October 2011 | Nano Tools | Strategy
Contributor: Ian MacMillan, The Dhirubhai Ambani Professor of Innovation and Entrepreneurship; Professor of Management; Director, Sol C. Snider Entrepreneurial Research Center, The Wharton School, University of Pennsylvania
Identify and take advantage of ways in which you can dramatically improve your customers’ experience to drive exceptional business growth.
In their book Marketbusters, Ian MacMillan and Rita McGrath describe five approaches for re-visioning growth strategies in order to create new revenue streams and competitive advantages while working with known customers. The first approach involves examining your customers’ total experience with the goal of transforming it. MacMillan and McGrath suggest a tool which they call a consumption chain (see an example below) to identify every step in the consumer experience. Once these steps are identified, the chain can be used to “prospect” for or identify potential changes you can make in specific customer experiences — ones that will create a surge in demand and result in substantial growth opportunities.
It is important to keep in mind that no strategy will be successful indefinitely. Competitors catch up, markets change, and organizations can become lazy during upswings that inevitably come to an end. Instilling constant consumption chain enhancements into your overall strategic process can help you create growth opportunities continuously.
To “pull” for great performance:
Nano Tools for Leaders® was conceived and developed by Deb Giffen, MCC, Director of Innovative Learning Solutions at Wharton Executive Education. It is jointly sponsored by Wharton Executive Education and Wharton’s Center for Leadership and Change Management, Wharton Professor of Management Michael Useem, Director. Nano Tools Academic Director, Professor Adam Grant.
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