Overcoming the challenges in migrating from products to services: Facing the enemy within

Charging for services involves an organizational shift. Stephen Brown, director of the Center for Services Leadership, says companies must move away from what he calls the logic of manufacturing — how to make things, how to cut costs, how to increase efficiency — towards a logic focused on addressing customers’ needs. Unsurprisingly, the product-dominant firms themselves prove most resistant to this shift. "A service logic focuses on how to help customers solve their problems. This requires a deep and intimate understanding of customers beyond what most product-dominant companies have ever even considered," said Brown.

Product companies becoming profitable services providers

Many companies have been shifting away from a sole focus on products and have added services in order to drive continued growth and differentiate themselves in an increasingly saturated marketplace. In fact, services account for 80 percent of the U.S. GDP and similarly high percentages in the GDPs of other developed nations. In China, where the Center for Services Leadership recently hosted a symposium on the subject, services now account for 40 percent of GDP, up from 34 percent a few years ago. The key to a successful move into services, experts say, is to recognize that running a service business is not the same as running a product business, and that the transition will not happen overnight.

The new frugality: Will it last or languish?

Parsimony is a little like dancing, according to marketing Professor John Lastovicka. It’s something anyone can learn, but some have more talent for it than others. What’s more, the truly penny-wise take pleasure in their penny pinching. But, he adds, frugality is a tough road to walk, one he believes will be "difficult to make popular during times of plenty." Lastovicka is one of the few researchers who’s examined lifestyles of those who scrimp and save — work that’s especially timely during a recession.

Going for the green: Companies seek sustainability for the environment and the bottom line

As power costs increase and consumers and government put more pressure on business to reduce environmental harm, sustainability is becoming important to all kinds of companies. Sustainable service was the subject of a panel discussion at the Center for Services Leadership’s 19th Annual "Compete Through Service" symposium. Managers are starting to understand the advantages of being cleaner and greener, panelists said, but in order to bring about real change, the commitment to sustainability must be organization-wide. The changes have to make sense for the business and achieve impact beyond public relations.

Arizona Cardinals’ Super Bowl trip provides timely boost for Phoenix economy

"Victory is contagious, and food always tastes better when you win," says Ray Artigue, the former senior vice president of the Phoenix Suns, who is now a professor of practice in the marketing department at the W. P. Carey School of Business and director of the W. P. Carey MBA Sports Business Program. With the Arizona Cardinals playing in this weekend’s 43rd Super Bowl against the Pittsburgh Steelers, merchants will be selling a lot of food, beer, wine and other beverages this weekend in Phoenix. Fans are also snapping up truckloads of Arizona Cardinals caps, jerseys, t-shirts and other memorabilia. Although it’s hard to measure the impact of the game on the Cardinals’ home town, the extra cha-ching at cash registers couldn’t have come at a better time.

Sending clear messages: Communicating the ‘core idea’

People who know Mike Figliuolo likely were unsurprised when he founded a training and development firm called "thoughtLEADERS, LLC" in 2004. Up to that point, every stage of his career led seamlessly to the next, as he groomed himself in teamwork, delegating, structure, strategy and leadership. "My background is critical to the firm," he explained. "I spent so much time in meetings, listening to presentations that were poorly communicated and left me and other participants unsure of what the message was, what the next step should be and how their research backed up their hypothesis." Figliuolo was a speaker at the 19th Annual Compete Through Service Symposium, sponsored by the Center for Services Leadership at the W. P. Carey School.