Building Silos or Breaking Silos


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Building Silos or Breaking Silos

  1. 1. Building Silos or Breaking Silos? Internal Customers is aFlawed Concept!I spent many years of consulting on internal Customers. I helped companies look at internalCustomers, and how they could get value from the other departments of the company. Andkeeping internal Customers happy. Companies would throw SLA’s at me (Service LevelAgreements) so that performance of departments and expectations of internal Customers weremet.But my work with external Customers showed that one very important reason for Customers to beunhappy was the various silos that are built in companies, and how departments are insulatedfrom each other. Silos are promoted by the concept of internal customers. Departments tend to beindependent of each other. This leads to a lack of internal cooperation. Even worse, everyonethinks the customer is taken care of because there is a customer department and they all washtheir hands off the customer and think they have no customer role. The results of a survey with400 CEO’s shows that the two major reasons for failure to provide good Customer Experience are(1) Lack of a clear Customer Strategy, and (2) Lack of Internal Cooperation.Thus if you want to give your Customer a good experience abandon the concept of internalCustomers. Build internal teamwork and cooperation. We work with various departments indefining their Customer roles. We ask why departments such as HRD and IT are considered staff
  2. 2. functions. The reason is they do not add value. They are really extractors of value not creators ofvalue. When have you heard an HRD CXO ask: What value have I added to the employee? Whendid he ask whether the employee feels valued? Is it the HRD CXO’s job or is it the departmentmanager’s job? Or is it everyone’s or no one’s job?We improve internal cooperation and teamwork by starting a Courtesy System, so people are niceto each other and start smiling. This then shows in the way you handle your colleagues and yourexternal CustomersAn external Customer could care less about internal silos. He wants a seamless experience. Hedoes not care who is doing the work for him, and telling him this is the job of another departmentis most irksome for him (he doesn’t want to hear: Not my job!)And we break silos by building a Customer strategy with tasks and leadership from variousdepartments. We build the Customer’s Bill of Rights, backed by a Circle of Promises from variousdepartment so that the Customer realises his rights are being honoured by the company.This is the first step to creating Firms of Endearment, where all stakeholders feel endeared andthe profitability increases.Break silos soonest! Forget the concept of Internal Customers.I will be chairing 3rd "Maximizing Customer Loyalty & Profitability" Telecom Conference organized byTelecom IQ (A Division of IQPC), in Germany on May, 21-22, 2013Contact Customer Value Foundation.Call any TimeMob: (+91) 9971288580Gautam Mahajan, President-Customer Value FoundationM: +91 9810060368Tel: 11-26831226, Fax: 11-26929055email: mahajan@customervaluefoundation.comwebsite: http://www.customervaluefoundation.com_____________________________________________________________________Customer Value foundation (CVF) helps companies to Create Value and profit by Creating Value for the customers,employee and for each person working with the companies.
  3. 3. Total Customer Value Management (TCVM) transform the entire company to focus on Creating Value for thecustomer by aligning each persons role in Creating Customer Value and getting shareholder wealth and Value._____________________________________________________________________