What kind of "Shape" is your business in?
And how will you stay in the right "Shape?"
The best value wins. Contact The Enterprise Group to lean how to create and deliver the best value consistently.
For the past two years I have been writing The Shape-Shifters: Continuous Change for Competitive Advantage (Van Nostrand Reinhold 1997). Several people I told about the book asked me "what on earth is a Shape-Shifter?" The answer doesn't exactly come from "on earth!" The term "Shape-Shifter" comes from the Star Trek character who "assumes whatever shape is conducive to success in the mission." What a great idea for a company. I shared this idea with Tom Peters, and he challenged me to use "Shape-Shifters" as the book's title. The more I worked with the term, the more it really fit a business model dealing with continuous change.
Whenever people in any business are asked to change, there are three questions that immediately come up: why, to what, and how? The "why" is that continuous change is only true source of sustainable competitive advantage in these topsy-turvy times. The really successful companies and people win by capitalizing on change instead of resisting it. They are always changing to provide the best value to customers, not just now, but in the future--because value is also a constantly shifting target.
Once the "why change" is answered, then the question becomes "to what?" Value is the critical measure to help in deciding "to what." Value is a word we all know and understand, at least superficially . When everyone sees or hears the word value, there are as many different mental pictures (of "value") as there are people, and each one is a little (or a lot) different. To help unify the "picture" of value, I use five broadly defined value attributes: Quality, Service, Speed, Cost, and Innovation. Using these five attributes, a series of simple diagrams can depict value as a "shape." For any product, or service, assign a numerical rating between 0 and 10 to each of these value attributes. Plot these value "ratings" using a "pentastar"--a five axis "graph," and connect the dots. Watch the "shape of value" (SoV) emerge. The SoV can help a group achieve a consensus mental picture of value--ideally, the shape that matches the customer's desired SoV. Then, when the customer's SoV shifts, so must yours! There is a lot more to really understanding value, but just emphasizing that it is situational and constantly changing is enough for me to move on.
The next fundamental issue is "how" these SoVs can be changed in a lasting and effective way. This can be done only by shifting what I call the "shape of the business," which I define using five dimensions: Structure, Processes, Culture, Relationships, and Purpose. To try shifting the SoV without changing at least some of the first four of these dimensions is what I call "fakin' it." For example, excessive inspection can improve outgoing quality temporarily, but the culture and processes that create the quality must shift for the change to last. Extra inventory and/or staffing can sustain higher service levels for a while, but not cost effectively. Unless you shift to a culture and processes that provide superior service, this is just "fakin' it!". The bottom line: to shift the "shape of value," you must shift the "shape of the business" in one or more of four dimensions--but the purpose must remain constant. Purpose is the foundation, the underlying reason for what the business is all about. It must stand the test of time.
By drawing SoV diagrams for customers, suppliers, competition, etc., it is easy to "see" (and communicate to others) how your company measures up. Overlays can expose gaps and these gaps point to attributes and dimensions where action is needed. Questioning approaches such as "wishing out loud" are described to help understand value more clearly.
The last and most critical part is "how" to bring about these shifts. This deals with new, flexible organizational structures and more responsive cultural models for people and teams--to be able to shift their shape rapidly and frequently. Change is difficult, and unsettling, and people need help to find a different understanding of their roles based on, (yes, you guessed it) partnerships. A shared vision, a clearly stated mission and a concise, focused strategic plan is critical. Equally important are sound implementation steps, specific operating plans, stretch goals, good measurements and fair compensation. It is interesting how the few words in these two sentences can encompass so much important work!
This is an exciting time to live and work, if only we can learn to make change our ally, not our enemy. The customer's picture of value is an ever-shifting one. Are you ready to become one of The Shape-Shifters? Or will your competitor shape-shift ahead of you and match the customer's shape of value? Your future depends on the answer.
