Which Services Road?

by NIck Frank on September 2, 2011

Strategic OptionsSeeing which services road to take, often leave managers overwhelmed with the options available to them.  It is true that there are a wide range of options available to companies. The table above, shows 6 potential options ranging from a pure product focus to a pure service focus.

The reality is that a company needs to look at its customers value chain in order to determine the best strategic option. And it’s OK to just remain a Product focused company, if that is where you think you can survive and prosper best.

However most manufacturing companies do have an element of service, and most do need to take a more service centric approach if they are to continue to be valued by their customers and stay relevant.

In making this change, we have found that most managers face the following challenges:

  1. Creating a sufficient sense of urgency in the company to overcome initial resistance hurdles from all corners of the organization
  2. Building a strong coalition around a well defined transformation objective
  3. Adhering to a basic three step approach that will create the necessary momentum:
    1. Decide on a strategy that will be relevant to the external and internal context and constraints of the company
    2. Design a robust plan for action that takes into account the necessary cultural change aspects related to the new strategy
    3. Deliver on the plan and communicate appropriately (and profusely) on the progress achieved, both internally and externally.

These fundamental principles do not just apply to large organisations, but also to SMEs, and even not-for-profit organisations: ultimately, the principles are valid for any entity that caters to customers – and we’d like to challenge anyone to find us an actively operating commercial or non commercial entity without customers.

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