Perry Nicholls Organisation Fitness Regime

The Laws of Nature
All organisations are subject to the laws of nature in that if they don't evolve and provide what their customers or members need, cost effectively, they become smaller and less powerful.

This is obvious to everyone, so why don't all organisations provide what their customers or members want and thrive? Because determining and understanding what your customers or members want is not necessarily simple and needs a clear framework and analysis.

Rule 1: Customers are Individuals not a Homogeneous Mass
Your customers or members don't look alike, live in the same area, or drive the same car, so it isn't surprising that they all have different needs from their suppliers. But you can't provide an individually tailored service to each person, so what can you do?

Solution
Divide your customers or members into clear segments based upon their product and service needs. And how do you know precisely what are those needs, and the make up of those segments? Undertake some carefully designed
customer research and analyse the results thoroughly.

And when you think that you have determined the nature of your customer segments, repeat the process above and determine even more precise segments.

Rule 2: Design Products and Services to Meet Segment Needs
"One size fits all" usually means "this fits a small percentage of the population and everyone else will feel a little uncomfortable and look a little silly". So don't expect your customers to be happy with one uniform product or service!

Solution
Design your products and services to meet the needs of each individual segment. These segment needs may require different products or services, or they may require variations of the same product or service.

Rule 3: Picture Your Products and Services as Many Operational Processes
Many variations of numerous products and services make life very complicated! And there are so many different people and factors involved, whether they are employees, contractors, regulators, volunteers etc. An organisational nightmare!

Solution
Break down all your products and services into operational processes. A process is a sequence of events that adds value to an input and converts it into an output. Processes are often quite difficult to define initially but often end in "ing" e.g. repairing equipment, supplying equipment, designing a product, developing a policy, lobbying government etc.

Rule 4: Make the Most Important Processes as Near Perfect as Possible
It is not possible for any person or organisation to be the best at everything so prioritise.

Solution
Follow these steps:
decide which processes are of most importance to your customers or members (look closely at the results of the customer or member research),
pick one process,
gather together a representative from each department or organisation that has any involvement in this process,
draw a "what happens now" process map (this is most likely to be a little messy and may look like a spider's web!),
collectively ask the following questions:
  is this the best section / department / organisation to deliver this element of the process?
  is an organisational function missing? (e.g. accounts, spares)
  what are the constraints to providing an effective process?
  are there any difficulties in crossing sectional / departmental boundaries?
  could specialisation improve the process?
  how could IT be used to simplify the process further?
redesign the process based upon the answers to the questions above
implement the redesigned process,
repeat for your second selected process.

Your motto should always be: "keep it simple and make it even simpler".

Rule 5: Greater Segment Market Share = Greater Power and Influence
Now that you are confident that you are providing high quality, cost effective products and services, designed specifically for different segment needs, it is time to grow in size and influence. But concentrate the growth where it has greatest effect - in dominating a segment or segments.

Solution
Develop a clear sales and marketing plan, for each identified segment, covering:
distribution strategy (who is going to recruit these new customers or members; the organisation itself or an intermediary),
advertising message strategy (what you are trying to achieve with any advertising)
advertising media strategy (what media you may use to advertise),
sales promotion (how you are going to influence people to purchase or join your organisation, or how you are going to influence intermediaries to bring people to your organisation),
your sales process, and
your pricing.

Rule 6: Nothing Stays Static for Long
With the rapid changes in technology, government legislation, and the economic and social environment, by the time that you have reached this point, your customers' or members' expectations and needs will have changed.

Solution
Go back to the beginning and repeat the process! And read the case studies!