Riding the Whirlwind - 6.

6.9 Develop Organisational & Technological

Capabilities
6.9.1 To be agile and responsive to the customer, the business processes need to be re-engineered and the new
mediums exploited to the full. All parts of the organisation will need to make adjustments, with departments
and individuals reviewing their capabilities in the light of the new commitments to customers. McKinsey's 7 S's
Model provides a useful framework for reviewing the impact of change:

McKinsey's 7 S's Model of Organisational Change

Shared Values and Beliefs: A role of the vision statement is to impart to the
Developing organisation (and externally) what the organisation stands for and what it
Shared believes in.
Values and this is a role for senior management. They must not only formulate and
Beliefs linked to the constantly re-iterate values and beliefs but also adhere to them if they are
Vision is a key to to shape peoples behaviour in a lasting way.
developing all the
other aspects.

Strategy: States how an organisation will attain its vision and respond to the
Strategy defines key threats and opportunities of the new mediums. Capabilities are needed in:
actions and
capabilities along the marketing:
major dimensions of
marketing, product and market research: customer surveys and data analysis.
service development,
sales and channel promotional management: co-ordination across all mediums.
distribution, business
systems and processes, media management.
and management of
consumer management: ensuring awareness of the new
alliances and
communications channels, the processes involved, and the benefits
partnerships.
to be gained. Managing expectations. Providing training and
support. Gaining timely feedback.

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Riding the Whirlwind - 6.9

distribution:

channel management: co-ordination of existing and new

distribution channels, PR to existing channels.

sales management: training and support, timely feedback,

motivation and reward systems.

product and service development:

customer collaboration, personalisation and customisation.

pricing.

business requirements analysis: development of architectures, models,

frameworks, high level systems and processes, etc..

creation and management of alliances & partnerships.

Systems, including Processes: Capabilities are required in:

Systems requires
capabilities in both IT & IS:
information
technology and in design: user interface (HCI), OO analysis and design, techniques.
organisational
processes, methods development: prototyping and RAD, OO programming in C++, CGI, Java
and controls. Scripts, Java Applets; new OO development tools, OO databases,
temporal databases, data mining tools.

systems delivery: distribution to multiple users, locations, device types,

and media types in various combinations.

operation: wide-area network management, object resource management,

security management (firewalls).

sales and service:

design, development and delivery of new responsive processes to support

intimate customer relationships.

operation: call handling for promotion, sales, service, claims, legal, etc.,
24 hr. / 7 day support.

legal:

personalisation and customisation of products / services.

on-line advice, selling, and servicing.

actuarial: assessment on a 1:1 basis; overall risk management.

Staff: HR management for developing the skills and aptitude for building
Staff need the skills lifetime customer relationships, providing quality service and making
and aptitude for appropriate sales. Policies, standards and processes re:
developing customer
relationships, service recruitment.
and sales.
appraisal, training & development.

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motivation & rewards.

- Management Challenge -
The
management Style: If staff are to treat customers as individuals, then they themselves will
style is likely need to be managed as individuals. This suggests a self management style.
to be a mixture of self
management for However, cross-organisational activities probably require a task management style.
customer facing The challenge for management is to mix the styles as appropriate without confusing
activities and task staff.
management for
organisational
activities

Relationship Marketing suggests a move to a Self Management style.

Structure: Organisations will find that changes to processes and style

Network inevitably require changes to their structure. To be responsive and results
structures oriented an organisation needs to move to a Network structure (see diagram).
support a
responsive and result Those that are hierarchical may need to adopt transition structures, say via
oriented organisation. Decentralised, Matrix or Process structures. Commensurate changes to management
structures will be needed.

Relationship Marketing suggests a move to a Network Organisation.

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- A Learning Environment -
For staff to
develop Skills: If staff and mangers are to acquire all the skills outlined above, then
appropriate there needs to be an appropriate learning environment. One that:
new skills requires a
learning environment. is driven by a desire to realise the vision.

has a sharing culture with mutual support.

provides space and time for learning, preferably closely linked to specific
tasks and objectives (Just In Time Learning).

allows risk.

tolerates failure, provided it is part of the learning process.

has visible recognition for success that is built on new learning.

Where skills and experience cannot be resourced or developed internally within the
required timescales then external companies will need to be retained.

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