Bob proud of his achievements and encouraged him to welcome the change and the opportunity to develop the business with broader product offerings. Cultural attributes Alex and the manager at I-C were able to motivate their team to make significant improvements even though the business was being sold (which could have caused serious moral Issues).

R?’? quality experience of the customer is greatly enhanced because the new strategy is designed to meet their needs – new strategy encourages stronger relationship with customer Time orders are fulfilled quickly so stores are not out of stock – new products are introduced promptly (reduces need to sell obsolete stock) Cost lower cost to customer based on cash flow advantages less obsolescence for both the customer and I-C lower Inventory holding costs for customer Yes, It was a good deal for unlock to sell.

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They got a high price and I-cosmetics was acquired by a company that was in a better position to leverage core competencies. Pressure-steam bought for almost $mom, valued at $mom They decided to keep but thought they could sell for $mom VGA and ETC found what customers really wanted (steam) And want?C,-1?: capital outlay; maintenance crew (customers are not in the equipment maintenance business) Offer leasing arrangements where AS owns and maintains equipment Customers get what they want and not what they want ?-?’?a Technical

Decision relevance is enhanced by more direct and frequent contact with customers. – Better process understanding because they own and maintain the equipment, AS can make engineering improvements that will improve cost and performance of the equipment for their customers Behavioral attributes Team needed to be motivated (Alex stepped in to support Stacey with this). – Taking the customer perspective helped the team find a solution. Initially, moral was very low due to the eminent sale of the business. Alex and Stacey were able to change the mindset of the staff so that they could focus on irking with management instead of against r ?’?a Quality customer – Customers are relieved of the necessity of maintaining their own equipment- Hiring technicians previously employed by customers alleviated stress of laying off the techs Downtime was an unresolved issue, but customers should see an improvement – Customers can get the equipment they need when they need it without an large capital purchase which could require board approval (which is rarely an efficient process) lower cost to customer based on cash flow advantages of leasing- customers lived of technician salaries reduces debt for customers who would have otherwise purchased equipment Nuncio decided not to sell. The improvement is in the concept, which they are more able to leverage as a core competency than another firm that might acquire AS. Preston Doughnut Tort $51. Mm valued at *mom solo S VGA customers should place smaller orders of wrappers (improves cash flow; reduces obsolescence) Prints more competitive in smaller batch market Promoted small batches (Lean KIT) by demonstrating to customers that larger orders frequently resulted in waste

Customers commit to large quantities, but release orders for smaller print runs as needed Cash flow considerations Prints sold as a model Customer experience is improved because with smaller batches they can make promotional changes without sizable penalty (obsolescence) – The business was sold as a model with process understanding being a key factor to improvements that can be leveraged in other divisions of the acquiring company Behavioral attributes realization that being acquired by a printing company that would be more willing to invest in its success changed his attitude about the sale. Taking the customer perspective helped Pete find a solution. Designed to meet their needs – Customers purchase the quantities they want when they need them – Excess wrappers on hand is no longer an impediment to changing the design to meet promotional needs Smaller batches can be processed more quickly Design changes do not create obsolescence lower cost to customer based on cash flow advantages of smaller orders – maintaining smaller inventory lowers cost Yes, it was a good deal for Nuncio to sell.

They got a high price and the prints was acquired by a company that was in a better position to leverage its core competencies. Apply TN e want Ana t ** Has Alex become the new Joana? At the beginning of the book, it took the threat of having his companies sold to motive Alex. Clouds Thinking process to articulate conflict, identify true drivers (why is each person taking this position; what underlies the conflict) and possible results of conflicting actions/outcomes. – Brainstorming technique. Point out undesirable consequences with the intent to get to the real problem. Question assumptions. Used when there is a conflict with no acceptable compromise