viable feasible
and well how do we bring the handily
builders pay how do we build this as
long as you know cheapest possible
prototype maybe it had a screen
back to summer and some others that say
what do you think
it's not finished it's not complete what
do you think
so those I'm thinking it's a methodology
that you know we use a lot we like a lot
it's a methodology it's not a sort of
you know cure for the fact
I was empathy
or the end with the cusp
three with well in yet who is very free
so a retail setting for example we might
go
absolute submission just won't go with
them
the eyes go yeah what
they're doing point living at Alice's
office for a few days
and a more compensate of doing this is
using a
the goods of castellón internal-external
and I emphasize conversations which is
patients about their world one of the
we'll come back a little bit and then
what you do is you never think
work yeah now we understood and listened
to all of this
the arts of this there's a lot of
people's how much every week
we do surveys voices the problem with
open-ended question thank you I see very
closed ended questions and awesome
I'm surveys and we asked the customers
what can we do better for you
and the problem with that is that's not
the question because if you ask someone
what can you do better better for you I
don't know
what what the organization could
organization to stand there world and
then idea we could do to divide them
Eli's out then I go on
and you could do that
so this open-ended guy
that's what it works really really well
and people don't expect it people think
that yeah an organization
I'm about selling them anything there's
other masses at them asking them what do
they trying to understand
what is a big and small their pain
it's a thing like a designer design
people came to lose time
about designing you device to do
something I got understand who's going
to use
anything to use it if I was a designer
glass Airy water do I make this in glad
but maybe
that I'm designing
design you mustn't hold school
eat about
June
in the day to hydration
it's not about the better glass and the
other key issue is we are not our
stakeholders we all know that Cup and
what he values of design thinking is it
removed
you know it will any box and everyone
can surprise people and manage to speak
to steak or to our customers and I say
to them yet but they can't managers you
know with KPIs about selling so many
units or so much revenue that's their
goal
so they'll walk into a meeting with said
views on what they want to say we're
really what we want to do is understand
our customers world again internal or
external and just to reinforce this you
know no one's actually ever said this
but if you go back
yeah and if you would have said to
people well what would you like better
about transport
you know a faster horses former worlds
of night source the cheaper ones they
wouldn't have said
and shape the horse for the motorcar
with or babysit horse it's the wrong
problems soul components solve is how do
I move from point A to point B in a
different way
it's like to buy drill you don't
unless actually did make someone I did
it he was really into drills he said no
no no
don't want the trick we want the whole
and in time we don't want the whole we
want the outcome
that's why we've got a lot of work with
I said that no one actually wants what
you sell no one wants a mortgage but
another mortgage do that what you want
is the app
but the holiness
that movie is in fact you don't even
experience come back to the word
experience
clinging in that house and because of so
and so just to summarize this is simple
methodology ability you know we've
linked you can the decisions like this
Aunt May's sitting around the boardroom
table
your steak hole if it's me that
continues to grow in both
and Management Institute the track
outcomes and taken of global companies
that are very heavily focused on design
thinking and they've tracked their share
price I can people hundreds
I've almost
Elsa that that yeah that's arising to
live in content now between the S&P 500
index and the share price of those
companies using design thinking and we
could we could argue this for a long
time about ours is done and what was on
you can see this here to defend the
other point I want to make to you is I
can draw
technology in a different in the
circular my principles not I'm a quick
time to define and in finance
so each one of these is a set of mindful
the fact empathy you can use on its own
you know urging and convert variation
you can use on its own thinking what do
we need to solve yeah next time you in a
meeting try this next time
some people go now we've got this
problem come on guys we need to we need
we need to come up with a solution
you should show me patiently know what
the problem is right we really how do we
know that is actually problem have we
actually talked to about customers in a
way to empathy empathize with them and
if not maybe we should do think about
coming up with the solutions probably
find everyone will look at you
you know blankly and you know like what
which I want red ones a blue one but I
urge you because significant change of
mindset which is really really valuable
so I like to build on design team with
another taller one just really quickly
two quick examples we did to walk with
with carrots farm markets hair Tom
wanted to come up with some experiences
some new experiences in the store so we
it interviews opening interviews with
some shoppers we did we follow shoppers
round in the defensive kind just
watching what people do in the store and
interviewing
and also some of the young people
we were we uncovered through is the
empathy component was people really
liked how his hands store they really
liked Harris our market but they felt
that they wanted to get closer to the
chronic produce but they wanted to
understand more about where the crime so
we did the define workshop we came out
with a lot of ideas through ideation and
other words to come up with this concept
of or heard milk so if you remember many
of you some of you may remember back
when you were young he's got Gophers
into the glass no bomb
we wanted to experience that people had
in the past so this what you see in
front of you is a is an urn we pick up
milk bottle put it in the urn color she
fuels the milk bottle and it's
singlehood it comes from a particular
farm and so this experience of filling
the milk warrior and then is a you can
see there was picture on the left up and
this er a apart and talks to you about
the cows and
and very often the farmer will come
the store and talk about the herd and
the farm and the a the milk is produced
and so on and one it gave people an
experience of doing something in the
store actually filling the milk bottle
this complex sophisticated mechanism to
make this happen - it gains an
experience they talk to us about of
getting closer to the producers in the
store so
that I just move on the last time I want
to give you is something that we use all
the time and it ties into the strategy
from the outside in also ties into
empathy and coming up with the very
proposition trying to understand how do
we do something that delights the
customer and it's it's very proposition
candidate so there's a a glycol Alex
Osterwalder allografts the world
who invented the business
and we use basically it sounds like this
so what's a very composition such that
was a very problem many compositions of
bangle roses eggs value for your
customer so many promises in its
collection of things and why is it
called the canvas well if you think
about canvas yeah I can draw
the sort of strategy buzzword at the
moment is this canvas business model
canvas leaves that canvas
this is very composition canvas and the
very proposition this is quite simple
but exceptionally
two components to it and the web
customer and your customers say they
should you know what
why should I deal with you and on the
left-hand side say shit and you've got
the watch so the customers saying will
why
little differently and this is the
canvas
it looks fine in just a minute it's
complicated but what's important to
understand is on the right side is your
customer again internal or external
customer and on the left hand
so on the right hand side let's start
with the right hand side your customer
has some jobs to be done right on the
very right JB TP jobs to be done
they want things that they want to do
they've also got some cranes things that
they would like to get rid of and then
they've got some games things that they
would would like to achieve I doubt your
cast on the left hand is
you've got some products and services
other things that you believe create
games for your customer and you've got
some pain relievers things that you
believe pain to your customer and the
closer we can make the left hand down to
the right
so is the strength of their value
proposition let me simplify the picture
a little again to reiterate the right
hand side is the customer best anxieties
you as an organization gains and pains
organization has got game creators
packing relievers and products and
services and the theory is the closest
the closer that I can make the products
and services match the customers jobs to
be done the closer I can make the game
creators of our organization
organization match the games of the
customer wants and to achieve and the
closer I can bank the pain relievers
over the cost of the organization match
the pains of the customer so is the
strength of the value proposition and
what tone you might say well ok but
we're doing that many of you be the
example though I take you right back to
the beginning of the Power has shifted
so think about Murdoch crests perfection
and news so when we talk about five you
all were the customer jobs to be done
custom jobs to be done was reading
newspaper gains were deliver the
newspaper to my door pains were I don't
make me go and get the newspaper is this
delivered to me and make achieve so
perfection is creates big printing
crafts for newspapers products and
services we print newspapers game
creators are will set up a network your
news agents across the country to
deliver the newspaper to give the
customer the gain and pain reliever
you know I'll produce it on mass and
make it inexpensive problem is that
right hand sides changed the power has
shifted so the the job to be done now
the the the define the problem to be
solved is no longer how do we produce
newspapers the
we solve is given me muse so that job to
be done is now deliver me news the gain
is of the customer I wondered where I
wanted when I wanted and the pain is I
don't want to pay for it because I want
to get it anywhere
suddenly the incumbent on the left hand
side are still producing newspapers
through news agents and they're finding
they've got to reshape their very
composition because if they don't
reshape their left-hand side of the
business get out of business so this is
really powerful so most of us spend most
of our time I know what we've got and
our products and services and we've got
these gang creators and this is our very
proposition we go to work you know a
2-day off-site we say this is our value
proposition this is our inside-out view
of the world
the customer sitting there going hello
Mike you know we've got jobs to be done
and we've got some games and we've got
some pain and what's important and we're
design thinking and the very proposition
canvas join out is what we need to do is
reshape our organization based on the
right hand side the customers view the
outside-in view so what we actually need
to do is if you like you know forget
what's on the list
for the moment to get our current
business model because you know what the
power shifted
the very composition that we goddess
here probably won't be the value
proposition that will get you there to
the next stage look for example admire
it's been in the press all over play
type so Maya's very proposition is being
stored everywhere around the country
lots of stuff in it customer says you
know what I don't want to go to a store
anymore I don't like stores and I've got
an option and my job to be done is not
to go to a store to find lots of stuff
my job is to buy what I want my gain is
have it delivered to me in the next two
hours directing to me and the pain is I
don't want to go anywhere and I don't
pay too much for and the incumbent
retailers go well how do we transform
our business model from what we've got
today which is large store format with
lots of stuff not as the cheapest price
to now review the value the world the
outside in view of the customer so
you've got to start with this right-hand
side of the canvas and then say well how
might we in fact need to transform the
organization the left hand side to
deliver experiences that delight the
customer on the right hand side and it's
challenging and it's challenging for
people who've been in an organization
for a long time it's challenging for
organizations that have an encumbered
business model but the risk of not doing
this far outweighs the risk of doing it
because the risk of not doing it is the
business goes at the top of the s-curve
and starts to decline and of course the
time to reshape the organization is when
the organization's doing okay because
you know once the organization starts
the tougher like Amaya for example it's
they're much harder to to reshape the
business model because cash is tied
around low so we're working with
organizations across the country
corporate governments what I'm saying
you know what we've got to start with
the outside interview the Kuster how do
we do that
so empathy is a starting point let's go
and spend this to 15 20 open-ended
interviews with customer so to listen to
what they say not that we want to give
them what they say about their jobs to
be done big gains and pains let's now
come back and say well you know there's
the left hand side our products and
services game craters pain relievers
really deliver what the customer want
and then two ways this value proposition
can go wrong and they're really equally
important one is we're not producing
products and services game creators and
pain relievers that deliver the value
proposition to our customer so we're not
actually delighting them with
experiences so they'll go elsewhere
because the power shifted but equally is
bad we've got you know assets tied up in
products and services game creators and
pain relievers that the customer
actually doesn't want our my newspaper
example we're producing newspapers we've
got a printing press we're doing all of
this stuff you don't want now I'm
actually really wants a newspaper
anymore it's like when sense has
produced the yellow pages of my pages
and I took them straight from the street
and put them in the recycling bin could
no one actually want it even though they
and their business Ronald was that they
did so we've got a number of things paid
up here one is the anti din view the
second is that what's on the right hand
side is where we start and then moved
for the left not from what we've got to
offer from our those age of the customer
following on there we may need to
reshape our business right or we may
need to reshape our value proposition as
I put it to you but there is not a
vertical at the moment
healthcare education retail financial
services that does not need to reshape
its value proposition but does not need
to reshape its left hand side and you do
that one way of doing it is a tool that
we use called design thinking let me
take you back in the last couple of
minutes to this concept
the experience if it's the experience
that counts
if we remember experiences and not
products and services the challenge I
put to you is to think through how is
your organization going to reshape its
value proposition to deliver experiences
that overwhelm and delight the customer
because I put it to you that those
organizations that take that as a
challenge today and we're working with
many of them those are the organizations
that will succeed in the future I was in
a you know somewhat stressful meeting
yesterday morning with a law firm I
won't mentioned the name not one of
their client and the more firm and was
saying and that the part one of the
partners were saying but we we hear when
our customers are saying god we really
know what their problem is and that's
view in our in our experience doesn't
work anymore you can no longer dismiss
what the castle their their jobs to be
done their games their pangs with of you
we know this because we've been in the
business a long time
we're subject matter experts it doesn't
work anymore so the challenge for you is
how when you create experiences that
overwhelm and delight the customer how
will you reshape the left hand side of
your very proposition canvas and how
will you make sure that women every your
inside out strategy is matched with an
out piling strategy so just any summary
the summary summarize we've got two or
three minutes with power Schuster's and
we'll continue to shift it to give them
what's important is a complimentary
outside-in strategy from your inside out
strategy it's not about the product it's
all about the service it's about the
experience as that the experience that's
going to delight the customer as I'm
thinking is a methodology that we use
all the time to give you the how the
steps in design thinking at a very high
simple member level or empathy put
yourself in the cup the shoes understand
what the problem to be sold is go the
Virgen converge around ideation
prototype you need to prototype what the
MVP around is to be able to go back to
the customer and test it out undoubtedly
your value proposition needs reshaping
and the value proposition canvas if used
in the right way and we do this all the
time it's a really good tool to reshape
the value proposition and again it's not
about the product it's not about the
service it's not about the experience it
I'm sorry it's all about sorry it's all
about the experience so I want to thank
you and thank you for participating and
you know everyone stayed on the call
which is been fantastic
hopefully that we've delivered some
value to you and we'd love to follow up
with you around these tools around these
techniques and these processes today
open at any stage to have a call with
you a coffee with you and and discuss
these elements in more detail and what
we've covered up here trust me is
important these are issues that smart
organizations in this country and
globally are grappling with and I look
forward to those of you who are our
clients I look forward to continuing the
discussion with you and those of you who
argue I very much look forward to having
coffee with you to talk about these
things as we move forward thank you so
much for attending I've been really
excited they're sharing this with you
and look forward to catching up with you
soon
