The Great Recession of 2008-2011 shook businesses at their very core. And while there’s still a “recession hangover” lingering, powerful changes are afoot. Disruption is rampant today in the vast majority of our industries. Just look at how the “sharing economy” has permanently altered the course of transportation, lodging, entertainment and even home appliances. The Economist noted “Some see sharing, with its mantra that ‘access trumps ownership,’ as a post-financial crisis antidote to materialism and overconsumption. It may also have environmental benefits, by making more efficient use of resources. But whatever the motivation, the trend is clear. ‘People are looking to buy services discretely when they need them, instead of owning an asset,’ says Jeff Miller, the boss of Wheelz, a California peer-to-peer car-rental service.”
So businesses must determine how their customers, markets and supply chains are continually morphing. Then they must develop innovative strategies based on the new rules of the game. As futurist Joel Barker says, “Our past successes will guarantee nothing in the future.”
The new rules taking shape center on:
- Learn and Adjust vs. Perfect and Launch
- Longer term Sustainability vs. Short Term Profits
- Corporate Social Responsibility & Personal Citizenship
- Asset sharing vs. Asset consumption
- 21st Century work-life balance
- Significance vs. Success
- Triple Bottom Line: People-Profit-Planet
Service Profit Chain
At Innovative Strategies, The Service Profit Chain (SPC) is at the core of all we do, within our virtual consultant network and with our clients. Organizations that effectively embrace its principles achieve Triple Bottom Line success and significance. The SPC was originally developed in 1994 by Harvard Business School Professors, James Heskett, W. Earl Sasser, Jr., Thomas Jones, Gary Loveman and Len Schlesinger, from their analyses of successful service organizations. They proved causal relationships between profitability, customer loyalty and employee satisfaction, engagement and loyalty.
See Presentations to view Service Profit Chain.
The links in the Chain work together:
Employee satisfaction and loyalty result primarily from high-quality management support and policies that empower employees to serve their customers productively.
Customer Loyalty is then created when satisfied, loyal and productive employees serve their customers’ in ways that exceed their expectations.
The economic benefits of this causal relationship are the profit and growth stimulated by customer loyalty behaviors— referrals, repeat business, willingness to pay a premium and forgive mistakes (longer retention).
- Additional economic benefit is derived from creating a satisfied and engaged workforce— less turnover and absenteeism, combined with higher morale and productivity.
Charlie is currently President, Innovative Strategies LLC, a Scottsdale, AZ-based management consulting firm established in March 2009. Prior to starting his consulting business, Charlie was a VP and Director at Avnet, Inc., the Fortune 200 technology distributor, for 9 years. During that period he was responsible for the Voice of the Customer Office and Strategic Planning globally for Avnet’s $8 billion Technology Solutions business. Prior to Avnet, Charlie was VP Marketing and Planning with The Acacia Group, a Washington, D.C.-based financial services company. In his twelve years with Acacia, Charlie became one of the youngest elected officers in Acacia’s 120 year history. He has been a graduate business school faculty member at both University of Phoenix and Grand Canyon University. And Charlie is a frequent speaker for business, academic and community groups.
Principal Areas of Consulting Services
- Customer Experience Improvement
- Strategic Thinking, Planning and Execution
- Leadership and Talent Development