CCA Research Council ReportPlanning and Achieving ChangeSee Business Differently Ltd.Stephen Parry, Beverly Evans, Susan B...
Key HeadlinesCustomer contact centres are facing unprecedented challenges and transformation is essential forsurvival. Pre...
Executive SummaryThis paper outlines a framework to provide organisations with insight into the following questions:    • ...
ApproachThis paper outlines a three-stage framework for designing, building and changing organisations to helporganisation...
Executive DirectionData for these areas (highlighted in green) is usually provided by senior executives. Operational staff...
Operational ResponsibilitiesOperations need to create an operating strategy and change approach to execute the overall exe...
•   Mass Specialisation: The Department Store       The customer is offered more choice, usually (but not exclusively) und...
Customer Service Climate Characteristics                                                             Customisation        ...
Improvement or Transformation?Organisations must ask themselves do they want to improve what they are currently doing or d...
Organisations, in order to differentiate themselves, need to consider if the day-to-day operation (front-line staff and 1s...
Using the frameworkStage One: Can we deliver today’s business?This identifies if the business can deliver against its curr...
Defining the Change ApproachHaving defined the gap and identified the capabilities, a change approach needs to be selected...
Proactive and Reactive ChangeIf change has become urgent and the organisation finds it is working from quadrant C, the opp...
Decision-making and responsibility changes                                             Before   After                     ...
Capability   Climetrics® : Service Climate Comparison Typical Industry Distribution Strength                            Wa...
Footnotes and other white papers from See Business Differently.           1. CCA White Paper: Sense and Respond, New Princ...
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Planning and Achieving Change (CCA Research Council)


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Details presentation to the CCA from Stephen Parry, author of "Sense & Respond: The Journey to Customer Purpose."

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Planning and Achieving Change (CCA Research Council)

  1. 1. CCA Research Council ReportPlanning and Achieving ChangeSee Business Differently Ltd.Stephen Parry, Beverly Evans, Susan BarlowNovember 2008 V3.1Price £95 © Copyright 2008 See Business Differently Ltd.
  2. 2. Key HeadlinesCustomer contact centres are facing unprecedented challenges and transformation is essential forsurvival. Pressure exists to improve customer experience, reduce operating costs, motivate staff andcreate differentiation.Traditional customer service models and call centre designs no longer meet the needs of the moderncustomer. This calls for a new approach to organisational design, development, leadership and change.So, where does an organisation begin?This paper outlines a number of new key concepts.Change CapabilitiesThere are numerous types of change initiatives within organisations, from tactical improvements withinthe local workspace to large, strategic change to structures and technologies. In order transform any ofthese situations effectively, these simple questions must be asked: ‘What does the organisations changecommunity look like? and ‘Does it support my current business model?’ This document will provide someinsight into these important questions, and the answers will be unique to your situation.Operating Mode:There are many types of businesses ranging from simple, transactional businesses to high-valueprofessional services. Trying to deliver high-value services in a transactional mode will be disastrous. Aclear understanding of the operating mode is necessary to clarify your approach to change and the typeof change you need to produce. Within this paper, See Business Differently provides a useful guide tohelp you determine both your current and future operating mode.Service ClimateThe Service Climate is the combined perceptions of customers, employees, managers and leaders; it isan outcome of the day-to-day behaviour of your business. It predicts the performance and long-termprofitability of an organisation. Understanding your current service climate will provide insight into theselection of approaches required to create change in behaviour of both customers and employees. SeeBusiness Differently uses a service-climate diagnostic, Climetrics® (4), to measure how well theorganisation, as a whole, identifies, understands and delivers value against customer needs.The soft stuff is the hard stuffSee Business Differently firmly believe the key to successful change is the creation of changecommunities (change capabilities) that reside within or as close as possible to front-line operations. It ispeople who create change and it’s a change in their behaviours that sustains it. Even if you areimplementing a change program based on technology, placing behaviours at the centre of your programwill always deliver a better return on investment and improve both engagement and acceptance. ‘Youget the behaviour you design for’. So how do we design better behaviours and infrastructures at thesame time?To start, the organisation needs a change framework, a clear understanding of its chosen operatingmode, the type of change capability it wants to create, and the kind of service climate it would like toestablish. © Copyright 2008 See Business Differently Ltd.
  3. 3. Executive SummaryThis paper outlines a framework to provide organisations with insight into the following questions: • What type of operating model best suits our needs? • What organisational capabilities do we require? • What are the implications for our change management teams? • What type of leadership and executive support do we need? • How can we determine if our contact centre has the maturity to change? • What type of change approach should we use to gain involvement and commitment?The Challenge‘How do we translate an executive strategy into an operational design, implementation plan and ourongoing managing practices?’ And, ‘how can I influence the change agenda?’Solution ApproachWhat is required is a universal set of approaches and methods that can be used by any customer contactcentre given their unique operational circumstances and maturity.Assessing Readiness for ChangeIn order to move the organisation to its future state or change its operating mode, it is necessary todetermine the elements that need to be removed, strengthened and created.Solution DesignHaving identified what needs to change, an approach needs to be selected and change elementssequenced into a route map.This paper will discuss various change models and highlight the critical factors that influence the choiceof approach and route map design. © Copyright 2008 See Business Differently Ltd.
  4. 4. ApproachThis paper outlines a three-stage framework for designing, building and changing organisations to helporganisations introduce new managing practices and operating structures.The change assessment framework and subsequent route map planner focuses on understanding thealignment between the following areas: • Operating Model • Operating Mode • Organising Systems • Managing Practices • General Service Climate (i.e. operational performance and behaviour) • Delivery CapabilitiesParticular attention will be given to the following areas: • Ability to define and measure customer value and end-to-end delivery performance. • Ability to share customer data and operational performance information at all levels within the organisation. • Ability of the organisation to introduce innovation and improvement. • Leadership styles and drivers at each level within the organisation.Discovering the current stateA clear understanding of current operational practices, capabilities and change readiness is required. Inaddition, the organisation needs to gain insight into the operational practices that need little or nochange and those practices and capabilities that it needs to create in order to move to an adaptiveservice model, focussing on meeting ever-changing customer needs.(1)Information gathered during this exercise will need to be socialised with senior teams and providevaluable input into the future state design and implementation route map.The route map needs to focus on leveraging previous investments in technologies, practices and skills.Change Assessment FrameworkExecutive teams are responsible for determining the market positioning strategy, offerings and businessstrategy, while operational teams need to create an execution plan or operating strategy.An example of the See Business Differently change assessment framework can be seen in Fig 1 © Copyright 2008 See Business Differently Ltd.
  5. 5. Executive DirectionData for these areas (highlighted in green) is usually provided by senior executives. Operational staffwill need to translate these activities into an operational plan. However, it is not uncommon to findsituations where executive teams have not clearly defined the company’s market positioning, offerings,means of differentiation or even the business strategy. In these situations, contact centre operationalmanagers have two choices: 1) Do the best they can with the current lack of direction and hope they are doing the right thing. 2) Take a leadership position and use customer data from the contact centre to inform and drive the executive agenda. (1), (2).Alignment between the executive objectives and operational execution is often perceived as anexecutive responsibility. However, operations are closest to the customer and understand customers’deepest needs; operations, therefore, must take the leadership position if there is to be a realtransformation in the customer experience, employee engagement and long-term profitability. Market Position Market Position Strategy The market position strategy defines how the organisation positions itself in theExecutive Strategy Offerings and market place against its competition. Some areas to consider are: Differentiation Business • Industry sector and customer groups. Strategy • Level of value creation (Are services simple transactions or professional Operating services?). Model • How does the organisation differentiate itself within the sector? Operating Mode • Market dominance, cost advantage, value advantage, price leadership. OrganisingOperations Systems Managing Offerings and Differentiation Practices An organisation must be clear about what it intends to provide and how. In addition, it should ask itself whether or not it has packaged its goods and Service Climate services in an accessible form. Can customers easily buy the goods and services? Ideally, offerings should be differentiated in some way. Behaviour Differentiation may come in many forms. The offerings themselves may be Performance unique, or the way in which services and products are delivered may increase customer value. Maturity GapGap Business Strategy Foundations Gap Business strategies usually comprise: Corporate Culture: Fig 1 Values, mission statements, leadership style, team work, flexibility/adaptability and change management. Strategic Intent: Futures, re-engineering, downsizing, organic growth, acquisitions, restructuring, share price, sales, profit, earnings, productivity, volumes, core business and new product or service development. Strategic Planning: Vision, goals, aims/objectives, analysis, business development. © Copyright 2008 See Business Differently Ltd.
  6. 6. Operational ResponsibilitiesOperations need to create an operating strategy and change approach to execute the overall executivestrategy.Operating ModelWhen considering change, a clear understanding and definition of the currentand future operating model need to be articulated. (4) For example: Market Position Executive Strategy Offerings and • Does the organisation have a virtual model, using technology to link a Differentiation distributed advisor resource such as home workers? Business • Are all delivery capabilities fully owned and controlled by the company? Strategy • Does the organisation operate a fully outsourced, on-shore or offshore Operating model? Model • Does it operate a centralised (one or two big locations) or distributed Operating model? Mode • Does the organisation operate in-house call centres with outsourced call Organising overflow? Operations Systems • Does it operate a web-based, agent-less model? etc. Managing PracticesThe list and combinations can be extensive; however, defining both the currentand future operating model are key to understanding the later construction of a Service Climatechange/transformation plan. BehaviourOperating ModeSee Business Differently research (4) has demonstrated there are typically four Performancetypes of customer service operations, each requiring different managementfocus, employee skills and customer engagement. Maturity Gap GapUnderstanding the current dominant mode and future mode of operating willassist in the formulation of a change/transformation plan. Below is a brief Foundations Gapsummary of each mode. Fig 2 • Mass Production: One size fits all This is a spray-on service. It has low variation in types of offering; employee skills are basic and customer engagement is transactional. Competitive basis is commoditised into high-volume, low-value work. Delivery models usually include automation and off-shore solutions. Management focus is on costs and agent utilisation Change capability resides in centralised, specialist groups for all types of improvement and change. • Mass Customisation: One size fits all with options The customer experiences more choice, but the model is a variation of the one-size-fits-all. The employee helps the customer select from a fixed menu of options. The customer experience and employee engagement, however, are relatively low. Competitive basis is commodity-driven with an emphasis on providing value-add. Delivery models include automation and off-shore solutions. Management focus is on cost, efficiency and the standardisation of customised options. Change capability resides in specialist groups for large projects and local specialists for process improvement. © Copyright 2008 See Business Differently Ltd.
  7. 7. • Mass Specialisation: The Department Store The customer is offered more choice, usually (but not exclusively) under one roof or on the same phone call; however, customers must know which service they want, where to obtain it and integrate each one from different sources. Since employees possess deep specialist knowledge, they will engage customers at a much higher level, and the customer experience is personal and solutions standard. Competitive basis is in-depth specialities connected to expert communities. Delivery models use skill-based routing and expert ‘presence’ networks. These may include off- shore capabilities when professional skills are more valuable than cultural skills. Management focus is on developing knowledge within staff, capturing and reusing solutions and efficient solution delivery. Change capability resides in advisors for process improvement, local specialists for all other aspects of business improvement, centralised resources for project or program management for interdepartmental or technical change. • Mass Adaptation: The Personal Shopper The service will provide personalised advice to suit the individual. Employee skills are high and they will integrate and combine all solutions on the customers’ behalf in unique combinations, resulting in high customer and employee engagement. The customer experience, therefore, is personal and unique. Competitive basis is a trusted advisor and expert. Delivery models need to support high customer contact time, solution research and delivery effort. Management focus is on developing customer relationships, creativity, expertise, customer assurance, developing front-line decision-making and customer business outcomes. Change capability resides in the advisor community for engaging with customers, learning from customers, developing change plans and leading change. High-level project management for structural or technical change is usually found in centralised teams.The operating-mode characteristics clearly illustrate how the underlying work-design principles impactthe customer experience, employee involvement, management focus, delivery models, changecapability and leadership styles. Mass Specialisation Mass Adaptation Personal and standard Personal and unique One size fits all with options One size fits all © Copyright 2008 See Business Differently Ltd. Mass Production Mass Customisation
  8. 8. Customer Service Climate Characteristics Customisation Specialisation Adaptation Production Mass Mass Mass Mass Enhanced One-size fits all. The Department Character One-size fits all with The Personal Shopper Spray on Service Store options More Choice from a Personalisation. Fixed Menu Offerings Low variety variety of standard Individualisation. of simple options offerings Act on customer behalf. Employee Understand basic Employee has specialist Expert knowledge toEngagement Basic provide integrated Skills Option configurations Knowledge and skills solutions.Customer Transactional Customer and Employee High Level of Customer Customer experience isExperience and Processed Interaction relatively low Engagement Personal and Unique Commoditised Commodity Driven In-depth specialitiesCompetitive Trusted Advisor and High Volume Emphasis on providing connected to expert Basis Expert Low-Value Work Value-add communities Developing Knowledge. Creativity, expertise, and EmployeeManagement Cost, Efficiency and Capture and reuse front-line decision Utilisation, Cost, Focus Co-ordination solutions. making. Work Intensification Optimised Delivery. Customer outcomes. Fig 3 © Copyright 2008 See Business Differently Ltd.
  9. 9. Improvement or Transformation?Organisations must ask themselves do they want to improve what they are currently doing or do theywant to transform their business? If improvement only is needed, then the organisation should clearlyidentify its current operating mode and take steps to enhance it.If, on the other hand, the business needs to change what it does, such as moving away from remedialbreak-fix services towards providing managed services, then a transformation in the operating modeshould be considered.Organising SystemsOrganising systems are the subsystems designed to control, monitor and enable effective and efficientdeployment of operational resources. Some of these include: • Reward and recognition systems • Governance systems • Management review • Fiscal control • Performance review • Process-management systems • IT reporting systems • Workflow systems • Resource and capacity planning systems, etc.In order to facilitate and sustain change initiatives, consideration must be given to those organisingsystems that would create a barrier or accelerate change.Managing PracticesManaging practices establish the conditions for an effective service climate, drive employee behaviourand produce the customer experience. (3) They are the methods used by staff and management for theplanning, organisation and control of work with particular emphasis on: decision-making, performanceimprovement, innovation, customer-knowledge sharing, standards and change capability.An organisation should also consider these questions when evaluating its managing practices: • What methods are used to determine operating key-performance indicators? • Does a mechanism exist for capturing customer needs and routinely sharing them with the entire business? • What mechanisms are in place to help the workforce improve its workplace and end- to- end processes, even when the process leaves the confines of the customer contact centre?High-performing customer contact centres that create long-term profitability, a superior customerexperience and service climate pay particular attention to the managing practices that create wealthfor the both the customer and the business.(2)These practices go beyond the day-to-day management of resources and the hypnotic drive to providethe fastest and most efficient means of processing work. Instead, they focus on the creation ofcustomer value and the maximisation of employee potential. © Copyright 2008 See Business Differently Ltd.
  10. 10. Organisations, in order to differentiate themselves, need to consider if the day-to-day operation (front-line staff and 1st line management): • Understands and interprets individual customer needs • Makes sense of customer needs and their implication for the business • Shares customer needs systematically across the business • Encourages first-line management to train front-line staff to listen and adapt to customer needs, instead of simply directing and controlling operations to hit output targets. • Help employees improve their workplace and end-to-end processes (end-to-end, includes the processes that leave the confines of the customer contact centre) • Involve front-line employees, who are most knowledgeable about customers’ needs, in the improvement of products and services.Research (3) has shown that these areas have a significant impact on an organisation’s ability todifferentiate itself and have an enhanced operational performance and a superior Service Climate.Service ClimateThe Service Climate is the combined perception of customers, employees, managers and leaders. Itpredicts the performance and long-term profitability of an organisation. See Business Differently uses aservice- climate diagnostic, Climetrics® (4), to measure how well the organisation as a whole, identifies,understands and delivers against customer needs.BehaviourMany years of research have demonstrated that people cannot be instructed or coerced to behave in aparticular way if the desire is long-term behavioural change. Our own Service Climate Managementresearch (3) has shown that ‘You get the behaviour you design for’. The biggest influence on thebehaviour of staff and managers is the managing practices adopted by the company in response to thedesign of the operation. It is no coincidence that behaviour in this model is shown as an outcome alongwith operational performance.The four operating modes: mass-production, mass-customisation, mass-specialisation and mass-adaptation will provide insight into the type of behaviour an organisation wants to create, as eachoperating mode requires different types of customers, employees and management behaviours.Often in the absence of a good operating system, companies resign themselves to checking and policingbehaviours (coercion) as a means of mitigating the problems associated with a bad operating system.Maturity GapThis is a measure of how advanced or sophisticated the current operation is. Often businesses try tomove an operation to a higher level of maturity without understanding how secure and confident peopleare with the current approach and their ability to take on new challenges.Foundation GapOperational weakness will surface during a time of change. Therefore, before any change iscontemplated, a close examination of how well the current operation delivers against today’srequirements is needed. A realistic assessment will determine if the operation is currently ‘just-coping’when meeting today’s demands. The change programme will expose any operational weakness veryquickly. Failure points can surface in the most unexpected way, throwing the change programme intodisarray. It will be the change programme, not the current operational weakness that will come intodisrepute. © Copyright 2008 See Business Differently Ltd.
  11. 11. Using the frameworkStage One: Can we deliver today’s business?This identifies if the business can deliver against its current commitments and identifies correctiveactions to create sound foundations.Stage Two: Can we deliver tomorrow’s business?The same framework is used to articulate new business requirements and the characteristics of thefuture-model.Stage Three: What is the change-programme design and route map?The organisation should evaluate design options, and it needs to select a change approach and designthe route map.A very simple Red Amber Green system can draw attention to the areas most in need of definition,design and improvement as illustrated below: Can we deliver today’s Can we deliver tomorrow’s Change Programme Developed business? business? Design Business Market Position Market Position New Market Positioning Market Position Executive Executive Executive Strategy Strategy StrategyExecutive Executive Executive Offerings and Offerings and New Services Offerings and Differentiation Differentiation Differentiation Business Business Business Strategy New Business Strategy Strategy Strategy Operating Operating Operating Model Model Model Current initiative Operating Operating continuance Operating Mode Mode Mode Capabilities to Organising Organising Organising Integrate Operations Operations Operations Systems Systems Systems Capabilities to Managing Managing Develop Managing Practices Practices Practices Capabilities to Service Climate Service Climate manage out Service Climate Behaviour Behaviour Select Change Behaviour Approach Performance Performance Performance New initiatives Maturity Gap Maturity Gap Mature Operation GapGap Change Programme Design (Route Map) Adaptive Foundations Gap Foundations Gap Capabilities Fig 4 © Copyright 2008 See Business Differently Ltd.
  12. 12. Defining the Change ApproachHaving defined the gap and identified the capabilities, a change approach needs to be selected. Everyorganisation has its preferred or established approach to change; however, it makes sense to leveragethe existing change approach if it has an established track record of success.What Change Communities Does the Organisation have at its Disposal?There are usually a number of approaches available to an organisation depending on how they viewresponsibility for change and improvement. The established change community will illustrate thedominant leadership thinking behind change in general, either top-down dictatorial or bottom-up.Typical change communities are front-line operatives; specialist groups, either in front-line operationsor central change teams; or senior, trusted advisors working with the executive teams.The diagram below demonstrates how a change approach should be selected based upon theorganisation’s dominant change community set-up and the level of urgency behind the change.The scope of change (i.e. is it a unit-level change or a cross-functional organisational change?) needs tobe considered. To overcome change resistance, a combination of top-down and bottom-up approachesare needed. This will create true involvement and workforce acceptance for new ways of working. Change Approach Planner Integrated Coordinated Multiple initiatives Internal Learning schools Aggressive Trusted Advisor and shared knowledge Transformational Dictatorial Organisational A C Co-ordinated Top Down Dictatorial Un-coordinated Integrated Learning Dictatorial Change Community Infrastructure Rapid Push Integration and High rework Specialist Integrated Learning Point Solutions and Low re-work Dictatorial Reactive B D Organic Learning Coaching Bottom up Improvement Unit level Community Point Solutions Experiments Local Workforce Proactive Continuous Improvement Reactive Proactive Fire fighting Local Interest Groups Reactive LOW Urgency HIGH Proactive Reactive Optimum Zone = © See Business Differently 2008 Fig 5The Difference between Front-line Involvement and ConsultationVery often organisations choose a centralised, change-team approach to drive change without havingfirst built up any front-line change capability. In these situations, employee involvement andcommitment is very limited and change will encounter significant resistance, even failure. Employeeengagement is usually limited to discussions and communication. This is not employee involvement; it ischange consultation. Front-line involvement means the staff themselves are designing, driving anddelivering change. Encouraging front-line operations to be involved in the early design stages or evenasking them to create a new future state themselves will increase change commitment, aidcommunication and speed up implementation. To many senior teams this will seem like a loss of control,but the process is counterintuitive, providing greater control and increased change velocity. © Copyright 2008 See Business Differently Ltd.
  13. 13. Proactive and Reactive ChangeIf change has become urgent and the organisation finds it is working from quadrant C, the opportunityfor a more-considered, proactive approach will be somewhat diminished; however, recovery is stillpossible, providing there are high levels of communication and reassurance to the workforce.Organisations need to understand that approaches that are highly-reactive and urgent by nature becomehighly political and depend on position power for their execution. This form of change carries higherrisks of alienation and failure.The strong advice emerging from change modelling is to build change capability into front-lineoperations on a daily basis. This will create a long-term, core competency that can be leveraged attimes of crisis and reduce the stress of change programmes, spread the cost of training and, moreimportantly, gain more commitment and optimism from all stakeholders.It is clear organisations that can change rapidly are more likely to prosper in the new-world economies.Ultimately, a change approach will always be a trade off between building change-capability slowly,over time, in preparation for an undefined change, or leaving it until change is imminent.Changing the way the business operates and behavesBelow (fig 6) is a diagram detailing how a telecommunications company decided that simply providinginternet and telecoms solutions in various bundles, while the customer service teams treated all supportcalls as transactions would not create much-needed market differentiation. Their delivery and supportmodels were working at cross purposes, providing a very different customer experience.The company also realised they had a choice either to improve their current operating mode frommedium to very high in order to get beyond the differentiation curve by using a mode most operatorswere using or change the game by seeking a different operating mode.The company brought both the solution providers and customer service operations together, (theyresided in the same premises but operated separately) created change communities within the front-lineoperation, designed change and improvement into everyday work, redesigned the measuring system andintroduced targets based on customer outcomes not quantities supplied.After just nine months, the service climate had changed dramatically; staff were involved in improvingthe operation every day and developing new and innovative services. This was at a fraction of the costof the previous operation models. Capability Climetrics® : Service Climate Comparison Before and After Strength After High End-to-end Management Solution Before Providers Medium Customer Service Differentiation Curve Low Mass Mass Mass Mass Production Customisation Specialisation Adaptation Climate Type © See Business Differently Ltd 2008 Fig 6 © Copyright 2008 See Business Differently Ltd.
  14. 14. Decision-making and responsibility changes Before After Before After Statement Statement % % % % Understanding our services allows me to 42 100 I am involved in decision making. 28 45 take effective action. Understanding the customer improves my I make decisions with the customer in 14 83 14 67 commitment. mind. Understanding customers helps me make My data improves the quality of decision 15 95 0 83 better decisions. making. It is my job to share information with my I can improve processes and methods to 0 63 15 65 peers and managers. serve the customer. I help my organisation understand what I use customer data to help managers 0 82 17 63 customers value. make better decisions. My manager supports my decision when I I am confident making decisions with 0 49 13 66 have customer data. customer data. The management team is committed to I understand how the whole organisation 17 50 16 68 improving the quality of work works for customers. Fig 7In fig 7, there are a selection of questions (before and after) highlighting how changing the operatingmode and designing change capability into day-to-day operations resulted in a change in employeeinvolvement and responsibilities.The company is now much more proactive and provides high levels of customer engagement and muchlower operating costs. The biggest payback has been the transformation in the relationship between thecompany and its clients, by moving the business from crisis management to a predictive proactivedisciplined adaptive business model, the company has obtained their clients trust and repeat business.This change was designed with behavioural outcomes at its centre, technologies, processes, serviceofferings, reward and recognition systems; management training and leadership development were allaligned to this purpose.Dual Operating Modes reveal an organisations true attitude to customers.Figure 8 shows the typical climate distribution for different industries. It is evident from our research,like the company above, a number of industries have two operating modes, one for the sales process anda very different one for in-life services (after sales or customer service). They pay much more attentionto individual needs when trying to acquire customers than supporting them once then have bought aproduct or service.In addition where consumers/citizens have to comply with regulatory requirements, a mass productionmode to service is often chosen. Fortunately, this is now changing, albeit slowly, as evidenced by theadvances made in the way Inland Revenue and Tax advice services are currently being delivered.Data illustrates the cost of retaining a customer is a fraction of the acquisition cost and that mostcustomers defect because of bad in-life service. However, contrary to years of evidence, organisationsstill create mass-production customer-service environments as a means of keeping costs down, when infact, quite the reverse happens.The above case study demonstrates that it is possible to provide highly individualised-responses for bothsales and in-life services and provide it at a fraction of the cost. © Copyright 2008 See Business Differently Ltd.
  15. 15. Capability Climetrics® : Service Climate Comparison Typical Industry Distribution Strength Water Energy Utilities High Utilities Insurance Purchasing Services Investment Low-cost Computers Services Airline Travel Revenue Services Health-Care Mobile Phone and Tax Services Medium Support Services Independent Mobile Phone Financial Legal Consumer Credit Card Purchasing Advice Advice Advice Post and Services Parcel Services Consumer IT Corporate IT Differentiation Consumer Support Services Curve Work and Low Pensions Banking Services Services Mass Mass Mass Mass Production Customisation Specialisation Adaptation Fig 8 Climate Type © See Business Differently Ltd 2008The diagram above shows the dominant service climate for a number of industry sectors. However,within each sector, a range of operating modes exists. It has to be said that only in one or two sectorsthere are companies that have actively moved away from the commoditisation of the mass- productionand mass-customisation modes to create higher value services and better customer experiences found inthe mass-specialisation and mass-adaptation modes.Companies that take a unified approach to providing high-level, responsive services for all parts of thecustomer life-cycle will retain their customer base and prosper over the long-term.At the end of the day, it’s customer purpose that defines value and dictates how the organisation needsto be designed, built and operated. © Copyright 2008 See Business Differently Ltd.
  16. 16. Footnotes and other white papers from See Business Differently. 1. CCA White Paper: Sense and Respond, New Principles and a New Vision for the Call Centre Industry. (Parry) 2. CCA White Paper: A Demanding World: How much value do you create for customers? (Parry) 3. CCA White Paper: The Service Climate and Customer Intelligence Workers. (Parry and Fisher) 4. Climetrics ® Call Centre Diagnostic: Translating the Service Climate into operational actions. (Parry and Fisher)Further Information and other publicationsBook The book outlines an innovative and proven framework for organisational change, which enables companies to move away from a “mass production” mentality to one of “on-demand adaptation’ and deliver greater customer-value right across the corporate enterprise. Sense and Respond: The Journey to Customer Purpose. Parry, Barlow, Faulkner (MacMillan 2005)Strategy White Papers Measuring for Value. Transformation Pitfalls and Lessons. (Parry and Marr)Articles Service Climate Management Cracking the Customer Code Seven Deadly Sins of Transformation and Change Gem a call centre transformation case study Office Products Direct: A Call Centre Turn around. Detailed Case study complete with project plans, task lists, organisational redesign, interviews and results.TV BBC Documentary The Crunch Call Centre Change, Innovation and Creativity. Channel 4/Einstein CIPD. Sense and Respond Call Centres.Radio BBC Radio 4 In Business with Peter Day: Lean Service in Call Centres (Listen again )Website downloads: www.seebusinessdifferently.comContact detailsStephen Parry +44 (0) 7838 114 997 stephen.parry@seebusinessdifferently.comDiagrams and Trademarks remain the property of See Business Differently Ltd. All Rights Reserved.Climetrics ® is a registered trademark of See Business Differently Ltd. © Copyright 2008 See Business Differently Ltd.