Orchestrated Performance by CAMMI Logic

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The key to an effective customer strategy is Orchestrated Performance. We have the secret to attracting and retaining customers with our structured approach.

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Orchestrated Performance by CAMMI Logic

  1. 1. Catapult your Success TMWith Orchestrated Performance 2011 CAMMI Model and Framework Mike Paradis and Scott Boedigheimer CAMMI Logic, LLC 1/7/2011
  2. 2. This material is proprietary to CAMMI Logic, LLC and is protected by U.S. and international copyright law ©copyright 2010. All rights reserved. No part of this book may be reproduced in any form whatsoever, by photographyor xerography or by any other means, by broadcast or transmission, by translation into any kind of language, nor byrecording electronically or otherwise, without the express written permission of CAMMI Logic, LLC.CAMMI Logic, LLC.8877 Aztec Dr.Eden Prairie, MN 55347www.cammilogic.com
  3. 3. Right Running Head Catapult your Success TM With Orchestrated Performance Table of Contents Introduction ..........................................................................................................4 Capability Maturity Model ...............................................................................6 Market Capabilities Defined ............................................................................8 CAMMI Model and Framework.......................................................................9 Competencies.................................................................................................... 10 Strategic Leadership........................................................................................ 12 Business Planning ............................................................................................ 14 Strategic Marketing ......................................................................................... 16 Operational Marketing ................................................................................... 18 Sales ...................................................................................................................... 20 Service .................................................................................................................. 22 Performance Management........................................................................... 24 Strategic Relationships ................................................................................... 26 Market Innovation............................................................................................ 28 CAMMI Diagnostic ........................................................................................... 30 CAMMI Score...................................................................................................... 32 Closing Summary ............................................................................................. 33 About the Authors ........................................................................................... 35www.cammilogic.com 2011 CAMMI Model and Framework 3
  4. 4. IntroductionTo orchestrate means to arrange or control the elements of, as everything but marketing, but that one weakness exposes theto achieve a desired overall effect. To orchestrate performance entire team. We have worked with companies that engagedis to take control of situations and not leave things to us because they thought their limitation was sales, but ourchance. That’s what the CAMMI Model and Framework is all analysis identified the real issue as something else. They wouldabout—incorporating structural elements to control business have been working on the wrong issue; improving somethingdevelopment and improve performance. Companies that that was already mature. That’s like our example baseball teamfocus on improving business development performance in giving extra batting practice to its star player while ignoringthis way achieve meaningful and sustainable results. the real problem affecting performance—the 10-year-old. Orchestrated performance also requires balance across For orchestras and sports teams it can be easy to identifythe various elements. An orchestra won’t sound as good if the limitations preventing them from succeeding. It is obviousyou can only hear the first violin. A football team with a great to the conductor or the coach through recordings, game film,quarterback won’t win many games without a good offensive observation and statistics to determine where the issues areline, running backs and receivers. A major league baseball and correct the performance. In fact, their jobs depend onteam with one 10-year-old player would be at a significant their ability to identify weaknesses and make corrections.disadvantage; that one immature area would expose the So how does an organization get a perspective on itsentire team and make it very difficult to win games. To achieve relative strengths and weaknesses? Companies don’t havereal success there must be balance; every area must be game film. They usually have pretty limited metrics onaddressed and have an appropriate level of maturity. which to base decisions. Annual strategic planning sessions, It may be hard to believe, but companies often operate like quarterly reviews and weekly management meetings are allthe major league baseball team described above. A company focused on trying to gain a collective understanding of themight have strong business development capabilities in organization’s strengths and weaknesses so strategy can be4 CAMMI Model and Framework TM
  5. 5. Orchestrated Performance set. One way that leadership teams get some perspective making it a reality. The most successful organizations have on the company is by creating some structured questions, strong capabilities across the board that come together to then interviewing its employees and capturing the results. maximize overall performance. However, this approach is time consuming and leads to inconsistent, qualitative results. The best way to quickly obtain objective, measurable and quantitative results is by using structured business assessment tools like those based on the CAMMI Model and Framework. The results lead to new insight about an organization’s relative strengths and weaknesses and the alignment of the team. These results allow the organization to take corrective action to improve overall performance. Regular, ongoing assessments lead to sustainable performance. Orchestrated performance means everyone in an organization understands the strategy and their role in “Measurement is the first step that leads to control and eventually to improvement. If you can’t measure something, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it.” —Dr. H. James Harringtonwww.cammilogic.com 5
  6. 6. Capability Maturity ModelCapability maturity is a constant throughout the CAMMIModel and Framework. The concept of capability maturity isdocumented in several different ways; varying definitions canbe found on numerous Web sites. We adopted this conceptbecause it is relatively easy to understand without creatingtoo many levels to consider when evaluating an organization’scapabilities. Our results have shown that higher levels of maturity leadto improved results for an organization. Our model is basedon balancing capability maturity throughout the organization.Organizations that emphasize certain capabilities and attemptto drive the maturity of one or just a few capabilities to avery mature level are likely wasting some of their efforts. Thebest approach is a balanced approach where the focus is onimproving the least mature capabilities because they aremost likely limiting the organization and preventing it fromrealizing its potential.6 CAMMI Model and Framework TM
  7. 7. Capability Maturity Model We use the following capability maturity rating scale throughout our model and framework. 5. Leading—Performance is proactively improved based on internal metrics or insight from external sources. 4. Measured—Performance data is captured and measured to assess and improve productivity. 3. Consistent—Performance is driven by a documented process, which is used to train employees. 2. General Understanding— Performance is driven by routine and habit, with only a general understanding of the process. 1. Ad hoc Reactionary— Performance is driven on an ad hoc basis by reacting to issues as they arise. Figure 1 - Capability Maturity Modelwww.cammilogic.com 7
  8. 8. Market Capabilities DefinedCapabilities are the ability to produce outcomes. Our model A Capability:focuses on capabilities that are elemental to business 1. Is built around a tight business focus closely linked to thedevelopment: The ability to create and sustain long-term company’s vision and values.profitable relationships with customers. 2. Is based on value proposition that can be measured in If an organization does these things well, everything else terms of time, value or cost.falls into place. 3. Is a corporate property, and therefore it is a corporate responsibility to ensure its development and deployment. 4. Is broadly based across the value chain. 5. Consists of an integrated set of enablers across business functions: a. Organization’s knowledge and skills; b. Business process and organization structure; c. Supporting systems and technology; d. Positional assets and resources. From “The Centerless Corporation” by Bruce A.Pasternack and Albert. J. Viscio8 CAMMI Model and Framework TM
  9. 9. CAMMI Model and Framework The CAMMI Model is designed for organizations managing larger, more complex customer selling and servicing relationships with meaningful lifetime value. It provides the structure organizations require to manage their capabilities in alignment with customer needs. Our model includes the elements necessary to maximize performance in business development. The outer wheel contains the categories of capabilities that are explained in the rest of this document. Each category contains two objectives and each objective includes two capabilities; one relates to effectiveness and the other relates to efficiency.www.cammilogic.com 9
  10. 10. CompetenciesFour key foundational competencies underpin the model. 2. Fact-Based PlanningThese competencies are incorporated into each category and Fact-Based Planning includes analysiscapability. to effectively segment your markets for Competencies are not always readily apparent in an prioritizing your go-to-market activitiesorganization. Through our model and framework we and the related plan/budget for allocatinghave established that a) a pattern exists, and b) these resources.competencies can be measured using our diagnostic tool. Theorganizational competencies tend to reflect the leadership ofthe organization. An understanding of the competencies leads 3. Consistent Executionto a unique understanding of an organization’s key strengths. Consistent Execution includes defining The foundational competencies are explained in more shared work processes and trainingdetail below: employees to consistently target, acquire and maintain a loyal customer base.1. Strategic Clarity Clearly defined expectations and in- Strategic Clarity includes the ability to process activity measurements ensure capture market and customer insight to consistent execution. define your company’s strategic value proposition and align the organization to carry out this vision. Prioritized strategic 4. Proactive Learning initiatives and tracking mechanisms ensure Proactive Learning includes the ability to alignment and performance. collaborate effectively with your strategic10 CAMMI Model and Framework TM
  11. 11. Competencies customers to understand their objectives and proactively revise your methodologies to meet their changing expectations and capture the new value exchange. The numbers that define each capability throughout the rest of this document refer back to these four competencies.www.cammilogic.com 11
  12. 12. Strategic LeadershipThe first set of capabilities involves defining value exchange Value Proposition (Effectiveness)and establishing strategic alignment within the organization. Clarify organizational purposeThe Strategic Leadership Category has two primary objectives: 1. Define the potential for the organization to create valueFirst, to create a clear understanding of how the organization based on general market needs.exchanges value with its markets; second, to build a shared 2. Rank the value exchange options based on overallsense of what goes into value-based decision making. This productivity and market share potential.requires a balancing act between the two, with the complex 3. Produce effective core value proposition statements toobjective of capturing the greatest profit with the least articulate to the stakeholders, employees and market.amount of effort. 4. Maintain an understanding throughout the organization The senior leadership team is usually the group responsible as to “why” markets value core value propositions.for Strategic Leadership in the organization, but it can involvethe entire management team. Market Prioritization (Efficiency) Prioritize broad market options 1. Describe the broad markets and general attributes thatDefining Value Exchange represent opportunities to exchange value.The first objective of the Strategic Leadership team is to 2. Rank the potential of all likely markets based on theirclearly define what a market values that the organization overall efficiency and effectiveness.is capable of producing, and why the market values it. This 3. Deliver clear market focus to the organization to maximizerequires an understanding of value-exchange, which is the overall productivity.ability to match an organization’s value with market potential. 4. Recognize new markets and changing markets based onIt therefore requires the identification of those markets that the most relevant and current market research.offer the greatest potential value for the organization toexpend its resources.12 CAMMI Model and Framework TM
  13. 13. Strategic Leadership Strategic Alignment Decision-Making Alignment (Effectiveness) The second objective of Strategic Leadership is maintaining Establish a fundamental understanding of decisions the strategy of the organization and establishing alignment 1. Define the core drivers of good customer and market- across the various teams and functions. This involves driven decision-making based on the go-to-market communicating where the organization is heading and what strategy. underlying drivers should influence key decisions. By clearly 2. Create a set of cascading priorities that articulating the organizational strategy and defining what help everyone understand what’s drives priorities, it’s possible for individuals to have a positive most critical to the success of the impact, even when a particular task or decision isn’t well organization. defined for them. 3. Reinforce team member Organizational Consensus (Efficiency) decision-making Promote clear go-to-market vision processes with 1. Build a clearly defined strategy for achieving overall go-to- periodic review and market objectives. mentoring. 2. Track who understands the strategy and who isn’t aligned 4. Educate team members on why with it. the organization does what it 3. Maintain the communication of the strategy as teams and does, so they can make sound the strategy itself changes. decisions without direct 4. Capture an understanding of how the strategy impacts instruction. customers in order to proactively refine it.www.cammilogic.com 13
  14. 14. Business PlanningThe second category of capabilities includes identifying creating the most effective and efficient way to attack thebusiness improvement initiatives, sales channels, product markets identified in Strategic Leadership.mix and key performance targets. Business Planning can Assessing Initiatives (Effectiveness)also be thought of as organizational readiness. It is about Continually improve go-to-market potentialunderstanding the resources and results needed for success. 1. Identify the critical capabilities and related performanceIt is where the organization starts to get focused on the best potential based on insight from prospects, customers,approach to attract customers. For example: What is the team members and competitors.best way to reach customers—Telesales, field-based sales or 2. Prioritize key business requirements and improvementby using channel partners? Business Planning is where the initiatives based on 360-degree business intelligence.organization assesses its products and determines if one or 3. Create regular reviews of the business and businessmultiple approaches are required to realize its potential. improvement initiatives to drive continual improvement The management team is usually the group within the and greater results.organization responsible for the business planning. It is where 4. Request continuous feedback from customers andthe vision created in Strategic Leadership starts to become employees to understand current needs and track themore real for the organization. The growth strategy execution impact of resulting initiatives.plan starts to take shape in this category. Go-to-Market Planning (Efficiency)Improvement Initiatives and Channel Plan Allocate resources based on needThe first objective of Business Planning is to consider all 1. Identify all potential go-to-market resources and channelspossibilities and allocate resources to best support the to balance cost of pursuit and customer buying needs.strategic direction set forth in the Strategic Leadership 2. Prioritize and budget for the necessary go-to-marketcategory. The emphasis with this objective is profitability, resources based on a sound understanding of market and business needs.14 CAMMI Model and Framework TM
  15. 15. Business Planning 3. Document key decisions regarding the go-to-market plan 4. Proactively improve the activity measures based on and disseminate them to the entire organization so they various feedback loops and results. can be consistently applied. Outcome Measurement (Effectiveness) 4. Routine and regular fine-tuning of go-to-market resources Maintain scorecard of outcome measures based on financial results and feedback from prospects, 1. Define key performance metrics for the customers and team members. organization. 2. Prioritize the measurements that Organizational Performance Scorecard are most important for the The second objective of Business Planning is to clearly organization to achieve in document business performance objectives. This is where the order to realize its potential. measurements of success are created so that everyone in the 3. Communicate and assign organization knows what is expected and how their roles are the measurements and linked to the overall success of the organization. results to go-to-market Activity Measurement (Efficiency) teams. Assign critical-to-success activities 4. Proactively improve the 1. Create clear cross-functional process measurements and performance measures standards that correlate with high performance. based on various 2. Prioritize the measurements that are most important for feedback loops and the organization to achieve in order to realize its potential. results. 3. Communicate the measurements and results to the team on a regular basis.www.cammilogic.com 15
  16. 16. Strategic MarketingThe third category of capabilities is the macro level of 2. Analyze current customer data and prospect win-lossmarketing. It includes performing market segmentation and information.customer data analysis, allocating resources and analyzing 3. Provide the centralized customer data analysis and insightmarket coverage. It is about researching and selecting the of the organization to be incorporated into all commonbest markets for an organization’s products. The impact on the processes.organization is decreased cost of sales by focusing on the right 4. Check insights with direct customer and employeemarkets and not wasting time on markets with less potential. validation activities such as surveys, interviews and panels. The management team, particularly the VP of Marketing and Market Segmentation (Efficiency)marketing teams, are primarily responsible for this category. Create manageable markets 1. Define market segmentation based on the Customer DataMarket Selection Analysis and other key market data.The first objective of Strategic Marketing is to identify 2. Prioritize the markets with the highest potential for thewhich markets have highest potential for the organization. organization.Focusing on the right markets reduces the cost of sales and 3. Disseminate the market segmentation information somarketing and allows for greater flow and a higher return. everyone in the organization has a clear understanding ofMarket selection is the opposite of a shotgun approach in the markets and submarkets.which marketing is done to any market without regard to the 4. Adjust market segmentation proactively based on anpotential fit for the organization. understanding of upcoming changes to global customerCustomer Data Analysis (Effectiveness) and market variables.Transform data into business insight 1. Drive insight from the information the organization has or can easily acquire.16 CAMMI Model and Framework TM
  17. 17. Strategic Marketing Market Reach 3. Create consistent approaches to ensure that the market is The second objective of Strategic Marketing is focused on adequately reached by the organization. assigning adequate resources to ensure all targeted market 4. Fine-tune the market coverage to consistently improve segments receive the organization’s message. organizational productivity in reaching desired markets. Market Focus (Efficiency) Create go-to-market team focus 1. Define focused teams and their requirements for pursuing high priority market segments. 2. Analyze team impact on assigned markets to prioritize additional market-focused efforts. 3. Create market-focused processes for the various teams to ensure that the unique needs of markets are met. 4. Continuously refine the teams to ensure market focus is maintained through changing conditions. Market Coverage (Effectiveness) Ensure adequate pursuit of markets 1. Understand the best category funnel model to ensure the market is adequately touched by the organization. 2. Analyze the market coverage and prioritize the approaches that yield the best results.www.cammilogic.com 17
  18. 18. Operational MarketingOperational Marketing is the last category of capabilities Customer Segmentation (Effectiveness)where the organization is developing potential. The rest of the Identify specific accounts and/or contactscategories are all focused on realizing that potential. 1. Identify the most trustworthy account and contact The value of an organization’s market insight and resource information available to the organization.allocation ultimately depends on connecting with prospects. 2. Measure size and value of clearly definable marketThe ability to quickly identify, connect with and create segments and prioritize their potential value and ease ofawareness within the right potential customers (suspects access.and prospects) is critical. Operational Marketing drives 3. Create and distribute the priority segmentation profilesrevenue with an improved methodology for creating effective that represent unique contacts within targeted accounts.awareness. 4. Review segment performance changes and redefine The marketing team and VP of Marketing are most often segments as proactively as possible.responsible for the operational marketing capabilities in anorganization, but these capabilities do not rest solely with Market Messaging (Efficiency) Create customer and/or account messagingmarketing. 1. Identify all of the marketing treatment strategy options available to the organization based on prior conclusions.Best Customer Profile 2. Compare cost and productivity estimates and measures toThe most successful organizations have a clear understanding determine which will best meet overall objectives.of their best customer profile. This leads to more effective and 3. Design messaging options based on customer profilesefficient marketing. It also reduces overall marketing costs and their unique role and value exchange.for the organization because the activities are focused on the 4. Identify response trends and performance to better refine“right” customers: those with the highest long-term potential and proactively improve messaging by segment.value.18 CAMMI Model and Framework TM
  19. 19. Operational Marketing Demand Generation Lead Qualification (Effectiveness) This objective is critical and more tactical within the Validate each lead’s potential against organization. It is where the “rubber meets the road” and the business objectives the growth execution strategy starts to become real in the 1. Clarify the parameters of a organization. It is very difficult for an organization to grow qualified lead based on all without attracting new customers. To attract new customers, available understanding. an organization must become mature in its demand 2. Identify the points at which generation capabilities. an unqualified lead becomes a qualified lead and establish a Lead Generation (Efficiency) next step for every lead. Uncover specific revenue potential 3. Score or evaluate each lead 1. Identify all of the campaign delivery options available to or lead list with the best the organization based on information availability and available metrics and prospect accessibility. distribute accordingly. 2. Prioritize the lead generation activities that will yield the 4. Proactively learn from the greatest desired results. results and feedback of all 3. Execute each campaign and capture the various levels of go-to-market functions response that meet current objectives. based on performance of 4. Understand how each response or lack of response leads and the lead evaluation provides an understanding of the campaign’s impact. criteria.www.cammilogic.com 19
  20. 20. SalesThe Sales category of capabilities is where the organization Opportunity Tracking (Effectiveness)starts to realize the potential created through the first four Identify current state of salecapability categories. When organizations have revenue 1. Define the degrees or stages of sale progress and ultimateissues, they tend to blame sales first. This is because sales is disposition options.most closely associated with revenue and is the area that most 2. Prioritize each opportunity based on size, close date,companies try to improve first. However, our research has strategic value or timing of customer.shown that—more times than not—the capability maturity in 3. Capture each disposition and the degree of sale close andsales is not the organization’s limiting factor. report to the organization: a) closed business, and b) a The Sales category of capabilities includes the ability to forecast of unclosed opportunities.manage opportunities, accurately measure the sales funnel, 4. Review the forecast against the actual results and identifyfine-tune the sales process to match customers’ buying where opportunities were hung up or lost and researchprocesses and consistently apply best practices across sales what changed to identify buyer shifts.territories. The entire sales team is most responsible for the sales Funnel Modeling (Efficiency) Measure the progress of future revenuecapabilities within an organization and it is usually the VP 1. Identify the trending and ultimate impact of theof Sales who has ultimate accountability for the capability opportunity tracking system reporting.maturity in sales. 2. Isolate and prioritize correlations between volumes and associated activities with results.Buyer Alignment - Selling 3. Build a forecasting model to reflect and isolate futureThe first objective of the Sales category is to manage and revenue flow based on known metrics of flow by stagemeasure the sales cycle from lead to close. With this objective and related activity.it is imperative to align the sales process with the customer’sbuying process to ensure the process is effective and efficient.20 CAMMI Model and Framework TM
  21. 21. Sales 4. Compare forecasts with actual results and validate Selling Methodology (Effectiveness) changes with customers where change may indicate Promote the perspective of the buyer changing behavior. 1. Document the buying objectives of each unique customer segment. Sales Methodology 2. Prioritize the buying objectives based on the difficulty the The second objective of the Sales category of capabilities is organization will have overcoming them, along with the focused on developing a consistent sales methodology. It is importance to the buyer role. imperative that the organization follow a well-defined sales 3. Define the underlying methodology process for identifying and gaining commitment from its needed with direct links to the customers. An organization should never sell to its customers opportunity tracking stages and based on guesswork or an opinion of need, but rather based train teams on why they do what on achieving the desired outcomes. they do. 4. Proactively review direct feedback Sales Process (Efficiency) from customers and employees Meet shared objectives with buyers to identify and validate changing 1. Define the interactions and activities each buying role buying objectives. requires to efficiently meet its buying objectives. 2. Prioritize its importance in accelerating the sale. 3. Train team members on the activities and performance expected throughout the lifecycle with the customer. 4. Proactively review win, loss and closed-won tracking data and durations to identify and validate changing customer buying considerations.www.cammilogic.com 21
  22. 22. ServiceThe Sales and Service categories of capabilities are very Complaint/Inquiry Tracking (Effectiveness)similar; Sales capabilities are engaged before the closing Identify the current state of deliveryevent and Service capabilities happen after the closing event. 1. Define the degrees or stages of delivery and ultimateService is generally not an area in most organizations that satisfaction disposition options.has the most dramatic effect on revenue, but it has been the 2. Prioritize each complaint or inquiry based on degree,limiting factor in several cases where the service was so bad revenue impact, strategic value, expectation or timing ofthat it caused the organization to lose customers faster than it customer.could attract new ones. 3. Capture each disposition and the degree of completion The Service category of capabilities includes an and report to the organization the rate at which is fulfilledorganization’s ability to manage inquiries and complaints, commitments.establish service level agreements, fine-tune the service 4. Compare performance with satisfaction and identifyprocess and maintain rules and best practices. where service delivery was short and research what may There are several functional groups within an organization have changed to identify shifts in expectation.that are responsible for the Service capabilities. The exactgroups vary widely based on the industry and company but Speed/Quality Service Model (Efficiency)they include customer service, consulting and shipping— Measure the drivers of satisfactionanyone in the organization responsible for delivering what 1. Identify the trending and ultimate impact of thewas purchased by the customer. complaint and inquiry tracking system reporting. 2. Isolate and prioritize correlations between volumes andBuyer Alignment – Servicing associated activities with results.The first objective of the Service category of capabilities is 3. Build a forecasting model and SLA approach to reflect andBuyer Alignment – Servicing. With this objective it is important isolate future service needs based on known metrics andto follow a well-defined process for meeting customer related activity.objectives.22 CAMMI Model and Framework TM
  23. 23. Service 4. Compare forecasts with results and validate changes with Servicing Methodology (Effectiveness) customers where change may indicate new expectations Promote the perspective of the customer or behavior. 1. Document the loyalty drivers of each unique customer segment. Service Methodology 2. Prioritize the loyalty drivers based on the difficulty the The second objective of Service is about developing organization will have meeting them, along with the and maintaining a consistent process for fulfilling the importance to the customer. commitments made during the sales process. It is critical that 3. Define the underlying servicing the organization understand the expectations of its customers methodology needed with based on the impact it has on their objectives. direct links to the complaint and inquiry tracking stages, Service Process (Efficiency) and train teams on why they Meet the expectations of customers do what they do from a 1. Define the interactions and activities customers expect to customer’s perspective. efficiently meet their individual expectations. 4. Proactively review 2. Prioritize the interactions and activities to perform in direct feedback from order to accelerate completion and satisfaction. customers and employees 3. Train team members on the activities and service levels to identify and validate (SLA) expected throughout the delivery lifecycle. changing loyalty drivers. 4. Proactively review activity and satisfaction with customers and employees to identify and validate changing expectations or behavior. 23www.cammilogic.com
  24. 24. Performance ManagementIn this third category of realizing potential in the organization, Performance Tracking (Effectiveness)the capabilities are centered on overall performance Monitor individual activity and outcomemanagement of the people in the organization who engage 1. Identify and capture individual activity and measurewith customers. The balance in the CAMMI Model is evident results.in this category because many of the prior capabilities 2. Provide performance reports indicating achievementhave more to do with process and technology than the levels.people-centered aspects of the organization. Performance 3. Create regular reporting processes that meetmanagement includes process and technology, but the management needs.emphasis is on the performance of the customer-facing 4. Capture direct customer understanding of individualemployees. performance. The Performance Management category of capabilitiesincludes the ability to correlate activities to results, personnel Personnel Decision Making (Efficiency) Make fact-based personnel decisionsdecision making, establishing key performance indicators 1. Correlate individual impact to team performance.and improving individual performance through coaching and 2. Review individual impact looking for trends, leaders andmentoring. laggards. The human resources department and management team 3. Manage personnel by reviewing reports and takingare generally responsible for the maturity of the capabilities immediate action.in this category. It is usually the HR Director who has ultimate 4. Make sure customers understand the transition ofaccountability for this category. personnel.Individual Performance DashboardThe first objective of Performance Management is focused onthe hiring, management and termination of employees.24 CAMMI Model and Framework TM
  25. 25. Performance Management Active Coaching 4. Build an understanding for why the customer perspective The organization cannot operate without employees and is critical. it is important to set the right expectations and manage employees to those expectations throughout the lifecycle. Establishing Expectations (Efficiency) Assign individual activity and result expectations 1. Determine each individual’s specific role in success. 2. Align metrics with an overall scorecard from strategy to individual metrics. 3. Meet with team members regularly to explain and review expectations. 4. Make sure the expectations include a clear link to customer objectives. Mentoring and Coaching (Effectiveness) Improve understanding of individual impact 1. Identify gaps in individual performance or expectation. 2. Select critical areas of concern based on a priority of objectives. 3. Meet with individuals to discuss situations and needed change.www.cammilogic.com 25
  26. 26. Strategic RelationshipsThe Strategic Relationship category of capabilities is about results. The organization knows its best customers well andincreasing the value of an organization to its customers. Many continually sets clear expectations of shared outcomes withorganizations start out as just vendors to their customers but them.they desire a more strategic relationship and ultimately want Customer Collaborative Learning (Effectiveness)to be considered “partners” with their customers. To obtain Uncover breadth of strategic customer need“partner” status the relationship has be based on a unique and 1. Establish a complete set of customer goals for your beststrategic value that the customer does not feel it can get from potential strategic customers.other relationships. Creating that unique and strategic value 2. Measure which has the greatest potential impact forrequires maturity in the Strategic Relationship category of expanding breadth of relationship value.capabilities. 3. Meet with strategic customers to discover how the The Strategic Relationships category includes an organization can achieve additional value.organization’s ability to conduct behavioral research and 4. Understand what the business objectives are and whyapply “personality” driven treatment strategies, manage they have a positive impact.expectations and collaborate with its most strategic customersto create shared value. Strategic Value Expansion (Efficiency) There are various functional groups responsible for Strategic Personalize offerings for greater strategic impactRelationship capabilities but responsibility often rests with the 1. Define customer needs for greater personalization, oroverall management team. gaps in current product/service offerings. 2. Determine the additional revenue or loyalty potential ifStrategic Account Development personalization is provided.The first objective in the Strategic Relationship category 3. Build products that allow for adaptation to new orinvolves establishing performance quotas and monitoring the specialized situations.26 CAMMI Model and Framework TM
  27. 27. Strategic Relationships 4. Work with customers to isolate needs vs. wants, or 1. Create a complete set of customer objectives. symptoms vs. root cause. 2. Align how the organization can best meet additional client value. Proactive Collaboration 3. Create shared processes that The second objective in the Strategic Relationship category align the objectives of includes building growth plans for the typical customer. The the organizations. organization works with its best customers closely and each 4. Collaborate with party trusts the other to deliver on its commitments. the customer on their internal Dynamic Process Adaptation (Efficiency) objectives and Deploy processes that are built for change how they might 1. Collect process inefficiencies from internal and external improve them sources. with support. 2. Prioritize those with the greatest negative impact on the organization. 3. Improve those processes to allow for key variations in specialized situations. 4. Work closely with key customers to identify value-added processes based on their needs. Collaborative Value Exchange (Effectiveness) Align internal objectives with customer objectiveswww.cammilogic.com 27
  28. 28. Market InnovationThis final category of capabilities is Market Innovation. This 3. Extend the process for collecting new ideas into all keyincludes product and market innovation; developing new customer touch points.products and determining the best way to bring them to 4. Improve collection of ideas by capturing anmarket. understanding of why it will have a positive impact. The research and development team and general Idea and Concept Prioritization (Efficiency)management are most often responsible for the capabilities in Prioritize ideas to meet growing needsthis category. 1. Understand the complete listing of ideas and relative value.Product/Service Innovation 2. Rank each idea based on the impact each has on the valueThe first objective in the Market Innovation category is exchange of the organization.Product/Service Innovation. This includes the ability to capture 3. Create a formal process that ensures each idea isideas internally and from customers and then prioritize them processed and recorded by the degree of value.based on the fit for high-value markets. The organization must 4. Work directly with customers to thank them for ideas andcontinually assess the relevancy of its products and services prioritize with voting influence/involvement.and adjust to the market.Idea and Concept Tracking (Effectiveness) Product/Service LaunchCapture external and internal innovative ideas The second objective in the Market Innovation category is 1. Gather a complete listing of external and internal ideas for Product/Service Launch. An organization should continually new offerings or ways of servicing customers. improve its products and services to meet the needs of its 2. Capture a sense of priority through voting, compiling high-value markets. similar captures and assigning value of source.28 CAMMI Model and Framework TM
  29. 29. Market Innovation New Product Launch (Efficiency) 4. Understand the degree of value created or lost, and work Manage change internally and externally directly with customers to ensure future loyalty regardless 1. Document the entire cycle of introduction using isolated of prior impact. teams and resources, or preferably the standard functions. 2. Plan the order and priority of customers needing to transition or be introduced to the new product or service offering. 3. Deploy a process that ensures each prospect or customer is introduced through a complete selling process. 4. Request customer feedback about their awareness of the new offering. Transitioning Value Exchange (Effectiveness) Educate everyone on the value of transition 1. Capture the adoption across the prospect and customer community to the change or new offering. 2. Determine points of adoption needing further discussion. 3. Create a formal approach to reviewing change with a customer and how it could have better improved their performance.www.cammilogic.com 29
  30. 30. CAMMI DiagnosticThe CAMMI Diagnostic is a web-based assessment tool that 1. The process starts with a kickoff meeting for themeasures an organization’s capability maturity based on the leadership team and all the participants selected for theCAMMI Model and Framework. Using a powerful analysis Diagnostic campaign. During this meeting we outline theengine, it derives an organizational CAMMI Score through objectives, process and timing for the overall project.dynamic questioning patterns and real-time response analysis. 2. A link is sent to the participants via e-mail with a uniqueThe CAMMI Score analytical engine analyzes each response login to the Diagnostic.against an analysis of all prior insight before determining 3. The participants log in and complete the Diagnosticits next question. The analysis framework used is based online from a secure Web site. The participants scoreon complex interdependencies between the 36 elemental the organization from questions that vary based on themarket capabilities. As a result, the CAMMI Score is continually answers to all the previous questions. The Diagnosticvalidating responses and capturing inherent alignment takes approximately 35 minutes to complete for eachopportunities or issues. An organization may be scored at participant.the enterprise, division or business unit level; go-to-market 4. After all the participants have completed the Diagnostic,autonomy is the only requirement. we close the campaign and generate the results. The CAMMI Diagnostic is the only objective and effective 5. We work with our partners to interpret the results andway to measure an organization’s maturity and team prepare for the workshops.alignment. The process works like this: 6. We have two meetings with the leadership team to present the results, baseline the results with the team and develop a prioritized approach to improving key capabilities.30 CAMMI Model and Framework TM
  31. 31. CAMMI Diagnostic 7. Our partners work with the leadership on the execution of the projects and programs necessary to implement the solutions. The Diagnostic results are comprehensive and include the following key information: 1. Organization-wide capability maturity results; also summarized by objective and category. 2. Organization-wide competency maturity results. 3. Individual results for each participant. 4. Alignment results comparing the maturity at each level by participant. 5. Overall CAMMI Score.www.cammilogic.com 31
  32. 32. CAMMI ScoreThe CAMMI Score is an overall measurement of an • Demonstrates a proven correlation between the scoreorganization’s maturity and alignment results. The purpose of and overall market effectiveness and revenue growth.the CAMMI Score is to provide one summarized score so anorganization can get a big picture perspective of their overallmaturity and alignment based on the CAMMI Model. TheCAMMI Score allows organizations to compare their results tothose of their peers, competitors and other organizations. Leader 960 to 1280Details of the CAMMI Score • Delivers a single score on a 1280-point scale. Contender • Calculated using a patent-pending model 640 to 959 and unique algorithm that considers Competitor all of the capabilities that lead to 512 to 639 market success. • Provides time-based Target comparisons to track 256 to 511 improvement. • Allows for benchmark comparisons to other organizations.32 CAMMI Model and Framework TM
  33. 33. Closing Summary Orchestrated performance means everyone in an organization 1. A lack of clarity about what was holding them back. understands the strategy and their role in making it a reality. 2. Disappointing revenue results. The most successful organizations have strong capabilities 3. A desire to improve overall sales performance. across the board that come together to maximize overall 4. A need to implement new CRM technology to support performance. their growth plans. In every engagement the organization was unsure where Orchestrated performance requires: to start and what solutions would have the most impact on 1. Alignment with customer needs. their results. They didn’t want to focus on the wrong things 2. Internal support for the organization’s strategy. or the wrong technology. Current economic realities require 3. An understanding of the organization’s strengths and organizations do more with less, so they had to make sure weaknesses. they were focused on the right things. 4. A systematic, prioritized approach to improvement. CAMMI Logic provided the strategic clarity for the 5. Technology that supports the business. organizations to understand their priority improvement Companies are finding that the old ways of doing things areas and engage with the consulting partner to implement are not always the best ways. Today, organizations need to solutions. execute better and more consistently as a team to beat their Comments that we heard from these projects included: competition. Leaving things to chance, without a common – “I don’t know how you can possibly know so much about framework and metrics, often leads to disappointing results. our organization from just reading the diagnostic results. In the past year organizations of all sizes, from small, closely- I can’t believe you never talked to anyone in our company held companies to Fortune 100 firms, have engaged with but were able to gain so much insight.” CAMMI Logic’s consulting firm partners to improve their results. The organizations had various reasons for engaging one of CAMMI Logic’s partners:www.cammilogic.com 33
  34. 34. Closing Summary – “The quantifiable diagnostic results gave us confidence that we had identified the right priorities and we were able to agree on an approach that everyone would support.” – “The diagnostic results highlighted a priority area that our leadership team had overlooked. Once we saw the weakness the light bulb went on and we took steps immediately to improve that area.” – “The results and roadmap allowed our team to agree on an approach to select and implement a new CRM solution that we had been struggling for years to replace.” Take the next step for your organization and investigate how a CAMMI Logic consulting partner can help you masterfully orchestrate your performance. For more information and a free consultation contact: Scott Boedigheimer sboedigheimer@cammilogic.com (952) 856-075934 CAMMI Model and Framework TM
  35. 35. About the Authors Mike Paradis Scott Boedigheimer Mike is passionate about developing organizations that Scott has seen firsthand how organizations have accelerate and sustain growth by managing customer struggled with Orchestrated Performance. He has a value-exchange. In fact, he devoted the past 15 years of lifelong passion for helping companies improve their his career to that single leadership objective. During his results; initially focused on accounting and now by career, Mike and his team have systematically researched, improving sales and leadership. defined and tested every aspect of an organization’s ability Scott often refers to himself as a “recovering CPA” since to maximize customer value. Working with large and he started his career in public accounting and gained small organizations from all industries made it possible to his CPA certificate in 1990. That background has served isolate the core and common relationship capabilities. Scott well throughout his career in public accounting, Mike’s dedicated effort has produced patent pending business models, technology consulting, sales and management. processes and technology, including the CAMMI Model, Buy/Sell Alignment, Scott started his career with Larson, Allen, Weishair and Co., a Minneapolis based Building Customer Framework and the CAMMI Diagnostic. regional CPA firm right out of college at St. John’s University in Collegeville, MN. Joining GE in the 1995, Mike was one of the first members of a new customer Scott spent several years at LarsonAllen in the commercial services, auto dealer relationship management team. Through GE, he became involved in hundreds and manufacturing groups doing audit, tax and consulting work. of customer facing solutions nationally. Through these engagements, Mike Scott’s passion for technology led him to form LarsonAllen Technology Solutions, maintained a personal framework detailing each customer’s successes and a wholly owned subsidiary of the firm that helped clients select and implement challenges. Mike was eventually named Executive VP of the CRM Business, where ERP solutions. he led a team of 80 consultants for GE, establishing offices in New York, Boston, Scott spent the next several years running that practice then other Value Atlanta, Chicago, LA and Minneapolis. Added Reselling (VAR) organizations at Virchow Krause and Altara. At Altara, In late 2001, Mike founded BenNevis Inc., and designed the organization to Scott was responsible for the Central Region of the US and also served as the provide growth strategy consulting based on the CAMMI Model and Framework. firm’s VP of Sales. Scott left Altara to join Microsoft in a Strategic Engagement Mike is the founder of CAMMI Logic and other organizations focused on helping Manager role. In that capacity he worked on larger ERP opportunities with customers grow. Microsoft Dynamics partners. Mike holds certifications and training including, Six Sigma, Consultative Selling, Scott was recruited to CAMMI Logic by the founder and was instrumental in Solution Selling, Customer Centric, GE Business Integration and Balanced Scorecard. forming the company and launching the solutions. During his tenure with GE, Mike was nominated four years for the prestigious General Electric Circle of Excellence Award and was the recipient three times.www.cammilogic.com 35
  36. 36. Left Running Head CAMMI Logic, LLC. 8877 Aztec Dr. Eden Prairie, MN 55347 (952) 241-9009 info@cammilogic.com www.cammilogic.com36 CAMMI Model and Framework TM

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