Presentedby:Whathaveyoudoneforyourcustomerlately?SusanPhillipsBari’sGuidePeterF.Drucker–TheFatherofModernManagement(1909–2005)TheSocialSector“Itisnotbusiness,itisnotgovernment,itisthesocialsectorthatmayyetsavesociety.”-PeterDruckerWhyAsktheFiveQuestions?Appraiseperformance,anticipatechange,andsetdirection.Createalearningorganizationthatvaluesandfostersleadershipdevelopment.ManagelimitedresourcesStrengthenstrategicplanningEncourageconstructivedissentValidateassumptionsagainstactualcustomervalues,andLearntosay“no”WhoCanUsetheFiveQuestions?TheFiveQuestionscanbeusedbyallsectors,duringanyorganizationalphase:strategicplanning,start-up,growth,etc.SocialSectorPrivatesectorPublicSectorTheSelfAssessmentToolisusedto:Deepenunderstandingofthemission.Conductorganization-widestrategicplanning.Purposely,listentothecustomer.Defineresults.Clarifyorganizationalgoals.Plantoachieveresults.PlanningProcessTheFiveQuestions:1.Whatisourmission?2.Whoisourcustomer?3.Whatdoesthecustomervalue?4.Whatareourresults?5.Whatisourplan?1.WHATISOURMISSION?TheFIVEQuestionsMissionDefinedMission:Whywedowhatwedo;theorganization’sreasonforbeing,itspurpose.Sayswhat,intheend,youwanttoberememberedfor.DruckeronMission“Theeffectivemissionstatementisshortandsharplyfocused.ItshouldfitonaT-shirt.Themissionsayswhyyoudowhatyoudo,notthemeansbywhichyoudoit.”-PeterDrucker,p.14MissionStatementLeadertoLeaderInstitute“Shouldfitonat-shirt”SomerequireanXXL….Whytheorganizationexists.Whattheorganizationwouldtoberememberedfor.Notprescriptive;not‘How.’YourMissionDefinesYourPurposePowerful.Compelling.Motivating.Inspires2.WHOISOURCUSTOMER?TheFIVEQuestionsTheCustomerIsKeyThecustomeristheheartofthematterforDrucker.DruckeronCustomer“Whomustbesatisfiedfortheorganizationtoachieveresults?”“Whenyouanswerthisquestion,youdefineyourcustomerasonewhovaluesyourservicewhowantswhatyouoffer,whofeelsit’simportanttothem.”PeterDruckerCustomerDefinedCustomer:Theonewhomustbesatisfiedfortheorganizationtoachieveresults.PrimaryCustomer:isthepersonwhoselifeischangedthroughtheorganization’swork.SupportingCustomers:individualsandgroupswho,inadditiontotheprimarycustomer,mustbesatisfiedfortheorganizationtoachieveresults.CustomersChange“Customersareneverstatic.Theywillbecomemorediverse.Theirneeds,wants,andaspirationswillevolve.”-PeterDruckerCustomersChange(Cont’d)“Theremaybeentirelynewcustomersyoumustsatisfytoachieveresults—individualswhoreallyneedtheservice,wanttheservice,butnotinthewayinwhichitisavailabletoday.”-PeterDruckerAccordingtomarketingguruSethGodin…Marketersrarelythinkaboutchoosingcustomers...likeasailoronshoreleave,we'renotsopicky.Hugemistake.Yourcustomersdefinewhatyoumake,howyoumakeit,whereyousellit,whatyoucharge,whoyouhireandevenhowyoufundyourorganization.Ifyourcustomerbasechangesovertimebutyoufailtomakechangesintherestofyourorganization,stressandfailurewillfollow.Thereisnobudgetlargeenoughtobeallthingstoallpeople…ChooseyourcustomerswiselyWhenyoufindgreatcustomers,theywilleagerlyco-createwithyou.Theywillengageandinventandspreadtheword.Ittakesvisionandgutstoturnsomeonedownandfocusonadifferentsegment,onpeoplewhomightbemoredifficulttosellatfirst,butwillleadyouwhereyouwanttogoovertime.SethGodin3.WHATDOESTHECUSTOMERVALUE?TheFIVEQuestions“Youcannotarriveattherightdefinitionofresultswithoutsignificantinputfromyourcustomers.”-PeterDruckerDruckeronCustomerValueValueDefinedValue:thatwhichsatisfiesacustomer’s:Needs(physicalandpsychologicalwell-being).Wants(where,when,andhowserviceisprovided).Aspirations(desiredlong-termresults).KouzesonValue“Clearlycustomersvalueanorganizationthatseekstheirfeedbackandthatiscapableofsolvingtheirproblemsandmeetingtheirneeds....”-JamesKouzes....“ButIwouldalsoventuretoguessthatcustomersvaluealeaderandateamwhohavetheabilitytolistenandthecouragetochallengethe‘business-as-usual-environment.’”-JamesKouzesKouzesonValueWhatDoesOurCustomerValue?Sohowdoyoufindoutwhatthecustomervalues?Ask.OpportunitiesWhatdoesthecustomervalue?maybethemostimportantquestion.Yetitistheoneleastoftenasked.Peoplearesoconvincedtheyaredoingtherightthingsandsocommittedtotheircausethattheycometoseetheinstitutionasanendinitself.Butthat’sabureaucracy.Insteadofasking,‘Doesitdelivervaluetoourcustomers?’theyask,‘Doesitfitourrules?’Andthatnotonlyinhibitsperformancebutalsodestroysvisionanddedication.”-PeterDruckerMissionOpportunitiesCompetenceCommitmentMethodsforUnderstandingWhatCustomersValueCollect/analyzecustomerinformation.Gathercustomerfeedback(programevaluations).Conductcustomerresearch:Pre-postprogramquestionnaires.One-on-oneinterviews.On-linesurveys.FocusgroupsHasYourCustomerChanged?How?RicherorpoorerDownsized–upsizedOlderYoungerEducationlevelAccesstoServices-localNewCustomers?YoungerGlobalRemoteAccesstoServicesWhatPeopleWantThesamethingeveryoneelseishaving,butdifferent.Amenuwherethepricesaren'tallthesame.Moreattentionthanthepersonsittingnexttothem.Aslightlylowerpricethananyoneelse.Anewmodel,justmome