How to fix broken systems - Kate Tarling (CEO, The Service Group)
Episode
40 min
Read time
2 min
Topics
Investing, Startups, Fundraising & VC
AI-Generated Summary
Key Takeaways
- ✓Status quo risk: Treating the current operating model as the "safe, neutral option" is the primary mistake large organizations make. The status quo carries real, measurable costs — duplication, slow decisions, invisible risk — and any transformation business case must start by quantifying what inaction is already costing, not just what change might risk.
- ✓Start with one vertical service: Rather than attempting organization-wide transformation, identify one end-to-end service that cuts across technology, operations, compliance, and legal functions. Map what good looks like for that service, align cross-functional teams around shared outcomes, and extract lessons before scaling the approach across the broader organization.
- ✓Portfolio remapping over new budget: Roughly 80% of transformation work involves redirecting existing investment, not securing new budget. Map all current projects against actual services in plain English, then sort into three buckets — strong fit, needs investigation, and candidate for stopping — to surface duplication and misalignment that no single leader currently has visibility over.
- ✓Triage function for incoming requests: When business or external requests flood in, establish a formal triage process requiring requesters to describe the problem and desired outcome before work is initiated. Staff it with people who know team capacity and strategic priorities, enabling informed trade-off conversations rather than reactive feature accumulation. NHS Head of Product James Higgott documents a working example.
- ✓Define services as verbs, not org charts: List what the organization does for customers using action-based language — claiming, getting support, renewing — rather than mapping to internal directorates. Attach measurable outcomes to each service. This outside-in framing gives every team, regardless of function, a shared reference point for steering decisions and evaluating whether current work is on target.
What It Covers
Kate Tarling, CEO of The Service Group and author of *The Service Organisation*, explains how large organizations can fix broken service delivery systems by reorienting around customer outcomes, restructuring investment portfolios, and building cross-functional leadership — without requiring a full organizational overhaul before seeing results.
Key Questions Answered
- •Status quo risk: Treating the current operating model as the "safe, neutral option" is the primary mistake large organizations make. The status quo carries real, measurable costs — duplication, slow decisions, invisible risk — and any transformation business case must start by quantifying what inaction is already costing, not just what change might risk.
- •Start with one vertical service: Rather than attempting organization-wide transformation, identify one end-to-end service that cuts across technology, operations, compliance, and legal functions. Map what good looks like for that service, align cross-functional teams around shared outcomes, and extract lessons before scaling the approach across the broader organization.
- •Portfolio remapping over new budget: Roughly 80% of transformation work involves redirecting existing investment, not securing new budget. Map all current projects against actual services in plain English, then sort into three buckets — strong fit, needs investigation, and candidate for stopping — to surface duplication and misalignment that no single leader currently has visibility over.
- •Triage function for incoming requests: When business or external requests flood in, establish a formal triage process requiring requesters to describe the problem and desired outcome before work is initiated. Staff it with people who know team capacity and strategic priorities, enabling informed trade-off conversations rather than reactive feature accumulation. NHS Head of Product James Higgott documents a working example.
- •Define services as verbs, not org charts: List what the organization does for customers using action-based language — claiming, getting support, renewing — rather than mapping to internal directorates. Attach measurable outcomes to each service. This outside-in framing gives every team, regardless of function, a shared reference point for steering decisions and evaluating whether current work is on target.
Notable Moment
Tarling notes that organizations often enthusiastically commit to becoming customer-centered or product-led — right up until it requires relinquishing budget control or sharing power across directorates. This gap between stated ambition and actual behavioral change is, she argues, one of the most consistent failure patterns she encounters across large institutions.
Episode Transcript
I find that even if you have a brilliant team doing, like, having just an amazing work, they will be hampered time and time again by how the organization works or doesn't work so well around them. The first mistake is imagining that the status quo is the neutral safe. The first mistake is you're not necessarily at all in that safe neutral place to begin with that you think you might be. But generally, products tend to be more clearly delineated. The emphasis tends to be on the thing itself on that product as opposed to that more kind of end to end service. And any service might have a number of products or it might not. One other version of this that you can do is when you're in a situation of getting a lot of requests coming in externally or by the business, you can set up a a triage function, enforces a sort of describe the problem and the outcome you're after, before you're gonna get past the first post. It's an entire collection of legacy technology, modern technology, outsourced services, third party services and products, in house products, some things that are more product like, some things that just exist and were built or were brought in by some ancient decision and and have never gone away. So it's a much messier reality. I would suggest starting not by trying to change the entire organization at once, but starting in one area, being really clear about what some of the issues are, what our customers are doing, what do we not want to happen, and starting to put in place different mechanisms to change that. Hi, Kate. How are you doing? Welcome to The Product Experience. Hi. It's a real pleasure to be here with you. And we're gonna be talking about service organizations today. But before we get stuck into our topic, it would be great if you could give our listeners a quick intro to who you are and what you do. I was gonna say in product, but you're kind of more on the service side. So what you do in service design? Yeah. Sure. And, yeah, that's a we can get more into into why I think that way. But these days, I do a lot of consultancy with large service providing and product providing organizations. I do a lot of training and workshops and, talks mostly with leadership and executives within those organizations, And I do writing of articles and a newsletter and, of course, the book, the service organisation. Tell us a bit more about your background. How did you get into this world of helping service organisations get better at reading? So it started almost in my early career. So I've always worked in organisations that were doing interesting things to do with the Internet, even in the, you know, early days of sort of the very early February, late nineteen nineties. And I first worked in a …
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