Presentation on theme: "Presented by : What have you done for your customer lately? Susan Phillips Bari."— Presentation transcript:
Presented by : What have you done for your customer lately? Susan Phillips Bari
Participant Workbook Facilitator’s Guide
Peter F. Drucker – The Father of Modern Management (1909 – 2005)
The Social Sector “It is not business, it is not government, it is the social sector that may yet save society.” - Peter Drucker
Why Ask the Five Questions? Appraise performance, anticipate change, and set direction. Create a learning organization that values and fosters leadership development. Manage limited resources Strengthen strategic planning Encourage constructive dissent Validate assumptions against actual customer values, and Learn to say “no”
Who Can Use the Five Questions? The Five Questions can be used by all sectors, during any organizational phase: strategic planning, start-up, growth, etc. Social Sector Private sector Public Sector
The Self Assessment Tool is used to: Deepen understanding of the mission. Conduct organization-wide strategic planning. Purposely, listen to the customer. Define results. Clarify organizational goals. Plan to achieve results.
The Five Questions: 1. What is our mission? 2. Who is our customer? 3. What does the customer value? 4. What are our results? 5. What is our plan?
1.WHAT IS OUR MISSION? The FIVE Questions
Mission Defined Mission: Why we do what we do; the organization’s reason for being, its purpose. Says what, in the end, you want to be remembered for.
Drucker on Mission “ The effective mission statement is short and sharply focused. It should fit on a T-shirt. The mission says why you do what you do, not the means by which you do it.” - Peter Drucker, p. 14
Mission Statement Leader to Leader Institute “Should fit on a t-shirt” To Strengthen the Leadership of the Social Sector
Some require an XXL…. To promote the full participation of minority-owned, women- owned, and disadvantaged business enterprises (DBEs) in airport contracts and employment opportunities.
Why the organization exists. What the organization would like to be remembered for. Not prescriptive; not ‘How.’ Your Mission Defines Your Purpose
Powerful. Compelling. Motivating. Inspires
2.WHO IS OUR CUSTOMER? The FIVE Questions
The Customer Is Key The customer is the heart of the matter for Drucker.
Drucker on Customer “Who must be satisfied for the organization to achieve results?” “When you answer this question, you define your customer as one who values your service who wants what you offer, who feels it’s important to them.” Peter Drucker
Customer Defined Customer: The one who must be satisfied for the organization to achieve results. Primary Customer: is the person whose life is changed through the organization’s work. Supporting Customers: individuals and groups who, in addition to the primary customer, must be satisfied for the organization to achieve results.
Customers Change “Customers are never static. They will become more diverse. Their needs, wants, and aspirations will evolve.” - Peter Drucker
Customers Change (Cont’d) “There may be entirely new customers you must satisfy to achieve results—individuals who really need the service, want the service, but not in the way in which it is available today.” - Peter Drucker
According to marketing guru Seth Godin… Marketers rarely think about choosing customers... like a sailor on shore leave, we're not so picky. Huge mistake. Your customers define what you make, how you make it, where you sell it, what you charge, who you hire and even how you fund your organization. If your customer base changes over time but you fail to make changes in the rest of your organization, stress and failure will follow. There is no budget large enough to be all things to all people…
Choose your customers wisely When you find great customers, they will eagerly co-create with you. They will engage and invent and spread the word. It takes vision and guts to turn someone down and focus on a different segment, on people who might be more difficult to sell at first, but will lead you where you want to go over time. Seth Godin
3. WHAT DOES THE CUSTOMER VALUE? The FIVE Questions
“You cannot arrive at the right definition of results without significant input from your customers.” - Peter Drucker Drucker on Customer Value
Value Defined Value: that which satisfies a customer’s: Needs (physical and psychological well-being). Wants (where, when, and how service is provided). Aspirations (desired long-term results).
Kouzes on Value “Clearly customers value an organization that seeks their feedback and that is capable of solving their problems and meeting their needs....” - James Kouzes
.... “But I would also venture to guess that customers value a leader and a team who have the ability to listen and the courage to challenge the ‘business-as-usual- environment.’” - James Kouzes Kouzes onValue
What Does Our Customer Value? So how do you find out what the customer values? Ask.
Opportunities What does the customer value? may be the most important question. Yet it is the one least often asked. People are so convinced they are doing the right things and so committed to their cause that they come to see the institution as an end in itself. But that’s a bureaucracy. Instead of asking, ‘Does it deliver value to our customers?’ they ask, ‘Does it fit our rules?’ And that not only inhibits performance but also destroys vision and dedication.” - Peter Drucker Mission OpportunitiesCompetenceCommitment
Methods for Understanding What Customers Value Collect/analyze customer information. Gather customer feedback (program evaluations). Conduct customer research: Pre-post program questionnaires. One-on-one interviews. On-line surveys. Focus groups
Has Your Customer Changed? How? Richer or poorer Downsized – upsized Older Younger Education level Access to Services -local New Customers? Younger Global Remote Access to Services
What People Want The same thing everyone else is having, but different. A menu where the prices aren't all the same. More attention than the person sitting next to them. A slightly lower price than anyone else. A new model, just moments before anyone else, but only if everyone else is really going to like it. A seat at a sold out movie. Access to the best customer service person in the shop, preferably the owner. Being treated better, but not too much better. Being noticed, but not too noticed. Being right.
A Closing Word from Peter Drucker “We have to have discipline rooted in our mission. We have to manage our limited resources of people and money for maximum effectiveness. And we have to think through very clearly what results are for our organization.” n - Peter Drucker
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