Advanced BPM (Outside-In) Glossary

If you have the attention span of a goldfish (like me) which is about 3 seconds… what was I saying?

Sorry, let’s go again. Occasionally you discover gems and the info referenced here was produced by stalwart Australian Customer Experience genius, David Mottershead.
It is a glossary of terms in the modern version of BPM/CX i.e. since 2009.

Don’t thank me – connect with David over at
https://www.linkedin.com/in/thecustomerexperiencecoach

Oh and the goldfish thing… save this document for future reference, before you forget… now where was I?

Advanced BPM (Outside-In) Glossary

Action Plan – is a documented set of steps that can be taken, or activities that can be performed for to achieve organization improvement.

Break Point (BP) – any point within a process where work is handed off. Break points are a point of failure and can be people-to-people, people-to-system, system-to-people, system-to-system.

Business Rule (BR) – are points within a process where decisions are made, they control the behaviour of the process and are highly prone to obsolescence. Business rules are a point of failure, can be operational, strategic or regulatory and they can be system based or manual.

Customer Expectation Management (CEM) – an emergent management and business approach with the powerful idea of defining your business, not in terms of the goods and services you provide, but in terms of “customer expectations.”

CEMMethod(tm) – a set of 9 foundational techniques which help to deliver Triple Crown benefits i.e. simultaneously reducing costs, improving revenues and enhancing service.
  • Understand and Develop Successful Customer Outcomes (the basis for the alignment of the organisation to the customer),
  • Perform a simple “As Is” analysis to understand what the current customer process is (this “As Is” analysis provides a base from which we can apply the diagnostics)
  • Apply the Risk Assessment and Action Planning diagnostics, resulting in the development of an implementation plan for the improvement of the customer process.
Customer alignment – aligning strategy to customers, process to strategy and technology to process, in this sequence.

EVA – Economic value added.
In the field of corporate finance, Economic Value Added is a way to determine the value created, above the required return, for the shareholders of a company.
Flow-level – the combination of work, data and communication flows uncoupled from individual work process
Four dimensional process – Outside-In process that redesigns what work is done; who how it’s done; and enabling technology.

Future State PAM – (Process Activity Map) emerges following the completion of the Risk/Impact Assessment. The content is determined by context however as a minimum it should contain Tasks/Activities, owners, elapsed/cycle time, touch/task time and outputs. In the context of CEMMethod(tm) should also have an associated SCO Mind Map. (functionally) does it;
Hyper-Planning – a compressed, Outside-In approach to developing customer-centric strategies; differs from conventional planning because the customer perspective drives the process and internal goals are an outcome rather than a starting point

Individual Scorecard – a personalised aggregation of KPIs into higher level initiatives and objectives.
Individual work process – work performed by individuals without involving other functions
KPI – A key performance indicator is a measure of performance used to indicate a level of success.
Maturity modeling – assessments that predict an organization’s readiness to move towards customer-centrality and identifies potentially interfering deficiencies
Migration mapping – method of assessing consequences of Outside-In driven change that reveals both intended and potential unintended consequences

Process Modeling – the activity of representing processes so that they may be analyzed and improved in future.

Moment of Truth (MOT) – any interaction with a customer is a moment of truth and every moment of truth causes work within an organisation. They can be people-to-people, people-to-system, system-to-people, system-to-system and people-to-product.

OI Strategy Map

Outside-In (O-I, OI) – a means of viewing an organisation from a customer’s perspective, i.e. from the outside looking in. Outside-In organisations are aligned to provide solutions for customers. Those organisations with an inside-out orientation, on the other hand, just focus on products, sales, and the organization.

Outside-In Action Plan – is a set of steps that can be taken, or activities that can be performed for organisational improvement and alignment of the organisation to the SCO.

Outside-In Process – An outside in process is one which has been created to successfully deliver a customer outcome and has been designed from the customer’s perspective. This process is likely to reduce the number of moments of truth (MOT) or interactions with the organisation and is “doing the right things”, in terms of delivering the process as part of an overall customer success strategy.

An inside-out process may be thought of as one which also provides the goods or services to the customer, but the process to provide these are viewed from the organisation’s perspective. It may be “doing things right” but not necessarily “doing the right things”. It may seek to improve the customer’s experience, but not necessarily aligned with delivering a successful customer outcome, or what the customer really wants.

POF Dependencies – MOTs, BPs and BRs are all points of failure, where thing can go wrong in the process. MOTs cause work within an organisation as they are work and also trigger dependent work to be commence including other MOTs, BPs and BRs.

Points of Failure Factor (PoFF) – Demonstrates how close a process (or processes) is to an optimum Successful Customer Outcome (SCO). Expressed by the formula [(MOT-1) x MOT-1)] + BP

Points of Failure profile – The graph that emerges when you plot POFF

Process Activity Map (PAM) – The visual representation of the process, usually consisting of as a minimum Tasks/Activities, owners, elapsed/cycle time, touch/task time and outputs. In the context of CEMMethod(tm) should also have an associated SCO Mind Map.

Process Diagnostics – Moments of Truth (MOT), Break Points (BP), Business Rules (BR), Business Habits (BH)

Process Elasticity – The greater the POF(f) the less flexible the process, and the more prone it is to breakage. The more elastic a process the more customer oriented.

Process Performance Landscape (PPL) – all tasks, activities, outputs, outcomes, customer outcomes and successful customer outcomes performed within an organisation.
Relationship mapping – visually representing connections from among internal functions, customers, suppliers and outsources

Risk and Impact Assessment – a determination of the impact of the process diagnostics to the customer and to the organisation.

SCO Mind Map – The mind mapping techique is used to help understand and develop the  successful customer outcome (SCO) and the SCO Mind Map incorporates elements such as who is the customer, what is their expectations and what do they really need.

Simulation – the imitation of a process in order to gain insight into the what actually occurs.

Successful Customer Outcome (SCO) – a resulting outcome, and the “process” experienced by the customer behind that outcome, that the customer would define as making their lives simpler, easier and more successful.

Triple Crown – simultaneously reducing costs, increasing revenue and enhancing service.

Validated Process Diagnostics  – the process diagnostics (MOTs, BPs, BRs, BHs) that remain after performing the process analysis and designing the improved process activity map.

Visual Work flow – the first, formal Outside-In process approach (launched in 1996). VW focuses on customer-aligning strategy, process and technology

Turning your customers into long term assets

The Customer is King. What? Seriously?

Terms like customer experience management are banded about by consultants and popular business journals.

However customer experience is often associated with the soft and fluffy pop management sentiment that the customer is king, and typically lacks a clear objective contribution to business success.

Hence it is dismissed by serious business executives who focus their attention on production line based approaches that seem more tangible offering improved efficiencies and lower costs.

Prepare to reframe that thinking. Customer Experience Management (CEM), as practiced by several of the worlds leading companies, is science based and enables organizations to consistently win the triple crown – simultaneously lowering costs, improving service and growing revenues. What can be more tangible in terms of achieving business success?

So let’s get scientific about the customer experience. Being a customer-centric business today means more than treating customers like kings. It requires discipline, method and intent. It means engaging customers like people, connecting with them in unique and authentic ways, building and maintaining a relationship with them over the long-haul.

Reflecting on his success – a Virgin still?

This video from a few years ago captures both the man and the moment.

He goes from strength to strength and this quote epitomizes his credo “I believe that drudgery and clock-watching are a terrible betrayal of that universal, inborn entrepreneurial spirit.”

Rock on Richard, carry on challenging and changing. At the end of the day it is the customer who wins because of you.

Where is your work ethic mate?

One day a fisherman was lying on a beautiful beach, with his fishing pole propped up in the sand and his solitary line cast out into the sparkling blue surf. He was enjoying the warmth of the afternoon sun and the prospect of catching a fish.

(from the desk of James Dodkins)

About that time, a businessman came walking down the beach, trying to relieve some of the stress of his workday. He noticed the fisherman sitting on the beach and decided to find out why this fisherman was fishing instead of working harder to make a living for himself and his family.

“You aren’t going to catch many fish that way,” said the businessman to the fisherman, “you should be working rather than lying on the beach!” The fisherman looked up at the businessman, smiled and replied, “And what will my reward be?”

“Well, you can get bigger nets and catch more fish!” was the businessman’s answer. “And then what will my reward be?” asked the fisherman, still smiling.

The businessman replied, “You will make money and you’ll be able to buy a boat, which will then result in larger catches of fish!” “And then what will my reward be?” asked the fisherman again.

The businessman was beginning to get a little irritated with the fisherman’s questions. “You can buy a bigger boat, and hire some people to work for you!” he said. “And then what will my reward be?” repeated the fisherman.

The businessman was getting angry. “Don’t you understand? You can build up a fleet of fishing boats, sail all over the world, and let all your employees catch fish for you!” Once again the fisherman asked, “And then what will my reward be?”

The businessman was red with rage and shouted at the fisherman, “Don’t you understand that you can become so rich that you will never have to work for your living again! You can spend all the rest of your days sitting on this beach, looking at the sunset. You won’t have a care in the world!”

The fisherman, still smiling, looked up and said, “And what do you think I’m doing right now?”

How Wolves Change Rivers and how you can change your…

I just love this video.
The beautiful scenery, the inspiring story and then the call to action.
How can this have anything to do with Customer Experience and BPM I here you ask? Watch the video (enjoy) and then ask your self the question “How can I create a Trophic Cascade in my organization?”. (Trophic Cascade – watch the vid and all is revealed very quickly 🙂
*

You have got to start with the Customer Experience and work backwards to the technology

How do Outside-In companies achieves 20-30% annually sustainable improvement across costs, revenue and service?

If there was a book of secrets featuring Outside-In one chapter would focus on Steve Jobs observation You have to start with the customer experience and work backwards to the technology”
Watch the 5 minute video to get the perspective.

So what? We can really get to grip with the principle involved here with a couple of ideas. The first looks at the world which sees the organization and its resources as being the key strategic motivator. We have resources (people, systems, structure and so on) that develop products that we then approach the market with and pitch at customer segments. Hopefully gaining market share and establishing customers who buy the product. This model has really been the pervasive approach until this century. Born in the industrial age, updated and upgraded and taught in business schools globally as the way of business. We can represent that idea with this diagram – Inside-Out:

Until the explosion of information brought about by the internet this model worked OK. However with information customers have become choosey, promiscuous, fickle and have immediate and ever changing expectations. The resulting complexity – trying to sell many things to everyone – is the journey to ruin. Go ask Kodak, Nokia, Blockbuster and Blackberry how they have fared faced with the prosumer of the 21st century.

On the other hand we have a view of the world which starts with the customer experience (ala Apple, Emirates, Zappos, Zara and Virgin) and literally understands and then manages the expectations of the prosumer. This idea does not seek to segment customers by circumstance, but categorizes customers on the basis of need. This picture emerges – Outside-In:

By understanding customer needs, even when they may not know themselves, and developing appropriate products for your chosen categories of customer, the world is a simpler place. Yes you do also need to be flexible and agile to preempt (and for the best create new needs) however the starting point isn’t the product and the market. It is the customer and their needs.

Creating the necessary skills and competence to achieve Outside-In and deliver consistently improving results requires this foresight and understanding. The previous approach is as obsolete as the horse and cart is to the electric car.

So how can we do this? More on that soon however as a starter you can download a complimentary copy my book “Outside-In The secret of the 21st centuries leading companies” here.

Also join us and the global community exploiting the benefits of Outside-In:

LinkedIn: BPGroup

Facebook: www.facebook.com/BPGtraining
Twitter: @stowers  @jdodkins
Website: www.bpgroup.org

More soon as we journey Outside-In.
Ciao, Steve

FREE BPM-CEM-OutsideIn course. And receive a complimentary book – Outside-In.

Outside-in approaches create a completely new reality that reshapes how we manage and organize work so much so that functional pyramidal structures become artifacts of the past. 

Born in the complexity of the 21st century Outside-In companies believe that all effort in an organization should be centered around the customer and ultimately deliver Successful Customer Outcomes (SCO).

Part of the insight of Outside-In companies is the identification of work that does NOT contribute to the SCO and accordingly may be ‘dumb stuff’ – work that can be eradicated and removed. In doing so Outside-In wins the triple crown of simultaneously reducing costs, enhancing service and growing revenues. Leading practice organizations include Apple, Southwest airlines, Google, Samsung and Zara. In our book “Outside-In – The secret of the 21st century leading companies” we review many examples and lay the foundations for systematic approaches to enable Outside-In thinking and practice by all.
To access the online course: www.processmiracle.com
To join us on the journey: www.bpgroup.org

Towers-Dodkins, April 2014.

6 Tips for Understanding Customer Needs, even when they don’t know themselves (includes video 4 mins)

Get your hands on SCO’s. What are they? How can they help?

Upcoming events with 42 techniques in Customer Experience Management Method
http://www.bpgroup.org/certification-by-city.html

Orlando – London – Denver – Bangalore – Dubai – Brisbane – Sydney – Singapore – Dubai – Amsterdam – Cape Town – in 2014-15


Join with me @stowers

Royal Bank of Scotland – have they finally got the leader to take them back to the top?

And the lights come on at last..

“It is about establishing one guiding principle that goes from the very top down to the smallest branch. Our employees who deal with customers every day understand their needs and do the best for them – this customer-focused DNA needs to run throughout the bank. We need to remember – and then never forget – that the customer is why we are in business. We need to change our behaviour at every level to reflect this simple truth. To move from stability to renewal, we need to first address and then clean up every aspect of how we treat customers.” The Royal Bank of Scotland’s (RBS) CEO Ross McEwan.

He’s been at the helm of RBS, once very briefly the worlds largest bank, for 18 months. Prior to this, he was the group executive for retail banking services for the Commonwealth Bank of Australia (CBA) for five years. A New Zealander is the man from down under going Outside In?

CBA have certainly transformed and regularly outperform their peers. One of our favoured measures of ongoing success, the triple crown (simultaneously reducing costs, improving service and growing revenues) suggests he has what it takes. 18 months in and we should start to see the results. He can talk the talk, now can he really deliver for RBS. We will let you know next month 🙂

Ross McEwan Profile and video