The ANSOFF matrix – a good basic tool for analysing and

planning where an organisation may go, and assessing the risk

Low risk Medium risk

Market extension Product/service development

Existing

More of the same to existing Need to be clear about resource

customers – concentrate on implications
strengthening cost efficiency,
productivity and customer
service
Markets

Medium risk High risk

New

Market penetration Diversification

New customers? Higher risk and significant

resource implications

Existing New
Products

Discussion: analysing and planning to meet customer needs and

expectations -

1. What strategy is your Organisation/your Dept. implementing now for it’s

products/services – you will need to place products/services in an appropriate
quadrant?

2. Is this the right strategy in terms of meeting customer needs and

expectations?

3. Is implementation effective?

Source: Smith, I. (1994) Meeting Customer Needs

IoM Butterworth –Heinemann pp 63

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The BOSTON matrix – one of the most widely used concepts
for managing product/service portfolios. Intended to help senior managers in
larger organisations control and manage a number of disparate
companies/products/services in the Group

STARS QUESTION MARKS

(PUBLIC SECTOR STARS) (POLITICAL HOT BOX)
Phase out
if not able
High

to make
into STAR
Market growth rate

Low

Phase out
if cannot
make
profitable

CASH COWS DOGS

(GOLDEN FLEECE) (BACK DRAWER ISSUE)

High Low

Relative market share

Discussion: analysing and planning to meet customer needs and

expectations -

1. Place the current products/services provided by your organisation/department

on this matrix?

2. Now decide whether any movement is needed between quadrants? If so, how
might this be achieved?

Source: Boddy and Paton, 2000

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CASH COWS:

High market share, low costs, to be “milked”, paying for “stars” and “?” research

GOLDEN FLEECE:

Service that is well resourced but no longer meeting a key public need, likely to be
viewed as overstaffed and a drain on resources, likely to be suffering budget cuts

STARS:

High market share in growing market but costs still high; both generating and using
significant cash, likely to be future “cash cows”

PUBLIC SECTOR STAR:

High priority among the public and other stakeholders, likely to be well-funded

QUESTION MARKS:

Low market share in growing market, early stage of development, high costs, “jury
out” regarding payback potential, research, investigation and evaluation needed

POLITICAL HOT BOX:

In high demand but too new or inadequately resourced to be delivered effectively

DOGS:

Low market share in low growth markets, likely to be draining organisation of cash
and using up too much management time, sometimes a previous cash cow that has
had its day (end of life cycle) or a question mark or star that has not made it!

BACK DRAWER ISSUE:

Low priority service with low funding, sometimes a previous golden fleece or a public
sector star or political hot box that has not made it!

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 PRODUCT/SERVICE LIFE CYCLE
INTRODUCTION GROWTH MATURITY PROMO EXTENDED SATURATION DECLINE
TURNOVER ££ and/or Recipients of service

BOOST MATURITY

TIME

Discussion: analysing and planning to meet customer needs and

expectations –

1. Place your organisation’s/department’s products/services on this graph

2. Is there sufficient planning happening in the organisation to ensure that

“extended maturity” is prolonged for as long as possible

Source: Smith, I. (1994) Meeting Customer Needs

IoM Butterworth –Heinemann pp 65-66

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QUALSAT MATRIX – this is one method of analysing
performance as a basis for planning to meet the needs and expectations of
customers

High

Satisfaction/quality
barrier
QUALITY

Low

Low High
CUSTOMER SATISFACTION

Discussion: analysing and planning to meet customer needs and

expectations –

1. Place your organisation’s/department’s product/service portfolio on this

matrix. What measures and research/feedback data have you based this on?

2. What needs to be done to raise all the portfolio into the top right matrix and
keep it there?

Source: Smith, I. (1994) Meeting Customer Needs

IoM Butterworth –Heinemann pp 170

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 CUSTOMER FOCUS, MARKETING & PLANNING – summary action plan proposal
Action needed to Who needs to Who else will Realistic Costs/resource What targets/measures How will success be
improve customer focus be need to be timescale? commitment? can be set? monitored and
responsible involved? evaluated?
for driving
this?

SMALE Consulting Ltd.

 Action needed to Who needs to Who else will Realistic Costs/resource What targets/measures How will success be
improve customer focus be need to be timescale? commitment? can be set? monitored and
responsible involved? evaluated?
for driving
this?

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 ORGANISATIONAL STRUCTURE – meeting
customer needs?

TALL

Narrow “span of
control”

FLAT

Wide “span of
control”

Function Function Function

manager manager manager

Project
manager MATRIX

Complex “spans of
control”
Project
manager

Project
manager

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Discussion: analysing and planning to meet customer needs
and expectations –

1. Draw a diagram to represent the organisational structure of your

organisation/department

2. Is this structure responsive to the needs of customers? If “yes”, how? If “no”,

why not?

3. How could the structure be improved to better meet:

External customer needs?

Internal customer needs?

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 A CUSTOMER FOCUS CHECKLIST
Always Usually Sometimes Rarely Never
Customer requirements are
communicated to service
employees

Changing requirements of
customers are captured

Organisation/Dept. has
appropriate timeframe
to respond to
customer needs

Organisation/Dept. anticipates
customer expectations

Organisation/Dept. makes customer

retention a priority

Organisation/Dept. encourages
satisfaction of internal
customers

Organisation/Dept. pays particular

attention to personal
service

Customers are encouraged

to complain

Re-organisation is to make
Organisation/Dept. more
responsive to customers

Customer complaints are

measured

Delivery performance is
measured

Customer satisfaction level

is measured

Major/loyal customers are

rewarded

Quality of relationship with

customers is measured

Organisation/Dept. has a
“passion” for customer satisfaction

Source: Adebanjo and Kehoe (2001) An evaluation of factors influencing teamwork and customer
focus Managing Service Quality Vol. 11 No. 1 pp49-56

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 Customer Focus – a commercial imperative

George Cox

Read this article and consider the following questions in preparation for a group
discussion:

1. Profit-making businesses with stiff competition have a “commercial

imperative” to get customer focus ‘right’. To what extent does this also apply
to your Organisation/ your Department? Are you very different to a
commercial business?

2. How strongly does your Organisation / your Department concern itself with
making it easy for people to deal with them?

3. To what extent does your Organisation / your Department understand the

needs of its customers?

4. Do quality initiatives, systems and processes in your Organisation / your

Department concentrate on making things better for the staff or better for the
customers?

5. What is the difference between customer service and customer focus?

6. Is it impossible to dial a wrong number in your Organisation / your

Department?

7. Is your Organisation / your Department sufficiently customer focussed?

8. What could you be doing/influencing to improve customer focus in your

Organisation / your Department?

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