creating efficiencies in government: organizational change and business model evolution
DESCRIPTION
Jim Champy delivered this presentation at The Democratic Leadership Council (DLC) and Dell Services half-day roundtable in Washington, DC on July 14, 2010. The goal of this session was to discuss ideas on how to create efficiencies in government. This presentation deals with creating organizational change and how business models are evolving. Jim Champy, renowned for his research on re-engineering business with a focus on results. Jim will share lessons learned in the private sector and the resulting best practices that foster lean business models, while modernizing operations and getting “more for less”. Jim will also share insights into how government may adopt these habits and quickly realize the associated benefits.TRANSCRIPT
Innovation in Times of Economic Crisis
James Champy
Chairman Emeritus, Consulting, Dell Services
Culture
• The shared values and beliefs of an enterprise –
usually manifested in the behaviors of people.
• Can an organization change its culture and/or
behaviors?
2©.
Processes
• A group of activities that uses one or more kinds of
input to create an output a customer values
• Do you change how people think and then change
what they do, or change what people do and then
change what they think?
3©.
change what they think?
• VISION OUTSMART!
Where ideas come from
• CUSTOMER INSPIRE!
Why customers come back
4©.
• EXECUTION DELIVER!
The importance of the every day
Business Models Are Changing
The Flaws in Business Models That Created the Crisis:
• Too much tolerance for risk
• Inefficient supply chains
5©.
The Environment
We are in a
condition of
overcapacity in
many industries
Technology has
enabled enterprises
to become
dramatically more
efficient
The economy has
required enterprises
to drive for even
further efficiency
6©.
In some economies, new jobs will only be
created when new businesses are created
and begin hiring
Customers will
continue to demand
and expect more
for less
Business Models Are Changing
Characteristics of New Business Models:
• Technology enabled
• Lean
• Scalable
7©.
• Scalable
Counterintuitive (or Forgotten) Principles
• You can find ideas in many places. Innovation is as much
about process as about products.
• Most new business models require a combination of high-
tech and high-touch.
• Engaging customers is about aligning with their values –
8©.
• Engaging customers is about aligning with their values –
authenticity is required.
• Resources are available for innovation – even in difficult
times – but hard decisions must be made.
• Efficiency can drive quality.
Outsmart! Case Study
WHAT IT DOES:
Provides access to a global
community of over120,000
performers.
WHAT IT SAW:
A global love for music, but
an inability to globally
access performers; a
“cottage” industry that could
9©.
“cottage” industry that could
be transformed.
HOW IT OPERATES:
• Performers register with their
portfolios
• Customers subscribe to the
service
• Services are booked over the
Internet
Questions
• What are the unmet needs of the communities /
customers you serve?
• What processes or services can you offer to meet
those needs?
• Do you serve a market that needs to be organized?
10©.
• Do you serve a market that needs to be organized?
Create “communities”?
WHAT IT DOES:
Provides non-critical, clinical
care from a facility.
WHAT IT SAW:
Most healthcare providers have
focused on diagnosis and
treatment. Minute Clinic’s
founders saw the opportunity to
change how healthcare is
Outsmart! Case Study
11©.
change how healthcare is
delivered.
HOW IT OPERATES:
• A retailer mentality
• Staffed by nurse practitioners
• Enabled by information technology
• Open 7 days a week
• Patients are seen in ten to fifteen minutes
• Complements the healthcare system
Questions
• Are there assumptions about how you operate that
prevent your delivering the services the market
requires?
• Can a change in a “frame of reference” help you think
differently about the services that you offer?
12©.
differently about the services that you offer?
WHAT IT DOES:
Provides customized, pre-packaged
supplements and medications for
horses.
WHAT IT SAW:
Most barn operations fail to manage
the complexity of providing a horse
with multiple supplements and
medications on a daily basis. The
potency of supplements and
Outsmart! Case Study
13©.
potency of supplements and
medications were also being
reduced.
HOW IT OPERATES:
• Delivers a 30-day supply of supplements and medications customized for each horse
• Substances are contained in a single plastic container for each day, clearly marked with the horse’s name
• Works with suppliers to achieve efficiencies and bulk discounts
• Provides a high-level of customer service
Questions
• What are the confounding challenges that your
constituencies encounter?
• Can you provide “solutions” to these challenges?
• What services can be better enabled by “high-tech,
and what service still require “high-touch”?
14©.
and what service still require “high-touch”?
Inspire! Case Study
15©.
Vision to provide
reliable and
convenient access
to on-demand
transportation
Offering a new
model of automobile
for transportation
Elegantly combines
the promise of the
Internet with
wireless
communications and
online communities
Example of how
innovative
businesses can
harmonize business
goals with the
values of their
customers and their
communities
Questions
• What processes can you move to your constituencies
to help serve them better?
• Do your processes and business model align with the
values of your constituencies?
16©.
Inspire! Case Study
17©.
Member-centered
approach to health
benefits
Strives to be an
advocate in
prescription care
Focused on
renewing the
relationships
patients have with
their trusted
physicians and
pharmacists through
increased face-to-
face communication
Providing
exceptional
customer service to
the more than 1.2
million members
Questions
• What are your channels to market?
• Who are your channel partners?
• Do your partners enhance or detract from the value
you deliver?
18©.
Deliver! Case Study
19©.
Deliver! Case Study
20©.
Questions
• Are you making hard choices that enable innovation?
• What management style best serves your enterprise?
• Do you have an approach for managing change –
process and behavior?
21©.
Deliver! Case Study
22©.
Questions
• How efficient and effective are your operations?
• How do you measure quality – “customer” experience?
• What processes can be reengineered to deliver both
efficiency and quality?
23©.
Deliver! Case Study
24©.
Questions
• How will technology change the way you operate?
• Do your processes align the interests of everyone
engaged in the system of your work?
• Do you express an elevated sense of purpose?
25©.
OUTSMART!
INSPIRE!
• Ambition matters
• Intuition reigns
• Focus prevails
• Customers rule
• Risk is tolerated
HOW SMART COMPANIES
BEHAVE
26©.
INSPIRE!
DELIVER!
• Risk is tolerated
• Innovation lives
• Culture drives
• Everyone plays
• People are held accountable
• Attention to process
• Focus on quality
• Model for change
• Authenticity