Killing sacred cows the Michelin-starred way

A great example of a customer focussed response to the changing economic climate is the creation of of the BYO club (Bring Your Own club), which allows members to save money whilst visiting some of the best restaurants in the country. (See Guardian online for details:  http://www.guardian.co.uk/lifeandstyle/2010/jun/20/top-restaurants-embrace-byob-revolution)

The idea is simple.  BYO club members pay a small annual fee (£99) and in return they are permitted to take a bottle of their own wine to drink while they eat.  The corkage charges range from zero to around £25, still significantly less than the premium charged for wines purchased from the restaurants’ own wine lists.

Although allowing this practice is tantamount to killing a sacred cow, the point is that customers needs have changed, even those customers who can afford to dine at Micheln-starred restaurants.  The restauranteurs have responded in a way that means customers will still come through the doors and spend their money.  In fact, having taken such a customer focussed step in these difficult times, they may find they attract more customers.

Although this approach will affect margins from wine sales, the overall effect will be at the very least to retain customers and at the best to attract more.  Customer loyalty will be enhanced and therefore the outlook for these businesses will be improved.  Food for thought in my opinion (pun intended!).

Tim Edwards,  Senior Consultant

About Bourton Group

Bourton Group are specialists in achieving sustainable performance improvement.  We have a successful track record of improving complex processes in major public and private sector organisations stretching back over 40 years.

Contact

info@bourton.co.uk

Tel: +44 (0)1926 633333

www.bourton.co.uk

Continuous Improvement in action… right in front of you!

I often discuss with clients what “continuous improvement” actually means in practice.  As you’d expect, we discuss things like engagement of people, the tools and methods deployed, the impact on the business and its customers and of course the challenges it presents.  So why am I saying it’s right in front of you?

Since you’re reading this on a computer, or a phone, or maybe some other device connected to the internet, you are using something which has been improving continuously for decades.  My thoughts were prompted when I heard about Britain’s first Vintage Computer Festival, held at the National Museum of Computing at Bletchley Park (http://www.tnmoc.org/vcf-gb.aspx).  The exhibition covered the evolution of the first computers, up to the first home computers, like the ZX81 and Commodore 64.  Technology companies have improved computers in several steps, some small, some large and some huge, with the overall effect being a better product for us, the users, and plenty of things we never thought were possible.

The market is tough and that keeps the companies under constant pressure to innovate and improve… sound anything like your business?  Continuous improvement, with a customer focus, is a good thing… remember how you’ve managed to see this blog!

Tim Edwards,  Senior Consultant

About Bourton Group

Bourton Group are specialists in achieving sustainable performance improvement.  We have a successful track record of improving complex processes in major public and private sector organisations stretching back over 40 years.

Contact

info@bourton.co.uk

Tel: +44 (0)1926 633333

www.bourton.co.uk

Lessons in stakeholder management from BP

The ongoing problems resulting from the disaster in the Gulf of Mexico are wide ranging and extremely significant, that is for sure.  But what of the truth behind the incident?  Who is right and who is wrong?

As with other events of this kind, the truth will certainly come out in the end and, until then, we are faced with conjecture, few facts and an array of opinions about what caused the problem in the first place.  We’ve heard statements from BP, speeches from President Obama and now we’ve witnessed the congressional hearing where the assembled group attempted to uncover some facts, with limited success.

Even though the full facts are not yet clear, one thing is very clear – BP are being blamed for the entire episode and, in the court of public opinion, especially in the USA, they are already seen as guilty.  Whether this is right or not, the way in which BP has managed it’s relationships with key stakeholders has had a significant impact on perceptions.  These perceptions will be very difficult to change, even when the facts become clear and will that be all too late to repair the damage to the business?  No matter what our views on BP, we can all learn some valuable lessons from this incident on how to manage stakeholder relationships.

Tim Edwards,  Senior Consultant

About Bourton Group

Bourton Group are specialists in achieving sustainable performance improvement.  We have a successful track record of improving complex processes in major public and private sector organisations stretching back over 40 years.

Contact

info@bourton.co.uk

Tel: +44 (0)1926 633333

www.bourton.co.uk