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Table of contents

Featuring cases and examples from all over the world, Services Marketing: People, Technology, Strategy is suitable for students who want to gain a wider managerial view of Services Marketing. Account Options Fazer login. Jochen Wirtz , Christopher Lovelock. The conventional response is a transformation initiative — a top-down restructuring, accompanied by across-the-board cost cutting, a technological reboot, and some reengineering.

If so, you know firsthand how difficult it is for them to succeed. These efforts tend to come in late and over budget, leaving the organization fatigued, demoralized, and not much changed. Successful transformations may be relatively rare, but they do exist — and yours can succeed as well. Four building blocks that are essential to every major change effort.


  • 1. Customer Segments.
  • Persianality: Death to America to Saved by the Bell.
  • Connecting Innovation to Strategy.
  • New Grub Street.

Articulate a single desirable future for your enterprise and focus all your efforts on achieving it. Develop ways to attract and deserve the commitment of everyone related to your enterprise — particularly customers and employees. Test new practices in an intensive, experimental, startup-style manner. Pick the approaches that work, and rapidly implement them throughout the larger system.

Save the best of your past, divest the rest for advantage, and use the income to fund the future. We think of these as the basic building blocks of any successful transformation. Those will vary from one enterprise to the next. Rather, they are ways of thinking about influence and change: perspectives on how to shift organizational and individual behavior in a more productive, competitive, and engaging direction.

Mastering the Art of Successful Implementations

We identified these elements through a comprehensive research and synthesis project that took place early in At an extended in-depth session with 35 members of this group, we studied examples of successful transformations and articulated the factors common to them. Then we tested our findings in follow-up research and discussions with other experts, inside and outside PwC, and with clients. Though the cases varied widely — by region, industry, circumstance, and personality — the four building blocks were consistently pivotal to success. The transformation initiatives we studied described here and included in our library of case studies on the PwC website have helped companies shake free of their self-imposed shackles, adopt dynamic new business models, and raise their game in a swiftly changing world.

Every company today needs to make a distinctive mark. They make an absolute commitment to a single overarching way of doing business, and to a grand vision of the company they need to be. That mandate intensified a few months later, when the activist hedge fund Jana Partners bought a stake in Conagra and gained two seats on its board. For the first time in our history, we will be a branded CPG pure play. The new IT system, built on a cloud-based infrastructure, was oriented toward rapid innovation and communication across internal silos.

How can we use sensors to improve our distribution? Employees and retailers describe Conagra Brands as an entirely different company. The Conagra story shows how a well-considered shift in identity can take hold in even the largest and most established companies. Tell a good story.

Account Options

All too often, the leaders of a transforming company use dry, technocratic language to explain the change and its rationale. This may well mean articulating a company purpose that goes beyond making money. Employees and customers understand that enterprises are powerful, and that they exist to achieve something with that power — connecting people, producing wealth, creating products and services, or bringing new forms of value to society.

When there is a clear, evocative statement of how the company creates value, not just for the shareholders and owners but for the greater world around it, employees feel a connection with the new identity. They understand how it will help them prosper and make them proud to be associated with it.

Over-the-Top: The cloud based path to innovation

Use symbolic gestures to represent this clarity of purpose and bring the identity to life. For example, Conagra consolidated all its Chicago-area suburban offices into one downtown building to attract talent, create a high-energy collaborative environment, and accelerate decision making. Everything [is] recharged. Link your strategic identity to your most distinctive capabilities and skills. Everything you do afterward, including your digitization, cost management, and product and service line development, should relate directly to these distinctive strengths.

For example, Bosch Rexroth, a global electronics and engineering company based in Germany, is creating a new identity as the hub of an Industrial Internet platform. The company is demonstrating its value by using its expertise in sensors and analytics to trim its own operational expenses. Stretch your aspirations. It creates a toxicity that can take years to remove.


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To really inspire commitment, the new aspiration should be a genuine stretch — one that will take unprecedented energy and skill to fulfill, and will deliver an equally unprecedented payoff. Instead, talk about the company you want to and may need to create. Invite participation. Talk to employees; invite them to put their fingerprints on the future and to help design aspects of it with you.

People are more likely to adopt what they help to create.


  1. Nanny & the Wooden Maquettes.
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  3. World of Tanks #1.

    4. Other stakeholders may also have powerful contributions to make. Investors, for instance, recognize the market forces driving change for your company as few others do. Name the challenges you face. You might need a breakthrough in revenues, a step change in safety and reliability, the ability to compete in a new arena a geographic market or a customer group , or a boost in customer loyalty. Consider every option for dealing with those challenges, including the formerly unthinkable. Call out the trade-offs you face, and the difficult choices you have to make.

    Choose your financial targets and milestones carefully, to show sustained movement toward your goal, not just good results for a quarter or two. Similarly, pick tough targets for improving your reputation — e. Connect with the community. You are remaking your company to be the kind of enterprise your employees want to be associated with. They will be concerned about its reputation and their own outside the company walls. Consider what social values your company should adopt. They may involve environmental quality, sustainable use of resources, frugality, integrity, ethics, community leadership, or other ways of serving society.

    Building Blocks for Healthy Alliance Coordination: A Micro Framework for Macro Efficiency

    Take on only those goals your company can authentically stand behind. Tell a simple, clear story that gets to the heart of the company you will create. It takes time to winnow the many down to the critical few. Many difficult options may be on the table, including selling part of the firm, reducing staff, and making radical shifts in strategy.

    But if people see reason for hope, they will invest their time and effort in building the new identity. They will trust the enterprise to deliver what it has promised. Building trust is not just a matter of gaining buy-in. You put psychology first: designing every move so that it resonates with customers, employees, investors, regulators, and other stakeholders. This requires care, planning, and an attitude about people that often goes against the grain.

    Building Blocks of Digital Transformation

    But the truth is that people can shift even their most fundamental attitudes, beliefs, and behaviors if they recognize the value of doing so and are given the opportunity to develop their skills. Such disbelief is likely to become a self-fulfilling prophecy. How do you learn that people will change?

    By designing an approach that gives you and your employees reason to trust one another. To reduce an excessive level of bad debt and drive its costs back into line, the company required more than 3, employees to reapply for their jobs; 40 percent of them were not rehired. There was also a significant improvement in cost-to-serve, an increase of more than 20 percent in capacity per pound invested, and a 73 percent improvement in cash collection rates.

    The factors that made a difference were intangible, but all related to building trust. These leaders demonstrated a growing competence in their own managerial decisions, in part because of improvements in the way they used data. Data about customer use and operational efficiencies had been kept in organizational silos; as a result, finances had been mismanaged, excessive debt and overhead had accumulated, and customer experience had declined.

    To fix these issues, the company released a series of dashboards — electronic scorecards available to employees in which they could see, for the first time, key performance indicators related to their job. The new practices also built trust in the community. Start at the top. Your culture takes its cue from the leadership team.

    The four building blocks of transformation

    Cronin, Ph. Her research and publications analyze the impact of technology and innovation on business strategy and social change. Previous books have focused on innovations e-commerce, mobile applications and smart products that triggered transformation in user behavior, created new global markets and disrupted entire industry sectors. Cronin received her doctorate at Brown University, where she currently serves on the Advisory Committee for Computing and Information Technology.