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2011-10-25
What has happened to the industry?

What has happened to the industry?

Trying to create a new cloak from old cloth just does not work. What is missing is the importance of relevance in the strategic process.  (this article is about the Canadian market.)

The recent past has seen new restoration contractor networks formed, new restoration vendor programs deployed, and other restoration vendor programs slip into a lower gear or disappear altogether. The immediate future promises a major vendor review and another new service offering. Of course, evidence of action is not necessarily proof of relevance. The question to always ask is whether change leads to relevant progress or is it merely action without value.

The root issue to examine is the reason for the activity. There are a couple of possible motives:

First, industries that contain very limited competitive differentiation tend to repackage the same old services under the guise of creativity. Thus, every now and then, contractors’ marketing departments or insurers’ supplier management departments find little evidence of value in their current practices and decide to do things over again – making a few tweaks to the old staples of ‘price control’ and ‘customer satisfaction’.

Secondly, there are widely-held beliefs that (a) major networks of restoration contractors offer the best service and price solutions and, (b) that the largest insurers make the best partners. Yet it’s crystal clear that the major contractor networks have limited service uniformity and to depend on the largest insurers for consistent, sustained revenue is like sitting down for dinner with a grizzly – you’re likely to be the main course. However, even the repeated failure of this ‘bigger is better’ business model fails to deter the key players.

Let’s take a closer look at two notable examples of where the industry is off-target: read more

"Relevance" by Shaal Consulting  - read it here