overcoming the organizational challenge
Post on 18-Jul-2015
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Introduction
Building an enterprise-wide, customer-centric strategy that is able to drive investment
decisions across the organization is critical to success.
But today’s organization does not enable a positive customer experience because it
does not have the operating model in place to exploit customer centricity.
What’s needed is an Experience Enabling Operating Model designed around
what’s right for the consumer, NOT what’s easy for the organization.
Lessons learned
KPIs
CultureStructure Roles and
Responsibilities
Incentives
and Rewards
Lesson 3:
Whatever you call it,
create a Chief
Customer Officer role
Lesson 5:
You are what you
measure
Lesson 4:
The business and
technology are in
this together
Lesson 1:
Start with the customer
experience
Customer
Experience
Lesson 2:
Assign organizational
authority and accountability
for the customer experience
Experience enabling
Operating model components
1
2 3 4 5
Data, Technology:The underlying tools to
enable people and
processes.
People and
processes:The internal operating model
that delivers on business
objectives Touchpoints: Points in time where
customer engages with
business though
media/channel
Interactions: Activities that customer engages
in with the business to
accomplish an objective
Experience: Perception based
on the sum of
interactions
Experience drives the organization
Organization often drives experience
But you should start with the entire experience in mind.
T O U C H P O I N T S
Touch points designed
without an overall strategy
for how interactions will
manifest in an experience
Many of today’s organizations allow the customer treatment to be defined at individual touch points.
Product Goals
Corporate Goals
Brand Goals
Brand Objectives
Design
Touch point
Online Objectives
Design
Touch point
Offline Objectives
Design
Touch point
Execute &
Measure
Execute &
Measure
Execute &
Measure
This means that when thinking about corporate processes, the experience design is an earlier activity.
J O U R N E Y
Customer experience defined first in
the form of a customer journey
Then the interactions
translated into touch pointsExecute and
Measure
Translate
Journey to
Interactions
Execute and
Measure
Design Overall
Journey
Corporate Goals
Measure
From silos of touch points to integrated journeys.
Product Goals
Corporate Goals
Brand Goals
Brand Objectives
Design Touch
Points
Online Objectives
Design Touch
Points
Offline Objectives
Design Touch
Points
Execute &
Measure
Execute &
Measure
Execute &
Measure
Execute &
Measure
Translate Journey
to Interactions
Execute &
Measure
Design Overall
Journey
Corporate Goals
Measure
E X P E R I E N C ET O U C H P O I N T S
Lesson 2
Lesson 2:
Assign organizational authority and accountability
for the customer experience
2
Structure
Customer experience inconsistent across product and
media/channels
•Divisions own P&L, strategy
•Marketing, sales and service controlled by divisions
•Media execution lack efficiency and coordination
Customer experience drives product and media/channels
•Marketing, sales and service - single governance
•Divisions support the customer experience
•Media measured and executed holistically
Changes to processes, mean changes to organizational structure.
T O I N T E G R AT E D
S T R U C T U R E
F R O M S I L O E D
S T R U C T U R E
Different organizational models are optimal in different circumstances.
Hig
hL
ow
Cu
sto
mer
Cen
tric
ity
HighLow
Media/Channel Integration
Degree of Customer Centricity
Custo
me
r C
en
tric
Pro
du
ct C
en
tric
KPI Goal Culture Makes Sense Looks Like
• Customer value
• Share of wallet
• Customer
experience
• Best solution for
customer
• Find products for
customers
• Relationship
management
• Customer
knowledge and
experience
delivery is a
competitive
advantage
• High degree of
customer overlap
across products
• Customer insight
led
• Customer
specific metrics in
place
• Product P&L
• New products
• Share of market
• Best product
• Find customers
for its product
• Product or
process
innovation
• Innovation is a
competitive
advantage
• Limited customer
overlap with
product
• Product
managers own
P&L
• If segments exist,
they are aligned
with division
Clarity on the degree of product vs. customer focus must understood, rationalized and shared
among leadership.
Hig
hL
ow
Cu
sto
me
r C
en
tric
ity
Degree of Media/Channel Integration
Regardless of
product vs.
customer focus,
media and
channel
integration is
important to
eliminating
artificial silos.
Phase
1
Phase
2
Phase
3
Phase
4
Phase
5
& DM
Digital Media
Integration
Mass Media
Integration
Digital
Channels
Integration
Offline
Channel
Integration
Fully
Integrated
Experience
Regardless of product vs. customer focus, media and channel integration is important to
eliminating artificial silos.
HighLow
Media/Channel Integration
Different organizational models are optimal in different circumstances.
Hig
hL
ow
Cu
sto
mer
Cen
tric
ity
HighLow
Media/Channel Integration
Division Centric
Low Integration
Customer
Centric
Low Integration
Customer
Centric
High Integration
Division Centric
High Integration
Card Services
President
Branded Card
Services
President of
Product 1
Product
Advertising
Analytics
Customer
Ex.
President of
Product 3
Product
Advertising
Analytics
Customer
Ex.
Centers of
Excellence
Operations
Direct Mail
Digital
Database
Service
Credit and Collections
Product Centric
Media/Channel Integration
Branded Card
Services
PRODUCT
STRATEGY
EXECUTION
CENTRALIZED
PRODUCT P&L
President of
Product 1
Product
Advertising
Analytics
Customer
Ex.
Centers of
Excellence
Operations
Direct Mail
Digital
Database
Service
Credit and Collections
Lesson 3
Lesson 3:
Whatever you call it, create a Chief Customer
Officer role
3
Roles &
Responsibilities
Source: Forrester 2014
Chief Customer Officers are on the rise.
• AKA: Chief Experience Officer, Chief Client Officer, SVP Customer Experience
• Still a new role, with average tenure of 2 years
• 58% are internal hires: operations, GM, marketing, sales, service
• 85% are part of executive team (up from 50% in 2012)
• Various spans of control
CCO
Chief Customer Officer
Chief Marketing Officer Chief Customer Officer
• Controls the marketing experience
• May influence other experiences
• Single point of control over experience
• Owns P&L outcomes
• Nurture the customer centric culture
• Marketing, sales and service
Increasing span of control
Culture
People /
Organization
Culture
Culture:
The set of habitual and traditional ways of thinking, feeling and reacting
that are characteristic of the ways a particular society meets its problems at
a particular point in time.
Organizational Culture:
The pattern of beliefs, values and learned ways of coping with experience
that have developed during the course of an organization’s history and
which tend to be manifested in its material arrangements and in the
behaviors of its members.
Culture must support rapid learning, application of insight to decisions, nimble collaboration around customer.
• Accountability to customer metrics; reward
differentially for customer related
performance
• Place trust in and empower employees to
drive to customer experience goals
• Communicate customer experience
achievements
Customer Centricity
• Support informed risk taking by
rewarding and measuring innovation
and learning rather than punish it
• Embrace constant changes and tweaks
- “fail fast, learn fast” (as opposed to a
big bang)
Agile Decisioning
CCO and CIO roles changing
Shared
accountability for
experience
Define and drive portfolio objectives via
an optimized customer experienceEnable and deliver on the
customer experience
CCO CIO
FROM
• React quickly to market
• Business focus, customer focus
• Develop own solutions
TO
• Be tied at the hip with CIO
• Know data and technology
• Plan for long term with CIO
FROM
• Mitigate risk
• Process oriented
• Well-established governance
• Aligned with Finance or
Operations
TO
• More agile and nimble
• Aligned with business
• Have a seat at the table with CCO
• Aligned with customer priorities
Marketing Technologist to Integrate CIO and CCO
VP of Marketing and IT to harness the power of Marketing and
Information/IT alignment
Customer journey
to define roles and
tools
Systems,
processes, tools to
enable experience
Half the team are
marketers with
affinity for
technology
Half the team are
technologists with
affinity for
marketing and
sales IT and marketing
culture of
collaboration
Tying strategy to employee motivations
Financial• Translate strategy and vision into
tangible measures for decision
makers
• Link these measures to
compensation - monetary
means to recognize and motivate
performance
• Link these measures to Reward
and Recognition - non monetary
ways to motivate employees
Customer
Innovation
Efficiency
Trend
From
Focus on salary
Pay for time
Value position, skills, knowledge
Reward individual
To
Total compensation, reward and recognition, culture,
professional development
Pay for performance and results
Value role being played and behavior demonstrated
Reward team and tie to culture
Management’s assessmentManagement, peer, customer assessment for a sense
of purpose
Summary lessons learned
KPIs
CultureStructure Roles and
Responsibilities
Incentives
and Rewards
Lesson 3:
Whatever you call it,
create a Chief
Customer Officer role
Lesson 5:
You are what you
measure
Lesson 4:
The business and
technology are in this
together
Lesson 1:
Start with the customer
experience
Customer
Experience
Lesson 2:
Assign organizational
authority and accountability
for the customer experience
Experience enabling
Operating model components
1
2 3 4 5
“Many companies lose sight of the experience they’re
creating for their customers.
Processes form organically over time, and few
organizations consider the customer experience as a
whole, let alone explicitly design, implement, and
measure it consistently across the board.
That’s where we hope to be different.”
Will you be disrupted or disruptive?
- Mass Mutual Life
Discussion
1. What’s the biggest organizational barrier (to delivering an above average customer experience) that currently encounter?
2. How can structure and process help overcome barriers?
3. How customer centric is your organization? How agile?
4. What roles need to be clarified or created in your organization to advance the customer experience?
5. What can you change starting this month to improve organizational performance with regards to the addressable experience
Thank You!
To watch the full webinar presentation, please head here:
http://bit.ly/1vJ2YvZ
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