2010 National BDPA Technology Conference


   Turning a Business Crisis into Revenue
  Restoring Customer Confidence After...
Outline

•   Introduction
•   Objectives
•   Company Culture
•   Customers
•   Crisis
•   Restoring Confidence
•   Opportu...
Introduction
                              + Guest Speaking
                              + Pay-It-Forward Networking
    ...
Workshop Objectives

• Review the importance of company culture
  for customer engagement and advocacy
• Explain the custo...
Company Culture




“That‟s the way we do things around here.”   5
Company Culture

•   Difficult to express, but you know it when you
    sense it
•   Comprised of assumptions, values, nor...
Company Culture

• Understanding your company culture is the first
  step on the customer advocacy journey
• Understanding...
Customers




What do they want?   8
Customer Requirements

•   Intense focus on value, ROI, TCO and
    expense levels
•   Tools to manage and reduce ongoing
...
What Customers Want

1. Listen to me                             9. Show me your care
2. Know more than I do (about       ...
What Customers Executives Want

       • Assurance of IT uptime
       • Easily accessible services,
         processes, a...
How Important is Your Customer?
                                                                    Yes    No

Does CEO co...
Crisis


                                Symptoms




Apparent Causes




                   Root Cause
                  ...
Customer View vs. Reality

            Business or situation issues
            Technology and support
            Hardwar...
What is a Crisis?

• The most severe form of customer conflict
      Business
      Technical
      Other
      Any co...
Why do Customers Escalate?

Responsiveness issues                  Expectations
Problem management process is          Cus...
Customer Expectations During a Crisis

• A clear understanding of how the problem impacts
  their business and operations
...
Restoring Confidence


         How do we get there from here?




It‟s both an art and a science...and time
             ...
Restoring Confidence

•   Begins with engagement at first crisis meeting
•   Engaging a single focal point (trusted adviso...
Restoring Confidence



                        Customer
                        Advocacy

                         Truste...
Customer Advocacy

• Doing the „right thing‟ and putting customers first
• Really listening to customers, understanding th...
Customer Advocacy

• Demonstrating a personal commitment to meeting
  customer needs in everything you do, no matter
  how...
Trusted Advisor Role

Executive sponsored,          Empowered as focal point
senior program manager
(with expense account)...
Trusted Advisor Characteristics

Ombudsman, diplomat,          Strong communication skills
conductor, truth teller, task (...
Crisis Management Life Cycle

                           Initiation Phase
     Continuous             Crisis declaration  ...
Crisis Methodology

                                                   Executives
                                        ...
Opportunity Window

      • Start intelligence gathering at
        Initiation Phase
          Internal business / suppor...
Conclusion

•   Company culture is an corporate asset
•   Make an advocacy commitment and stick to it
•   Do the „right th...
Contact Information



 Michael Davis, Managing Director
   MJD Management Group, LLC
michael@mjdmanagementgroup.com
     ...
Reference




• Crisis Best Practices

• Why IT Projects Fail?




                             30
Crisis Best Practices


             Account Management

               Communication

                   Process

       ...
Crisis Resolution Best Practices

1. Engage the customer at all levels              Account
                              ...
Crisis Resolution Best Practices

10.   Develop overall plan with stabilization, recovery,   Doc.
      and improvement co...
Why IT Project Fail?

• The most common reasons for project failure are
  rooted in the project management process and the...
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2010 BDPA Natl Tech Conf Presentation Turning A Business Crisis Into A Revenue Stream

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The workshop provides the audience with the opportunity to learn how to successfully resolve customer crises and how to position to facilitate sales after the crisis situation has been resolved.

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2010 BDPA Natl Tech Conf Presentation Turning A Business Crisis Into A Revenue Stream

  1. 1. 2010 National BDPA Technology Conference Turning a Business Crisis into Revenue Restoring Customer Confidence After a Conflict Michael Davis July 28th – July 31st Philadelphia, PA @2010 MJD Management Group, LLC All Rights Reserved
  2. 2. Outline • Introduction • Objectives • Company Culture • Customers • Crisis • Restoring Confidence • Opportunity Window • Conclusion • Reference Information 2
  3. 3. Introduction + Guest Speaking + Pay-It-Forward Networking + Mentoring Other Consulting Non Profit Teaching • International Business • Management • General Business 3
  4. 4. Workshop Objectives • Review the importance of company culture for customer engagement and advocacy • Explain the customer mindset and supplier relationship from the customer perspective • Provide insight into customer perspective and expectations during a crisis • Provide strategy, tactics, and best practices for restoring customer confidence after a crisis 4
  5. 5. Company Culture “That‟s the way we do things around here.” 5
  6. 6. Company Culture • Difficult to express, but you know it when you sense it • Comprised of assumptions, values, norms, and tangible signs of employees and their behaviors • Customer impressions are from perceptions and experiences at every touch point • Culture types dictate strategy, tactics, and execution for organizational change  Control (Hierarchy), Collaborate (Clan), Compete (Market), Create (Adhocracy) 6
  7. 7. Company Culture • Understanding your company culture is the first step on the customer advocacy journey • Understanding the customer culture is essential • Aligning IT with cultures and PM processes are the most common reasons for project failures* • Relationship with credibility and reputation impacts the „investment‟ scope and time required to restore customer confidence *Source: Tilmann and Weinberger, 2004 7
  8. 8. Customers What do they want? 8
  9. 9. Customer Requirements • Intense focus on value, ROI, TCO and expense levels • Tools to manage and reduce ongoing complexity are strategic • Productivity of knowledge workers • Greater usage of industry standard building blocks • Vendor stability and strength are important buying criteria 9
  10. 10. What Customers Want 1. Listen to me 9. Show me your care 2. Know more than I do (about 10. Don‟t waste my time your product or service) 3.Be easy to work with 11. Be honest 4. Give me what I came for 12. Offer alternatives if you don‟t have what I want 5. Smile 13. High quality and low prices 6. Tell me your name 14. Don‟t try to sell me. Just help. 7. Acknowledge my presence 15. Do what you say 8. Don‟t treat me like I‟m an 16. Kept me informed interruption Source: Group Customer Service Survey - Kevin Stirtz, 2006 10
  11. 11. What Customers Executives Want • Assurance of IT uptime • Easily accessible services, processes, and technology expertise • Flexible availability mapped to business needs • Trained and knowledgeable staff • Maximum return on investment and quality of service • Single point of accountability • Partnership with joint risk sharing 11
  12. 12. How Important is Your Customer? Yes No Does CEO communicate customer experience is a key strategy? Does the company‟s strategic plan(s) discuss the customer? Is executive pay tied to customer experience objectives? Do the BU‟s have a clear set of customer-centric objectives? How frequently does management meet with the customer? Does a formal closed-loop voice of the customer program exist? Are your customer metrics customer experience relevant? Are customer support activities closed loop? Do you seek and actively listen to customer feedback? Commitment Level Are quality processes used for learning and improvement? # of Yes Items Are customer advocacy actions incented and celebrated? 0 to 6 Low 7 to 9 Moderate Does an active executive sponsor program exist? 10 to 12 High 12
  13. 13. Crisis Symptoms Apparent Causes Root Cause Root Cause 13
  14. 14. Customer View vs. Reality Business or situation issues Technology and support Hardware and support failures, patches, capabilities, cost External Economic, competition, regulation Sales Requirement issues, unrealistic budgets, re-orgs, mgmt turnover Customer process issues, training Business acquisition, divestment, $$ Customer expectations SLA vs. price paid for solution, time, resource, etc… 15
  15. 15. What is a Crisis? • The most severe form of customer conflict  Business  Technical  Other  Any combination • The problem management process fails to meet customers‟ real or perceived expectations • Customer formally complains that revenue or penalties are at risk or the business relationship is in jeopardy • Proactively requests to obtain engagement and awareness in advance of a deadline where a negative outcome could be catastrophic 15
  16. 16. Why do Customers Escalate? Responsiveness issues Expectations Problem management process is Custom expectations where unable to resolve within required missed, misset, or never set timeframe Lack of confidence Chronic issues A lack of confidence that the Chronic business issues or problem solvers ability to resolve intra/inter organization issues (i.e. the situation coupled with support product, partner, or project) and business solution Risk or loss Relationship Significant financial loss, penalty, Business relationship is in or bad publicity jeopardy or legal action possibility 16
  17. 17. Customer Expectations During a Crisis • A clear understanding of how the problem impacts their business and operations • An appropriate action plan with clear contingencies, ownership, and dates • Communication with management and technical teams with regular updates on the progress or problem resolution status • Short-term solutions or workarounds to minimize the business impact • Recommendations that will prevent or mitigate the crisis root cause from reoccurring 17
  18. 18. Restoring Confidence How do we get there from here? It‟s both an art and a science...and time 18
  19. 19. Restoring Confidence • Begins with engagement at first crisis meeting • Engaging a single focal point (trusted advisor) • Executive empowered… „one throat to choke‟ • Take ownership and accept responsibility • Acknowledge customer pain and business impact • Jointly developing initial status report (situation, scope, impact, status, resolution criteria) • Obtaining buy-off for SMART action plan providing relief, stabilization, and improvements • Demonstrating consistent customer advocacy • Leveraging closed loop life cycle and methodology • Utilizing quality tools for root cause/opportunities 19
  20. 20. Restoring Confidence Customer Advocacy Trusted Advisor Crisis Life Cycle Crisis Methodology Best Practices 20
  21. 21. Customer Advocacy • Doing the „right thing‟ and putting customers first • Really listening to customers, understanding them and solving their problems • Taking ownership of a customer call or issue, even if it was misdirected to you • Taking steps outside your job to help a customer • Supporting sales and service team both before, and when, they ask for help • Infuse the company with deep customer insights 21
  22. 22. Customer Advocacy • Demonstrating a personal commitment to meeting customer needs in everything you do, no matter how far away you “think” you are from the customer • Finding the customer link in daily activities; create a introduction, “I provide value to customers by…” • Going against the crowd if necessary and taking a risk to highlight internally something that really doesn‟t make sense for customers • Communicating openly and honestly with customers by always doing what you say you will do 22
  23. 23. Trusted Advisor Role Executive sponsored, Empowered as focal point senior program manager (with expense account) Focuses resources on risk Owns restoring customer mitigation and improvement confidence in products, opportunities services, and people Responsible for regular Focuses all necessary communicating situation resources on problem status to all parties resolution Responsible for the overall Owns direct customer situation success contact and visits Provides internal/external Leverages quality tools executive reviews 23
  24. 24. Trusted Advisor Characteristics Ombudsman, diplomat, Strong communication skills conductor, truth teller, task (especially effective listener) master, advocate, coalition builder, negotiator Knowledgeable Integrity Accountable Accepts responsibility Confident Can be firm and direct Integrity Can do attitude Sets proper expectations Keeps commitments (never over commits) 24
  25. 25. Crisis Management Life Cycle Initiation Phase Continuous Crisis declaration Active Phase Improvement Phase Situation assessment Acceptance Issue definition Post mortem executed Notification Define resolution criteria Action planning Action planning Opportunities leveraged Project management 60 or 90 day checkpoint Project reviews Closure Phase Monitor Phase Formal agreement Checkpoint reviews Internal surveys Normal problem mgt Customer evaluation Post mortem planning 25
  26. 26. Crisis Methodology Executives HQ Operations Risk Assessment Issues List Customer Pain Problem Quality Action Triggering Analysis Plan Effect Situation Customer Satisfaction Situation Resolution Resolution 26
  27. 27. Opportunity Window • Start intelligence gathering at Initiation Phase  Internal business / support plans  Customer business, drivers, goals, strategy, wish list  What keeps exec. up at night?  Other problem or issues • Solve a few other executive items • Opening during Active Phase • Connect the dots with improvements to business goals • Ombudsman “.we…meeting your future goals” • Offer assistance for road maps, strategy, solution 27
  28. 28. Conclusion • Company culture is an corporate asset • Make an advocacy commitment and stick to it • Do the „right thing‟ and putting customers first • We do what is measured, incented, and celebrated • Know what keeps your customer up at night • Trusted advisors are the “last line of defense” • Executive sponsorship/empowerment is mandatory • Listening, leadership, and accountability • Communicate openly and honestly to customers 28
  29. 29. Contact Information Michael Davis, Managing Director MJD Management Group, LLC michael@mjdmanagementgroup.com 404.654.0964 www.mjdmanagementgroup.com http://www.linkedin.com/in/michaeljohndavis777 michaeljdavis twitter 29
  30. 30. Reference • Crisis Best Practices • Why IT Projects Fail? 30
  31. 31. Crisis Best Practices Account Management Communication Process Documentation Quality Metrics 31
  32. 32. Crisis Resolution Best Practices 1. Engage the customer at all levels Account Mgmt 2. Jointly define resolution and criteria Account Mgmt 3. Own/lead the situation Account Mgmt 4. Own the documentation Doc. 5. Accept responsibility for the problem Comm. 6. Communicate, communicate, communicate Comm. 7. Control the message Comm. 8. Focus on root cause Process 9. Focus on mitigating problem reoccurrence and Process improvement opportunities 32
  33. 33. Crisis Resolution Best Practices 10. Develop overall plan with stabilization, recovery, Doc. and improvement components 11. Develop action plan with clear responsibility and Doc. accountability 12. Develop multiple contingency plans Doc. 13. Conduct a joint post mortem Quality 14. Identify other improvement opportunities outside Account crisis and assign ownership Mgmt 15. Jointly defined post monitoring time period Process 16. Facilitate executive sponsor assignment Account Mgmt 17. Implement metrics to measure and improve Account Mgmt 33
  34. 34. Why IT Project Fail? • The most common reasons for project failure are rooted in the project management process and the aligning of IT with organizational cultures * *Source: Tilmann and Weinberger, 2004 • The primary causes for the failure of complex IT projects:**  Poor planning  Unclear goals and objectives  Objectives changing during the project  Unrealistic time or resource estimates  Lack of executive support and user involvement  Failure to communicate and act as a team  Inappropriate skills **Source: Coverdale Organization Cushing, 2002
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