The Eleventh Commandment Sandra Vanderwerwe , Value to Customer

The Eleventh Commandment Sandra Vanderwerwe Wiley 1996 244 pages ISBN 0-471-95823-9

We were not adding value, all these days by we were adding costs. Value only happens in the customer’s space. what customers do to get the results they want, and how corporates respond ADDs value.
Rather than just be more proficient at making and moving more products or services to meet year- end budgets, people (must) learn how to develop and build relationships, which commit customers to do business with them over a lifetime

Bill Gates, quoted from ‘The road ahead, 1995’ on the dangers of complacency: “Death can come swiftly to a market leader, by the time you have lost the positive-feedback cycle it’s often too late to change what you’ve been doing, and all the elements of the negative spiral come into play. It is often difficult to recognise that you are in a crisis and react to it when your business appears perfectly healthy”.
Success can (and does) breed failure. The better the blinder so to speak. Success obscures from our vision the first signs of failure. It can make us complacent and insensitive to danger Better a corporation becomes at doing something the more difficult it is, to do something else
When still being run by an analytic bias, management takes a narrow view of reality. Historic (hard) facts overrule intuitive or creative feelings about market position Only when thinking starts with end-users, and works back into the organisation, can we hope to ‘own’ customers, not just win them over
Good Mission leads to Decisions on resource allocation. Redeployment of people. New product and service innovations. New capability building. With whom to partner. Where and how to generate profit

01. Has integrity – a true sense of purpose – something the corporation intends to do and deliver better than anyone else.
02. Has a distinguishing notion (a good mission can be stated as a story or a slogan), something which makes it unique and gives it a distinctive position in the chosen market/s.
03. Should be meaningful and relevant – and make a tangible difference to personal and/or work lives.
04. Is enduring and extendable, is able to sustain relationships.
05. Communicates easily and memorably – encapsulating both a purpose for the firm and a promise to customers.
06. Is simple (as opposed to simplistic).
07. Is grounded in values with which employees can associate.
08. Is easily translated into specific behaviours – from a good mission, employees should know what to do differently, or what different activities to do.
09. Is distinctive – it is memorable and ‘new/novel’, not only gets people pointed in the same direction, but energised.
10. Is credible but not confining – capturing competencies the corporation either has the potential to quickly acquire.
11. Pulls together resources from various parts of the company”.

Despite everything that’s said about what can be done to drive a corporation to the market place, managing resistance and resistors is a crucial part.
One, resistance is not linked to seniority. Some of the most resistance you will find in the highest places.
Two, linked to this: often the most powerful people are those whose knowledge, feel and experience are most out of touch with new customer logic.
And, following this, three, the people who motivate and drive the corporation forward, and turn ideas, concepts and frameworks into a new corporate way, are to be found everywhere within the organisation”.

Increasingly, customers will be looking for single source (or fewer) suppliers as partners, so as to free themselves to spend time, energy and resources on their own extended core activities Customers couldn’t care less how we are structured, who owns or reports to whom, so long as they get the results they want – delivered when, where and how they want them Instead of telling people what they must do, the new corporation must now tell people what it expects. Instead of telling them how to do things, it must create the context and environment and provide the enablers to help them get on and do what needs to be done

Proposition 1: If things are always routine, we are not learning. Proposition 2: If things are always spontaneous, we are not learning”.

No longer can they simply respond to customer requests and that way improve performance. They must anticipate the possibilities, for and with customers New corporations ask a different set of questions:
1. What will it cost if we don’t do it?
2. What return can we get from customers over their lifetime, if we do it better than anyone else?
3. What will this take?
4. What will this cost?
5. What will we lose if we don’t do it?
6. And what will that cost?”

Wiley 1996 244 pages ISBN 0-471-95823-9

Advertisements