‘the customer is king’
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‘The customer is king’. - PowerPoint PPT PresentationTRANSCRIPT
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If there is one lesson to be learnt, I suggest that it is that people must always come before numbers. It is the individual experiences that lie behind statistics and benchmarks and action plans that really matter, and that is what must never be forgotten when policies are being made and implemented.
‘The customer is king’
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Qualifier or differentiator
?
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Qualifier or differentiator
?
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Transforming for QIPP
1. Establishing a sense of urgency
2. Forming a powerful guiding coalition
3. Creating a vision
4.Communicating the vision
5.Empowering others to act on the vision
6. Planning for and creating short-term wins
7.Consolidating improvements and producing still
more change
8.Institutionalising new approachesJohn Kotter (1995)
QIPP
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National Health Service Act, 1946Part I
Central Administration
1. – (1) It shall be the duty of the Minister of Health to promote the
establishment in England and Wales of a comprehensive health service
designed to secure improvement in the physical and mental health of
the people of England and Wales and the prevention, diagnosis and
treatment of illness, and for that purpose to provide or secure the
effective provision of services in accordance with the provisions of the Act
(2) The services so provided shall be free of charge, except
where any provision of this Act expressly provides for the making and
recovery of charges.
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Although I am not myself a devotee of bigness for bigness sake, I would rather be kept alive in the efficient if cold altruism of a large hospital than expire in a gush of warm sympathy in a small one
Aneurin Bevan’s speech on 30 April 1946 on the second reading of the NHS Bill
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To be the best
healthcare provider in the region
To be the best
healthcare provider by delivering excellent
services to our patients
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Joint Session of Congress
25 May 1961
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Acute
Community
General practice
Local governmen
t
Vertical v. horizontal integration
Public health
What business are you in?
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There is hardly anythingin the worldthat some mancannot make a little worsecannot make a little cheaperand the peoplewho consider price onlyare this man’s lawful prey.
John RuskinBritish poet, artist,
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Portfolio analysis
Market penetration
Market expansion
Product development
Diversification
Existing New
New
Existing
Risk
Products
Markets
Igor Ansoff (1957)
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New markets?
New services?
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Since our establishment in 1957, Deffenbaugh Industries, Inc. has maintained an unrivaled record of customer satisfaction. Our founding standards of integrity and excellent service remain the basis of our reputation. Headquartered in suburban Kansas City and operating from 8 locations in Kansas, Missouri, and Nebraska, Deffenbaugh Industries, Inc. is the largest privately-owned refuse firm in the Midwest. Each member of our more than 1900-person staff shares the company's commitment to customer service and satisfaction.
High risk diversification
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Boston Box
0.1 Low
Low
High
Market Growth
Rate
Stars
Problem children/ question
marks
Cash Cows Dogs
10.0 High
1.0
Relative Market Share (log scale)
5%
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Boston Box – Cashflow analysis
modestcashflow
(positive negative)
largenegativecashflow
large positive cashflow
modestcashflow
(positive/negative)
Stars Problem children
Cash cows Dogs
Successful product development
Internal cash flows
0.1 Low
10.0 High
1.0
Relative Market Share (log scale)
Low
High
Market Growth Rate
5%
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Rolls Royce RB211 and Lockheed TriStar
Highly complex engine needing lengthy development and testing to deliver guarantees on technology, thrust, weight and fuel consumption. RR insolvent 1971, privatised 1987.
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Generic Strategies
Overall Cost Leadership
Differentiation
Focus Low Cost
Focus Differentiation
Low cost positionA uniqueness
perceived by the customer
Strategic Advantage
Strategic Target
Industry-wide – Broad Scope
Particular Segment – Narrow Scope
Porter (1982)
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I’m thinking that every one of the one million parts behind and beneath me were built by the guy who put in the lowest tender
Frank Borman, commander of Apollo 8
when asked “what’s it like, lying on your back at the top of a Saturn V rocket when the engines
light up?”