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What is your organization’s claim to fame—operational excellence, customerintimacy or product leadership? If your focus is customerintimacy, do the employees who personally excel at operational excellence and product leadership feel engaged or disenfranchised in your workplace?
These paths are clearly and effectively outlined by Fred Wiersema and Michael Treacy in The Discipline of Market Leaders: Choose Your Customers, Narrow Your Focus, Dominate Your Market : 1) Operational Excellence – Lowest Cost. 3) CustomerIntimacy – Best Overall Solution. How are you operationalizing it?
The authors argued that companies had to pick between one of three paths to value creation and success in the market – operational excellence, customerintimacy or product leadership. And once you picked one, the work of leadership was to align the culture with the chosen path.
As organizations increase in size, the leadership team moves from generalists to specialists who are responsible for a particular business area. CustomerIntimacy. In smaller organizations, a much greater percentage of employees work with customers directly. Timely Decision-Making.
As organizations increase in size, the leadership team moves from generalists to specialists who are responsible for a particular business area. CustomerIntimacy. In smaller organizations, a much greater percentage of employees work with customers directly. Timely Decision-Making.
The culprit was the myopic view of leadership driven by a “make the numbers” through operational excellence not customerintimacy. And, the human in command of taking care of the customer was jailed by a system that quarantined a solution that favored the customer.
In a recently released study from IBM , based on face-to-face conversations with more than 1,500 chief executive officers worldwide, “creativity” has been identified as the single most important leadership competency for enterprises seeking a path through this complexity.
Faster, cheaper and more nimble competitors had eaten away at Big Blue's market leadership. Newly appointed CEO Lou Gerstner logged thousands of hours visiting customers, industry experts and analysts. He believed satisfied, engaged employees ensure customer satisfaction and retention, and this in turn drives profit.
Yet at the same time they use these standards as a springboard for creating unique solutions for each customer based on a deep understanding of their needs. (I I call this understanding and tailoring "customerintimacy" ). The result is a powerful combination that fulfills two customer value propositions at the same time.
In this article we look at three very different organizations – IBM, Rich Products, and Intuit – and the three different paths they have taken in reconfiguring their operations for more customerintimacy, by changing methods, reengineering processes, and transforming culture. Then he meets with the leadership team.
Operational excellence, customerintimacy, or product leadership — successful companies excel in one dimension and perform well in the others. Leadership teams, recognizing that technology’s supporting role has changed, have also reordered their thinking about digital leadership.
But who is likely to assume leadership in creating and capturing economic value in Type 3 products: Digital natives or industry incumbents? Customerintimacy. Industrial giants have well-established brands, built strong customer relationships, and signed long-term service contracts. Ford or Tesla? Rolls Royce or IBM?
Improved customer insight : The increased customerintimacy that comes with co-creation deepens your understanding of your market, enabling you to serve it better. When customers co-create and have a vested interest in its success, they are more willing to share personal data and other assets with it.
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