The accelerating pace of change and disruption in technologies, industries and markets results in nearly a permanent state of flux in many companies. Particularly companies undergoing service transformation as part of their strategy, must align their processes, structure and culture towards enabling the new direction and achieving business objectives.
For manufacturing and industrial companies, service transformation does not happen in a vacuum. Managements must take into account many broader issues. But they need to be very clear on their vision, their perception of their company and, ultimately, on their strategic intent: They must decide how far to go along the “product-services continuum”. This is important because service transitions change the company’s value proposition and hence its operating system. A new structure must bring products and services into a symbiotic alignment with minimum internal tensions. Friction or internal competition not only confuse customers, but can lead to inadvertent undermining of both product and service offerings, reputation damage, high coordination costs and lost opportunities. Many efforts to enhance and compete through services fail because of discrepancies between strategy, culture and structure: Managements continue to define their business in product terms while pursuing a service driven strategy and they do not take sufficiently into account the consequences of organisational actions.
We help managements understand how service driven change affects market positioning, customer relationships and the value creation process. Our work helps ensure the design and integration of service organizations supports new strategic priorities; Enables scaling across markets and geographies, supports growth and improves and sustains performance. We identify needs for culture change and emphasize alignment of incentives, inter-organisational relationships and cooperation. We challenge biases, help minimize political agendas and reduce internal friction. We further provide the framework for clear accountabilities and robust governance, addressing the need to reduce complexity. Furthermore we analyse and determine needs and required capabilities for key roles and positions. Once the organisational redesign has been completed, we support our clients in implementation and rapid value realization.