Dale Wolf Bio/Archives

From sport journalist to editor of an international trade magazine to marketing director for three companies before founding WBK which became one of the 50 largest promotional marketing agencies in America. Pioneered contextual marketing for successful brands at P&G, Pepsi, Disney, Toshiba, Compaq, Imation, 3M - and now for Cincom.

3 Factors Driving Operational Excellence

A large medical device manufacturer lacked real-time data to support timely decisions for the logistics, manufacturing, and supply chain operations of its business.

The management team needed better insight into its business operations issues to take the right actions and improve efficiency. The company CFO accepted the challenge of running the project. He faced a big cultural hurdle: getting operations management to rely on a standardized system for the data to make decisions affecting sales, delivery, and customer service processes was a political nightmare. If he could create an environment that would break through that barrier without breaking the budget, he knew it would be a big win for the firm.

The secrets to simplifying business metrics

Three concepts drove the planning—design simplicity, content consistency, and a longitudinal, phased and evolving process —were at the center of every decision the design team made:

  • Keep it simple—The team settled on creating dashboards to display operational metrics to key managers by area of responsibility. These managers could then drill into supporting reports and data to gain more insight into the contributing factors that led metric performance.
  • Make it consistent—Rather than having competing versions of numbers that need constant and time-consuming reconciliation, build out a single source of truth—whether it’s physical or logical—to support operational decisions. The team felt they could cross that concern off the list when the source of data was consistent and beyond internal argument.
  • Make it evolutionary—If they tried to hit every metric from the start, it would take too long—time the CFO knew they didn’t have at the start of the process. Their process had to be capable of evolving over time to incorporate changes in the business and additional information sources. To stay on track, the company chose to first address operational performance as the critical performance issues: supply chain, sales, and logistics.

In designing any system in a complex manufacturing or service environment, it would be well to follow this model. KISS -- keep it simple. Use facts to overcome opinions and build in a means to get at the facts that drive success. Look at the process from a longitudinal scope -- build in the capability to start simple and evolve with the business. Fix today what is most important today ... and then move step-by-step toward the full vision.

Posted by Dale Wolf on April 15, 2006 at 09:47 AM in Business Optimization | Permalink | Comments (0) | TrackBack

Facts Beat Down Opinions

The most difficult part of managing a global website is that so many managers have different and conflicting opinions on what the site should do and how it should be organized and what it should look like. It's not that anyone is being wrong-headed. Everyone is trying to make the project successful. But we all come from such different points of view that an enterprise-wide project of this sort becomes difficult.

The key learning is that we all have opinions and few of us have facts to support the opinions. This is true of the website, or a CRM project or a supply chain management project ... any project that crosses business units in a diverse corporation is subject to a kind of corporate schizophrenia.

So, for business managers venturing into such projects, analytics is the essential tool

And it appears that analytics is catching on ... nearly 90% of respondents plan on using more Web analytics tools in 2006. This according to Forrester's Customer Experience Peer Research Panel.

It seems that marketers are finally starting to realize there's gold in those click streams and shopping carts. There are plenty of great tools, even free ones. We use Webtrends and it gives us visibility into what our customers are reading (and not reading) ... analytics has been at the base of our last two website overhauls.

A key observation is that everytime we place what I call "early stage content" on the site, it gets good traction. Early stage content is stuff we write about customer pains and issues rather than about our products. Prospects who are in the early stage of investigating software solutions want to get a better handle on the problems. Once they are confident of their position, they move up the buying cycle and start looking at product content. So our next web improvement that we are now working on is focused on content useful to early stage prospects.

Posted by Dale Wolf on April 3, 2006 at 11:38 AM in Business Optimization | Permalink | Comments (0) | TrackBack

Overcoming Adversity

Obstacles, challenges, and tragedies are all part of life. Unavoidable. But lessons learned and shared from real-life experiences can help us in our life of business or business of life. Steve Kayser has authored a humorous essay filled with important lessons for success ... read Find Your Ode to Joy.

Posted by Dale Wolf on April 3, 2006 at 11:25 AM in Business Optimization | Permalink | Comments (0) | TrackBack

Creativity Labs Stimulate Innovation

Where do great ideas come from?

Wood_paneled_conference_room The answer in terms of physical location could be the shower, or in the car on the way to work, or at your desk daydreaming what could be. These places for creativity are all commonplace. But being corporate beings, we tend to gather in a conference room and brainstorm ideas in a group setting. You know that setting ... four wood-paneled walls, a conference table and chairs, and a white board. Not a terribly stimulating place to innovate new products, new promotions, new ways of doing things. Kind of like a white shirt with a starched collar.

What's missing in the traditional conference room is mental stimulus.

Paul Williams, a clever marketer who has passed through the halls at Disney and Starbucks, shares his concept for what a conference room should look like if you want to stimulate creativity instead of same ole' thinking.

Creativitylab1Located in Starbucks Coffee Company's headquarters (Seattle Support Center) in Seattle, this once drab conference room, filled with corporate-stock chairs and boardroom style table, is now a 336 square foot haven for brainstorming, problem solving and thinking. The room can hold up to 15 people comfortably - and all the ideas anyone can think of.

There are more visuals of the CreativityLab at Paul's blog Idea Sandbox.

The promotion agency that I ran for 20 years had a similar ideation room, with tack walls, bar chairs at high round tables, bean bag chairs, and funky stuff (idea starters) scattered everywhere. Actually, we borrowed the idea from a business partner -- Doug Hall who ran the Eureka Ranch and hosted product innovation sessions responsible for about 90% of the products under your kitchen sink. I like these kinds of settings. They help break the log jam in our heads.

But there is also a need for those boring old conference rooms where we all meet incessantly to exchange information and plot out big deals -- so don't sell off all your conference room furniture just yet.

But maybe there's a seldom used room at your office that could be converted into a creativity space. Kill the fluorescent lighting. Put marker walls around the space. Bring a bunch of old used, comfy furniture from a Good Will store. Pop in a CD of thumping music and play ideation games. You just might invent the future.

Thanks to Jackie Huba at Church of the Customer for bringing Paul's Creativity Lab to our attention.

Posted by Dale Wolf on February 20, 2006 at 10:52 PM in Business Transformation | Permalink | Comments (0) | TrackBack

Top 10 Technologies for 2006

"Top Technology" lists are enticing -- who doesn't want to read about the latest gadget or learn how a new application can make our lives easier? This top 10 list is particularly noteworthy, though, because it represents the collected insights of "professionals who sit at the intersection of information technology and accounting."

The 17th annual Top Ten Technologies survey by the American Institute of Certified Public Accountants (AICPA) places information security in the top slot. The list, which was produced based on the result of votes from 2,000-plus AICPA and (for the first time, this year) Information Systems Audit and Control Association (ISACA) members, also suggests that the pace of technological change continues to quicken. Four new technologies -- assurance and compliance applications, IT governance, privacy management and spyware detection and removal -- make their debuts in the rankings. The accompanying analysis fleshes out why these technologies are important to CPAs and also defines each category.

Posted by Dale Wolf on February 14, 2006 at 02:51 PM in Business Infrastructure | Permalink | Comments (0) | TrackBack

Two Changes that Will Improve Your eMail Marketing

The most critical thing about email marketing: it all starts with establishing a profile for an e-mail customer.

Most marketers struggle to optimize this channel -- not because they aren't bright, but because e-mail is a practice that is predicated on multiple kinds of expertise in strategy, technology, creative and analysis. There is no “Hail Mary” play in email marketing. It all stems from placing great importance on each e-mail address. If you don't know this, you are dead in the water. No campaign or creative concept will work without understanding how the persona behind the email address impacts acquisition, activation and retention strategies.

Another key factor: email marketing won’t be effective until you move from episodic campaigns (“hey, our competitor just came out with a new whatever, we better run a promotion”) to long-term, longitudinal thinking about the customer. And don’t confuse this with Customer Lifetime Value (CLV) because there aren’t 10 CEOs in the nation who are likely to fund CLV. But long-term communication with a customer will absolutely improve your results – and it will improve not marginally, but dramatically.

Your enemy is not the customer. It is not SPAM. The enemy is inside the business – decision makers who do not understand the need to build a personal profile behind every email address and to communicate to that address longitudinally, watching and measuring what the customer does when s/he receives your email. Every outbound campaign should have a pre-planned mode of follow-up based on what the customer does. Low click through rates are not an indication of failure, but a lesson on how to improve.

Posted by Dale Wolf on February 13, 2006 at 10:11 AM in Customer Dialogue | Permalink | Comments (0) | TrackBack

Who's Guilty of Biased Thinking at Your Place?

George_bush The Business Pundit (Rob May, Louisville) latched onto an intriguing piece of research and, as usual, the Pundit is asking the right question that makes the research relevant to all of us marketers. The research produced by LiveScience studied the decision making practices of politicians -- it turns out that they are routinely making decisions that ignore facts that don't support their party point of view.

Okay, so politicians are just humans and subject to stupidity like the rest of us mortals.

But it begs the question ... how often do you recommend a campaign or a product decision that flies in the face of facts that seem to tell you to go the other way? True confessions -- I've done it. Hopefully at this point in my career I have stopped doing it.

But I continue to witness brand marketers who -- in the face of contrary evidence --want to make a mark by producing a product or an ad campaign or one of a thousand other kinds of things that get done in the world of marketing.

Egos get tied up into the idea of the moment.

The risk of not succeeding prevents us from dumping a sunk cost.

We rationalize the facts away.

We support decisions that come our of our department and counter the decisions that come from other departments.

Maybe the existence of this LiveScience research will cause us to challenge projects before they go too far -- especially when there is some evidence to the contrary.

Posted by Dale Wolf on January 27, 2006 at 02:22 PM in Business Optimization | Permalink | Comments (0) | TrackBack

Michael Crichton's 3 Guides to Managing Complexity

Michael_crichton Strategic planners take note: complexity is here.

Michael Crichton has raised a lot of questions about global climate change in his fictional “State of Fear.” His speech at the Washington Center for Complexity and Public Policy further explained the line of thinking that guided his research for the book. His conclusions on complex systems can help us all move to a model where we can more effectively manage the systems that operate in our companies and in our marketplaces.

He defines complexity:

“By a complex system I mean one in which the elements of the system interact among themselves, such that any modification we make to the system will produce results that we cannot predict in advance. We live in a world of complex systems. The environment is a complex system. The government is a complex system. Financial markets are complex systems. The human mind is a complex system---most minds, at least.”

There is danger in complexity.

“A complex system demonstrates sensitivity to initial conditions. You can get one result on one day, but the identical interaction the next day may yield a different result. We cannot know with certainty how the system will respond... when we interact with a complex system, we may provoke downstream consequences that emerge weeks or even years later. We must always be watchful for delayed and untoward consequences.”

"Organizations that care about the environment do not seem to notice that their ministrations are deleterious in many cases. Lawmakers do not seem to notice when their laws have unexpected consequences, or make things worse. Governors and mayors and managers may manage their complex systems well or badly, but if they manage well, it is usually because they have an instinctive understanding of how to deal with complex systems. Most managers fail."

Fortunately, Crichton points out, studies show that we can learn to manage complex systems. There are people who have investigated complex systems management, and know how to do it. But it demands humility and the ability to admit when we are wrong.

"The science that underlies our understanding of complex systems is now thirty years old. A third of a century should be plenty of time for this knowledge and to filter down to everyday consciousness, but except for slogans—like the butterfly flapping its wings and causing a hurricane halfway around the world—not much has penetrated ordinary human thinking.”

His first counsel is that we must avoid over-simplifying complexity. When we make this mistake, we come up with wrong answers. “Our human predisposition is to treat all systems as linear when they are not. A linear system is a rocket flying to Mars. Or a cannonball fired from a canon. Its behavior is quite easily described mathematically. A complex system is water gurgling over rocks, or air flowing over a bird’s wing … An important feature of complex systems is that we don’t know how they work. We don’t understand them except in a general way; we simply interact with them. Whenever we think we understand them, we learn we don’t. Sometimes spectacularly.”

His second counsel is that we approach this task with humility and admit when we are wrong and to realize that we will be wrong more often than we are right. “If you manage a complex system you will frequently, if not always, be wrong. You have to backtrack. You have to acknowledge error. You’ve probably learned that with your children. Or, if you don’t have children, with your bosses.”

His final admonition is to eliminate the tendency we all seem to have of using fear to galvanize those around us to follow our solution. “Fear may draw a television audience. It may generate cash for an advocacy group. It may support the legal profession. But fear paralyzes us. It freezes us. And we need to be flexible in our responses, as we move into a new era of managing complexity. So we have to stop responding to fear.”

Posted by Dale Wolf on January 22, 2006 at 10:13 PM in Business Transformation | Permalink | Comments (0) | TrackBack

Mass Customization and the Innovation Fulcrum

My "Cool News of the Day" eNewsletter from Reveries just arrived with a very relevant insight into a major cause of complexity. As I read the analysis of an article in the December 20 Wall Street Journal (written by  Mark Gottfredson and Mike Booker ), it was clear that the authors were referring to a concept that manufacturers know as "mass customization." Now this happens to be a subject Cincomers know a lot about because our manufacturing software is designed to facilitate mass customization.

However, the Cool News analysis points out how mass customization can become a critical tool in operational simplicity. I have inserted this article for your review:

The problem is that innovation, because it so often manifests itself as more choices, tends to breed complexity, which sends costs out of control and profits straight to Seat 29E. The solution, they suggest, is to master what they call the "'innovation fulcrum' -- between product variety and operating complexity." Take Starbucks, for example, where you can customize your latte "by size, type of milk, temperature and flavors -- but everything works off the same standard platform." Or HEB, the supermarket chain, where every store operates on a standard model, but also tailors its offerings to suit local tastes. Or Honda, where you can have any kind of car you want, as long as it's one of "32 build-combinations" in one of four colors.

The "innovation fulcrum" essentially picks up where Henry Ford's
Model-T left off. Henry got it right by standardizing his offering, but missed his turn when he offered his autos only in black. Mark and Mike think companies could benefit from a "Model T" analysis, however: "On the operating side," they write, "companies need to think about what processes would look like with one standard offering" and then "add back those options valued by attractive segments of their customer base. The secret: Add only a single variable at a time and then trace the effect through the value chain." Henry Ford finally got it right by offering the Model A in various colors, but of course by then he was following his competitors.

These days, the most common mistake, according to Mark and Mike, is to "miss how complexity begins in the product line. The usual response -- launching a
Six Sigma or other  'lean operations program -- 'falls short because standard accounting systems don't pick up complexity's full costs. Incremental approaches miss the gradual buildup of systems and mechanisms for managing complexity" and fail to "gauge actual customer desires." Their advice includes "raising the hurdle rate," by "requiring a higher rate of return on new products" which they say both "makes it more difficult to arbitrarily add variations" and "boosts innovation discipline." It's also key to "pinpoint responsibility for making innovation decisions" as well as track how the "innovation fulcrum can shift over time." They conclude: "Companies that hit the right balance between innovation and complexity create more efficient operations and more profitable customer relationships."

Many manufacturers see mass customization as imperative to meeting profit, cost and delivery goals, while helping to alleviate competitive pressures. Cincom provides industry-leading quote-to-order solutions that enable manufacturers to mobilize these mass customization initiatives. From reducing quote-to-order processes from weeks to minutes and driving down unit costs, to lowering the costs of sales, Cincom helps you increase sales effectiveness across all channels.

Mass Customization Benefits and Opportunities:

  • Mobilize product rationalization efforts to support mass customization strategies.
  • Increase configuration accuracy to ensure manufacturability.
  • Bring engineering closer to the customer and eliminate non-value-added activities.
  • Build products on-demand to customer requirements.
  • Integrate your front-office and back-office strategies for rapid order fulfillment.

Posted by Dale Wolf on December 21, 2005 at 10:23 AM in Business Optimization | Permalink | Comments (0) | TrackBack

The Dead Old World vs. The Brave New World

By Dale Wolf

More validation to contextual marketing as the new way to communicate with customers: This time it is from Kevin Clancy, author of Counterintuitive Marketing, as reported in CMO Magazine.

"Every place you look in marketing today, you see more failure than success. Marketing Management Analytics recently reported that for every $100 invested in advertising for a specific product, the return is only $58. Customer satisfaction across a broad range of industries is only 74%. The fact is: Failure is rampant."

A $100 Investment to Get Back $58?

You can get more of Kevin's point of view in CMO's webcast series on innovative influencers.

We have been reporting on similar dismal statistics for a decade. But the tree falls in the forest silently. The Dead Old World plods on without realizing it has no pulse. Where are the CMOs who have the courage to see the truth? Where are the professional marketers who are ready to enter The Brave New World?

What does that Brave New World look like?

It looks upside down to most traditional marketers.

Instead of hawking products, we need to build relationships. Today, the second a prospect identifies himself by requesting a free whitepaper or entering a sweepstakes, the traditional marketer launches an arsenal to sell that prospect a product. The communications become all about how wonderful this product is and how great the company is.

This is rubbish.

The customer will have no more of it.

The customer is looking for people who understand his problem, his pain. We need to talk about that pain with the customer and demonstrate that we understand his business and what he's trying to do. Earn the right to continue the dialogue. Instead of pitching your product, you get into his context and teach him new ways to accomplish his goals. Then you can help him purchase.

Can you see where helping a customer purchase is different than selling something to the customer?

The dialogue is completely different. It is upside down from today. But why hold on to "today." The facts have already told you "today" is a failed strategy.

I call it "contextual marketing" but whatever you want to call it ... we all need to build a relationship with the customer, we all need to earn the right to remain in the dialogue, we all must help the customer buy, we all must focus on the buying cycle instead of the selling cycle.

If not, we are doomed to repeat failure until the CEO cuts our budget from under us.

Posted by Dale Wolf on December 9, 2005 at 07:05 AM in Customer Dialogue | Permalink | Comments (0) | TrackBack

Peter Drucker: The Great Teacher

The first responsibility of managers, Drucker said, was to ask themselves a simple question: What is your business? He was of the opinion that only the customer could really answer. That was a statement made way ahead of the current CRM boom. And yet it is a definitional problem that most managers still struggle with.

What can Drucker teach us yet today?

Posted by Dale Wolf on November 17, 2005 at 03:23 PM in Business Transformation | Permalink | Comments (0) | TrackBack

Motorola's About Face is Built on Simplicity

By Dale Wolf

What’s all the furor about simplification?

Cincom has believed since its inception in this concept. It is what we enable our clients to achieve – simpler, smarter businesses that have distinct competitive advantage.

Does simplification work?

Motorola_razr Look at how Motorola turned simplification into an advantage that stunned its competitors and literally transformed Motorola’s company into a new, more aggressive business.

While most players in the cell phone industry centered their product innovation of adding more and more features to their phones, Motorola did a counter-move. They said less is more. With it came their Ultrathin Razr V3 cell phone in 2004. This dandy weighed in at just 3.35 ounces and was just a half-inch thin. Something so light and small it would fit in your shirt pocket without making you look like a dufus. How sweet is that?

Scott Anthony, writing for Harvard’s online newsletter Working Knowledge, tells you the whole story of how stodgy Motorola transformed itself.

To successfully introduce what it now refers to as an "iconic" product, Motorola maintained a single-minded focus on simplicity, avoiding the temptation to layer in additional features that would have made the phone bigger, heavier, and less distinctive. The company also had to dodge some of the classic traps—such as consensus-based decision-making processes that can result in compromised products—that make it so difficult for big businesses to follow new strategies.

Perhaps the biggest challenge facing the Razr team was Motorola's internal innovation process. Usually, when Motorola planned to develop a new phone, representatives from each of the company's major geographic regions were asked to weigh in on the concept. The regions would request the sorts of features and functions they wanted included in the design. Each region would then forecast how many units of the model they thought they could sell. The aggregated regional plans would help Motorola then decide whether to invest in a phone's introduction.

It was a complicated dance. If a development team ignored features that a specific region deemed critical, that region would project low sales for the phone. The lowered forecast would make it tougher to get approval to move the project forward. Design teams knew they had to appease each region or their projects would die on the vine.

The real kicker is the end result:

Razr exceeded Motorola’s total lifetime projections for the product in its first three months.

And this is for a product retailing at $450 per phone.

This is the same struggle we all face. Cincom recognizes the contributions that various teams from throughout the company can make when we are developing new software solutions. It helps, however, that all of us work in an environment that trusts and supports simplification. While many software companies load features on to software until the camel can barely stumble out of the stable, we stay focused on the simplest path to success. Therein lies higher value, lower cost, faster return and lower risk. Very simple.

Posted by Dale Wolf on November 7, 2005 at 03:08 PM in Business Transformation | Permalink | Comments (0) | TrackBack

Accelerate Business with Customer Service

By Steve Kayser

Let's put it into context.

If you're buying a $13 million jet aircraft engine, is getting the cheapest price or the best service more important?

Reveries reports that Rolls Royce proves that customers want and need service.

"Over the past 15 years," Rolls-Royce "has clawed its way up from bit player to No. 2 in the market for commercial airliner engines" via a deft combination of product, and -- even more important -- service, reports Stanley Reed in BusinessWeek (11/14/05). You may recall that Rolls nearly went out of business "in the 1970s before the British government took it over," keeping the aircraft engine business and selling off the motor car division. The critical moment for Rolls (which has been around 101 years) actually came in 1996, when "John Rose, a reticent former banker" became chief executive officer. Rose not only "pushed hard to broaden Rolls's product offerings" but also to provide maintenance services to match.

For Rolls, the service-and-maintenance part was key, because the margins in it are in the 30 percent range, far outstripping "those for original engine sales (monster turbofans, which may list for as much as $13.5 million a piece, are often sold at big discounts to win orders)." As a result, Rolls-Royce, www.rolls-royce.com, today has "one of the world's most sophisticated help desks. Using live satellite feeds displayed on video screens, its technicians continuously monitor the health of some 3,000 engines for 45 airline customers." Naturally, product design figures prominently into the service side, as "the layout of Rolls-Royce engines makes them easy to work on." Rolls packages it all up in a plan "called TotalCare, under which" customers pay them "a fee for every hour the engine is in flight.

In return, Rolls assumes the risks and costs of downtime and repairs." The upshot: "Rolls is incentivized to put expensive modifications into the engine to improve reliability," notes Bob Reding, svp for technical operations of American Airlines, "which operates 178 Rolls-powered planes." Some customers gripe that Rolls's "maintenance costs are well above those of the competition," but for the most part that doesn't seem to be hurting them any: "The company says it has clinched 86 percent of engine orders for the new Boeing 787, and orders for the Airbus A380 are evenly split with GE." According to analyst Sandy Morris of ABN Amro, Rolls Royce Group is poised to enjoy "a 65 percent year-on-year increase in operating profits in 2005" and investors "have bid them up 46 percent since the beginning of this year."

Does this work just for complex business-to-business companies? Nope. Customer service gets right down to the level of the grocery store. An independent researcher discovered that the vaunted TESCO, the leading UK supermarket, is vulnerable to a competitor's superior customer service.

As TESCO announces record profits and consolidates top ranking in the UKgrocery retail market, figures released today from independent customer loyalty experts TARP UK, show that TESCO`s business remains vulnerable to ASDA on service. But the general lack of service quality across the industry is costing the supermarkets GBP20billion P.A. as 3/4 of supermarket shoppers would happily shop at another retailer. The defining factor is staff availability and checkout service - not price or store location.

-- 43% of ASDA customers were very satisfied, compared to

-- 34% of Sainsbury`s customers, and

-- ONLY 37% of TESCO customers were very satisfied.

-- 32% would ALWAYS use ASDA if at all possible, compared to only

-- 19% of Sainsbury`s shoppers, and

-- ONLY 25% of TESCO shoppers.

Which is to suggest that when you're building any marketing program, you should be putting as much effort into improving customer service as you put into product development. Given the option, customers will opt for service.

Posted by Dale Wolf on November 7, 2005 at 10:06 AM in Business Growth | Permalink | Comments (0) | TrackBack

A BPM Methdology

by Line 56: Debbie Moynihan

If you can see a business process, then you can leverage and optimize it. The increasing demand for business process models can be attributed to the growing need to integrate disparate applications, people, processes, and information. The key benefit and differentiator of business process modeling is that the models serve as guides to more closely align IT to organizational goals and objectives. Business process modeling provides a standardized means of visually depicting a set of logically related tasks. These tasks primarily involve the flow, decision points, events, and logic for executing a process. Together, the model is then used to define a specific business process that can be tested before deployment and then reused throughout the organization. While it has always been an important methodology, there has been a noticeable rise in the demand for software that enables business process modeling.

While traditional software development modeling is usually targeted at a specific software solution for the purpose of application development, business process modeling focuses on the way the business is run and includes all of the processes across organizations and applications.

Aligning Business and IT through Business Process Modeling 

A business process can contain logic that can be leveraged by an application developer to either create new applications or update existing ones. Yet the business user doesn't need to know the application underpinnings in order to define, execute and reuse the processes successfully.

Businesses benefit most from modeling when it is used to ensure that internal processes are directly aligned with strategy and goals before they are implemented. Aside from the obvious benefits of modeling before deployment, there are three additional significant benefits of implementing business process modeling:

Clarity: it identifies and clearly documents a business's most strategic business processes. Through a visibly mapped approach, organizations can optimize those business processes that drive maximum ROI and competitive differentiation. Reusing these proven processes accelerates productivity because it provides a clear understanding of business processes and related costs and required resources. Further, business process modeling fosters stronger communication between the business and IT teams to collaboratively support the company's strategy.

Responsiveness: it enables increased operational effectiveness by more closely aligning IT deliverables with business requirements while allowing for modifications prior to deployment. Utilizing business process modeling, coupled with an overall business process management strategy, you can quickly modify applications to adapt business processes on demand as a result of changes in the market or competitive threats.

Business Flexibility: it allows business leaders and process analysts to modify business processes on demand. With business process modeling, the business user has a tool to modify and simulate business processes and see how a new business process will run and affect the business. New or modified business process models can reuse components and services across organizations and functional areas. A business user can then share the model with IT to deploy new applications, products and services quickly to respond to changing business needs.

Business process modeling is most successful in those organizations that embrace it as an organizational strategy and allocate the proper IT and business resources (including executive sponsorship) to ensure its success. For sustained, long-term success, an organization should seriously consider establishing an integration center of competence that is focused on business process management as well as best practices and a methodology around the business process modeling activities.

Debbie Moynihan is Program Director for IBM WebSphere Business Integration Product Management.

Posted by Dale Wolf on October 14, 2005 at 05:24 PM in Business Optimization | Permalink | Comments (0) | TrackBack

Business or Busyness?

Welcome to Busyness Club, hell-bent on a take-over of Business, Inc.

Do you get the feeling some days that email is running your life? That at the end of the day, you cannot point to accomplishments that make for success – your company’s success or yours? The days when you go home feeling like you achieved your day’s goals were done because you put in a 12-hour day?

One of the repercussions of all the corporate downsizing is that we picked up the work of those whose jobs were terminated. The work didn’t go away … we just took on more. But we didn’t do this efficiently. We just worked longer hours. The 50-hour week became a 60-hour week. And the quality of what we did went south. We’re tired and frustrated.

Shocking though it may seem Busyness Club is where we spend 90% of our time. This based on research by Heike Bruch and Sumantra Ghoshal. They revealed in Harvard Business Review that “fully 90 percent of managers squander their time in all sorts of ineffective activities instead of spending their time in a committed, purposeful and reflective manner.”

You’d be seen as Superman or Superwoman!

Imagine what you could really accomplish if you converted even half of this squandered time into more productive activities.

Bad Habits Reign

Not long ago I became fascinated why people with chronic illness lived such unhealthy lives. People with just three health conditions account for the majority of healthcare expenses. All they need to do is eat right, exercise, stop smoking and take their prescriptions as recommended by the doctor. But they don’t do it. They stay sick.

What if these chronically sick people just set a goal for themselves to enjoy every day of life more fully? What if they changed critical personal behaviors? What if they got support around them to help them through the behavioral change process until new habits formed? My guess is that they’d be happier and the Federal Government would save billions of dollars a year in Medicare payments.

What if we business people did the same thing?

That is, change the behaviors that are adding to our frustration and minimizing our productivity. What if we set out deliberately on a goal of accomplishing more while doing less?

  • Change behaviors that hold back our potential for greatness.
  • Clear our decks so we can seize new opportunities as they surface.

Clarify Your Values and Vision for a Successful Life

Create Immediate Separation and Balance between Work and Personal World

Your job is your job. Your life is your life. But your job is not your life. What is the personal dream and career dream you have for yourself? Begin at the end and work backwards. Values are the beginning of the end. Establish your priorities based on your values. Get focus on these and let them run what you do and who you do them with.

  • What’s important and why?
  • What’s the flow chart for how you will achieve the important things in life.
  • Put it in writing.

The balance part comes from saying “no” more effectively. Low self esteem leads us to say “yes” when we should say “no” and you can still be a team player in achieving this balance. Do first those things only you can do rather than doing the work of others. The Do-it-Yourself mentality is self-destructive to you and the team. Protect yourself and the team from over-commitment, but do it positively. If you dump your work on others you are being an obstructionist.

Become Aware that Bad Habits Sabotage Us.

Kick them and Replace them with More Productive Habits.

It turns out that changing attitude and behavior is hard to do, even when we desperately want to do it. We’re not yet seeing the huge advantage we can gain. Habits will cause success or failure.

Begin thinking differently about priorities. What are the real values in life that make you feel good. The values and our vision of how to achieve them cause us to behave the way we do. If our focus is on accomplishment, then we will do more stuff so we feel good rather than focusing on the real issues.

Breaking this cycle is not easy.

  • Identify the wasted time in your day … what’s not working?
  • Replace these activities with new habits that lead more successfully to your values and vision.
  • Know what is really important rather than what someone else says is important.
  • Set aside your most productive time of the day to do the most important things.

Is answering the never-ending stream of emails that hit your desktop consuming the time you need to do more important tasks? You feel good about email because it gives you a sense of accomplishment, but it is not what will make you or your company successful. Break the habit and replace it with a new one. Instead of answering 50 emails, pick the one that no one else wants to handle … successful people do things everyday that other people don’t want to do.

If the 80/20 rule is at work (and it probably is), then 20% of what you do produces 80% of your value. Stay laser focused on the big things.

Follow the FAST acronym to move a team forward more productively.

Focus – do the important things right

Agree – collaboration is essential

Schedule – commit to deliverables and deadlines

Track – performance, quality, results

Start today.

Pick off the one thing you have been avoiding. Then pick off the one thing you can do better than anyone else. Keep things simple.

End the frustration and begin the celebration when you find the realization to get the motivation without hesitation to build the foundation for your salvation.

Posted by Dale Wolf on October 8, 2005 at 06:28 PM in Business Optimization | Permalink | Comments (0) | TrackBack

In Search of Execution

By Dale Wolf

I am not so sure that creativity is any longer the magic button it once was in marketing.

Perhaps another way of stating my premise is that it’s not that creative ideas are unimportant. It’s just that without immaculate execution they become a dime a dozen. They fail to grow revenue over a sustained period of time.

A 1998 study by the Corporate Strategy Board examined 172 of the largest companies in the Fortune 500 list. Only eight were able to sustain real growth of more than 6 percent; the others could not even keep pace with the GNP.

It’s not for a lack of creative strategies that growth is so hard to maintain. Every marketing manager alive has dozens of creative ideas tucked away waiting for the right moment to spring them on the world.

We put more value in the importance of creativity and uniqueness than it merits.

The trouble is that few of us are excellent at execution. Mediocre execution will destroy even the best creative ideas.

The fact is that a pursuit of creativity is dangerous and risky business. It diverts management from the real task of immaculate execution.

One example on the importance of execution: Our agency was retained to build a VAR channel for a marketer of data storage devices and media. We produced a comprehensive program to launch these products to the distribution channel, complete with introductory discounts to initiate trial. At the same time, a different sales group within our client’s company launched a promotion for the same products to major retailers. Can you imagine what happened to the company’s credibility when the VARs discovered they could purchase the same products from retailers cheaper than the VAR channels was selling them on an introductory discount?

A study of 1,300 publicly traded U.S. companies in fifty-five industries by Chuck Lucier, senior vice president emeritus at Booz Allen Hamilton, found that basic ideas, copied over and over again in one sector after another, accounted for 80 percent of the breakout businesses created between 1965 and 1995.

Execute Proven Ideas -

Replicating existing marketing strategies is cheaper — and easier to implement — than developing new ones. The secret is bringing to your company a great idea that some other company has tested. The big-box store, for example, is no longer an original concept. And yet this once big idea has now been replicated in consumer electronics (Circuit City), home improvement (Home Depot), and office supplies (Staples).

Focus, Simplify and Standardize –

Okay, so this has been in every marketing textbook you have studied as far back as college. Why, then, do so few of us do it. Marketing is overwhelmed by complexity, and marketers’ predisposition toward creativity as kingly only complicates our job, our companies’ operations, and our own lives. If we fail to pick out our areas of competence and concentration, we will instead try to do a good job on everything and we will assure mediocrity of execution – for example, too many promotions, each poorly thought through and in the end producing only failure. We all look at marketing automation as a panacea but unless we simplify and standardize our internal processes, automation will simply create failure more efficiently. This is “bunny marketing” – lots and lots of activities hopping around everywhere with no direction.

Internal Collaboration Provides the Driving Energy –

The marketing job is by nature one of influencing others both inside the company and outside it. The hard work of marketing lies not in developing a uniquely new product or the communications strategy for it, but in coordinating the efforts of R&D, manufacturing, finance, communications, sales. Do this once, and you’ve created a cross-functional “whole product team” that knows how to do it over and over again, and whose enthusiasm itself will champion repeating this process consistently. Excellence will increase over and over again.

Align Marketing and Sales –

Nothing is more destructive than these two customer-facing teams acting independent of one another. The fact is that neither should own the success alone. You can hardly pick up a trade magazine without reading that sales teams ignore sales leads provided from marketing programs and that sales teams feel it necessary to produce their own sales literature because the stuff from marketing is out of touch with the real world. Technology now is available to bring these two teams together to assist customers in buying – but it won’t work unless the lances are parked at the front door and the marketing and sales swords are melted into one big scythe.

Context Counts More than Creativity.

The big idea doesn’t have to be the brand-new idea. Something common and successful in another industry can be new to in the context of your organization and your targeted market.

Two years ago, we ran an advertising and promotion program using Fortune Magazine as the foundation. It generated very high levels of awareness with our target market, but it failed to produce movement into the sales pipeline. Rather than ditching the program the following year, we analyzed where execution was weak and ran the program a second year. One quarter through the second running, some things still were not going right, so we went about fixing them immediately. Along the way, our execution is getting sharper and sharper

A well-tested breakthrough idea is more than enough to excite your team, create belief, and build the world’s greatest marketing department.

Posted by Dale Wolf on October 2, 2005 at 02:28 PM in Business Optimization | Permalink | Comments (0) | TrackBack

Using Direct Marketing to Change Health Behaviors

Direct marketing excels at creating consumer behavioral change. Our methodologies work consistently and generate millions upon millions of dollars in revenue by motivating customers to purchase.

A perhaps even bigger utilization of these direct marketing techniques is to change behavior toward our own healthcare practices. Healthcare costs will come down only when we take responsibility for our own health. Health insurers who get a handle on using direct marketing as an essential part of Care Management will increase the number of people who become self-motivated to live a healthier life.

The goal is to codify and replicate Care Management team best practices for creating behavioral change by helping them see how our process will help them live better, thus minimizing avoidable healthcare episodes and more intrusive treatments.

To change enrollee behavior we must go beyond persuading, handling objections, overcoming resistance and move toward helping the enrollees visualize how following best practices will enable them to achieve personally important needs.

In this sense, the total Care Management Program becomes a holistic approach, with a rich portfolio of events and communications tools that are available for use by the Care Management Team in one-to-one situations.

It begins with a personal assessment conducted by the local Case Manager of the enrollee and the enrollee’s “family” support team.

This individual information is entered into the Care Management Database and is used to segment enrollees into clusters, based on behavioral factors.

The Care Management Database is integrated with the Care Management Rules Engine to guide the Case Manager Team in the selection of the most appropriate protocols and communications paths for each enrollee situation.

This will enable us to pose relevant questions, converse situationally, provide positive motivation and empower enrollees to solve problems, satisfy physical and emotional needs and achieve personal goals.

Pre-plan and create predictable conversations where the healthcare team can create compliant behavior on the part of the consumer. Begin by plotting the primary interests that each person in the communications net has regarding health compliance and positive social living habits and activities. Understand their needs and then flow chart the barriers, the relevant information and conversations that need to take place and construct messages that consistently use questions to guide the target audience toward making the right decision.

First understand the situational context with a Diagnosis and Objective for each prioritized cluster of consumers who share a common lifestyle situation, and then establish a contextually relevant conversation to help the target take charge and improve his or her life.

This conversation follows a consistent process: Challenge, Reward, Action, Confirmation -- and uses a range of media from the portfolio, including calls or visits by Case Managers, or social workers, call center communications, videos, eMail, etc.

For example:

Diagnosis: Enrollee frequently forgets to exercise and take medication

Objective: The Enrollee needs to establish an exercise ritual.

An Example of the Contextual Conversation:

Challenge: If you knew taking a 10-minute walk each day for the next 5 days

Reward: would help you sleep better at night

Action: would you rather take this walk in the morning or the afternoon?

Confirmation: Great! That’s when I take my walk, too.

Another example:

Challenge: If I bring you a free watch with a little alarm in it

Reward: that can remind you to take your walk in the afternoon

Action: would that be a good way to let you know or would you rather I give you a call each afternoon?

Confirmation: Perfect … I know you will feel better when you get a good night’s rest.

A Third Example:

Challenge: Did you know that

Reward: a lot of people also use this watch to remind them its time to take their prescriptions, too?

Action: Would you like me to set the alarm on your watch to tell you when it is time to take your medicine?

Confirmation: I will bring you a watch tomorrow when I visit to check out how you are doing. Part of feeling better is doing the right things for yourself each day.

Posted by Dale Wolf on October 1, 2005 at 11:05 AM in Customer Dialogue | Permalink | Comments (0) | TrackBack

Have CIO’s Lost Their Purchasing Power?

For all of us technology vendors, there’s been a significant change underway that impacts how we go about growing revenue for our companies. This was reported in an article by Ben Worthhen on CIO Magazine’s website.

For the last year or so, Ben has been asking the same question of every software vendor he meets with: “Who in a company do you sell to?” This usually provokes an awkward pause, followed by a quiet answer: the CFO, the COO, VP of supply chain. The title depends on the product, but in every instance it’s not the CIO. The fact is CIOs don’t buy software anymore.

A recent CIO magazine survey of IT execs found that interacting with IT vendors and learning about technologies finished near the bottom of the things CIOs spend time on. Eventually technology vendors realized that talking to the VP of supply chain was actually a much easier way to sell supply chain software. Generally speaking, vendors haven’t gone back to the CIO—or anyone in the IT organization—and most CIOs haven’t missed them.

Posted by Dale Wolf on September 30, 2005 at 01:01 PM in Business Growth | Permalink | Comments (0) | TrackBack

Wal-Mart Remixes its Distribution

This story from Reveries:

Walmart_2 With its operating profits lagging its sales growth, Wal-Mart is turning to a new distribution system designed to cut costs and increase productivity, reports Kris Hudson in The Wall Street Journal. Called Remix, the new system designates "some warehouses for distributing slower-selling general merchandise while others, deemed 'high velocity' warehouses, will supply a continual flow to the stores of rapid-turnover goods such as paper towels, toilet paper, toothpaste, some foods and popular seasonal items." Remix has been tested in four Florida stores and while Wal-Mart won't disclose results, the retailer will roll it out "on a grand scale this fall and complete ... insallation in 2007."

Not only is Remix expected to ensure that Wal-Mart stores never run out of high-demand brands like Crest, Tide and Bounty, but it should also liberate its workers from the task of manually sorting the high-velocity goods from the low-velocity ones: "At some stores, employees on the receiving docks sort through truckloads of arriving merchandise to find the products most in demand." This particular inefficiency apparently was the result of Wal-Mart getting into the grocery business back in the 1990s, creating two separate distribution networks -- one for groceries and another for general merchandise.

The problem intensified "as Wal-Mart expanded into the largest U.S. grocer, with nearly all of its 3,700 U.S. stores now offering groceries on some scale. Delays in restocking store shelves resulted because hot-selling items were mixed in with regular deliveries." Comments Rollin Ford, Wal-Mart's evp of logistics: "We could have done nothing and been fine from a logistics standpoint ... But as you continue to increase your sales per square foot, you've got to do things differently to make those stores more productive." Indeed, Wal-Mart moves "an average of 600,000 cases of products a warehouse (of which it has 117) a day." Target Stores, meanwhile, also has a warehouse "express lane" for "hot sellers" but on a much smaller scale "mostly because Target doesn't handle much of its own grocery distribution."

Posted by Dale Wolf on September 26, 2005 at 09:31 AM in Business Optimization | Permalink | Comments (0) | TrackBack

The Biggest Problem in Business

Do you want to know the biggest problem in business?

Too many people have copied too many other people’s best practices. That’s a sure route to mediocrity.

If your ERP or CRM software mandates you into someone else's best practice, you are standing on a slippery slope.

Posted by Dale Wolf on September 19, 2005 at 05:27 PM in Business Optimization | Permalink | Comments (0) | TrackBack

Think Like Your Toughest Competitor

It is easy to bog down when you are looking for transformational innovation. So many internal barriers. So much confusion coming from the customer focus groups.

Try this role-playing to break out of the box.

Pick one of your competitors. Imagine you are on their staff. Start thinking like this  very smart competitor --  assume this competitor is employing a customer-centric viewpoint about your product so that he can build his own product that will be much better for customers.

The advantage of this role-playing is that such a smart competitor will not believe any of your company statements that are not well supported. He will uncover your weak points and know exactly how to create a solution that will knock you on your heels.

Actually, he's already doing it ... or at least contemplating it ... so you need to think like him and beat him to the solution first.

Posted by Dale Wolf on September 19, 2005 at 05:20 PM in Business Transformation | Permalink | Comments (0) | TrackBack

Product Innovation is On-Q

I do not seek; I find. (Pablo Picasso)

Taped to the door of our lab, where you couldn’t possibly miss them, are what our director calls the 10 Q-mandments of R&D:

1.   Question – Everything…in particular the status quo
2.   Quibble – The answers are in the details
3.   Quantum – Seek quantum, not incremental, improvements
4.   Queue – Set priorities, keep to them
5.   Quick – First to market gets the advantage
6.   Quiet – Loose talk gives the advantage away
7.   Quality – Not to be sacrificed for expediency
8.   Quixotic – It’s not ideal if it’s unrealistic
9.   Quit – Know when to walk away; failure should be avoided not fixed
10. Quagmire – Where you are when you don’t walk away

Posted by Dale Wolf on September 19, 2005 at 05:07 PM in Business Transformation | Permalink | Comments (0) | TrackBack

Expert Access Articles: September 7, 2005

A Real Work of Art … The Art of Work

Go for the flow
by Ann Marsh - Fast Company Magazine

Eight Bold Leadership Tips … Cultivate Them

Gain change and acceptance
by Alice Dragoon - CIO Magazine

Drivers and Destroyers of Customer Value

Step out from behind the see-thru mirror
David Reibstein - CMO Magazine

It's Not the Failure Stupid … It's the Failure Analysis

A black box for business?
by Amy Edmondson and Mark D. Cannon - HBS Working Knowledge

Sales 101 Final Exam

Complacency kills - Review skills
by David Stein, author of How Winners Sell

Intelligent Database Software Application Helped Track Down BTK Killer

Lawmaker seeks funding to expand technology
by Matt Sedensky – InformationWeek

Are Eight out of 10 Computers Really Infected with Spyware?

More malicious than ever
by Gregg Keizer – SecurityPipeline

Wanted! … 20,000 Mainframe Experts

Retirements and SOA create need
by W. David Gardner – InformationWeek

Put Your Best Words Forward ... Dynamic Documents

Creating streamlined and efficient customer correspondence
by Bill Koch - Expert Access

It's a Wiki Wiki World … Wiki's in the Business World

Goodbye to complicated content management systems
by Ezra Goodnoe – InternetWeek

Short Message Service (SMS) for Disasters or Emergencies

Available from most wireless providers

Posted by Dale Wolf on September 13, 2005 at 04:12 PM in Business Optimization | Permalink | Comments (0) | TrackBack

Transforming Business with a Screw

Screws Our problem with innovation is that we let preconceived paradigms confine us. How would you go about reinventing one of the seven simple tools that have been around since antiquity. And if you could reinvent this tool, how might it transform business? What tool should you be reinventing?

This report from Reveries' Cool News of the Day:

A 40-year-old fellow named Kenneth LeVey has come up with a cure for the common screw, reports Jonathan Fahey in Forbes (9/19/05). "People have been trying to come up with a new screw for 100 years, to the point where you get sick of hearing about it," says Kenneth, product development director at Illinois Tool Works (ITW) itw.com, "the nation's biggest screwmaker." He adds: "What we knew for sure was that our customers could use more performance." What he also knew was that his employer had been losing sales from companies like General Motors to lower-cost competitors and the only way out of that trap was to reinvent the screw, by shaping it "to mate with the substance it is penetrating."

Easier said than done. The reason screws don't hold things together as well as they might is that they are "so simple and cheap -- most cost less than a penny apiece to make -- that it has been easier to design around their deficiencies than to come up with a better model ... Screws are made, oddly enough, by squeezing metal rather than cutting it." The process makes it impossible to fine-tune threads to maximize their grip on concrete, metal or plastic. That kind of precision is critical, because Kenneth LeVey's initial vision was for a concrete screw with threads like "minichisels" that would "chip its way into a tight seat, instead of compressing and cracking the concrete."

After much research, Kenneth found that a "technology often used to create injection molds for detailed plastic parts" in which "very high voltage" is used to create "a powerful arc of heat, which vaporizes the steel in the desired pattern." Says Kenneth: "No one had bothered to take advantage of all this new technology available to us and apply it to this very old product." And it is paying off : General Motors has ordered "60 million annual units" of his BosScrew "to fasten the plastic door panels of GM's new pickups." The company's sales of its Tapcon screw (for concrete) "are growing 30 percent a year." Proclaims ITW's William Tursky: "We've removed the screw from the commodity realm." Kenneth LeVey, meanwhile, is onto his next challenge: Designing "a capless refueling system for autos that could banish forever the plague of gas caps left dangling from cars."

Posted by Dale Wolf on September 12, 2005 at 10:56 AM in Business Transformation | Permalink | Comments (0) | TrackBack

Who Will Lead Our Companies in the Future?

Gerald Levin, former CEO of AOL Time Wa