Purpose – The purpose of this paper is to carry out a literature review of studies that have analyzed the effects of process orientation (PO).Design/methodology/approach – An examination of the literature is undertaken to review studies that report about the influence of PO on organizational performance. Studies are classified into statements without straight empirical support, quantitative studies, and case studies.Findings – A total of 26 studies are identified that report about effects of PO on organizational performance. Studies where positive effects are obtained are predominant. The effects most often reported are speed improvements, increase of customer satisfaction, improvement of quality, reduction of cost, and improvement of financial performance.Research limitations/implications – According to the results of the paper, positive effects of PO are clearly more often reported than negative effects. It might be the case that popular press and case studies tend to report positive effects more often ...

The effects of process orientation: a literature review

Dr. R. Edward Freeman is Professor at the University of Virginia’s Darden School of Business. He is best known for his award-winning book, Strategic Management: A Stakeholder Approach. He is the author and editor of more than 20 volumes in the areas of stakeholder management, business strategy and business ethics and has written more than than 100 articles in a wide variety of publications. He is co-editor-in-chief of Journal of Business Ethics and a lifelong student of philosophy, martial arts and the blues.

Leading Change in a Complex World : Transdisciplinary Perspectives

Purpose - The purpose of this paper is to propose that the recasting of supplier and customer roles reconfigures the role of marketing. Design/methodology/approach - A conceptual paper that suggests the need to rethink the role of marketing in the strategic decision making of companies. The study accesses recent theories of marketing, service and value and provides illustrative case examples. Findings - Consumers are progressively more active and the traditional supplier role of controlling consumers is less viable. The case examples show the variety of ways in which companies may adopt a new role in relation to customers and the market. The paper argues that adapting to this role change needs to take place at the highest level in the company and is the way to reinvent marketing strategy. This also necessitates marketing employing unconventional methodologies and relevant theory to address the complexity and ambiguity of current markets. Research limitations/implications - The paper is a conceptual paper restricted to supplier and customer roles, albeit set in a broader context of stakeholders. Practical implications - The marketing-oriented supplier of the future can design service systems and exert a certain control at the same time adapting to and supporting consumer initiatives through interaction in networks of stakeholder relationships. Originality/value - Stressing the new roles of consumers and suppliers; reinventing the role of marketing, breaking with conventional marketing research methodology.

Reinventing marketing strategy by recasting supplier/customer roles

The consumer cooperative enterprise is becoming an increasingly noteworthy company form. Various forms of sharing economy and recent initiatives in collaborative consumption further amplify the relevance of a company form wherein the members have a dual role, acting both as owners and as customers. Today, cooperatives that are based on customer ownership can be found in banking, insurance, and retailing, where they account for about a trillion US dollars in annual revenue. Notwithstanding the relevance of cooperatives and their unique characteristics, which are partly contradictory within the framework of investor-owned firms, this company form and customer ownership itself have remained under-explored in consumer marketing research. Customer ownership may hold major implications for how customers ultimately perceive value, which, in turn, influences the very foundations for companies’ competitiveness: customer satisfaction, repurchase intention, and recommendation. Consequently, the purpose of this conceptual study is to uncover the value potential of customer ownership. As a result, a conceptual framework that addresses the value potential of customer ownership is proposed. In addition, the work identifies what kind of value customers can perceive through customer ownership and how that value can be defined and created in consumer cooperatives. The paper concludes with a discussion of both theoretical and managerial implications emerging from the value potential of customer ownership.

Consumer cooperatives: uncovering the value potential of customer ownership

T he r i s i n g c o s t of m e d i c a l c a r e has occu­ pied the center stage o f policy debate for several decades. However, the indirect costs o f illness— those resulting from lost functional capacity rather than expenditures for medical services— are receiving more attention with each passing year. This is because indirect costs are expected to rise dramatically in the next 25 years as the proportion of persons with chronic health conditions resulting in activity limitation increases in parallel with the aging of the United States population (Waldo and Lazenby 1984; Morrison 1979). One obvious manifestation o f the concern with the indirect costs has been the debate over the expenditures from the Social Security Disability Insurance trust fund. Ironically, the increasing attention being paid to the indirect costs o f illness may be the paradoxical outcome of our society’s success in delaying mortality. We live with the illnesses that formerly killed people, although we may experience longer periods in which our activities are limited, if not curtailed (Verbrugge 1984; Fries 1983). As with many social problems, we recognize that the indirect costs of illness are a growing phenomenon but we have not yet developed the tools to measure them with any precision and consistency. In this instance, the measurement tool does matter, for the existing methods

A question of value

Purpose – Despite the fact that customer orientation is increasingly used as a strategic guideline to ensure companies’ long-term success, it is too often left at conceptual level without any managerial or executive translation. To address this practical gap, the purpose of the paper is to build an executive perspective on customer orientation through the mechanism of customer value dimensions. Design/methodology/approach – An intensive case study from a successful retail service business is used to illustrate how customer orientation is applied in actual strategic decision making at the executive level. The case business is a multi-sector service business that took a strategic turn toward customer orientation in the 2000s. As a result, the company has been able to increase their market share to become the market leader as well as stay ahead of the competition and increase customer loyalty. Findings – The study provides a practical tool of disentangling customer orientation into four customer value dimens...

Disentangling customer orientation – executive perspective

Purpose – The vision should ignite and facilitate strategic change as well as help a company to transform and reinvent itself in the face of competition. Too often executives use vision as a mere slogan without real relevance. The purpose of this study is to show how the vision guides strategic change. Design/methodology/approach – A case study from a successful multi-format, multi-industry service business is used to illustrate the role of vision in strategic change management. Findings – The article illustrates how the vision was used in practice in guiding the strategic transformation process of the case organization. The study presents four focal tasks of the vision and concludes with five practical guidelines for executives. Originality/value – The article highlights the role of vision as an important tool for managing strategic change.

S Group’s vision for strategic transformation: “Your Own Store”

The purpose of this paper is to identify and characterise executives’ inside-out (firm-oriented) and outside-in (market-oriented) mental models. As these two orientations are vital for strategic decision-making, yet potentially contradictory, it is important to understand the role of inside-out and outside-in thinking in executives’ agendas.,Qualitative, semi-structured interviews of 15 senior executives were used to capture insights into executives’ mental models. Data analysis was conducted following the principles of abstraction, theory emerging from data and constant comparison.,Four archetypes of executive mental models are identified and characterised along two dimensions (inside-out or outside-in orientation and focus on rational or emotional aspects).,The study introduces a tentative framework for practitioners to identify and deploy the potential of the mental models that guide executive decision-making.,The study extends prior research on mental models by combining this approach with inside-out and outside-in orientations and customer value propositions. In addition, it introduces four archetypes that illustrate the distinct potential of different mental models.

/pdf/inside-out-and-outside-in-mental-models-a-top-executive-grwd37z5vm.pdf

Inside-out and outside-in mental models: a top executive perspective

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Disentangling customer orientation – executive perspective

S Group’s vision for strategic transformation: “Your Own Store”

Inside-out and outside-in mental models: a top executive perspective