Changeship E-Book

Burkard Schemmel

• Herausgeber: Books on Demand
• Kategorie: Fachliteratur
• Sprache: Englisch
• Veröffentlichungsjahr: 2022

Seitenzahl: 221

Beschreibung

The world is changing at a speed and impact like never in modern times. For the first time in history, business will become truly global - as digital operations turn out to be the universal norm for all enterprises in all countries. From west to east, from capitalistic to communistic countries, and from open to closed societies. In the global business dynamics, change is the new normal: Customers enjoy endless possibilities of buying products, consuming services, and organizing their lives. Low entry barriers allow for every company to become a global leader in 3-5 years - with offerings that might even not exist today. This digital polypol speeds up everything - from ideation to research and development, engineering, sales and after service. Those companies will be most successful who manage to gain mass adoption in the shortest time - not with the best product but with a solution to a customer problem. This book helps executives and business leaders to gain confidence, tools, and the insight and knowledge to make them a much better leader. This book will be holding you by the hand, teaching you a predictable way to change - from the small startup to a department in a large fortune 500 company. This is the only business compendium leaders need to read in the next 5 years.

Leseprobe

Table of Contents

Introduction

1.

Driven by Purpose

1.1 The world is changing at a speed and scale unprecedented in modern times

1.1.1 Volatility, Uncertainty, Complexity, and Ambiguity

1.1.2 Lower predictability in a multi-polar world with new political powers

1.1.3 Sustainability becomes compulsory

1.2 Business consequences for corporations

1.2.1 From input to output, from output to relevance, and from relevance to impact

1.2.2 Boosting creativity by connecting the dots between disciplines

1.2.3 Focus on convergence to make innovations possible

1.3 Corporate values

1.3.1 Principles of ethical behavior

1.3.2 Global context of values

1.3.4 Adaptive stabilization as a response to limits to growth

1.3.5 The pursuit of meaning in corporations

1.3.6 The meaning of life for working individuals

1.4 Synthesis of key business trends to build new businesses

1.4.1 Radical customer orientation

1.4.2 Everything-as-a-Service

1.4.3 Horizontal integration

1.4.4 Digital polypole: synthesis of customer orientation, as-a-service and horizontal integration

Customer dedication based on ethical standards

2.1 Business model generation

2.2 Implementation of a purpose driven organization

2.3 Customer centricity

2.3.1 Minimum viable product

2.3.2 Challenge the status quo

2.3.3 Mental franchise: Be clear about what leaders can and should influence

2.3.4 Transformational innovation

2.4 Exponential growth through technology and everything-as-a-service

3.

Sustainable business development driven by ecosystems

3.1 Mega trends drive corporate purpose

3.2 Business ethics

3.2.1 Corporate morale agency

3.2.2 Internalization of external costs

3.2.3 Key ethical issues

3.3 Synthesize purpose: definition of a coherent corporate purpose

3.4 Capturing customer needs and managing internal departments accordingly

3.5 The company as part of an ecosystem

3.5.1 Basic model and partners

3.5.2 Governance

3.5.3 Value creation

3.5.4 Market launch

3.5.5 Scaling

3.6 Stakeholders

3.7 The Power of collaboration

3.8 Employee focus

3.8.1 Employees as customers

3.8.2 Taking employee feedback seriously

3.9 Business organization

3.9.1 Corporate culture

3.9.2 Employee communication

3.9.3 The office of tomorrow

3.9.4 Business travel

3.9.5 Continuous 360-degree feedback.

3.9.6 Hiring and career strategy: prevent unconscious bias.

3.9.7 Focus on customer innovation

3.9.8 Put employees at the center

4.

Changeship model

4.1 Progress

4.2 Iteration

4.3 Outcomes

4.4 Stakeholder management

4.5 The 90-day plan for everyone involved in the company

4.5.1 Corporate functions

4.5.2 90-day plan

5.

Conclusion

5.1.1 Starting point

5.1.2 Mental franchise model

5.1.3 Scaling as a leadership task

Appendix

Introduction

The world is changing at a pace and scale unprecedented in modern times. For the first time in history, a global economy is emerging based on universal digital business models – from West to East, from capitalist to communist countries, and from open to closed societies. In global business dynamics, change is the new normal: customers have an infinite number of ways to buy products, access services, and organize their lives. Low barriers to entry enable almost any company to become a global leader within 3 to 5 years - with offerings that don't yet exist today. This digital polypole accelerates everything from ideation to R&D, engineering, sales, and customer service. The companies that will be most successful will be those that succeed in achieving broad acceptance in the shortest possible time - not with the best product, but with a solution for the specific need of a large target group.

Successful companies have accelerated their product lifecycles, focused activities strictly on the customer, and developed new business models faster than ever before. Leaders need a compass to navigate this digital polypole - from understanding the current context and macro factors, to examples of successful companies, to a proven model to help organizations navigate change. This book presents concepts and ideas to usher organizations into the new era. From a European perspective, it illuminates our positioning in a global world between the United States in the West and China in the East.

In Europe, companies and leaders have yet to find their position in the new world order. The Dutch company Philips was instrumental in the development of sound recordings from 1950, first in the form of records and then, from 1960, as audio cassettes. Twenty years later, in 1981-1982, Philips was one of the inventors of the compact disc and Lou Ottens, with his development department, played a significant role in Philips' success. Philips has been a driving force in the development of musical storage media ever since - and was later overtaken by streaming offerings. It is significant that Europe has not seen any disruptive inventions come to market for some time, while GAFA companies (Google, Apple, Facebook, and Amazon) appear to have driven groundbreaking consumer innovations. With the help of Chinese hardware suppliers like Foxconn, U.S. companies have built monopoly-like ecosystems that secure them lucrative business models. But the tide is turning: platforms invented in China, such as Alibaba and TikTok, will overtake Western pedants in size and revenue in 3 years or less. They have been fine-tuned by 1.39 billion people who speak the same language, pay with the same currency, and have a similar mentality (the United States has 328.2 million inhabitants). These companies have succeeded in appealing to all walks of life - from farmers to investment bankers.

This book helps leaders gain confidence, tools, insights, and knowledge that will have a lasting impact on their actions for the good of the company. It lays out a standardized path to change under the new paradigms between West and East - from a small startup to a department in a large Fortune 500 company. It is the only business compendium leaders will need to shape change over the next five years. Leadership is about embracing change as a marathon and orchestrating transformation with agile sprints. Those who work on the big picture for the long term and are maximally agile in their execution will be the most successful. These leaders focus on the “right” sprints to give their long-term vision a decisive push. Transformational leadership is the ability of leaders to build and scale next-generation companies - value-driven, customer-focused, and sustainable. This book shows leaders how to design and implement such transformation.

Purpose-driven, Customer-dedicated, and Sustainability- fueled

In a time of value orientation, every company must be focused on solving a customer need. When companies think sustainably and with the big picture in mind, they can leverage proprietary ecosystems under maximum agility. Agility will be key as competition and buyer visibility consistently increase. Executives have the choice of building a new business from the ground up or side-by-side with existing operations. In a greenfield approach, a company is built from the ground up, without any legacy assets. Success depends on the ability to define and implement a blueprint for all phases of the business lifecycle. On the other hand, a brownfield approach involves transforming an existing business while it is still in operation. This requires a high degree of discipline and puts pressure on resources to manage ongoing prioritization and conflicts. A variation of both is called whitecube. This model leverages existing insights and business functions (as a cube) without the organizational legacy of transforming an existing business on the fly.

Changeship Model

This book takes an interdisciplinary look at the various elements required for change - from a wider strategic perspective to day-to-day business operations. It focuses on guidelines for building new businesses in a future context (greenfield), but is also appropriate for rethinking, revitalizing, and redesigning the purpose, organization, and tactics of entrepreneurial action (brownfield or whitecube). Beginning with the current context of value orientation in Chapter 1, which discusses the pursuit of purpose in entrepreneurial action and relates megatrends to business models, to the basics of customer focus according to ethical standards in Chapter 2, it includes reflections on sustainable success using ecosystems in Chapter 3. Chapter 4 ends with practical implementation of the model for leading tomorrow, checklists, and an invitation to collaborate to further develop the ideas in an open-source project.

Throughout this book, we build the Leadership for Tomorrow model along 10 phases and 10 dimensions that serve as a guide for successful business transformation. Progress, iterations, and outcomes are important metrics for leaders to determine where they are with their transformation. Along with the progress KPI, priority determines the focus an executive need to set at a given phase - from an effort and completeness perspective. The goal of each iteration is to improve overall transformation performance by leveraging new customer insights. On the results side, we measure six key categories. The result is a high-performing company that is a leader in customer satisfaction, return on investment and profit.

Chapter 1: Driven by Purpose

The current context and status quo focus on elements that drive business change. Volatility Uncertainty, Complexity, and Ambiguity (VUCA) lead to a less predictable business with more variables changing faster than before. Politics in the Western World provided a stable environment for decades, making long-term investment decisions predictable. Populism is on the rise in some European countries and the long phase of openness seems to have come to an end, replaced by increased nationalistic trends. Many countries, social classes, and peoples are now calling for sustainability to become a true focus, along with social responsibility. Consequently, business leaders seek to better connect business inputs with outputs to understand which factors really drive their business success. The solution is to define a clear business purpose beyond earning money. Working across disciplines and allowing for convergence of technologies will be a key factor for current and future success. Businesses need to find an ethical value proposition in addition to pleasing their stakeholder’s traditional KPIs. Realizing profits is not an end in itself – instead, business ethics need to be at the heart of every company in a global world. This comes with the re-activation of an older question from the 1970’s: how do post-growth scenarios lead into the question of meaning for corporations and individuals?

Chapter 2: Customer dedication based on ethical standards

The elements of building a business have not fundamentally changed, but rather need to be re-adjusted. They span from the basic concept of knowledge asymmetry that serves as foundation for all operations (a company has a unique skillset or value proposition that fulfils a demand in the market) to business model structures and best practices and a critical discussion on the purpose corporations need to fulfil. In a digital world of information overflow and scalable technologic solutions. that allow new business with very low entry barriers, customer centricity is one of the key elements to success. Thinking from a customer demand perspective--as well as being restlessly focused on innovation and speed to market-are the key prerequisites leaders must master to be successful. It’s not the best-engineered product but rather the best solution that can be applied now which will – in combination with scaling mechanisms and partnering – allow for exponential growth as a basis to outperform the competition. Ethical considerations build the foundation of everything we do – the products and services up for sale, the price points, the way we treat our employees and the supply chain as well as our role in the society.

Chapter 3: Sustainable Business Development driven by Ecosystems

The agenda to building and scaling next generation businesses is focused on clear principles, optimized stakeholder management, and clear organizational structures. First and foremost, it is about the company’s purpose beyond pleasing stakeholders and investors by earning money. Corporations are embedded in a country and a society where employees and citizens expect business leaders to take on responsibility for the greater good. At the same time, there are very clear actions leaders need to take to work backwards from the customers, re-defining the role of product managers to release customer-centric solutions quickly and enter into a customer-driven roadmap starting from a minimal viable product. Speed counts more than a perfect product – Agility beats 100% engineering. Ecosystems need to be defined and orchestrated to maximize value for customers in a complex world where partnering is the key to success. Stakeholders must be managed in an open and transparent way, and the organization itself should be characterized by high-performance teams supporting the company’s strategy rather than internal politics. While there are many organizational details, a few leading practices have turned out to be universal knowledge.

Chapter 4: Changeship Model

Bringing learnings to action with clear tools and processes is easier said than done. The ten phases from strategy to revenue streams and seven dimensions from business model to ecosystem considerations form the Changeship Model. Leaders can follow this model to steer their transformation. Every phase is prioritized, and the key question is when it’s time to move to the next phase. How many iterations of the whole model are needed and how we define success? Further, we will look at a 90-day plan with concrete recommendations for collaborating with peers, company stakeholders and friends as well as resources to obtain professional services. Finally, the book ends with the vision transforming the knowledge shared into an open-source initiative.

How to work with this book

This book is an invitation to think, experiment, and execute based on a structured guideline. It is not a step-by-step workbook and therefore leaders need to invest a significant amount of time, effort, and brain power into implementing the changes and building a better business.

Changes must be steered by a member of the board, delegating the implementation to an assistant. This person will build an interdisciplinary project team with the key functions, customers, product, technology, sales, and finance.

About the Author

Burkard Schemmel is a Senior Leader for business origination and digital business strategy, implementation, and operations. Burkard has been working for 20 years in the High Tech Industry – from strategy to daily operations. An entrepreneur at heart, he has founded four companies, serving as CxO; helped mid-size organizations to develop new services; consulted large enterprises in strategy, technology, and operations; and has run large technology teams and B2B commerce operations. His focus is on accelerating growth by building global services, ecosystem plays, and ‘as-a-service’ business models. During his career, Burkard served in multiple international roles in program management, business operations, and leadership for Fortune 500 companies. His focus is on growth strategies, business origination, and strategic selling. He founded and led a global practice of 900+ cross functional experts in the Medical Technology industry, ran business transformation projects, and built B2B sales teams for the commercial and public sectors. Working with deep tech companies, he connects unicorns with corporates to sell, partner, and learn from each other. As a thought leader, author, and speaker, Burkard focuses on Corporate Strategy, B2B Commerce, and Business Ethics.

Burkard holds a diploma in Business Information Systems and worked in the USA, Singapore, Japan and various EU countries. He collects contemporary art, is passionate about nature, and enjoys cooking with family and friends.

1. Driven by Purpose

The current social context and status quo focus on elements that drive business change based on new and revised values. The speed at which the economy is changing has steadily increased in recent years, and at the same time the scale of impact has grown. Societies in both the East and West are undergoing massive change, driven by a struggle for impact and relevance. Each country, and Europe in particular, must find its way in a world of converging technologies and redefinition of traditional disciplines. At the same time, more and more people feel that the current economic model needs to be overhauled - from a move toward sustainability to radical change. Whatever the future holds, purpose beyond making money will be at the heart of all considerations.

1.1 The world is changing at a speed and scale unprecedented in modern times

Over the past decade, a largely stable economic and political environment existed for individuals and companies in the Western world. The risks that emerged in the early part of 2019 became serious threats to the current modus operandi of our individualized society and market-based fair economy in Europe. Since fall 2019, the global pandemic has accelerated the consequences of longer existing trends. The key driver behind this is digital convergence, which takes us from a new normal to a new context: Selective openness has, since the fall of the Berlin Wall, replaced the trend toward maximum freedom, higher personal mobility, and almost borderless global trade driven by purely economic considerations. This new context will affect the way we live, work and travel, and how companies do business. The pursuit of values that go beyond financial aspects is at the top of more and more people’s minds. Employees expect to be able to apply their values in both their personal and professional lives. Companies will therefore have to strive for a clear mission beyond making money. When business models are redeveloped today, stakeholders naturally ask what the purpose is; simply increasing sales of products or services is no longer an adequate corporate purpose. Consumers and employees, as key stakeholders in any business, are driving this change: diversity of thinking drives innovation, agility is the engine of constant change, and global collaboration will enable working from anywhere. At the same time, sustainability is becoming a core principle of doing business.

We are in the midst of mass adoption of new technologies, with technological experiments from the early days of the Internet being replaced by professional business models. This convergence is now possible because technologies such as location-based mobile data, the sharing economy, and connecting people via social media have matured and achieved mass adoption. The current oligopoly of largely unregulated technology companies has enabled strong ecosystems that generate massive revenues through horizontal integration based on consumers' personal data. In effect, customers and their data profiles are the asset, not the source code developed by the big tech companies. This puts pressure on many traditional business models, but on the other hand allows participation and success for new companies: A so-called digital polypole is emerging that enables almost any company to become a global market leader in 3 to 5 years. On the political stage, the question is changing from “right vs. left” to “open vs. closed”. Parties and politicians who advocate closure risk the future of small economies by wishing to end the long period of open cooperation between countries. They would have citizens believe it is possible to turn back time and return to the supposedly safe predictability of post-World War II economic growth. At the same time, ecology and sustainability—as opposed to simple cosmetic measures to satisfy compliance reporting—are on the rise and demand real change in the way we do business.

1.1.1 Volatility, Uncertainty, Complexity, and Ambiguity

We are facing a situation of decreasing political stability in many global markets. The risk of global pandemics impacting non-digital business activities, a serious sovereign debt crisis in Italy combined with ongoing problems in the European banking sector, and stricter EU CO2 regulations are creating an environment of uncertainty for businesses. Populist currents are coming in waves and dominating public debate in countries such as Poland and Hungary. Trade wars and tariffs between China and the U.S. bring serious GDP risk, according to IMF forecasts. The question is when these political risks will impact economic growth. On the technology side, we see exponential adoption of new services driven by the convergence of technologies and new business models. The complexity of horizontally integrated business models is increasing, and the “as-a-service” economy is gaining traction, where the focus is on providing simple customer solutions rather than selling products. Often, companies in the Western world lack the ability to act in an agile manner. Software engineering skills are rare in traditional large companies in Europe. This can be seen in the example of Porsche asking its customers to attend a workshop on a software update for its new Taycan electric car.

Financial experts had been expecting a rate hike for years. In early 2019, the FED forecast an interest rate target of 3% by the end of 2019 (Knapp 2019 [1]). While volatility on the interest rate side seems to be low, oil prices are highly volatile to a negative price in April 2020, driven by the first wave of the pandemic. Since the outbreak of the international financial crisis, the European Central Bank alone has put around four trillion euros of fresh central bank money into circulation, initially without effect: the inflation rate in the euro zone has long been negative. For prices to rise, the money must be spent. Since the end of 2021, developments could come together to bring supply and demand back into balance: Almost all industrialized countries have replaced crisis-related private income losses with government benefits such as short-time working allowances. Much of the money was saved, partly because businesses were closed. Germans put aside an average of 16 percent of their income in 2020, around five percentage points more than the year before (Statista 2021 [2]). This corresponds to around 100 billion euros in additional financial assets. Experts predicted as early as the fall of 2020 that citizens would spend the money saved on air travel, restaurant visits and other things, and that there would be bottlenecks on the supply side. The additional demand would then meet a limited supply because, for example, airlines have cut staff in recent months and some restaurants have ceased operations. We are seeing these price increases in the third quarter of 2021, and they could be exacerbated by structural changes in the economy. Indeed, in recent years, the integration of countries like China into the global economy has suddenly made many millions of people available as additional labor for the global market. This has allowed more goods to be produced, which has depressed prices. To this end, the ECB has set a target for the inflation rate: In the medium term, this should be just below two percent (ECB 2021 [3]); deviations up and down are acceptable temporarily at best. But this only works if the central banks are credible–that is, if they are trusted to intervene as soon as prices rise. The rise in government debt during the crisis could shake this credibility, namely if the ECB gives the impression that it will not raise interest rates because doing so would be an additional burden for the indebted countries. Governments in Europe would then have to respond with unpopular tax increases or spending cuts. History shows that higher debt has always led to higher inflation rates, for example during the American Civil War. But there are counterexamples as well: Inflation barely rose after World War II.

The age of globalization may be coming to an end. Trade conflicts are increasing, new tariff barriers are being erected. A part of the workforce will withdraw from the world market. In addition, society is aging. This means that a relatively smaller population of young people will have to take care of a larger population of old people. And because these older populations no longer work but continue to eat, drink or travel, the bottom line is that a smaller number of producers (the young) will face a growing number of consumers (the old). Measured in terms of demand, fewer goods and services will be offered. Specifically, this chain of effects is already unfolding as follows: Faced with a labor shortage, the young are pushing through higher wages, and companies are passing on the increased wage costs to consumers.

Personal preferences change, and the corporate values our parents grew up with are appreciated by an increasingly limited number of customers each year: If you're lucky enough to own a Miele washing machine from 1990, you may value the fact that it often works like it did on day one; at the same time, you may also miss out on modern energy-saving programs, a larger load volume of 9 kg instead of the 5 kg that is standard today, or digital networking that allows you to control the machine from anywhere. Customer preferences are not absolute but can change -and that won't take 30 years anymore. Many business models are under massive pressure, as companies have failed to align their operations with changing customer needs. Brick-and-mortar retail is a good example of how large department stores have been trying to compete with online choice and convenience for years. The pandemic has proven to even conservative shoppers that online retail is a serious option and that shopping in general does nothing to increase long-term satisfaction. While the travel and hospitality industry is coming to terms with lower long-term overall demand and a massive decline in business travel, many other industries have yet to find an answer for their future business operations: Novartis is allowing unlimited home offices even after the pandemic and is closing its administrative campus in Switzerland with 10,000 jobs (Reidel 2020 [4]. The company has not yet decided how it will use the buildings, and the idea of opening them to other companies does not seem to work if other companies follow the same model. Siemens has announced that 140,000 employees worldwide will be able to work 50% of their time from home (Siemens 2020 [5]). This development will have a massive impact on corporate real estate in the coming years.

1.1.2 Lower predictability in a multi-polar world with new political powers