wirtz,sj 3 pillars of meaning based strategic management ( building co-operative ecosystems...

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3 pillars of meaning based strategic management

( building co-operative ecosystems integrating knowledge from the service encounter management )

The 4th Conference

Customer Strategies for Sustained Growth INSEAD, Fontainebleau, France, 20-21

June 2013

by

Stephan J. WirtzM.A, Dipl.oec, MBA, DDA

h.Associate Professor Corvinus University, BudapestAdjunct Professor, EM Lyon, Shanghai Campus

Associate Professor, GBS Geneva

http://en.wikipedia.org/wiki/Karl_Marx




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An old statement is more and more right and applicable:

According Karl E Weick

“The teaching of organization theory and the conduct of organizational research havebeen dominated by a focus on decision-making and the concept of strategic rationality. However, the rational model ignores the inherent complexity and ambiguity of real-world organizations and their environments.” His research is about how the `sensemaking' process shapes organizational structure and behavior.

The process is seen as the creation of reality as an ongoing accomplishment that takes form when people make retrospective sense of the situations in which they find themselves.

The challenge is how to do this pro-actively creating ecosystems.

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According to Christensen,C, Gregersen,H 2011 one suggests to emphasize

Discovery driven skills in the context of network over delivery driven

Discovery-driven• Associating• Questioning• Observing• Idea networking• ExperimentingDelivery-driven• Analyzing• Planning• Self-disciplined• Detail-oriented implementing

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Most leaders are using frameworks that were designed for a different era of business and based on a single dominant idea:

-that the purpose of strategy is to achieve a sustainable competitive advantage.

Once the premise on which all strategies were built, this idea is increasingly irrelevant. Instead, organizations need to forge a new path to winning:

capturing opportunities fast, exploiting them decisively, and moving on even before they are exhausted,

this leads to a notion of transient competitive advantage.

Rita Gunther McGrath, 2013

A business model is basically the answer to 2 questions:

What ?

How ?

Customers want Product/ service should be

to Deliver to Finance/ generate revenue

Before we start let us set the situation context:

Strategic Management looks into the 3 dimensions of innovations:

- technolgy is a constant innovation driver, that makes markets out of sync and disrupt business models

- inside the company and its readiness to pro-actively change to market-driving relation instead of being market driven,reactive

Technology

Industry/Market dynamic

- markets are source of supply and demand of resources, solutions and challenges, often attracting government to intervene

Company

Strategic Management looks into the 3 dimensions of innovations:

- technology is a constant innovation driver, that makes markets out of sync and disrupt business models

-

Technology

Industry/Market dynamic

Company has to manage the interface with market

- reactively: many company

-Pro-actively: alerted company

-Driven by markets: outside- in , innovative company

-Driving markets: commanding market change through innovations that become standards or benchmark in market- (segment ) company in command

Company

Assess interdependence risks of coordinating with complementary innovators in your ecosystem

Innovation Strategy

Set performance expectations and determine target market.

Assess initiative risks of managing

the focal project.

Modify performance expectations.

Assess integration risks of having the solution adopted across the value chain.

Technology

Technically possible

Process innovation

Product and service innovation

Prof. Wirtz 10

KeyPartners

Key Activities

Value Proposition

CustomerRelationships

CustomerSegments

KeyResources

Channels

Cost Structure

RevenueStreams

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Context:

- Customer experience management become more and more a differentiation activity

- In agile markets were new market profiles arose and are co-created the customer approach has to be integrated in any activity a company gets involved with partners as

- - building trust- - creating mutual understanding of moving targets in emerging

industries and- - considering the service encounter attitude and treatment as

applicable to people and companies alikebeing in co-operation network.

- The ecosystem approach can indicate some of the strategic issues one has to address in strategic management

- It implies and somewhat applies that the term sustainable competitive advantage will be transformed into

- Transient as well as co-constructed competitive advantage as in emerging markets become the new concepts a priori concepts may fail as a paradigm shift happens.

- Achieving a significance ( DipaK Jain), making a difference instead of differentiation, is to road to ensure the righting of the things we

do in order to assure viable outcomes and complete the market space. (Haque,U, 2012)

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Approach:

Part one:- Look at companies orientation about its environment in emerging markets

Part two:- Extend the integration of important elements into the strategic management

Part three:- Construct building blocks and stepping stone

Part four: Highlight finally what this has to do with meaning based

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People Promotion

Process Price

The company links the inside performance with the market performance

inside outside

Meaning based

Leadership

Materialisationbased

Efficiency based

Production Product/Service

Positioning

Place

Strength and Weakness SW OT Opportunity and Threat

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Part 1:

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There two genuine strategy development processes with implication for strategic change management A. Prescriptive model of business strategy

Environment

Resources

Purpose

Options

Options

Options

Choice Implement

The prescriptive strategy process Lynch, 2008

is the usual approach and neglects often the limitations that an existing organisation and its culture limits the strategic options

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B. Emergent model of business strategy

Environment

Resources

Purpose

Strategy development and implementation

Keypoint: creative, experimental, more difficult to describe but essential according Lynch,

The emergent strategy process – based on Quinn 1990, Senge 1990, Argyris 1977, Mintzberg 1987 and others

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What is strategic change management?One approach to emergent processes

Environment

Resources

Purpose

Strategy development and implementation

Emergent theories include:•Survival-based•Uncertainty-based•Human resource-based•Innovation and learning-based

,

Strategic Change Management issues to open the company towards networking

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KeyPartners

Key Activities

Value Proposition

CustomerRelationships

CustomerSegments

KeyResources

Channels

Cost Structure

RevenueStreams

Current wave of business model: e.g. Osterwalder:

Consider important environment issues but more as impact on the company than stepping stone

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The environment needs also to be perceived as constructed and playground for creating emerging markets through co-creation with other companies considering them as lead customers7partners

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We genuinely underestimate our weakness and threats to our organization. We have difficulties to embrace vagueness, ambiguity and enter into co-operation without contractual arrangements and wishful outcomes

SOWT Analysis

Strengths Opportunities

ThreatsWeaknesses

outsideinside

Over-EstimateUnder-

In emerging markets a SWOT analysis should be extended highlighting the evaluation, estimation process by regrouping SWOT into a:

SWOT Analysis


ThreatsWeaknesses

P

E

S

T

E

L

%PROBABILITY

IMPACT

We could also differentiate again for each SWOT according to favorable and deteriorating industry context

3-21

SWOT Analysis


ThreatsWeaknesses

P

E

S

T

E

L

%PROBABILITY

IMPACT

Eco-system

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The Cynefin Framework is used to understand and take action in different types of systems confronting decision makers.

Cynefin is a sensemaking framework in theoretical form:

-to operationalize the framework, it needs the domains, sub-domains and boundaries to be defined by fragments (such as day-to-day experiences of people)

- to create context that is relevant to the organization and

- Four tables Contextualisation.

The purpose is to define and create dynamic capabilities as an organization’s ability to reconfigure internal and external competencies to address rapidly changingSometimes just emerging corporate environments.( Teece et al.1997).

Referring to emerging markets, ecosystems and leading to co-operation networks:

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Exploring emerging environment and create meaning based activities

The cynefin framework

Watch the explaination: http://www.youtube.com/watch?v=N7oz366X0-8

The leaders of tomorrow’s successful organizations will no longer be held hostage to the idea of a ‘sustainable’ competitive advantage.

Rather, they will be energized to compete in a” transient advantage economy.” Rita McGrath 2012

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Simple, in which the relationship between cause and effect is obvious to all, the approach is to Sense - Categorise - Respond and we can apply best practice.

Complicated, in which the relationship between cause and effect requires analysis or some other form of investigation and/or the application of expert knowledge, the approach is to Sense - Analyze - Respond and we can apply good practice.

Complex, in which the relationship between cause and effect can only be perceived in retrospect, but not in advance, the approach is to Probe - Sense - Respond and we can sense emergent practice.

Chaotic, in which there is no relationship between cause and effect at systems level, the approach is to Act - Sense - Respond and we can discover novel practice.

The fifth domain is Disorder, which is the state of not knowing what type of causality exists, in which state people will revert to their own comfort zone in making a decision.

That comfort zone including organizational ones can be the biggest hurdle for process driven innovation

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A complex system, in our a case evolving ecosystems, has - no repeating relationships between cause and effect, - is highly sensitive to small interventions and - cannot be determined by outcome based targets,

hence the need for experimentation.

When dealing with complex systems there is the need for experimentation. Creating co-operation networks can be done building small miles stone events.

Safe-fail Probes are small-scale experiments that approach issues from different angles, in small and safe-to-fail ways.

The intent of which is to approach issues in small, contained ways to allow emergent possibilities to become more visible. Cynefin framework is helpful to create and reach new frontiers, beyond CEO execution and efficiency driven management interest

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Product centered management is still somewhat restricting companies to improve customer-focused services and grow with new service business models.

Many organizations have set the target to launch and develop new customer services as a key element in their strategy.

According to P. Moore ( 1993) In order to adapt to the fast changing customer

needs, delivery of the services requires an ecosystem of organizations..

In many large organizations there is a strong tendency to seek for the clarity of old clear product and organization focused operating models. The value chain thinking and connecting as well connected leadership models can create an extended ecosystem approach

A holistic change is needed in order to design and implement an operating model that enables integrating and managing a set of contracts, indicators and measurements aiming to efficiently adapt a network of organiztions from sales to operations to fulfill customer needs and manage customer expectations.By leveraging ecosystems, companies can deliver complex solutions while maintaining corporate focus but it has to be concerned to contribute to the ecosystem construction as well.

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The idea is that each business in the “ecosystem” affects and is affected by the others,

creating a constantly evolving relationship in which each business must be flexible, adaptable and open to new partnerships and evolving networks

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The idea is then that each business in the “ecosystem” affects and is affected by the others, be it companies, individuals, trendsetters research organization, governments and certain socio-economic events like ageing of society, obesity..

creating a constantly evolving relationship in which each business must be flexible, adaptable and open to new partnerships and evolving networks

- Part 2:Extend the integration of important elements into the strategic management

29 Co-operation based Strategic Management

Communication based sense making and receptivity

X

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Resource based corporate Strategic Management

Y

ZThe 3 pillars are the axes x,y,z,

Thought-concept

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Co-operation based Strategic Management


X

Y

ZThe 3 pillars are the axes x,y,z,

4 reference platform focus on 4 strategic elements

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X

Y

ZThe 3 pillars are the axes x,y,z,4 reference platform focus on 4 strategic elements:

Connected and connecting leadership

Focus on technology and related innovation

Market management

Industry/Arena specific identity

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Resource based corporate St.M

Co-operation based St.M


X

Y

Z

ConceptExecutionz4

ConceptExecutionz3

ConceptExecutionz2

ConceptExecutionz1

ConceptExecutionx3 Concept

Executionx4ConceptExecutionx2Concept

Executionx1ConceptExecutiony1

y2 ConceptExecution

y3 ConceptExecution

ConceptExecutiony4

This will lead to 64 activity blocks differentiated according strategy concept and strategy execution

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X

Y

Z

Hard-ware Soft-ware Tech-ware Customer/User - ware

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X

Y

Z

What industriesarena one is in

How solutionscommercialized

Technologyother than used

Customer- experience mgt.

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X

Y

Z





Competing companies in the same arena, e.g. coffee are very different how they commercialize and address customers/users: Nescafé, Starbucks, illy and how they expand their eco-system, focusing also on co-operation in content and delivery, manipulating, breaking industry communication codes and symbols

Delivery

Industry codes, symbols, slogan

ContentContent

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X

Y

Z





Delivery

This is the standard strategic management approach, based on a company focused control-equity with limited out-side in orientation and seeing costumer experience management slowly as differentiation opportunity, cost reduction in outsourcing delivery and insourcing improved content


ContentContent

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X

Y

Z





Delivery



Eco-system 1, traditional collaboration based mostly on company strength and perceived opportunity

ContentContent

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X

Y

Z





Delivery




Market-com, social media

Uncontrollable social media already disrupts and makes ecosystem 1 additionally volatile

ContentContent

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Content

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X

Y

Z




Customer- experience mgt.Content

Delivery




Market-com, social media

Uncontrollable social media disrupts and makes ecosystem 1 volatile

Expanding to ecosystem 2.0

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Expanding to eco-system 2.0

According to James Moore 1993:Successful businesses are those that evolve rapidly and effectively. They must attract resources of all sorts, drawing in capital, partners, suppliers, and customers to create cooperative networks anticipate the managerial challenges of nurturing the complex business communities that bring innovations to market: Expansion Bring the new offer to a large market by working with suppliers and partners to scale up supply and to achieve maximum market coverage. Leadership Provide a compelling vision for the future that encourages suppliers and customers to work together to continue improving the complete offer. Self-Renewal Work with innovators to bring new ideas to the existing ecosystem

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Consumers are adopting increasingly active roles in

-co-creating marketing content with companies and their respective brands.

- In turn, companies and organizations are looking to online social marketing programs and campaigns in an effort to reach consumers where

they ‘live' online.

- However, the challenge facing many companies is that although they recognize the need to be active in social media, they do not truly understand how to do it effectively, what performance indicators they should be measuring, and how they should measure them ( Hanna R et all 2012 )

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Expanding to eco-system 2.0:Ecosystems are larger, more diverse, and more fluid than a traditional set of bilateral partnerships or complementors. By leveraging ecosystems, companies can deliver complex solutions while maintaining corporate focus:

Six keys to unlock ecosystem advantage:- pinpointing where value is created, - defining an architecture of differentiated partner roles, - stimulating complementary partner investments,- reducing the transaction costs, - facilitating joint learning across the network, and engineering effective ways

to capture profit. ( P.Williamson, A. de Meyer 2012)

Not ignoring three fundamental types of risk: -initiative risks—the familiar uncertainties of managing a project; -interdependence risks—the uncertainties of coordinating with comple-mentary innovators; and -integration risks—the uncertainties presented by the adoption process across the value chain. ( Ron Adner 2006 )

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Some of the best guidance in creating global network and ecosystems can be derived from Y.Doz,K.Wilson (2012) using there three graphs highlighting: knowledge complexity and dispersion:

Meaning full knowledge can be created by exploring new co-operations network and integrate it into ecosystems

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Creating these co-operation networks one can make excellent use of Y. Doz, approach collaborative innovation project:

Through a funnel of collaborative efforts arise an evolving ecosystem based on co-operative network.

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Expanding to eco-system 2.0:

Consumers are adopting increasingly active roles

- in co-creating marketing content - with companies and their respective brands.

In turn, companies and organizations are looking to online social marketing programs and campaigns in an effort to reach consumers where they ‘live' online. However, the challenge facing many companies is that although they recognize the need to be active in social media, they do not truly understand how to do it effectively, what performance indicators they should be measuring, and how they should measure them. (.see also Joachimsthaler,E, 2008 )

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Moore describes the evolutionary stages of a business-ecosystem as forms of cooperativechallenges

Birth Work with customers and suppliers to define the new value proposition around a seed innovation. Expansion Bring the new offer to a large market by working with suppliers and partners to scale up supply and to achieve maximum market coverage. Leadership Provide a compelling vision for the future that encourages suppliers and customers to work together to continue improving the complete offer. Self-Renewal Work with innovators to bring new ideas to the existing ecosystem.

Expanding to eco-system 2.0:

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X

Y

Z






Market-comSocial media

ITC, tele-matic, Graphics, EsRP

IMC, gurus brand identity, Trendsetters

Expanding to ecosystem 2.0:

Four additional areas of focus are added

ContentContent

DeliveryStandardization

Virtual company network

Part three: Construct building blocks and stepping stone

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X

Y

Z










Integrated market communication addressing inside and outside of companies, instrumentalization of gurus,Brand Identity of joint service, people connected leader

ContentContent



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X

Y

Z










The ITC is both enabler and biggest hurdle creating cooperate networks, incompatibility ,EsRP that is too company focused, telematic as a language, lack of engineers, execution control via access level to IT

ContentContent



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X

Y

Z










Achieving fast accepted standards in the network is a power, definition and user’s rights of IP is changing, free-economics

ContentContent



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X

Y

Z










Value chain co-operation among different companies, no red tape management, success orientation with failure tolerance,connecting leadership

ContentContent



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X

Y

Z










The ITC is both enabler and biggest hurdle creating cooperate networks, incompatibility ,EsRP that is too company focused, telematic as a language, lack of engineers, execution control via access level to IT

Integrated market communication addressing inside and outside of companies, instrumentalization of gurus,Brand Identity of joint service, people connected leader

Achieving fast accepted standards in the network is a power, definition and user’s rights of IP is changing, free-economics

Value chain co-operation among different companies, no red tape management, success orientation with failure tolerance,connecting leadership

ContentContent



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Content

Wirtz,SJ Co-operation based St.M


X

Y

Z





Delivery


Expanding to eco-system 2.0,Integrating 4 levels of conjoint orientation and meaning oriented activities:

Standardization




IMC, gurus Brand identityTrendsetters

Dialogue, ideatizingCreating knowledgecommunities,, action platforms

Tech-integration, virtualization, cloud,3 D printing, AR , IPE Standards,royalties,

POS, on/offline, connectivity, longtail m-commerce, blogs

cost

Cost control, Web3.0 C.I.,perceived quality, open vs closed, CSR, bundeling, investor relat

The four areas focus the co-operation and dys-functional discussions on a cohort of issues, therefore leading to integration and new arena differentiation. It provides meaning through understanding arising solution providers’ challenges.

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Content

Wirtz,SJ Co-operation based St.M


X

Y

Z





Delivery


Expanding to eco-system 2.0,Integrating 4 levels of conjoint orientation and meaning oriented activities:

StandardizationVirtual company network



IMC, gurus Brand identityTrendsetters

cost

Cost control, Web3.0 C.I.,perceived quality, open vs closed, CSR, bundeling, investor relat

Tech-integration, virtualization, cloud,3 D printing, AR , IPE Standards ,royalties,

POS, on/offline, connectivity, longtail m-commerce, blogs

Dialogue, ideatizingCreating knowledgecommunities,, action platforms

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It results in 3D cube with 64 activity blocks like

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It results in 3D cube with 64 activity blocks like a rubic cubic.


Z

Y

X



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64 buildings block need then to be filled out and differentiated according to Strategic concept and strategic execution e.g.:

Block: x4,y4,z4Facilitating partner co-operation and managing the experience over timeConcepts:Customer experience management applied to partners and competitors,Momentum Effect:

Execution: Forum, TED and clubs originating joint activities and providing solution in an open source ware, funding start ups and spin offs

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Part four: Now the link to meaning based management:

In 2001 the” cluetrain “manifesto ( Levine, Locke, Searle and Weinberger) indicated the markets are about conversations, not about (branded) messages.

In a forthcoming book Lisa Solomon Moments of impact, 2013 traces the importance of strategic conversations in the corporate strategic management process. Sharing knowledge across different engagement communities further blurs the walls of corporation and prepares it to bridge out to work with hitherto not served stakeholders.

In the global cross disciplinary network building ICT is an important vector but Y.Doz indicated the problems of receptivity transferring knowledge is comple,x among others:Functional languages and world views Inherently difficult to share as rooted in originating context Knowledge sharing tools as a wedge to force culture change Leverage existing infrastructure to connect dispersed groups/people Common language, tools, goals, and metrics for embedded and explicit knowledge.

Meaning is related to context, but the meta-context of an an ecosystem of networksIs still evolving.

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One difficult answer to the “shrinking core, expanding periphery” problem is to reliably deliver a complex solution bundle involving multiple technologies, capabilities, and services using vertical integration or the kind of subcontracting relationships familiar in traditional supply chains. Rather than outsourcing a few well-defined activities, delivering complex customer solutions requires the management of complicated interactions and an exchange of knowledge between many, mutually dependent partners—a task to which ecosystem strategies are better attuned. ( Williamson,J de Meyer; A 2012 )

In the construction of an extended ecosystem fluid ongoing value conversation ( Haque 2012) are the linking pins and a constructive strategy defines how organizations will achieve competitive outperformance by becoming radically more useful to people communities.

These authentic values are more than operating efficiencies and effectiveness in the world of competitive advantage . It is co-constructing by including profit plus social, environmental human and still unexplored returns by sharing together the more complex transaction cost.

Therefore the focus is on the social organization ( Bradley, A, McDonald, M.2011) and the “emergence” of collaborative communities and new forms of collaboration, working for “free” becomes freeing from old shareholder value models as well, e.g. wikipedia.

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Co-creation is as it always has been before a process, except it should focuses straight from the beginning on win-win solution, when it comes to partnering.

the respective reputations of the partners will be important in fostering the trust required to reduce transaction costs and make the relationship productive and sustainable. This kind of interaction will, therefore, need to be designed so that both parties put their reputations on the line (for example, by lending their brands to the joint initiative) rather than by trying to devise a performance contract. ( Bradley,A, McDonald, M.2011 )

The co-operation is as much sense making as it is realities building

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These operations build platforms of knowledge as it sets orientation, refers to meaning as industries/arena platforms involve not only one company's technology or service but also an ecosystem of complements to it that are usually produced by a variety of businesses.

As a result, becoming an active platform co-creator requires different business and technology strategies than those needed to launch a successful stand-alone product.

Gawer,A Cusumano, M (2002) describe two fundamental approaches to building platform leadership, which they call "coring" and "tipping."

"Coring" is using a set of techniques to create a platform by making a technology "core" to a particular technological system and market. When pursuing a coring strategy, would-be platform leaders should think about issues such as how to make it easy for third parties to provide add-ons to the technology and how to encourage third-party companies to create complementary innovations

"Tipping" is the set of activities that helps a company "tip" a market toward its platform like Linux demonstrates the power of a coalition of service providers and users to tip a market by supporting a particular platform. Another tipping strategy is for a company to bundle features from an adjacent market into its existing platform; the authors call this "tipping across markets."

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Artefacts, Skills, Heuristics, Experience and Natural Talent are the five perspectives which comprise the ASHEN model.

ASHEN is a way to ask a meaningful question in the context of mapping the knowledge assets of an organisation:

What artefacts were used when making that decision?

What skills were needed; how were they acquired?

What heuristics were used to make such decisions quickly; what is the range of applicability?

What experience is had, and possessed by respected members of the field?

What natural talent is necessary; how exclusive is it and who else has it? This provides a contextually rich way of collecting perspective that informs the interviewers of the knowledge assets within the organization and increases the cognitive load on the respondent so they dig deeper into their memories and skillset( cognitive edge.com tools refer to ASHEN and serves also in search for Archetypes, which are uniformly agreed to be accepted cultural representations of that community)

In addition there are cultural linking pin and stepping stones creating platforms:

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The cynefin framework, mentioned earlier for its focus on different sorts of environment in which the emerging ecosystem are built “explores the relationship between man, experience, and context” and proposes new approaches to communication, decision-making, policy-making, and knowledge management in complex social environments.

It conveys the sense that we all have multiple pasts of which we can only be partly aware: cultural, religious, geographic, tribal ( knowledge management and organiZational strategy by founder Dave Snowden, 2005 )

An Emergent Framework for eco-systems creations:

Cynefin starts life as a sense-making framework not a categorization model.

In a sense-making the framework emerges from the data, while in categorization the model is pre-given. The advantage of categorization is that it is efficient, the danger is that if the context shifts then it may result in significant category errors.

Now this is best understood by describing the process by which it is constructed using the narratives of an organizations' past perspectives and possible futures for the jointly intended co-operation networks..

http://en.wikipedia.org/wiki/Knowledge_management

http://en.wikipedia.org/wiki/Cultural

http://en.wikipedia.org/wiki/Religious

http://en.wikipedia.org/wiki/Geographic

http://en.wikipedia.org/wiki/Tribal

http://en.wikipedia.org/wiki/Dave_Snowden

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To role of leadership in co-operation network building is coalition building in exploring new frontiers and integration the un-expected.

According to Weick ( 2007 )one can observe those HROs, (high reliability organization) and how they deal with ambiguity and uncertainty by:

- Creating a collective state of mindfulness that produces an - Enhanced ability to discover and correct errors before they are escalating into a

crisis, eventually taking too much risk.

Evolving network organizing activities like organization itself need to aply following procedures:

- Track small failures,- Resist oversimplification, been there done it type of, - Being sensitive to operations and routine assumptions,- Maintaining capabilities for resilience and- Taking advantage of shifting location of expertise

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Sometimes leaders fail to create the capacity to get things done because they fail

to build coalitions committed to achieving the vision.

“A feature of modern organizations is:- interdependence, where no one has complete autonomy, and where- most members of the organization are tied to many others by - their work, technology, management systems and hierarchy.

These interdependencies point to a need for ‘lateral leadership’ to create commitment to a shared understanding of what needs to be done “

Bradley,A,McDonald,2011

The lateral leadership needs to be combined with a connecting and connected leadership.

Lessons from the” service encounter” term in the service industry can show this

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In the service encounter employee and clients are co-creating value in form of hopefully positive experiences. This knowledge needs to be applied in the extended encounter creating new networks with win-win and newcomer advantages.

One of the issue is how to create trust in the exchange;- towards its own collaborators and- towards the clients and actual service users- therefore towards the co-operation partners- the approach is the same:

building trust credits: and spending it wisely

Trusted channel Trust

Listening first Dialogue

Concern for impact Trust

Infectious passion Dialogue

Humility Dialogue

Thoughtful influence Trust

No boundaries Meaning

Tenacity Meaning

Groundwork Meaning

Understanding Dialogue

These and following ideas are based on The Connected Leader: Creating Agile Organizations for People Performance and Profit, by Gobillot,E 2007

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Values are created through 3 activities:

through Consumption -- Experiences -- People

When

-Analysing drivers of value

-Generating ideas

-Creating product and services

-Execution

This leads to a new approach of co-creating values- first there is a new approach - second a respect for the “ real “ organisation, the informal one

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Focus -----

Layer purpose -----Input -----

- supplier role ----

- customer role ----- employee role ---

Output -----

Financial focus -----Economic measures -

Generation of co-creation opportunities to deepen engagement through community of valueCo-creation through networksNetworks of connections to ease integration and respond to insightsEngage in co-creation process driven from compatible unique purpose and help write coCreation scriptOrchestrate co-creationSense co-creation opportunities and manage co-creation risksPrototypes and trials, communications, strategicco-creation, milestones plansSize of pay-off and probability of successProject based mile-stones, rate of conversion from idea to co-created business launchNumber of intiatives

Leadership style based on: including informal organisation:

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Leadership impact:

-Elements of credibility: - Integrity >> trust

- Utility >> meaning

- Warmth >> meaning

- Reciprocity >> dialogue

- Maintenance>> dialogue

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How the connected leadership elements create impact:

integrity - utility - warmth - reciprocity - maintenance

Trust-trusted channel # # -thoughtful influence # # #

#-Concern for impact #

#

-Meaning-No boundaries # # #-Groundwork # # #

#-Tenacity # # # #

-Dialogue-Listening first # #

#-Humility # # #-Infectious passion # #

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Developing trust:Emerging connected leaders Established connected leaders

Trusted channelHelpful Providing information that

encourages reflectionOffering advice to others Opening others’ horizonsHands on Big pictureProviding training to others changing others’expectations

Thoughtful influenceTarget those in influence Sell ideas to allInterpersonal level System levelSmall scale ( few people at once ) Large groups

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Developing trust:Emerging connected leaders Established connected leaders

Concern for impactThink about impact upon others Wider and longer view of reputationjudging and evaluating pastInterventions

Wrestle with conflict between Worry less about ups and downsInvolvement and intrusion of individual relationships

Think about others’perceptions More secure in their reputationsof them

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Developing meaning:Emerging connected leaders Established connected leaders

No boundariesRefer to policies and procedures Refer to vision and meaning toto justify interventions justify interventionsThink about themselves as Think about themselves as‘one of the team ‘ conveners of teamsTentative in intervening Forceful in interveningEmotive in intervening Objective in intervening

GroundworkPersonal well organized Concern with processes and

proceduresFollow up on commitments Embed commitment andand promises follow-through into the

organisation itself

75Wirtz,SJ

Developing meaning:Emerging connected leaders Established connected leaders\

TenacityTenacious FlexibleUse reputation to develop Work through others to developconnections connectionsReliable Set agendasSee things through Adapt to events as they unfold

76Wirtz,SJ

Developing Dialogue:Emerging connected leaders Established connected leaders\Listening firstInterpersonal SystemicGood listener Planned and systematic listeningEnable others to take active role Create systems, structures, andin conversations culture, for debate and inputReactive Proactive creation of listening

organizationHumilityAcknowledge and learn from Know limits in advanceMistakesSeek help to repairs errors Seek help before troubleGet timely support Create enduring support networkInfectious passionExhibit enjoyment of role and Positive towards changeOrganization Express excitement and optimism Positive about Positive about existing organisations about new ways of doing things

77Wirtz,SJ

In summary have a new leadership style: be TWISTED and not so different from Service encounter management:

Think differently

Walk in other people shoes

In sync: align what you think, do and say: be authentic

Share almost everything

Turn your tongue, think before you speak

Explain well

Dream and tell stories, share experiences so they engage employees and they can

co-create with customers of all sort memorable experiences and co-operation Networks in an expanding ecosystem

wirtz,sj 3 pillars of meaning based strategic management ( building co-operative ecosystems...

Documents

company pro

strategic management

innovative company

alerted company

discovery driven skills

dimensions of innovations

service encounter management

commanding market change