Innovative & Transformational mindsets
The Governance Institute of Australia hosted an excellent event “Setting your mind set to innovation and transformative business for the new year” the speakers were Michael Roseman and Rebecca Stephens and they kindly shared their incredible expertise, I now share my notes from the event.
Traditionally organisations focus on fixing their processes – and looking for “what is broken?” we are encouraged now to think about “what is possible?”, change your mindset to be one of ‘opportunities’. Rather than being filled with busyness and focusing on fixing, think about the opportunities.
Organisations get disrupted when they run out of relevance and not because of poor processes and efficiencies, it is easier to cut costs than grow revenue.
It is a challenge because how do you create a future that doesn’t exist? Good questions to ask yourself are:
“What are the new ways to create value for my customer?”
“What are the new ways to capture value for my organisation?”
Risks are often seen as threats and rarely seen as opportunities but they are both. The future is an opportunity risk, but traditional mindsets focuses on threat risks
It used to be the guy in the garage building a start-up who scared the big organisations, however now organisations increasingly see that guy in the garage as an opportunity and want to know how they can partner with them. Technology allows us to enter the market faster, customers are 24/7 connected and customers want to co-design with us
We discussed the past present and future of Economies:
Economy of organisations
Economy of people
Economy of things
Economy of Information
Economy of organisations
People started working together, they focused on improving and enabling organisations. Corporations sold products and services to people and dictated how when and where people could obtain the products and services. People obeyed the rules of the organisation. In the last 10 years that has been disrupted, welcome the economy of people.
Economy of people
We have choice, we bring our own data and we consume the services we need on a global scale. Products are a construct of the organisation to meet the needs to suit their processes.
People don’t care about the products, the products have a job that needs to be done therefore organisations must spot that opportunity and find a way to take advantage of the change to provide the services to get the job done.
Re-frame how you integrate with your customers, in a new world there is a job to be done, products and services will disappear, the customer journey will appear, and you need to be as close as possible to the customer, the organisations which wait for people to come to them e.g. their web site) will struggle as people won’t come.
Economy of Things
B2T, Business to think. Empowering things e.g. the car is an asset, could it become a profit centre? Here is a challenge: How do you provide good governance in the world of B2T?
When data is empowered that it can make its own decisions and Artificial Intelligence (AI) makes its way to the Board room this will occur, take the example of a contact centre of an Insurance company, when the weather is bad it has been noticed this triggers extra calls, more insurance claims etc. Could the weather forecast automatically trigger an increase in staff rostered to the contact centre? And perhaps a new script to be developed to support them?
How can your insurance company help your car to generate revenue?
Lets imagine the future where your insurance company supplies the car to you, the car generates information and send it to the insurers, if a fault starts to develop then the insurers would know about it before the driver and they arrange for a mechanic to go to the car (where ever it is parked) and repair it. Proactively managing the car and preventing breakdowns or faults which could result in an insurance claim.
Thinking back to “there’s a job to be done”, in this example, the job to be done is ‘mobility’. The insurance company makes sure that the car is running safe. Taking it further to make the car an revenue generator, when you don’t need it for your own mobility, you could rent it out, or rent out the boot space.
Economy of Information
Customers expect a proactive service, your information is being collected and it is used to solve problems, get jobs done.
Let’s look again at the example of the contact centre and a “negative deviant” may present itself in the automated message:
“This call is being recorded for training and quality purposes”. What that really says is that “we will find the negative and the faults in this call if you complain about the contact”.
Now let’s see what a position deviant would look like in the automated message
“This call is being recorded because the call centre person is fabulous and we all want to learn from them”
How to Govern the future, the unknown, the uncertain?
The following questions were posed which need robust debate to progress with:
The systems and organisations who get disrupted are the ones not operating above the line, enduring and relevant organisations need to co-exist above the line and below the line.
How do you govern above and below the line?
Organisations can often answer the question on ‘what is your cost resilience assessment?”
However, the same questions on revenue resilience assessment is hard
What would an opportunity appetite statement look like? We know what a risk appetite statement looks like.
We know that there is an oversupply of ideas within us and in the company, so the opportunity statement will help manage the multitude of ideas