Extract from Sense and Respond: The Journey to Customer Purpose (MacMillan 2005) Stephen Parry.
Customer Value Principles Continued:
Comparing the activities and behaviours you would find in a mass-production environment with those found in a Customer Value Enterprise® (Lean Enterprise)
Delivering to specification vs. delivering to purpose
In the mass-production world, the business delivers to a contract or to specification, and endeavours not to deviate from that. In the Customer Value Enterprise® (Lean Enterprise), continuous value creation accepts that customer purpose is constantly changing and that contracts can’t keep up: instead of delivering what was specified, you need to deliver what matters. Construct your whole proposition to the marketplace around continuous value creation, and continually change your products and services to meet that proposition.
Traditional contracts and specifications can never keep up with changing customer needs. Although specifications may still be helpful in manufacturing, they will tend to constrain the delivery of services. Instead of working to a specification or contract, and defining itself by the products or services it delivers, it is better for a service organisation to define itself in terms of the value it creates. This basis leaves the organisation free to experiment and to innovate with new products and services.
This should not be confused with Mass-customisation which is an assemble to order or Flexible specialisation in a mass-production world, nothing much changes its just a more sophisticated means of controlling customers.
It is not about being flexible by offering variety as in mass-customisation it is about responding quickly to customer purpose. In the mass-customisation world, the organisationis still in control; in the Customer Value Enterprise®, the customer is in control.
More Customer Value Principles to follow soon.
©Stephen Parry 2010 All rights reserved.