The Need For Honesty When Assessing Your Service Offering

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The Need For Honesty When Assessing Your Service Offering

Assessing the strengths and weaknesses in your current service offering will help map a pathway to success.

If your business objective for this year is focused on growth, whether that is growth in the number of new customers, growth in revenue or growth in repeat customers, the temptation can be to do this by offering more services. However, this may be counterproductive if you aren’t aware of what your strengths are in the services you currently provide. Do you want to be good at delivering a wide variety of services or great at a select number?  

The reality is your business is often always striving for greatness as otherwise you may lose out to a greater competitor and service provider that’s going to sweep your customers off their feet. But does that doesn’t mean you reside yourself to only perfecting your current offering.

There are four options to strengthening the services you sell:  

  1. Continue with the current offering as it is – If you are already as strong as you can be in your current offering you will need to focus on other areas to drive growth e.g. marketing to new customers  
  2. Modify & improve – Assess where your quick wins are to improve your offering and go back out to market with these improvements 
  3. Retire your weakest service – This can be a daunting prospect but will allow you to focus resources on your best services. 
  4. Introduce a new service that complements existing core service.  

Before deciding which route to take you will need to have a well-planned deep dive into your current service offering. This will require bringing to the forefront where your business has been underperforming, as well as the successes – a need for an open and honest evaluation is crucial. To start this process, bring your team together and go through the below questions. These may be difficult questions to answer at times but once answered you will have a comprehensive review of where you are and what route to take. 

  • How many services in total are you selling? 
  • Which service(s) bring in the volume?  
  • Which service(s) give the best profit margins?  
  • Which services produce the most repeat business? 
  • Which services are the most expensive to offer and sell and how does that stack up against your sales volume & revenue, profits and repeat business?  
  • What services are the easiest for your team to sell from a technical, sales and support standpoint?  
  • What is your team best at selling, delivering, supporting? 
  • Where do your core talents lie?  
  • What is your team passionate about selling? 
  • What is the added value of the services you provide for your customers and what challenges do your service(s) help your customer address or solve? 
  • What are the market trends in relation to the services you sell? Is demand increasing or decreasing for each and every one of the services you currently offer? 
  • Consider your competition. Who else is selling what you sell? Are you better, or playing catch up on several fronts? 

If after this review introducing a new service is still seen as the necessary next step think about what you build. A new service should ideally compliment, or package with a core service, or easily play into your team’s capability to deliver the service successfully. If this capability is not there, but you believe in offering the new service, a plan needs to be crafted and implemented to train your team and build their capabilities. This investment in time and money needs to be balanced with overall return and how quickly you expect or need your wider business goals to be achieved.   

Ultimately, the excitement of bringing new services to market will need to be weighed against the virtues of maintaining a focused and core set of key services that will help your business achieve specialization and expertise.  Focusing on a narrower set may led you to the same place as a new service as you can drive standardization, efficiency across your cloud domains, decrease product management costs etc. Over time you will build your brand and reputation as being the best in market for the core services you offer. 

Only by honestly reviewing your businesses strengths can you map out the best way for growth and success.

Subtitle

The massive uncertainty around COVID-19 has fixed some companies—and managers—in place, making them unable to react quickly to the changes affecting their business. But for others, it’s been a catalyst for change and an opportunity to gain new insights about their customers’ needs and to demonstrate their agility to adapt and grow.

One leader who has adopted the latter approach is Keith Choy, the head of the Asia–Pacific unit of GlaxoSmithKline’s (GSK) Consumer Healthcare group. Choy is encouraging his team of 6,000 people to consider the pandemic a call to action, a chance to double down on existing digitalization initiatives and strengthen end-to-end supply chains to even better respond to emerging consumption trends across the 23 Asia–Pacific markets the company serves. All while speeding up the cadence of the company.

In October, Choy spoke with McKinsey’s Kenneth Bonheure and David Schwartz to describe how GSK is responding to COVID-19, how the company is guided by its values, and what global companies can do to succeed in Asia during COVID-19 and beyond.

The Quarterly: Describe the business environment right now. What are you seeing? What are you focusing on?

In October, Choy spoke with McKinsey’s Kenneth Bonheure and David Schwartz to describe how GSK is responding to COVID-19, how the company is guided by its values, and what global companies can do to succeed in Asia during COVID-19 and beyond.

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