Transformations are hard. They take a while and have the potential to challenge the fabric of any organization. When you transform, you go deep into the culture, the organization's DNA, and the ways of working to achieve irreversible change. That is the ultimate goal.
So, transformations can be really challenging for individuals and teams. Couple that with the topic of customer value management (CVM) and you have yourself a challenge. The CVM process adds complexity if you consider the following points:
I have found that subject very intriguing and have been lucky to conduct several large-scale value transformations. They are different from pricing or commercial transformations. The choice of words is essential. A transformation is also different from a strategic initiative, a corporate program, or a strategic project. When companies embark on customer value transformations, I see them starting strong. The first 18 to 24 months are quite exciting and invigorating. Things are being deployed right and left and the energy level is high. They traditionally focus on the following activities:
At that stage, things are going well and the level of adoption of CVM activities is increasing. In any transformation though, there comes a point when things start plateauing or stagnating. This is inherent to any large-scale change management initiative. Teams reach the zone of change fatigue or the valley of despair. It is part of the change management process. At that stage, there is something missing, and the transformation slows down. It is also the time when you start thinking about the next 24 months of your value transformation and focus on the next push.
Would you like to see ValueCloud in action? Book a no-obligation demo now.
Before you do that, you must consider the following points:
Your transformation is in the zone of good attention despite a strong start. What is missing, then, when you have the process, the system, the people, and the CVM aspiration? The answer is simple. You are missing the value mindset. The mindset is the glue that ties CVM people, process, and systems together.
This is the first blog in a series of three on this topic. In blog #2, I will introduce the concept of a value mindset and the 6A value mindset model. Then, in blog #3, I will go through each of the 6As and give a few recommendations on how to get started and how to ultimately succeed with a true value mindset enterprise-wide.
Bio
Dr. Stephan Liozu (www.stephanliozu.com) is the Founder of Value Innoruption Advisors (www.valueinnoruption.com), a consulting boutique specializing in industrial pricing, digital business, and value models, and value-based pricing. Stephan has 30 years of experience in the industrial and manufacturing sectors with companies like Owens Corning, Saint-Gobain, Freudenberg, and Thales. He holds a Ph.D. In Management from Case Western Reserve University, and has authored several books, including his latest book, The Industrial Subscription Economy (2022). Stephan is a strategic advisor to DecisionLink and Monetize360, as well as a senior advisor at BCG.