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Rohit Talwar 21st Century Tour Guide CEO

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Title: Rohit Talwar 21st Century Tour Guide CEO


1
Developing the Culture and Capacity to Support
Innovation, Accelerated Change and Continuous
Renewal
Rohit Talwar - 21st Century Tour Guide / CEO
Fast Future Ventures Mob 44 (0)973 405 145
Tel 44 (0)20 7435 3570 Fax 44 (0)20 7794
3568 www.fastfuture.com rohit_at_fastfuture.com
2
Key Themes
  • Using participatory approaches to explore future
    scenarios and strategic options
  • Applying scenario planning, creativity, visual
    facilitation and process design in the
    transformation process
  • Capturing and transforming ideas into valuable
    products and services
  • Developing models to compete in a wired world
  • Hothousing and Fast Forwarding key innovation
    projects

3
Agenda
  • Context
  • Exploring Future Scenarios
  • Assessing Implications and Opportunities
  • Developing New Models and Solutions
  • Participation Model
  • Creativity Tools and Techniques
  • Conclusions

4
Exercise - Objective Setting
  • Working in syndicates, explain the following
  • The key change management challenges facing your
    organisation
  • What you hope to have learnt / gained by the end
    of this workshop

5
Adaptive Cultures - Key Principles
  • Consider alternative futures
  • Continuous learning
  • Tolerance of uncertainty
  • Willingness to experiment
  • Recognition that participation accelerates change
    delivery
  • Execution orientation
  • Underlying vision
  • Passion

6
The Challenge - Developing Strategies in an
Uncertain E-enabled World
How do we cope with risk and uncertainty? How do
we select the right indicators to track? How do
we identify key trends and developments? How do
we spot new opportunities, white spaces and the
potential for major discontinuities? How will
technologies and science change the way we work,
live and learn? How do we plan, operate and
survive in a turbulent and fast-changing
world? How do we handle those not playing by
our rules'?
7
We Must Focus on 6 Key Areas
Strategy Stakeholder Relations
Resources Core Skills
People Values Culture
Knowledge Management
Operational Processes Structures
Financial and Social Performance
8
Shaping Strategy in the Face of Uncertainty
Demography
Environment
The Economy
Commercial Developments
Global Developments
Infrastructure
Media
Education
Lifestyles
Crime
Natural World
Climate
Providers of Finance
Technology
Government Policy
Suppliers
Workers
Electronic Markets
Alternative Providers
Public Expectations Values
Interest Groups
Substitutes
Regulation
9
Visualizing Success
  • Step into the future
  • Imagine the innovation has been implemented
  • Create a video in your mind of what the impact
    has been
  • What are the key stakeholders saying, thinking,
    doing as a result
  • What can you now do that couldnt be done before
  • What other benefits have been created
  • What were the critical tasks in achieving the
    result

10
Causes of Past Change Failure
Key Causes of Failure
11
Underlying Transformation Model Scenario
Techniques Can Be Used at Multiple Stages in the
Process
Communications and Stakeholder Management
Continuous Change Management
Stage 2 Rethinking Reframing the Organisation
Stage 3 Developing the Implementation Plan
Stage 4 Iterative Implementation of Change
Stage 1 Building the Case for Change
Definition of Intellectual Underpinning - New
Business Paradigm
Pathfinder Projects - Early Insights into the
Future
Programme, Project and Task Management
12
Construction Industry Supplier - Transformation
Programme
Development of Intellectual Underpinning - What
is the Basis of Our Market Strategy
Building the Case for Change
Rethinking and Reframing
Implementation Planning
Iterative Implementation
PILOTS
Project 1 - Telesales Management
Project 2 - Sales Process Redesign
Project 3 - Management Development Coaching
13
Participative ApproachesChanging the Way we
Change Organisations
Need for Speed
Post Delivery Issues
Change Fatigue
Drivers
Whole System in the Room
Participative Design
Democratic Process
Mechanisms
Early Issue Identification
Faster Delivery
Greater Ownership
Outcomes
14
Why Adopt A Participative Approach?
  • Participation is not a universal panacea
  • The attraction of participation is that it can
    deliver comprehensive solutions quickly - cutting
    traditional change cycles by 50-80
  • The drawback is that it requires key people to
    come together and resolve issues together within
    a compressed timescale - the resistance to
    participation generally diminishes rapidly once
    the first such event takes place and the results
    become visible
  • It is generally adopted by organisations who are
    feeling a sense of frustration with traditional
    approaches that deliver great ideas but little
    practical change
  • It also requires a willingness and/or need to
    speed up the change process
  • Participative approaches start with the premise
    that however compelling the case for change,
    however radical and potentially beneficial the
    proposed solutions, the actual implementation of
    change rarely succeeds unless it is owned and
    delivered by the front line managers staff
  • People generally feel ownership for that which
    they create, hence if we want front line staff to
    understand and own the design for change they
    must be involved in the design process
  • The more we engage the front line in the design
    process, the more likely we are to identify and
    address the real issues that traditional
    analytical approaches may not surface or
    challenge
  • Once we have understanding, ownership and
    participation we have the conditions in which
    trust is created and empowerment can succeed
  • Bringing different parts of the organisation
    together to view issues from multiple
    -perspectives and experiment with new ideas and
    approaches helps to unleash and harness the
    latent intellectual, physical, emotional and
    spiritual energy that lies unused in many
    organisations

15
Participation in Practice
  • Participation seeks to bring together focused
    groups of 5 - 5000 using a range of intensive,
    fixed timescale activities to address specific
    organisational challenges from defining a new
    vision to redesigning the order fulfillment
    process
  • A key to the success of these sessions is to
    ensure that the whole system is in the room -
    i.e. all - or as many as possible - of those who
    have an interest or influence on the outcome are
    bought together to resolve the issue at one time
  • Participative approaches acknowledge that today's
    problems are frequently yesterdays solutions,
    and that we need a broad range of stakeholder
    perspectives if we are to understand the causes
    of failure and fully appreciate future
    requirements. Hence during participative sessions
    all voices are considered equal and participants
    work together to review the past, understand the
    present and define and design the future
  • We have undertaken a range of such events with
    group sizes ranging from 5-60 and addressing
    issues as diverse as sales order processing in
    telecommunications, reinventing a healthcare
    trust, process redesign in an international
    drinks manufacturer and conflict resolution in a
    major advertising agency
  • Because of the clear focus on outcomes, shared
    learning, speed and co-operation, participative
    events provide very real, hands on experience of
    the culture and working disciplines many
    organisations are keen to develop throughout
    their organisations
  • Finally, by using the participants as the main
    medium of communication throughout, participation
    ensures that real issues and concerns are
    addressed early in the change process
  • In our view, participative approaches can be used
    at any and every stage of the transformation
    process

16
Setting the Business Context
Company Business / Products Customers Value
Drivers Business Model
ARM HOLDINGS Semiconductor Design Semiconductors
/ Electronics Global Brands Leading
Edge Volatile Markets Speed of Response Customer
Understanding Innovative Design Reliability
Capture Mindshare Deep Customer
Relationships Involved in Customer
Strategy Invest in Innovation Process
Exceptional People
DIXONS Electrical Retailer Mass Market Brand
Led Price Conscious Limited Loyalty Price Choic
e Availability Repair Service Capture Market
Share Limited Customer Relationships Aggressive
Supplier Management Tight Cost Control Average
People
17
Setting the Business Context
Company Business/Pdcts Customers Value
Drivers Business Model
YELLOW PAGES Directories / Business
Info. Predominantly SMEs (350,000) Often
Service Co.s (Taxis) Reliant on YP for
Business Price Conscious No. Of Leads Quality of
Leads Accuracy of Advert Price Capture Market
Share Close Customer Relationships Focus Quality
/ Error Reduction Multi-Product /
Multi-Channel Driven by Publishing Cycle
FAST FUTURE Accelerated Innovation Major
Corporations Entrepreneurial Start Ups Innovative
SMEs Investors Execution Skills Quality of
Thinking Effectiveness of Processes Consultants
Ability Capture Mindshare Deep Customer
Relationships Clear Participative Processes Focus
on Value Creation Equity Participation
18
Exercise - Defining Business Context
  • Using the Model shown on the previous pages,
    develop a business context model for your
    organisation
  • Add any additional information that you feel will
    help us understand the organisation and its
    current situation

19
Agenda
  • Context
  • Exploring Future Scenarios
  • Assessing Implications and Opportunities
  • Developing New Models and Solutions
  • Participation Model
  • Creativity Tools and Techniques
  • Conclusions

20
Scenario Planning may be Valuable but...
  • We dont have enough time
  • We havent got the budget
  • Were not convinced
  • Our people are very cynical
  • We have a long term plan
  • We are too busy with current projects
  • We are a numbers organisation

So is there a way we can prove the value quickly?
21
How Can Accelerated Scenarios Help?
  • To introduce and sell scenario planning to the
    organisation
  • To help shape and drive fundamental change
  • To open the door and let the future in - and
    thus help overcome resistance to change
  • To help focus teams at the start of key projects
  • To surface and sense check assumptions

22
Applying Accelerated Scenario Techniques
  • BellSouth - Understand impact of the New
    Economy
  • Thames Water Utilities - Introducing and
    Assessing the Concept
  • Environment Agency - Management Team Development
  • Yellow Pages - Development of Business
    Blueprint
  • Capture Thinking on Fast Forward
    programme
  • Chloride - Senior Management Development
  • Short Sharp Shock to Drive Growth
  • East of Scotland Water - Initiation of Business
    Review
  • Orange - Knowledge Sharing and Innovation
    Programme Launch

23
The Stakes are Getting Higher
Where does the Internet rank in my business
priorities? its number 1, 2, 3 and 4. Jack
Welch, Chairman and CEO, General Electric
24
And The Scenario Planning Horizons are Changing
In five years time, all companies will be
internet companies ...or they wont be
companies. Larry Ellison, CEO of Oracle
25
Global Trends
  • Technology is Shrinking Time and Space
  • Technologies are Converging
  • Choice is Now a Global Reality
  • Free Agent Society
  • Rising Service Expectations
  • Globalization
  • Emergence of Powerful Virtual Communities
  • Emergence of a New Economics
  • Quest for Customers - Internet Land Grab
  • Emergence of New Business Models
  • Businesses with no Product Emotions

26
10 Driving Principles of the New Economy
1. Matter. It Matters Less. The processing of
information is more powerful and cost effective
than moving physical products. 2. Space. Distance
has vanished. The world is your customer - and
your competitor. 3. Time - It's collapsing.
Instant Interactivity is critical and is breeding
accelerated change. 4. People. They're the crown
jewels and they know it. 5. Growth. It's
accelerated by the network. 6. Value. It rises
exponentially with market share. 7. Efficiency.
The middleman lives. "Infomediaries" replace
intermediaries. 8. Markets. Buyers are gaining
dramatic new power - and sellers new
opportunities. 9. Transactions. It's a one-to-one
game. 10. Impulse. Every product is available
everywhere. The gap between desire and purchase
has closed.
Source Business 2.0 Magazine
27
Winner Takes All - But Not for Long
  • The opportunities are not lost on key players -
    both large and small
  • Being the first mover creates immense publicity
    and short-term advantage
  • The winners will be those who innovate
    continuously on behalf of their customers in
    order to recruit the best partners, generate the
    best deals and attract the highest value
    customers
  • Unless you continue to innovate and reinvent
    yourself, however strong the brand, the service
    proposition and customer loyalty - someone else
    can and will change the rules and outsmart you

28
The Benefits are Attractive
boosted competitiveness
fewer operational errors
Elimination of non-value-adding overheads
increased awareness of customers
revenue enhancing potential
more competitive pricing
enhanced customer service
faster and smarter RD
outsourcing
flow through supply chain logistics
smarter supply chain management
wider geographic reach
round the clock trading
speedy global collaboration
reduced printing costs
reduced product development cycles
reduced time to market
improved asset utilisation
lower cost product procurement
reduced customer acquisition costs
cost savings
information integration between businesses
productivity explosion
Source Ecom Asset Management
29
Whats Changed
  • Service obsession
  • Digital communications - Information transparency
  • Lower transaction costs
  • Quest for customer intimacy engagement
  • Adaptation / Customisation - its a 1-to-1 world
  • Stickiness- Customers in control - so you arent
  • Accelerated Competition - Pressure to add value
  • Community building
  • Convergence
  • Imagination

30
The E-Hierarchy
Scale of Change
Level of Commitment
31
Theres Lots of Data Available
  • 760 U.S. households join the Internet every hour
  • 7.3 billions commercial e-mail messages are sent
    each day in the U.S
  • The number 1 category of items shopped for online
    is cars and car parts, with 18.2 million shoppers
  • Estimated number of Internet users in China
    1,750,000
  • Estimated number of users who downloaded the
    Starr Report from CNN Interactive in the first
    two days it was available 1,700,000
  • Fee to be charged by Delta Airlines for tickets
    not purchased on the Internet, in dollars 2
  • Percentage of Delta Airlines tickets sold via the
    Internet in 1998 less than 3
  • Volume of Internet initial public offerings
    underwritten by Goldman Sachs in 1998, in
    millions of dollars 435.6
  • Estimated percentage of retail stock trades now
    taking place on the Internet 25
  • Number of e-mail messages received by the U.S.
    SEC about potential Internet-related stock fraud,
    at August, 1998 120
  • Percentage of print journalists connected to the
    Internet 87
  • Number of outlet stores being closed by Lands'
    End, partly because of using the Internet 3
  • Bank's cost to process an in-person transaction,
    in dollars 1.07
  • Bank's cost to process an Internet transaction,
    in dollars 0.01
  • Number of E-Zines (online magazines) listed in
    John Labovitz's e-zine list, as of January, 1999
    3022
  • Through mid-April, amount of money raised by Bill
    Bradley's campaign web site, in dollars 30,000
  • Amount spent by Dan Quayle's campaign to start a
    web site, in dollars 26,000
  • Number of venture capital deals for
    Internet-related companies, in the first quarter
    of 1999 208
  • Average financing in those deals, in millions of
    dollars 10

32
and there are Loads of Forecasts Like This...
33
and This...
34
and This...
Source Computer Industry Almanac
35
and This
Source Forrester Research
36
But What Help are they to You?
"Everything on the net is moving at a frenetic
pace. In a fast moving market, statistics are to
a large degree an autopsy. You are looking at a
corpse. What is needed is an anticipation of a
birth."In a very serious sense, if there is a
statistic available to prove there is a demand
for a product you are probably already too late
to bring something to market to address that
need. You need to anticipate a requirement when
there is in fact no demand for it. Then you need
to build a solution that has no problem. Then you
launch your solution and build it slowly to
converge with the eventual demand created by the
eventual change of perception and consequent
recognition of the problem. It is a bit risky
and you can get it wrong, but in a fast moving
market, it is the only way to get to market
first. And first-comers on the web have a very
great market advantage."Leo Sheiner
37
What are the Strategy Choices?
  • Take your existing model online
  • Innovate within the existing model
  • Transform the model / market

38
What Should E-Scenarios focus on?
  • Technology?
  • No! quantum computing, nanotechnology, genetic
    computing will all make impacts in the next five
    years
  • Bandwidth?
  • No! Assume it will be there
  • Convenience?
  • No! Mobile access will explode and mobile
    /portable web access devices will exceed static
    ones eventually
  • Access Costs?
  • No! Assume they will drop

39
What Should our Strategies focus on?
  • Who owns mindshare?
  • Whos becoming web-centric?
  • Powerful and disruptive business models
  • Supply side opportunities
  • Risk orientation of key stakeholders
  • Pain-pleasure principles
  • Social attitudes
  • Rule breaking not rule taking
  • Unmet need / Untamed greed
  • Possibility
  • Defining strategy as simple rules

40
From Re-engineering to E-engineering
OLD LOGIC
NEW LOGIC
  • Develop Business Scenarios (3 Months)
  • Define Strategies
  • Identify Key Processes
  • Analyse customer requirements and process
    capability
  • Define redesign goals
  • Generate innovative concepts
  • Redesign processes
  • Implement, embed and measure
  • Accelerated Scenario Planning (2 Days)
  • Identify and select opportunity space / ideas
  • Design Living scenarios
  • Set design principles
  • Design customer experience
  • Define process boundaries
  • Establish desired capabilities
  • Prototype the scenarios
  • Implement, learn and destroy

41
The Accelerated Scenario Process
09.00 Introduction 09.30 Brainstorm driving
forces - political, economic, social
demographic, technological scientific,
environmental and commercial 09.45 Define
outcomes for each driving force 10.15 Pick one
outcome from each driving force and group them
into potential scenarios 10.45 Develop the
scenarios (12.45 Lunch) 13.30 Review the
scenarios and assess if any are similar enough to
combine 14.00 Assess the industry impact of
remaining scenarios 15.00 Examine the
organisational implications opportunities 17.15
Determine next steps and focus of day
2 17.30 Close
42
Day 2 - Accelerated Solution Design
  • 09.00 Introduction
  • 09.30 Evaluate each opportunity
  • Potential markets / customers / window of
    opportunity
  • Potential market size
  • Customer value drivers
  • Possible Structures - in-house, spin-out, JV,
    etc.
  • Critical success factors
  • 11.00 Define core customer journey for each
    opportunity - how will they buy?
  • Identify additional functional requirements /
    abilities to
  • (12.45 Lunch)
  • 13.15 Define core solution components - skills,
    processes, systems, infrastructure
  • 14.30 Evaluate opportunities against criteria and
    select best fit options
  • 15.00 Identify key stakeholder issues and
    management strategies
  • 16.00 Develop high level 30 / 60 / 90 / 120 /
    180 day implementation plans
  • 17.00 Agree next steps plan
  • 17.30 Close

43
Alternative Futures Approaches
  • Stories about the future
  • Strategies, goals, intentions, objectives, plans
    and tactics
  • Possibilities, options and opportunities
  • Off the wall ideas - blue skies thinking
  • Hunches, predictions, guesses and estimates
  • Trends, extrapolations and movements
  • Projections, assumptions, simulations, models and
    forecasts
  • Alternative arguments, cases, rationales and
    causes
  • Models of stakeholder behaviour
  • Follow the Leader / Regulator / Market
    influencers
  • Anticipation and prediction of events or
    sequences of events
  • All of these might be considered Scenario
    Planning techniques

44
Scenarios - A Definition
The precise definition of scenario is a tool
for ordering ones perceptions about alternative
future environments in which ones decisions
might be played out. Alternatively a set of
organised ways for us to dream effectively about
our own future.
Peter Schwartz, The Art of The Long View
(Doubleday Currency, 1992) p4
45
An Effective Scenario
  • Tells a story about possible future changes in a
    particular system, domain, environment,
    society, etc.
  • Engages the imagination
  • Is written in the past or present tense - as if
    the forecasted trends and events had already
    happened
  • Helps clarify the causes and consequences of key
    developments
  • Challenges our current thought processes and
    assumptions about the future
  • Enables us to define and assess a range of
    alternative policies, strategies and actions
  • Is seen as relevant and an important element of
    the strategic process

46
Scenarios Provide Fast Insights into Future
Experiences
  • Engaging the Future - using scenarios is
    rehearsing the future. You run through the
    simulated events as if you were already living
    them. You train yourself to recognize which drama
    is unfolding. That helps you avoid unpleasant
    surprises and you know how to act. (p.200)
  • Role Playing - by the end of the session,
    managers (at Shell) understood the implications
    of each possible future, because they had
    literally rehearsed them (p.205)
  • Challenging Beliefs - that was the reason for
    creating the scenarios in the first place
    (p.202)
  • Changing Behaviour - the test is not whether you
    got future right... The real test is whether
    anyone changed his behaviour because he saw the
    future differently. And did he change his
    behaviuor in the right direction?(p.214)

Peter Schwartz, The Art of The Long View
47
Typical Approaches to Scenario Development
Discussion and debate - with or without source
data
System Change - evaluation of every parameter
under different conditions (treasury model)
Driving Force - identification and assessment of
the fundamental influencing factors
48
Developing Scenarios Using Driving Forces
Gather Data
Commercial Business
Identify Driving Forces
Build Scenarios
49
The Basic Scenario Process
1. Assess the Current Situation
8. Implement and Monitor
2. Gather the Data
7. Define Strategy and Plans
3. Identify the Driving Forces
4. Generate Alternative Scenarios
6. Assess the Implications for your Organisation
5. Assess the Implications for your Environment
50
Example Driving Forces
  • Political
  • DF1 - Britains Attitude to the EU
  • Total harmonisation
  • Gradual alignment
  • Growing divergence
  • Fortress Britain
  • DF2 - Political Stability of Europe
  • Economic
  • DF1 - Level of Growth
  • Wireds Long Boom
  • Consistent increases
  • Zero growth
  • Unshakable recession
  • DF2 - Economic Health of Japan
  • etc
  • Social and Demographic
  • DF1 - Work - Life Balance
  • 24/7 Society
  • 60 hour working norm
  • Resurgence of 9 to 5
  • 3 Day working week
  • DF2 - Population Growth
  • etc
  • Commercial Business
  • DF1 - Prevailing Business Philosophy
  • Short term shareholder returns
  • Long term value creation
  • Socially responsible business
  • Family friendly businesses
  • DF2 - Impact of Globalisation
  • Environmental
  • DF1 - Impact of Environmental Legislation
  • Encourages shift to paperless business
  • Drives up costs
  • Eliminates business sectors
  • Negligible effect on most businesses
  • DF2 - Pollution Levels
  • Technological and Scientific
  • DF1 - Impact of Wireless Technology
  • Remote control for life
  • Gradual take up of 3G/4G services
  • Technology slow to deliver
  • Health concerns restrict usage
  • DF2 - Genetic Medicine

51
Defining Driving Forces
  • Working in syndicates, you will be allocated a
    heading (e.g. Political)
  • Define two driving forces within that heading
    which you think will have a major impact on the
    business environment over the next 3-5 years
    (e.g. extent of regulatory control, political
    stability)
  • For each driving force define at least four
    different possible outcomes
  • Write the name of each driving force and the
    outcome on a separate sheet (you should have at
    least four sheets per driving force)

52
Defining Scenarios
  • Working in syndicates, select one of the outcomes
    from each of the driving forces defined earlier -
    the outcomes chosen do not have to fit together
    logically
  • Using the set of outcomes as a start point,
    develop a plausible scenario of what a state of
    the world report would look like on January 1st
    2005
  • You can present your scenario back in whatever
    way you think most appropriate - picture, one act
    play, news report, day in the life, etc.

53
An Example Scenario - Britain 2005
Britain today is a thriving economy that has
recovered well from the recession of 2001.
Although its continual reluctance to be a full
participant in EMU remains a source of tension
with its European partners, Britain remains a
major influence in the 40 member EU. The
economy has experienced continuous growth over
the the last three years and a significant
transformation in employment patterns. London in
particular has responded well to the continued
migration of financial services operations to
Frankfurt, Yorkshire and the Internet. The
capital is now the centre of Europes multimedia
industry - with over 2 million of its working
population now involved in Internet / multimedia
related businesses. The general level of
Internet usage in Britain has risen dramatically
over the last three years as a result of the
joint venture between BTT, Microsoft and
Amazon.Com to provide free PCs to every home and
office. Take up has been particularly strong
amongst the wave of new businesses created on the
back of the re-elected Labour governments
innovative million five programme to create a
million new businesses in the five year period
2002 - 2007. Of the 600,000 new businesses
created so far, many have been in the fields of
new media, professional services, construction
related trades and the booming fields of personal
development, coaching and therapy. The need to
create these new businesses was driven by the
continual trend towards Globalisation and the
shift of production and service jobs to lower
cost countries in Eastern Europe and Asia.
54
Data Gathering
  • External
  • Commentators / Think tanks / Institutes /
    Analysts / Economists
  • Stakeholder groups
  • Internet / Desk research / Secondary data
  • Popular culture
  • Government / Agency reports
  • General press / Trade press / Generic business
    press
  • Books
  • Conferences / Seminars / Forums
  • Internal
  • Management information / Research
  • Regulator / Trade monitoring
  • Benchmarking

55
Sorting the Data
  • MAJOR factors - impact through sheer size /
    volume e.g. demographics
  • PIVOTAL factors - apply pressure in key /
    vulnerable areas e.g. regulatory behaviour
  • GERMINAL indicators - early signs of possible
    trends e.g. Internet Commerce
  • TERMINAL indicators - revealing movement away
    from current situation e.g. Government as
    providers

56
Typical Strategy Options
  • Select most probable
  • Hope for the most attractive
  • Parallel strategies - e.g. Tesco
  • Risk Aversion / Hedging
  • Wait for indicators of developments on key
    drivers
  • Seek to influence - choose your own destiny
  • Ignore
  • Hope is not a strategy

57
Health Warning
  • Bias is unavoidable - make it explicit
  • Synthesise perspectives - avoid building
    scenarios based on the perspectives of lone
    individuals - however insightful and well
    informed - group views - properly constructed -
    will invariably be more valuable
  • Creativity counts - without creativity the
    process becomes stale very rapidly - the
    challenge is to bring the scenarios to life
  • Use soft evaluation criteria - in analysing
    scenarios you cannot undertake hard evaluations
    of the future - there can only be opinions and
    judgements
  • Anticipate cynicism and hostility - planning and
    thinking about the future is considered by many
    as a luxury or pointless navel gazing -
    particularly in reactive cultures
  • Accept and publicisie the limitations - All
    forecasts and stories about the future will be
    imperfect, inaccurate and incomplete
  • Expect conflict - a good scenario process will
    start to question the unquestionables and voice
    the unspeakable - the absence of conflict in the
    creation process may suggest that real issues are
    being avoided
  • Openness is key - if strategic choices and
    operational decisions are based on the scenarios
    all involved need to know the underlying thinking
    - the more this case for change is known the
    less painful the resulting changes will be

58
Some Thoughts
  • Scenario planning can help develop our
    anticipative skills
  • No future can be guaranteed - which means the
    future can be influenced
  • The strategic challenge is to identify and pursue
    the preferred future for the organisation
  • The operational challenge is to ensure that real
    actions are taken in critical areas
  • The intellectual and emotional challenge is to
    convince people that we can exert influence on
    our destiny
  • The personal challenge is to learn and have fun!

59
Facilitating Scenario Building - Conclusions
Fun Delivers
No Right Way
Use Stakeholder Perspectives
Commitment Builds with Insight
Real Insights Occur at the Edge of Comfort Zones
60
Agenda
  • Context
  • Exploring Future Scenarios
  • Assessing Implications and Opportunities
  • Developing New Models and Solutions
  • Participation Model
  • Creativity Tools and Techniques
  • Conclusions

61
Assessing Customer Implications
  • Underneath the business context flipchart for
    each of your organisations, place three
    flipcharts, with the following headings
  • What are the implications for how our current and
    potential customers will run their businesses?
  • What key products and services might they require
    from us?
  • What kind of relationship will they want with us
    - what will the value drivers be for them?
  • Staying in your syndicate group but working
    individually, go to each flipchart in turn and
    add your thoughts

62
Agenda
  • Context
  • Exploring Future Scenarios
  • Assessing Implications and Opportunities
  • Developing New Models and Solutions
  • Participation Model
  • Creativity Tools and Techniques
  • Conclusions

63
Innovation in Action at Yellow Pages - A Case
Study
64
Yellow Pages Group - Key Facts
  • Division of BT
  • Provides a range of classified business
    information
  • Ten main locations in the UK employing over 3,000
    people
  • UK sales in excess of 500million p.a.
  • Purchased Yellow Book in USA for 600m during
    1999
  • Winner of EFQM European Quality Award in October
    1999
  • Continued exploitation of global opportunities
  • Flotation / Sale / Divestment planned in 2001

65
The Business Challenge
Achievement Culture
Global Brand / Household Name
Current Success
Excellent Financial Performance
High Customer Satisfaction and Retention
66
Service 2000 - Transformation Framework
67
Drivers For Transformation
68
Service 2000 Key Objectives
  • To develop sales and service processes which
    support the growth objectives of the YP Group
  • To facilitate rapid and effective launch of new
    products and services
  • To accelerate its transformation into an
    e-business
  • Stage 1 - Management Visioning Workshops
  • Stage 2 - Fast Forward Prototype
  • Stage 3 - Hothouse Business Deign Project

69
Service 2000 - Defining the Vision
Management workshops Dec 98 - April 99 to
establish
Desired Outcomes - How will success feel?
Sales and Service Strategy What do we sell? Who
to?
Approach - Use of Prototyping
Customer Journey What should the customer
experience be?
70
Fast Forward Strategic Objectives
  • Build a throwaway prototype of tomorrows sales
    and service experience to bring to life
    strategic options
  • Help the business make more informed choices
    about the strategic options available
  • Engage the organisations imagination - capture
    knowledge and ideas from everyone who wants to
    participate
  • Accelerate strategy implementation by providing a
    tangible and clear vision of the desired outcomes
    and customer experience
  • Share what we are learning and creating on the
    journey - not just the outcomes
  • Introduce new tools and techniques that can help
    speed up the innovation process

71
Fast Forward Approach
Team of 12 No Hierarchy
Cross- Functional
16 Week project
Thinking Like Customers Competitors
Benchmarking, Reading Training
Individual Learning Diaries
Continuous Sharing of Knowledge
72
Prototype Principles Pre-Requisites
  • Clear remit - communicated across the business
  • Dedicated team - intensive process
  • Separate location - arms length relationship with
    day-to-day business
  • Encourage innovation - clear mandate to act /
    think out of the box
  • Flexible approach - no sacred cows
  • Customer centric - focus on What the customer
    will see
  • Act fast - deliver 80 solutions, live with
    loose ends- dont worry about low level details
    of how the processes and systems will work
  • Preparation - well planned induction / education
    process for the team - the Detox
  • External benchmarking
  • Allocated funds
  • Communications - focus on listening not telling
  • Ownership leadership - Clear programme owners
    and dedicated steering group
  • Engage encourage - find ways of sharing
    knowledge with the organisation and preparing
    people for change from the start

73
Fast Forward Outcomes

74
NEW BUSINESS PROPOSITION
75
Business Transformation - Goals

Empowered and Service Led Tolerance of Change and
Uncertainty Recognising and Valuing Individual
Strengths
Business Culture
Positive Encouragement and Support for
Leadership, Coaching Innovation vs. Management
Control Primary Focus - Maximising People and
Performance
Develop In-Depth Understanding of Customers Build
Value Adding Relationships Multi-Channel,
Multi-Product Sales Approach
Market Approach
Clarity and Simplicity Customer Focussed - Choice
Flexibility
Organisation Structure, Measures and Rewards
Designed to Encourage Customer Focussed Behaviours
76
What Needs to Change?
From
To
Customer Experience Customer Journey Business
Processes Sales and Service Proposition Product
Portfolio Channels to Market Sales Approach What
We Do How We Do It Who Does It Where Its
Done Market Position Business Drivers
Value Adding Relationship Seamless - Customer
Driven Simple End-to-End Design Delivering
Business Solutions Fast-Changing / Multi-Vendor /
Digital Multiple High Touch / Low Touch Territory
Based - Whatever it Takes Accept 80
Solutions Speed is Key Whoever Needs to Close to
the Customer New Kid on the Block Market Share
Customer Acquisition
Predefined Process Disjointed - Multiple Contact
Points Complex - Departmental Silos Selling
Advertising Space Stable / Own Brand / Paper
Based Field / Tele Canvass Based - 2 Call
System Strive for Perfection As Long As it
Takes Clear Policies and Procedures Determined by
Structure Mature Market Leader Customer
Acquisition, Turnover Profit
77
Exercise
  • Develop a mapping of what needs to change in your
    organisation - use different / additional
    headings if you need to

78
Key Elements of the Service 2000 Programme
79
Stimulating Innovation
  • 3 week Detox programme for Fast Forward
  • Shopped, opened accounts and requested services
    from other organisations to experience their
    customer journey
  • Looked at good design in other contexts -
    visited Design Museum and ICA
  • Visited Cisco, Virgin, Dell, TNT, Wesleyan
    Assurance, WPA AND Easy Jet
  • Training in creativity, visual facilitation,
    scenarios and process design
  • Focus on continuous learning - books, journals,
    seminars and peer education
  • Immersed ourselves in the web to understand the
    medium and the opportunities
  • Used highly visual process
  • Iterative approach for prototype screen design -
    web developers worked closely with the team
  • Advisory Group, Steering Group and others
    provided constant challenge and input
  • Emphasis on simple language
  • Electronic facilitation tools used for formal
    evaluation and feedback on prototype

80
Mobilising the Organisation
Presentations / Workshops for Training, Change
Management Group, IS, Regional Sales Managers and
Area Sales Managers
Communicated Through Business Objectives
Reinforced at Local Performance Reviews
Presented to Top 200 Managers
30 Advisory Group 50 visitors 70 Invited to
Review Outputs
National Prototype Review Workshops
Electronic Suggestions Database
60 National Design Workshops - Personal
Invitations
81
Preparing People for Radical Change
and creating a culture to support continuous
innovation
82
Conclusions
  • Transformation is a contact sport
  • Innovation is an outcome and an input
  • Context is key - start from what they need not
    what you know

83
Exercise - Brain Writing
  • Alternative approach to brainstorming
  • Can be used in small or large groups
  • Can be used with single or multiple issues
  • Each person (or syndicate) writes their thoughts
    on an issue for a few minutes
  • Sheets then passed on to next person who builds
    on the existing points and adds new ones - pass
    round the group until complete

84
Morphological Analysis
  • List the attributes of the product, service or
    situation across the top of a grid (max 4-6
    attributes)
  • Identify under each attribute, brainstorm all the
    different possible variations
  • Take one idea from each column and see what new
    ideas can be generated
  • E.g. developing a new toy

Age Group
Type
Material
Theme
Baby Toddler Kindergarten Teenager
Fashion Educational Role Play Collectible
Plastic Steel Wood Cotton
Doll Car Construction Costume
Possible Outcome - Babys Educational Cotton Doll
85
Assessing Business Implications
  • Working in your syndicate group, select one of
    the businesses and develop for it a new business
    proposition
  • Consider what new products/ services / channels /
    applications / business models e-thinking makes
    possible
  • What opportunities are there for process
    innovation
  • Define the new business context statement
  • Company
  • Business / Products
  • Customers
  • Value Drivers
  • Business Model
  • Critical success factors for implementing the
    changes

86
Surfacing Assumptions - Example
The framework below may help surface the
assumptions made in the current business from
both the customer and firms perspective
Customer Producer
Who What How Why When Where
Are the main customers? Should perform the
task? Do they want? Are the critical
tasks? Do they want the outputs Do we perform
the tasks? delivered? Do they need the
outputs? Do we do it this way? Do they need
the outputs? Do we perform the tasks
required? Do they want to do business? Do we
have to perform the task?
87
Agenda
  • Context
  • Exploring Future Scenarios
  • Assessing Implications and Opportunities
  • Developing New Models and Solutions
  • Participation Model
  • Creativity Tools and Techniques
  • Conclusions

88
Fast Forwarding Innovation - CSFs
  • Focus on the Customer Experience and Customer
    Engagement
  • Speed
  • Insight and Imagination
  • Tolerance of Risk and Uncertainty
  • Distance from Business As-Is

89
Participative Process Redesign - An Example
Who / How Much
Where When
Why
What
How
Develop Process Vision 2 Days
Produce Detailed Process Design 2/3 Days
Develop Delivery Plan 2 Days
Scoping Session .5 Day
Bus. Goals
  • High Level Design
  • Scope
  • Look and Feel
  • Customer Interface
  • Key Steps
  • Roles
  • Use of IT
  • Inputs
  • Outputs
  • Rationale
  • Detailed Description
  • Steps
  • Tasks
  • Decisions
  • Interactions
  • Information Rqts
  • Participants
  • Skills
  • Controls
  • Inputs
  • Outputs
  • Measures
  • IT Requirements
  • Delivery Plan
  • Gap Analysis
  • Process Changes
  • Rollout of Current IS Projects
  • New Developments
  • People Development
  • Issue / Question to be Addressed
  • Agreed Scope
  • Boundaries/ Assumptions
  • Specific Goals
  • Participants
  • Timescales
  • Preparation/ Inputs

90
Suggested Agenda for Scoping Workshop
  • Project purpose and objectives
  • Scope of activity to be considered
  • Project timescales
  • Objectives for next workshop(s)
  • Target attendees for first workshop
  • Structure of first workshop
  • Communications and follow up activities
  • Workshop preparation - support team
  • Workshop preparation - participants
  • Roles and Responsibilities

91
Key Elements of the Scoping Workshop - 1
  • Project purpose and objectives - the clearer you
    can become about why you are doing the project
    and what you are aiming to achieve, the easier it
    will be for others to make a contribution and
    raise issues relevant to the project
  • Scope of activity to be considered - you need to
    agree where you are drawing the boundaries for
    the process(es) or issues to be considered and
    identify any givens or constraints that need to
    be taken into consideration
  • Project timescales - in order to maintain focus
    you need agreement on the project end date you
    also need to ensure that all involved understand
    the timescales for specifying, selecting,
    procuring, developing and implementing any
    information systems components or other elements
    of physical infrastructure that will be required
    for the project and hence when key decisions will
    need to be made
  • Objectives for next workshop(s) - clear and
    commonly held agreement is required on where you
    hope to be by the end of the workshop(s) and the
    likely level of detail that is required for both
    the ideas that will emerge and the
    implementation plan that is produced

92
Key Elements of the Scoping Workshop - 2
  • Target attendees for first workshop(s) - once
    you know what you want to achieve it is then
    easier to identify those whose presence will be
    critical to achieving the desired outcomes
  • Structure of first workshop - the workshop design
    needs to ensure that current assumptions are
    challenged and that the ideas and design
    proposals that emerge as a result are well
    understood by all participants the number and
    duration of the workshops required will be
    dependent on the amount of detail you need to
    cover and the complexity of the processes
    involved
  • Communications and follow up activities - you
    need to think about subsequent communications at
    the design stage so that the issue of
    documentation can be considered at the point of
    designing workshop activities think about how
    you will communicate the feel as well the
    content and outcomes of the workshop how will
    you involve the participants after the workshop?
    who else will need to see the outputs and sign
    them off? what decision making steps will there
    be before the design can be approved and
    implemented?

93
Key Elements of the Scoping Workshop- 3
  • Workshop preparation - support team - the data,
    process maps, details on related projects and
    other relevant information that will be required
    in order to ensure that - as far as possible -you
    have all the information you need at hand during
    the workshop
  • Workshop preparation - participants - the
    pre-reading, analysis and thinking you would like
    the participants to do beforehand in order for
    them to make a full and effective contribution to
    the workshop(s)
  • Roles and Responsibilities - clarity on the
    contributions expected from each of the
    participants both in the project as a whole and
    in the redesign workshop(s) in particular

94
Agenda
  • Context
  • Exploring Future Scenarios
  • Assessing Implications and Opportunities
  • Developing New Models and Solutions
  • Participation Model
  • Creativity Tools and Techniques
  • Conclusions

95
The Innovation Challenge
Research Intelligence
Creative Ideas
Scenarios Options
Accelerated Strategic Innovation
Internal Innovation
Corporate Venturing
Spin-Outs Incubation
Speed Flexibility Efficiency Service
Secure Future Value Streams
Maximise Value of Current Opportunities
96
The Innovation Process
97
Opportunity Definition - Example
Opportunity/ Problem
Potential Gain/ Impact
Current Situation
Business Requirements
Provision of Personalised Information Services
Create 10-30 additional revenue for 50 of
customers
Trial service launched in Brussels 5 take-up
Increase range of services Accelerate customer
sign-up
Delays in new product development
Loss of customers / revenues Loss of market share
Key faults detected in System testing Launch
delayed by 40 weeks
Identify offer / incentive to keep
customers Speed up development process
98
Brainstorming
  • Brainstorming is a simple technique for
    generating ideas and encouraging creative
    thought, it can be used for
  • Listing problems
  • Identifying potential causes of problems
  • Establishing objectives for a solution, project
    or activity
  • Identifying solutions to problems
  • Building action plans
  • The objective is to generate as many ideas as
    possible without evaluation or criticism and with
    everyone having an equal voice
  • Structured brainstorming involves clustering the
    ideas into related groups and then determining
    the relationships between the clusters
  • Brainstorming can be combined with other problem
    solving tools Like Why-Why Diagrams

99
Brainstorming Guidelines
  • Multiple perspectives - choose a mixed team that
    includes people who can take a totally detached
    perspective on the problem
  • Clear purpose - ensure everyone understands the
    issue to be addressed and the rules of
    brainstorming
  • Allow time for thought - introduce reflection
    breaks if required
  • Ensure everyone participates
  • Variety - using post-it notes allows people to
    generate ideas in parallel
  • Quantity counts - generate as many ideas as
    possible - record them all
  • Be daring - encourage radical and off the wall
    suggestions
  • Dont rush to judgement - dont discuss, evaluate
    or criticise the ideas as they go up
  • Keep the atmosphere relaxed
  • Process control - agree who is leading /
    facilitating the session

100
Six Core Questions
  • Who?
  • What?
  • How?
  • Why?
  • When?
  • Where?

101
Defining Assumptions Constraints
  • In every organisation there will be a range of
    business rules, assumptions and constraints that
    must be taken into account when developing new
    ideas e.g.
  • Business rules
  • Signing / authorisation levels
  • Rules on recording customer interactions
  • Rules on maintenance of records
  • Product testing procedures
  • Assumptions and Constraints
  • Departmental structures which cannot be changed
  • The extent to which computer systems can be
    changed
  • Product characteristics which cannot be changed
  • Willingness of other Departments to accept the
    impact of changes

102
Surfacing Assumptions - Example
The framework below may help surface the
assumptions made in the current situation from
both the customer and supplier perspective
Customer Supplier
Who What How Why When Where
Are the main customers? Should perform the
task? Do they want? Are the critical
tasks? Do they want the outputs? Do we perform
the tasks? Do they need the outputs? Do we do
it this way? Do they need the outputs? Do we
perform the tasks required? Do they want to do
business? Do we have to perform the task?
103
Assumption Surfacing Techniques
Detailed Review of Situation, Processes and
Performance Measures
Brainstorming
Independent Non-Aligned Perspectives
104
Defining Improvement Objectives
  • The clearer we can be about the improvement
    objectives, the easier it will be to assess
    whether the new design will meet its
    requirements. Typical objectives might include
  • Adding Value
  • Create new customer offerings or product features
  • Improve customer service, added value and
    responsiveness
  • Provide better, more timely performance
    information
  • Increasing Efficiency
  • Faster product launch
  • Reduce time spent on routine tasks
  • Reduce paperwork / Minimise processing errors
  • Cut transaction costs / Simplify and streamline
    processing steps
  • Consolidation and elimination of roles,
    procedures and tasks
  • Improving Effectiveness
  • Clarify roles and responsibilities
  • Increased empowerment / Devolution of
    responsibility
  • Standardise processes and procedures performed in
    multiple locations
  • Make more effective use of technology
  • Improve speed, flexibility and productivity

105
Assessing Critical Success Factors
  • The grid on the following page provides a simple
    format for
  • assessing the critical success factors for
    delivering innovation or change in an
    organisation
  • identifying supporting actions to achieve the
    desired results
  • In column one list all of the current and
    potential critical success factors
  • In column two you can assess the importance
    (imp.) of each success factor (1-minor relevance,
    10-critical)
  • Column three allows you to assess the
    organisations current capability to address the
    success factor (1-implying that this is an area
    of major weakness, 10-suggesting that you are
    operating at the standards of best practice in
    this area)
  • Column four provides a space to record ideas for
    supporting actions
  • The associated positioning matrix may help in
    presenting your assessment of the situation to
    others

106
Critical Success Factors
Example
Success Factor Imp. Cap. Supporting
Actions
Business-wide clarity on customer needs concerns
10 3
Customer Focus Groups 0800 complaint line System
of Listening Posts
Effective internal communications
10 7
Team Listening structure Intranet Web-sites for
all projects 48 hour responses to all project
queries
Involvement and Participation (IP) at all levels
8 2
Management workshop on IP ideas Pilot
participative event Staff design of business
forums
Demonstrable support for new culture / ethos
9 6
Regular business forums Team charters at all
levels Open access to performance data
Formal ownership guidelines Regular process
owners forums Central process design repository
Process Ownership Infrastructure
7 9
Imp. - Importance 1- Minor Relevance 10 -
Critical Cap. - Current Capability 1 - Major
Weakness 10 - Best Practice
107
Critical Success Factors
Example
Clarity on customer needs concerns
Critical
Effective internal communications
Involvement and Participation (IP) at all levels
Demonstrable support for new culture / ethos
Process Ownership Infrastructure
Performance Measurement Framework
Formal skill development programmes
Importance
Stakeholder Communications
Strong Supplier Partnerships
Continuous Benchmarking
Minor Relevance
Current Capability
Major Weakness
Best Practice
108
Creative Idea Generation Techniques
  • Benchmarking
  • Reversing Assumptions - What if?
  • Daydreaming - see Visualizing Success
  • Random Word Techniques
  • Morphological Analysis
  • Stakeholder Perspectives
  • Extreme Positions - e.g. cheapest, fastest, zero
    errors
  • Brainstorming / Brainwriting
  • How-How Diagrams - Reversal of Why-Why
  • De Bonos Six Thinking Hats

109
What is Benchmarking?
An ongoing process of measuring our products,
services and practices against our toughest
competitors or those companies renowned as
leaders in their fields
David T Kearns President Xerox Corporation
110
Why Benchmark?
  • Compare performance levels
  • Create discomfort with current performance levels
  • Identify alternative ways of meeting customer
    expectations, organising work, delivering
    outputs, achieving targets and managing change
  • Stimulate new thinking on the art of the
    possible
  • Accelerate change
  • Learn from the Best of Breed
  • Create stretch goals to raise performance
  • Solve specific problems

111
The Benchmarking Process
Planning, Communication and Enrolment
Collect, Analyse and Interpret Benchmark Data
Define and Implement Changes
Monitor and Improve
Plan and Organise
Understand Current Processes
  • Clarify purpose and objectives
  • Decide what to benchmark
  • Sign up the stakeholders
  • Appoint and train benchmarking team / agree
    objectives, roles and responsibilities
  • Define plan and milestones
  • Think about target organisations
  • Create process review team
  • Map the process
  • Identify inputs, outputs and measures
  • Assess current process capability
  • Determine underlying business logic
  • Define potential areas for improvement
  • Initiate immediate improvement actions
  • Communicate findings
  • Agree focus for benchmarking
  • Select and approach target organisations
  • Conduct pilot visit
  • Agree participants
  • Define specific questions
  • Conduct visits and collect data
  • Analyse and interpret findings
  • Identify reasons for gaps and differences
  • Communicate findings
  • Determine scale of change required - set targets
  • Identify and prioritise specific changes
  • Develop detailed action plans
  • Implement changes - people, process, systems and
    measures
  • Monitor and communicate results
  • Monitor changes
  • Identify areas for further
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