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customer culture innovationA large majority of organizations rarely focus on gathering and utilizing customer-centric knowledge. So much so that they even introduce a product without having vital insights on the customer and their unmet needs, and they are often clueless about them. Consequently, many product development initiatives fall flat as managers struggle to filter and evaluate ideas.

Most organizations, today, are developing initiatives around Customer Experience Strategy and Customer Journey Mapping. Customer-centric Organizations are deeply focused towards value creation for their customers. They understand the unique customer insights needed to make customer-centric decisions, are able to gather those customer insights, and are aware of the way to utilize the insights in creating value for their customers. By using customer insights, Customer-centric Organizations drive their product innovation success rate significantly higher than the industry average.

In order to develop this capability, organizations need to first utilize a customer-centric research process to gather the customer insights required to drive value creation. This is accomplished when:

  • They know the desired unique customer insights needed to make customer-centric decision.
  • They are able to gather the required customer insights.
  • They realize the proper time and way to utilize the insights in making value creation focused business decisions.

Building a Customer-centric Culture of Innovation warrants a methodical approach. A potent approach to building such a culture of innovation encompasses 3 key phases:

  1. Qualitative Insights: Apply Customer-Centric Fundamentals - The first phase commences by organizing an intensive day-long workshop for each cross-functional product team. The teams engage in a unique customer journey where they employ a “jobs-to-be-done” lens to analyze their market, and identify valuable, qualitative customer insights needed to drive customer-centric decision making.
  2. Quantitative Insights: Quantify Opportunities that Exist - This phase entails conducting quantitative research to rank the most critical customer insights needed to develop customer-centric data model. The insights available through this data set help the company in making customer-centric business decisions for years to come.
  3. Implementation: Leverage New Customer Insights for Growth - In this phase, managers and employees across the organization are trained on utilizing the insights to devise market and product strategies, and to encourage customer-centric growth.
Customer-centric culture of Innovation
Let’s take a deeper dive into the first phase of this process.

Qualitative Insights: Apply Customer-Centric Fundamentals

The first phase commences by organizing an intensive workshop for each cross-functional product team. It is typically a day-long session where the teams engage in a unique customer journey. They employ a “jobs-to-be-done” lens to analyze their market and identify valuable, qualitative customer insights needed to drive customer-centric decision making. The qualitative customer insights developed during the first phase serve as an indispensable, long-term guide in the journey to a customer-centric mindset.

During phase I, each product team is trained on customer-centric philosophy in a workshop settings. The workshop participants participate in qualitative research discussions designed to obtain critical customer information and fresh insights. Upon completion of the initial phase, the product team is able to develop a shared innovation vocabulary and gather customer insights to make customer-centric marketing and product development decisions.

Interested in learning about the third phase of the approach to Customer-centric Culture of Innovation? You can download an editable PowerPoint on Customer-centric Culture of Innovation here on the Flevy documents marketplace.

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design-learn-pattern-247819In this era of rapid change only organizations that are evolving and continuously learning can flourish. Successful organizations discover how to tap their people’s commitment and capacity to learn at all levels.

Learning Organization is a place where people continually expand their capacity to create the results they truly desire, where new ideas and thinking are nurtured, and where people are continually learning to see the whole together. A Learning Organization is established on the principles of innovation, free flow of ideas, and a consistent focus on transforming the ways of doing business.

Learning Organizations adopt 5 distinct practices to succeed, which form the “building blocks” of such organizations:

  • Systematic Problem Solving
  • Experimentation
  • Learning from Experience
  • Learning from Others
  • Knowledge Transfer

Five key characteristics distinguish a Learning Organization from the rest. These attributes serve as the guiding principles and practices that these organizations study and integrate into their DNA. A blend of these core characteristics helps organizations adopt a more interconnected way of thinking:

  1. Systems Thinking
  2. Personal Mastery
  3. Mental Models
  4. Shared Vision
  5. Team Learning

Learning Organization Primer

By adopting and mastering these core characteristics organizations become communities that employees can commit to. Let’s, now, discuss the first 3 characteristics in detail.

Systems Thinking

Systems thinking allows people to study businesses as bounded objects. Learning Organizations possess information systems to assess the performance of the organization and its components as a whole. Systems thinking states that all the characteristics must be present together in an organization for it to be a Learning Organization. However, some experts consider that the characteristics of a Learning Organization are gradually acquired, rather than developed simultaneously.

Personal Mastery

Personal mastery is an individual’s commitment to learning. It is about becoming more productive by applying skills to work in the most constructive manner. It involves clarification of focus, vision, and to interpret reality objectively. Training, development, and continuous self-improvement are the sources of individual learning.

Mental Models

Mental models include assumptions and generalizations retained by individuals and organizations, which go undetected, as mental models limit peoples’ observations. Learning Organizations need to identify and challenge these models. For a learning environment it is important to replace confrontational attitudes with an open culture that promotes inquiry and trust, introduce mechanisms for uncovering and assessing organizational theories of action, and discard any unwanted values.

Role of Leadership

Productivity and competitiveness relies on knowledge generation and processing. Therefore, organizations not only have to invest in new machinery and systems to improve production, but also focus on knowledge generation and learning of their people. Learning Organizations require a new view of leadership. Leaders in Learning Organizations create workplaces that help people keep building their capabilities to understand complexity, clarify vision, and improve shared mental models.

Peter Senge describes the 3 key qualities of leaders to be critical in leading the Learning Organization:

  1. Designer
  2. Steward
  3. Teacher

Designer

The key roles of a leader as a designer in Learning Organizations is designing the policies, strategies, and systems. The designer also outlines the governing ideas — the purpose, vision, and core values — for the people. They plan and develop the learning processes whereby people throughout the organization can deal productively with the critical issues they face, and cultivate personal mastery of the team members in the desired learning disciplines.

Steward

According to Peter Senge, the notion of management in this modern age should be replaced by “stewardship” — whereby control and consistency should be swapped with partnership and choice. The leader as a steward tells ‘purpose stories’ about their organization and relate those stories. They explain the reasons of the tasks that are required to be performed, the need for the organization to evolve, and the purpose of evolution. They learn to listen to other people, involve them, and develop vision — both individual and shared.

Interested in learning more about the key attributes of leaders and core characteristics of a Learning Organization? You can download an editable PowerPoint on Learning Organization Primer here on the Flevy documents marketplace.

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adventure-beautiful-blue-sky-666737Most Transformation initiatives fail to achieve their anticipated objectives.

Change Management is all about engaging and rallying people — at all levels in the organization — to make the transition and sustain that change. It is critical to ensure that the entire workforce is eager and ready to embrace the required new behaviors. More often than not, the technical side of a change initiative is well planned, but it’s the implementation part that fails — particularly, changing the mindsets and behaviors of the entire workforce to enable change to stick.

Managing change is not an occasional affair; it is an iterative process that works on motivating human behavior to accept and adjust to a desired state of mind. The process is naturally evolving as it adapts in accordance with the feedback from the people.

Change Management demands a thorough yet organized approach to enable the “people side” of change to work — essential for accommodating and sustaining Business Transformations. This entails assisting people incorporate new mindsets, processes, policies, practices, and behaviors.

A methodical approach to make the entire workforce accept and support change constitutes 8 critical levers:

  1. Defining the Change
  2. Creating a Shared Need
  3. Developing a Shared Vision
  4. Leading the Change
  5. Engaging and Mobilizing Stakeholders
  6. Creating Accountability
  7. Aligning Systems and Structures
  8. Sustaining the Change

Now, let’s discuss the first 4 levers in detail.

1. Defining the Change

The first step entails outlining the rationale, scope, and results of the change initiative for the enterprise, key departments, and roles. There is a need to define critical elements, including the requirements from the initiative, the execution planning, and the adjustments needed to encourage people to work better.

The project sponsors need to clearly outline the essence of the proposed Transformation initiative, to realistically embed Change Management into the design of the program, and develop effective Change Management plans. An initial baseline of the expected effect of the program on people should be performed. The baseline also helps analyze the impact of the change program — in terms of skills inventory, head-count indications, adjustments in accountabilities and relationships, shifts in incentives and pay structures, and future learning needs.

2. Creating a Shared Need

Once the change and its impact has been delineated, the next thing to do is to create a shared understanding of the rationale for Transformation across the organization. To create a shared need for the Transformation endeavor, the change sponsor needs to build awareness of the necessity for change amongst the senior team, key stakeholders, and the entire organization; demonstrate to the people the benefits of change; and set up a feedback mechanism across the organization. The alignment afforded by developing a shared need for change helps build a strong footing for Transformation.

3. Developing a Shared Vision

An essential element of implementing transformation entails delineating a clear vision that outlines critical actions and the anticipated outcomes. It helps in encouraging and involving the workforce in the Transformation initiative, giving them a sense of purpose by becoming a part of something bigger. The vision of the organization after Transformation should be coherent with the company values and mission.

4. Leading the Change

This lever entails developing change leadership and implementation skills needed to drive and enable sustainable change. Engagement and commitment of senior leaders is essential for leading change. They are responsible for planning their and the entire workforce’s actions, demonstrating or role modeling the new mindsets and actions, designating program sponsors — e.g., business unit leaders who are enthusiastic about the Transformation initiative and also act as change agents — motivating others to support transformation, and setting up a road map for the change leaders to steer the organization to achieve the anticipated performance milestones.

Interested in learning more about these levers to Change Management? You can download an editable PowerPoint on 8 Levers to Change Management here on the Flevy documents marketplace.

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Governance of Family Businesses must include the concerns of the numerous and diverse third Family Business Governancegeneration.  Establishing a set of Councils and Boards is essential in addressing critical transition issues.  With a Governance Model, Family Businesses can address acute short-term challenges and prepare the business for subsequent generations.

Starting the change process can be difficult. Ideally, aunts and uncles will call the cousins together and say,

“What has worked so well for us and makes us proud of what we have achieved will not work for you.  You must go out and find your own model.”

When siblings are wise enough to give such a mandate, the cousin generation has a greater chance of enlisting support from the earlier generation and being successful.   However, many sibling groups avoid or delay dealing with the issue, leaving it up to the cousins to organize themselves.  In most cases, highly educated and qualified cousins leave the business once they find the barriers to establishing Governance Structures so high.

Given the way that Family Businesses tend to become more complex over time, it is often up to the third-generation owners to redefine the role of the family and set the direction of the business.  Setting up an effective Governance Model puts the Family Business on a new trajectory for success.

The 7 Core Elements of the Governance Model

Family-business-Governance1-595

  1. Shareholders’ Assembly – The Shareholders’ Assembly is primarily responsible for dealing with classical legal functions.
  2. Family Assembly – The Family Assembly instills family values in the next generation and make sure that responsible shareholders are raised.
  3. Shareholders’ Council – The Shareholders’ Council is the most important link to the company. It is responsible for regulating relationships among family shareholders and between shareholders and the business.
  4. Holding Board – The Holding Board is the link between Management and the Shareholders’ Council. It is responsible for the overall performance of the group and its CEO.
  5. Family Council – It is the Family Council’s mission to transfer values and traditions across generations.  It serves as an important communications bridge between the business and the individual family members.
  6. Investment Office – The Investment Office is responsible for managing the family assets other than the core business. It provides a sense of security to those distant from the business and that their interests are being considered.
  7. Foundation - The Foundation is the one responsible for the family’s social and charitable investments.  It nurtures consensus from generation to generation on the direction of their philanthropic activities.

Taking that Giant Step to Governance

Kickstarting the change process can be a challenging part of the sibling-to-cousins transition.  There are cases that exist where highly educated and qualified cousins find the barriers to establishing Governance structures so high that they leave the business.

In making sure that the Family Business can keep the Governance up and running, it must be able to master two critical steps to Governance.

One of the two steps is developing a clear idea both of the status quo and of the desired destination.  What are our goals? Are there existing gaps in the structure? What are our priorities?  These must be clear before we can ever start the Family Business Governance running.

Missing on this step (and the second step as well) will lead Family Business to a difficult turn and very bumpy road to success.

Interested in gaining more understanding of Family Business: Governance? You can learn more and download an editable PowerPoint about Family Business: Governance here on the Flevy documents marketplace.

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Here is another massive compilation of PowerPoint diagrams and templates, mostly for us in business presentations.  It’s called the Monster PowerPoint Templates Deck.  The full documents is 321 slides.  See a partial preview below.

 

Download the full document here: https://flevy.com/browse/business-document/monster-powerpoint-templates-deck-1099

The slides have been categorized into the following groupings:

  • Project Management (PM) Diagrams
  • Circular diagrams
  • Bar charts
  • Pie charts
  • Circular diagrams
  • Line Charts
  • Diagram trees
  • Box diagrams
  • Textbox diagrams
  • Other diagrams
  • Linear Flows
  • Equilibrium diagram
  • Feedback diagrams
  • Obstacle diagrams
  • Interaction diagrams
  • World maps
  • HR template
  • Benchmark diagrams
  • Representative graphs
  • Useful objects

Looking for other types of business diagrams in PowerPoint?  Peruse Flevy’s full library of PowerPoint Templates, updated weekly, here.

 

This week, LearnPPT added a new section to their site: Operational Excellence.

What exactly is Operational Excellence?

Operational Excellence is a set of business principles, tools, and frameworks aimed to achieving sustainable improvement of key performance metrics. Much of this management philosophy is based on continuous improvement methodologies, such as Lean Management (or Lean Enterprise), Six Sigma, Kaizen, Hoshin Kanri, 5S Workplace Productivity, and PDCA. The focus of Operational Excellence goes beyond the traditional event-based model of improvement toward a long-term change in organizational culture.

The page is currently divided into 4 main sections:

Questions, thoughts, concerns?  Go to my site (learnppt.com) and shoot me an email.

For other business frameworks, visit our library of consulting-quality business frameworks and methodologies here: http://learnppt.com/powerpoint/frameworks/.  These diagrams were professionally designed by management consultants. Give your presentations the look and feel of a final product made by McKinsey, BCG, Bain, Booz Allen, Deloitte, or any of the top consulting firms.

In previous articles, we have covered various PowerPoint template/diagram compilations that focus on business frameworks and management models.  Here are some examples:

This latest may be the biggest of them all — 100 Business Excellence Frameworks.  The total document spans close to 400 slides.

61

Here is the full list of business excellence frameworks/methodologies covered:

  • 3 Cs Strategy Triangle
  • 4 Ps Marketing Mix
  • 5S Principles
  • 8D Problem Solving
  • Activity Based Costing
  • ADKAR Change Model
  • Agile Model
  • AHRI Model of Excellence
  • Ansoff’s Growth Matrix
  • APQC Benchmarking Methodology
  • ASTD Competency Model
  • Australian Business Excellence Framework
  • Balanced Scorecard
  • Baldrige Performance Excellence Model
  • BCG Matrix
  • Beer & Nohria’s E & O Theories
  • Blue Ocean Strategy
  • Branding Pentagram
  • Bridges’ Transition Model
  • Business Process Redesign
  • Capability Maturity Model Integration (CMMI)
  • Cause & Effect Diagram
  • COBIT 5
  • COPC-2000
  • Cost of Quality
  • Covey’s Seven Habits
  • Covey’s Time Management Matrix
  • Crosby’s Law of 10
  • Curry’s Pyramid
  • De Bono’s Six Thinking Hats
  • Deming Cycle
  • Drucker’s Management By Objectives
  • DuPont Analysis
  • EFQM Business Excellence Model
  • Eight Types of Waste
  • Emotional Competence Framework
  • Five Principles of Lean
  • Four Stages of Contribution Model
  • Gemba Framework
  • Greiner’s Growth Model
  • Harmon’s Process-Strategy Matrix for Outsourcing
  • Harvard Model of Strategic HRM
  • Heinrich’s Rule on Safety
  • High-Impact Learning Organization
  • Hofstede’s Cultural Dimensions
  • Hoshin Kanri Strategy Deployment
  • House of Gemba
  • IMPA HR Competency Model
  • ISO 9001 Quality Management
  • ISO/IEC 15504 (SPICE)
  • ISO/IEC 27001 Information Security Management Systems
  • IT Infrastructure Library (ITIL v3)
  • Kotter’s Eight Phases of Change
  • Kraljic’s Purchasing Model
  • Lean Leadership & Kaizen Model
  • Lean Levers
  • Lean Management Model (TPS)
  • Lean Maturity Model
  • Lencioni’s Five Dysfunctions of a Team
  • Lewin’s Three Stage Change Model
  • MABA Analysis
  • McKinsey 7-S Framework
  • Mistake Proofing Process
  • NAPA Competency Model for HR Professionals
  • Nolan’s Stages of Growth for IT Systems
  • Ofman’s Core Quadrants
  • Organizational Project Management Maturity Model (OPM3)
  • PACE Prioritization Matrix
  • Payoff Evaluation Matrix
  • PDCA Problem Solving Process
  • People Capability Maturity Model (PCMM)
  • PEST Analysis
  • Porter’s Five Forces
  • PRINCE2 Project Management
  • Project Management Body of Knowledge (PMBOK)
  • PricewaterhouseCoopers Outsourcing Model
  • Scrum Model
  • Senge’s Five Disciplines
  • SERVQUAL
  • Shingo Model for Lean Transformation
  • SHRM Elements for HR Success
  • Six Sigma Methodology
  • Strategic Business Planning Methodology
  • Strategic Dialog
  • SWOT Analysis
  • Talent Management Framework
  • Total Productive Maintenance (TPM)
  • Total Quality Management
  • TRADE Best Practice Benchmarking Model
  • Training Within Industry (TWI)
  • Treacy & Wiersema Value Disciplines
  • Tuckman’s Model of Team Development Stages
  • Ulrich’s Five Rules for Leadership
  • Ulrich’s HR Competency Model
  • Ulrich’s Matrix on the Four Roles of HR
  • Ulrich’s Stages of Employee Connection to the Organization
  • Value Chain Model
  • Value Stream Mapping
  • Value-based Management
  • Xerox Benchmarking Model

This deck is a collection of PowerPoint diagrams and templates used to convey 100 different business excellence frameworks comprising key strategy, marketing and sales, finance, operations, IT, organization, change and HR models.

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