In the past, we set the value of our clients. We usually removed the customer from the equation while we defined and pre-packaged the value. Then we tried to convince and convince the client that it was the right choice for them.
Solutions and. Products
In today’s world, this method is no longer efficient. In the modern world, the customer is the one who defines value. Customers are looking for solutions. Solutions have to be designed in a dynamic manner for every customer. We cannot afford to promote “one-size-fits-all” or packaged products. Even though we’ve come quite a distance away from Ford’s, “they can choose any color they want, so long as it’s black. ” However, we do expect our customers to sacrifice to make our products and services serve their needs. The idiosyncrasies of our customers aren’t pleasant for us. The changing of preferences is not suitable for us. If things went our way, we’d develop algorithms for all aspects of production and then put up assembly lines and low-cost labor to produce a lot of products. Each time a client’s needs change, it is necessary to adjust our production line. Each time the algorithm gets challenged, we have to recruit expensive, logical labor when we are at the point of finding how to move, our speed (or direction) of our race shifts. When it changes those, who cannot cope with the complexity keep their heads to the side of the road. For those who are able, keep their heads up and increase the speed.
Change is Constant
Not only are we dealing with the dynamics of who defines value as well with rapid changes in the perception of value. When we were able to develop the best products and then sit on our laurels, today, we are constantly reviewing the value of our proposition. Value is simply an idea, and perceptions can be altered in a flash.
In the beginning, we must recognize that change is inevitable. We must determine how we can keep the talent of entrepreneurs that is present in our workplaces. When we organize business and establish the necessary discipline, we can create an environment that is hostile to individuals who are entrepreneurial but appealing to what I refer to as “professional manager”.
Professional managers excel in implementing systems and enforce compliance. This skill requires a well-known and well-understood context. Experienced managers struggle with complicated. Uncertainty and complexity are the places where entrepreneurs excel.
In today’s world, we must operate our businesses in two distinct companies: OldCo – the business unit that can be simplified to an algorithm and thus can be centralized. Then there is NewCo, the other part of our business that responds to the new opportunities and challenges.
The Knowledge Funnel
As per Roger Martin, Dean at the Rotman School of Business in Toronto, the flow of knowledge enters our institutions via the funnel. In the middle, there’s something that is not clear. It prompts us to be curious. When we start to discover the answer, it becomes easier to develop guidelines or heuristics. Once the procedures become more known, we’re able to translate what we know into an algorithm. The algorithms allow us to employ cheap laborers to complete repetitive tasks. OldCo has a life based on algorithms. NewCo is a mystery-solving company that uses algorithms. NewCo demands far more mental faculties and does not shy away from data that is new regardless of how disruptive. OldCo managers need to be excellent analysts. Managers at NewCo must be synthesizers with the ability to combine the information in innovative and unique ways. The ability to synthesize information is what helps them discover opportunities and make them happen ahead of others.
When we realize that our business is comprised of OldCo and NewCo and NewCo, we can begin to be more proactive in the face of change. We can learn what the environment of most important customers is changing and anticipate their new needs and priorities. We then work with them to find out the best way to tackle their current challenges. The old portion of the business is applying a well-known but quickly aging formula for success. The NewCo portion of our business is more focused on “sense and react” to the changing environment. There is no formula due to the sheer number of uncertainties.
CRM as Digital Nervous System
To stay ahead of these developments, it is essential to develop an electronic nervous system that allows us to observe and hear what’s happening in our customer’s lives. OldCo is required to become proficient in gathering information about customers. NewCo must be proficient in understanding and synthesizing the customer’s data.
Are your CRM and supporting processes and systems designed to work with the needs of both OldCo as well as NewCo?
Adrian Davis is a business strategist and trusted advisor to the chief executive and other business leaders. Adrian Davis is a thought-provoking and engaging speaker who is often invited to address the senior management teams as well as sales teams on the topics of strategic planning for the company as well as a competitive advantage and sales excellence.
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