The last few years have seen the advent of a cluster of powerful
approaches for business management and leadership.
While some of these approaches have come through breakthroughs
in analysis of business results coupled with new ways of improving
business performance, others have only been made possible by the
power of the new generation of networked computers.
Customer Value Management combines the best of these approaches
into a unique set of modern business tools that deliver bottom line
Companies like AT&T and Federal Express have taken the early
research work done by Buzzell and Gale in, "The PIMS Principles"
and applied it in their industries. Brad Gale's recent landmark
work, "Managing Customer Value" tells how Ray Kordupleski
applied these techniques at AT&T. The combination of customer
value analysis techniques along with economic value analysis allows
targeted improvement of customer service where it will have the
greatest business benefit.
The days of achieving business benefit from downsizing and corporate
anorexia are over. Business and process improvement needs to be
focussed on business growth and superior customer service. The availability
of integrated information systems, means that it is easier than
ever before to develop new products and services, and to improve
processes. While traditional continuous improvement benchmarking
techniques allow you to match your competitors when you implement
new systems, business and process innovation prior to detailed design
allows you to jump over the competition.
Its important to translate business goals into performance targets
that mean something for individuals and work teams. The Golden Thread
approach ensures that metrics used in work areas are linked back
to business goals. Reporting systems ensure that data is turned
into information and knowledge that drives the business.
Businesses run minute by minute rather than on a monthly cycle.
Once made, measurement of service performance must be analysed and
made available to people throughout a business. This allows them
to manage and improve the business areas that they are accountable
for. The availability of World Wide Web technology on the Internet
means that businesses have a cost effective way of sharing information
with all of their people. This technology within a company allows
the creation of an internal web or Intranet, to give rapid access
to performance information. The selection of the right combination
of paper and electronic reporting ensures that information will
be used correctly.