The Power Play Between Producers and Consumers

Seth Godin, a respected marketing guru whose achievements include launching Yoyodyne and Squidoo, both of which introduced innovative approaches to marketing based on "customer permission" instead of "interruption", which is the traditional approach (i.e. the advert interrupts the customer while they are doing something they prefer, like watching a movie, and can be construed as annoying) posts a regular blog which I love reading. Yesterday’s blog was oddly appropriate for Shared Services, as it dealt with consumers (let’s say, "users" or customers) and producers (let’s say suppliers). The constant pressure between both parties is stressful to Shared Services teams. But when you get to the heart of the matter it’s really about control and specialization. When customers are running the support process they believe (rightly) that they are the experts. When you take that process away and move it into a Shared Services, you are now saying "I’ll be the expert" but you don’t have a track record yet. So how can you be? Over time, of course, as you prove yourself and trust is established, the customer relaxes, forgets how to run the process, and believes you may actually run it better (it’s your main business, after all, and you’ve been improving and fine-tuning and applying technology left, right, and center). Once you’ve achieved that enviable stage you can take the next step to set the agenda. That’s what we now see happening across the more advanced centers, which maximizing their capability by leveraging data and the business insights thus derived to guide policy. In doing so, they are creating value – far more value than the original business plan called for. It’s a powerful position. But it all starts with proof of concept – and trust. Here is Seth’s column: Producers and consumers "In the short run, it's more fun to be a consumer. It sure seems like consumers have power. The customer is always right, of course. The consumer can walk away and shop somewhere else. In the long run, though, the smart producer wins, because the consumer comes to forget how to produce. As producers consolidate (and they often do) they are the ones who ultimately set the agenda. Producers do best when they serve the market, but they also have the power to lead the market. The more you produce and the more needs you meet, the more freedom you earn." Read more from Seth: https://sethgodin.typepad.com/seths_blog [inlinead]

The Power Play Between Producers and Consumers

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