SS

A government or non-profit organization ’s strategy, much like that of its commercial counterparts, explains how its unique service approach will deliver better results for society. When the need for social-sector services are so demanding, superior performance versus competing alternatives is a compelling imperative. No commercial enterprise can succeed by attempting to be all things to all people. Similarly, governments and non-profit organizations should make choices in what they will and, just as important, will not do.

3.5.2 The Four Ps of strategy

The lifecycle has, at its core, service strategy . The entry points to service strategy are referred to as ‘the Four Ps’ following Mintzberg20 (Figure 3.25). They identify the different forms a service strategy may take.

Figure 3.25 Perspectives, positions, plans and patterns21

 Perspective – describes a vision and direction. A strategic perspective articulates the business philosophy of interacting with the customer or the manner in which services are provided. For example, a shared service provider (Type II) for a global law firm may adopt the strategic perspective of, ‘We will be a best-in-class service provider for our law firm’. The CIO determined that his business most values a certain type of service provider. By setting a perspective of competing against other industry-specific providers he not only narrows the field of competing alternatives, but also cements his own distinctiveness in the minds of his customers (Figure 3.26).

 Position – describes the decision to adopt a well-defined stance. Should the provider compete on the basis of value or low cost ? Specialized or broad sets of services? Should value be biased towards utility or warranty ? An internal service provider (Type I) restricted to serving one business unit may adopt a position based on ‘product know-how’ or ‘customer responsiveness ’. The law firm CIO may adopt a needs-based position: attorney-centric offerings for knowledge, collaboration and document management services.

 Plan – describes the means of transitioning from ‘as is’ to ‘to be’. A plan might detail, ‘How do we offer high-value or low-cost services?’ Or in the case of our law firm CIO, ‘How do we achieve and offer our specialized services?’

 Pattern – describes a series of consistent decisions and actions over time. A service provider who continually offers specific services with deep expertise is adopting a ‘high-value’ or ‘high-end’ service strategy . A service provider who continually offers dependable and reliable services is adopting a ‘high-warranty’ strategy . If mid- course corrections are to be made within the framework of an existing perspective and position, this is where those decisions and actions are formulated. The law firm CIO, for example, may decide to offer the same specialized services but with enhanced levels of client privacy (warranty).

Figure 3.26 Strategic approach taken by a Type II provider for an international law firm

Requirement s and conditions are dynamic. A service provider may begin with any one form and evolve to another. For example, a service provider might begin with a perspective: a vision and direction for the organization . The service provider might then decide to adopt a position articulated through policies, capabilities and resource s. This position may be achieved through the execution of a carefully crafted plan . Once achieved, the service provider may maintain its position through a series of well-understood decisions and action over time: a pattern.

The use of all the Four Ps, rather than one over the other, allows for emergent as well as intended service strategies. Best-practice service strategies mix these in some way: maintain control while fostering learning; see the big picture while deciding on details.

3.5.3 Strategy as a perspective

Strategy as a perspective defines the governing set of beliefs, values, and a sense of purpose shared by the entire organization. It sets the overall direction in which the service provider moves to fulfil its purpose and construct its performance anatomy. Some pithy real-world examples:

 ‘Focus on the user and all else will follow.’

 ‘It’s all about growth, innovation and the dependency of technology, led by the greatest people anywhere.’

 ‘Consumer connectivity first – any time, anywhere.’

 ‘[Our] purpose is to improve the quality of life of the communities we serve.’

 ‘We will be a best-in-class service provider in [our] industry.’

Despite its high-level abstraction, do not make the mistake of casually ignoring or trivializing perspective. Unlike plans or patterns, perspectives are not easily changed. Take the perspective of Swiss watchmakers, for example, when confronted with the emergence of quartz technology – a Swiss invention. Dismissing the technology as a novelty incompatible with the perspective of skill-intensive craftsmanship, the Swiss watch industry was nearly decimated by the Japanese. That is, until it adopted the technology for major market niches and reclaimed market share through a perspective centred on fashion rather than workmanship.

Or take the real-world service providers who held a perspective of:

 ‘... highly efficient back-office operations’ during the emergence of service outsourcing

 ‘... low cost service provider’ during the emergence of off-shore skilled labour

 ‘... technology-specific expertise’ with the emergence of open system s and software.

Perspective is attained with the help of clarifying questions asked within the context of the service provider’s stakeholders, which includes primarily its owners, its customers, and its employees. Conversely, well-defined perspective serves as a reference for subsequent positions, plan s, or patterns of action the service provider may adopt and enact. Public assertions made by a service provider are usually based on strategy as a perspective and reflected in its value proposition to customers. The value proposition may be implicit in the customers it serves, the services it offers, and the particular perspective of service quality it adopts. A clear perspective helps make this value proposition explicit. This strategy is defined at the highest level of abstraction and maintains the organization ’s farthest planning horizon. It drives other control views of strategy (the other ‘Ps’) and is modified based on feedback from those views.

Once a perspective has been attained, here is a test :

 Does it capture what you intend to do for only the next three to five years, or does it capture a more timeless essence of your organization’s distinctiveness?

 Is it clear and memorable?

 Does it have the ability to promote and guide action?

 Does it set boundaries within which people are free to experiment?

The distillation of an organization’s strategy into a memorable and prescriptive phrase is important. A sound strategy is of little use unless people understand it well enough to apply it during unforeseen or ambiguous opportunities.