Build a World Class Operation in Customer Success

© 2016 Service Excellence Partners
Build a World Class Operation in
Customer Success
Ed Powers

My Territory

What makes organizations
world class performers?

Organizational Maturity
Control
Continuous Improvement
Firefighting
Optimization
Innovation
2x

Results from Continuous Improvement
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Operating
Income
Sales Total
Assets
Employees Return on
Sales
Return on
Assets
PercentChange Award Winners
Control Firms
Source: Hendricks, K. and Singhal,
V. March, 2000 “The Impact of
Total Quality Management (TQM)
on Financial Performance:
Evidence from Quality Award
Winners” DuPree College of
Management, Georgia Institute of
Technology

Organizational Maturity
Control
Continuous Improvement
Firefighting
Optimization
Innovation
10x

Sources: J. Collins, M. T. Hansen, 2011. Great by Choice: Uncertainty, Chaos and Luck—Why Some Thrive Despite Them All. Cumulative
stock returns, dividends reinvested. © CRSP, Center for Research in Security Prices, Booth School of Business, The University of
Chicago.
10X Case Dynastic Era of
Study
Value of $10K
Invested
Performance
Relative to Market
Performance
Relative to Industry
Amgen 1980-2002 $4.5M 24X 77X
Biomet 1977-2002 $3.4M 18X 11X
Intel 1968-2002 $3.9M 21X 46X
Microsoft 1975-2002 $10.6M 56X 119X
Progressive Insurance 1965-2002 $2.7M 15X 11X
Southwest Airlines 1967-2002 $12.0M 63X 550X
Stryker 1977-2002 $5.3M 28X 11X
10x Performers

10x Companies
Are not:
• more creative
• more visionary
• more charismatic
• more ambitious
• more blessed by luck
• more risk seeking
• more heroic
• more prone to making big, bold moves
Source: J. Collins, M. T. Hansen, 2011. Great by Choice: Uncertainty, Chaos and Luck—Why Some Thrive Despite Them All.

Empirical Creativity
Don’t look to other people,
conventional wisdom,
authority figures or peers,
but to empirical evidence;
direct observation, practical
experimentation, and direct
customer engagement

Productive Paranoia
Hyper-vigilant, highly
attuned to threats and
changes even when things
are going well; channel
fear and worry into action
and preparation, and
maintain large margins of
safety

Fanatic Discipline
Extreme consistency of
action, goals,
performance standards
and methods; utterly
relentless with an
unbending focus on
their quests

The Secret to 10x Success
“Disciplined people engaged in
disciplined thought and taking
disciplined action.”
A disciplined culture comes
from a specific, methodical and
consistent leadership approach.

We are what we
repeatedly do.
Excellence, then, is not
an act, but a habit.
– Aristotle
System->Discipline->Repetition->Habit->Culture->Excellence!

Many Approaches…

Strategic Management Systems
Sensory
System
Planning and
Review System
Work System
Metrics System CI System
People System
Leadership System

Strategic Management Systems
Sensory
System
Planning and
Review System
Work System
People System
Results
Leadership System

Example: Emerging Segment
Sensory
System
Work SystemPeople System
Results
Planning and
Review System
CI SystemMetrics System
Leadership System
Fanatic Discipline
Empirical Creativity
Productive Paranoia

CCS Benchmarking

CCS Benchmarking Results?
Sensory
System
Planning and
Review System
Work System
People System
Results
Leadership System
71%
41%

Sensory System
Opportunities
- Defining personas by
market segment (47%)
- Using CSAT and loyalty
data in planning (47%)
- Analyzing competitor’s
customer experiences
(47%)
Strengths
+ Analyzing defections by
reason, segment and
competitor (63%)
+ Revisiting assumptions
throughout the customer
lifecycle (63%)

Planning and Review System
Opportunities
- Articulating specific
changes and what’s
required to implement
them (39%)
- Tracking systems to
monitor execution and
results (39%)
Strengths
+ Aligning and integrating
functional and corporate
plans (78%)

People System
Opportunities
- Aligning staffing levels,
knowledge and skills to
the customer experience
(40%)
- Measuring and improving
learning and
development systems
(27%)
Strengths
+ Measuring and acting on
employee feedback (87%)

Work System
Opportunities
- Identifying and tailoring
journeys to specific
segments and personas
(33%)
Strengths
+ Using personas and
segments to drive process
requirements (60%)

Metrics System
Opportunities
- Deploying leading and
lagging indicators (29%)
- Indicating progress on
plans (29%)
- Calibrating metrics
(14%)
Strengths
+ Defining the right set of
metrics (64%)
+ Reviewing and acting on
metrics (64%)

Continuous Improvement System
Opportunities
- Using statistical methods
(21%)
- Separating special from
random causes (21%)
- Set aside time for
improvement projects
(21%)
Strengths
+ Working cross-functionally
(71%)

Leadership System
Opportunities
- C-level ownership of the
customer experience
(29%)
Strengths
+ Leaders modeling ideal
behaviors (93%)
+ Leaders emphasizing
customers and key
communities (93%)

Next Steps for 2017
1. Take the survey by Thanksgiving
2. Review your capabilities in the Seven Systems
3. Prioritize the gaps
4. Pick one area to improve
5. Plan and execute!

Thank You!
Ed Powers
Principal
Service Excellence Partners
www.se-partners.com
ed@se-partners.com
970-235-0078

Build a World Class Operation in Customer Success

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