Join us as we sit down with a Grammy-nominated music producer and the proprietor of New York’s iconic Katz’s Deli to discuss three meaty components of successful change: customer focus, innovation and agility.
Young Guru: One of the biggest things in the music business that we were sort of the litmus test of what the internet did to business. You see most of the major music studios in New York are gone.
Joie Chen: You're traditionalists. Do you really even think about innovation?
Jake Dell: Yeah, it's that balance of us being terrified of change and sometimes recognizing that our customers want to see certain things changed.
Jake Dell: They demand it. Joie Chen: Like what? Jake Dell: Like the sandwich in front of you.
Joie Chen: This represents change?
Jake Dell: Yeah.
Joie Chen: Because the kosher rules are that you can't mix the meat and the dairy.
Jake Dell: And the dairy. Right
Joie Chen: You work with the biggest artists in the world. Jay Z at the head of your list. How do they approach change?
Young Guru: We were forced to. I was wondering how the guy who made computers and made phones took over my business. Which takes you back to the business of understanding what you are selling. Some companies thought they were selling the plastic not understanding that they're selling the music.
Julio Hernandez: You know it’s interesting…in our profession a lot of our clients get to be really large, so they're spending so much time running their business and thinking about operations, thinking about risk that they sometimes lose the plot in terms of listening to their customers, right?
Joie Chen: You think banks can’t change but technology has totally blown up financial services.
Carl Carande: Yeah, at KPMG financial services is our largest sector. I had a client a couple of years ago, they clearly had a bad technology infrastructure. They just wanted to take legacy technology and upgrade it but I brought them back thru the very difficult conversation, “who’s your customer?” “What do you want to be?”
Young Guru: The basics
Carl Carande: It’s interesting, my daughter got married and so she had to change her last name on her accounts. If you’ve been in a brick and mortar branch lately, they’ve done a lot of innovation. Client assisted ATMs. You can talk to someone thru the ATM in the branch. So they said “when’s the last time you’ve been in this branch?” And she thought about it and said “the day I opened the account”. Nine years earlier. You think of all the innovation and investments they’ve made in this brick in mortar, their next millennial clients, I don’t think they care.
Joie Chen: I think about technology and how obviously it changes some businesses, but it also is destined to change yours. Jake Dell: For me it's shipping. That's where technology can actually factor in and help me grow the business a little bit without doing it in a way that's offensive to customers in a way that actually is something they want. Julio Hernandez: The brand sets an expectation. Companies have to figure out am I setting the right expectation with the customers that I want, and when you get that right, there’s magic.
Carl Carande: Really what's crazy, when you listen to the similarities of the challenges we're facing, a lot of consistencies, we have to look at the signals of change, where do I want to learn, what excites me. We are doing this at KPMG within our service lines, within our practices, with in our technology components. It takes real dollars, energy, effort to make sure it's not just today, it's tomorrow and the day after that.