One of the fastest growing business sectors in today’s economy is the knowledge sector – service-oriented companies or departments whose primary product is the knowledge and competence of their employees. (Read more about the knowledge sectors in USA and Australia).
For the knowledge organization, profits are generated through the successful management of intangible assets. This is in sharp contrast to the manufacturing organization, whose profits rely on tangible capital such as machines and factories. The difference is important, because most of the management models used today were inherited from this manufacturing tradition.
Tango provides a model which clarifies the business logic behind the knowledge organization and defines the specific factors which enhance profitability. These include familiar tangible factors such as pricing and capacity, as well as critical intangible factors such as image, know how, personal chemistry and individual competence.
Tango participants see how these intangible factors are directly linked to financial results, and learn practical strategies to manage them.
The biggest mistake a knowledge organisation can make is to exclusively focus on its customers.
Unlike manufacturing industries, the knowledge organization cannot afford to focus too heavily on its customers alone. That is because the knowledge organization constantly competes in two markets: the market for key customers and the market for key employees.
Developing this dual perspective and understanding how it affects corporate profitability is the first step in successfully managing a knowledge organization. Getting your staff to adopt this perspective and apply it to everyday business decisions is the next. Tango helps you do both.
Workshop Demonstration Photo
What is Tango?
Tango (from Lat. I touch) is a unique non-computerized business simulation designed for all decision makers in knowledge organizations. Participants are divided into four-member management teams. Each team is given a company to run for seven annual cycles, pursuing its business strategy in order to maximize profitability. Each team competes with the other teams for the same customers and key personnel. The simulation takes one day or two days (advanced level) to complete.
While factors like image, know-how and personal chemistry are not tangible, they are nonetheless real – particularly in the eyes of customers. Unless a knowledge company can find ways to visualize these intangible factors, it will have a hard time controlling and improving their offering. Managed properly, however, the intangible factors can be powerful assets.
Using simulations and discussion groups, Tango sheds light on intangible assets. It gives them tangible forms with names and values just like any other asset so that for the first time they can be visualized and managed.
Workshop Participation Photo
Participants learn by doing
Tango mirrors the real World. Participants are pitted against other companies who are constantly trying to steal the most valued employees and customers. Participants also test new ideas and see how they affect their company – they learn by doing as they choose their business strategy and then manage their tangible and intangible assets for long-term financial success.
Most importantly, participants learn to strike a balance between attracting the right employees and customers and ensuring adequate profits and cash flow. Taken on their own, these factors would seem relatively easy to manage. But the point of Tango is to demonstrate that none of these factors exists in isolation. Changing any one factor can radically affect the organization’s position in both the customer and employee markets and can eventually affect profitability.
What emerges is a clear understanding of how these factors affect a knowledge organization. Participants are able to apply what they learn to their individual situations leading to greater customer and employee satisfaction, as well as greater financial results.
Participants in Tango learn:
To formulate and implement strategies that incorporate both key people and customers.
To find the balance between increasing your company`s effectiveness and profitability for the short run and enhancing its strength over the long run.
How your company´s profitability (both short-term and long-term relates to investments in personnel, competence and confidence building measures with your customers.
The value of “indirect” marketing, such as customer care attitude and service to influence the company´s reputation. Your customers make their decisions to purchase based in large part on your company´s image.
How to measure success when your product, professional competence, is intangible. [KS1] Why? Because decision making has very little to do with computers. Also because human beings learn through the body. Learning is enhanced by actually being able to physically touch the environment.
Tango is designed for employees on all levels within organizations that do business based on the competence of their personnel. Number of participants: Twelve to twenty-four. Time required: One to two days.
Number of participants: Twelve to twenty-four.
Time required: One to two days.
The material is delivered complete with a simulation model (one per group), material for the participants and support material for the instructor. Instructors are trained and approved by Celemi. We will gladly help train instructors within the company.
Instructors are trained and approved by Celemi. We will gladly help train instructors within the company.
The value of the seminar derives from providing a complete overview of the company and a better understanding of the specific circumstances of knowledge companies, leading to increased effectiveness and success for the company in both the long and short run. Call us or write and we’ll be glad to show you how Tango can rejuvenate your company.