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Overcoming the Organizational Challenge
The document emphasizes the importance of establishing a customer-centric organizational strategy to enhance customer experience and drive investment decisions. It discusses the need for a chief customer officer role, accountability for customer experience, and alignment between business and technology. Key lessons include focusing on customer journeys, integrating media channels, and creating metrics that support customer-focused performance.
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Overcoming the Organizational Challenge
- 1. Module 3: Overcoming theOrganizational Challenge Leah van Zelm Principal Consultant
- 2.
- 3. Introduction Building an enterprise-wide,customer-centric strategy that is able to drive investment decisions across the organization is critical to success. But today’s organization does not enable a positive customer experience because it does not have the operating model in place to exploit customer centricity. What’s needed is an Experience Enabling Operating Model designed around what’s right for the consumer, NOT what’s easy for the organization.
- 4. Lessons learned KPIs CultureStructure Rolesand Responsibilities Incentives and Rewards Lesson 3: Whatever you call it, create a Chief Customer Officer role Lesson 5: You are what you measure Lesson 4: The business and technology are in this together Lesson 1: Start with the customer experience Customer Experience Lesson 2: Assign organizational authority and accountability for the customer experience Experience enabling Operating model components 1 2 3 4 5
- 5. Lesson 1: Start withthe customer experience KPIs Customer Experience 1 Lesson 1
- 6. Data, Technology: The underlyingtools to enable people and processes. People and processes: The internal operating model that delivers on business objectives Touchpoints: Points in time where customer engages with business though media/channel Interactions: Activities that customer engages in with the business to accomplish an objective Experience: Perception based on the sum of interactions Experience drives the organization Organization often drives experience But you should start with the entire experience in mind.
- 7. T O UC H P O I N T S Touch points designed without an overall strategy for how interactions will manifest in an experience Many of today’s organizations allow the customer treatment to be defined at individual touch points. Product Goals Corporate Goals Brand Goals Brand Objectives Design Touch point Online Objectives Design Touch point Offline Objectives Design Touch point Execute & Measure Execute & Measure Execute & Measure
- 8. This means thatwhen thinking about corporate processes, the experience design is an earlier activity. J O U R N E Y Customer experience defined first in the form of a customer journey Then the interactions translated into touch points Execute and Measure Translate Journey to Interactions Execute and Measure Design Overall Journey Corporate Goals Measure
- 9. From silos oftouch points to integrated journeys. Product Goals Corporate Goals Brand Goals Brand Objectives Design Touch Points Online Objectives Design Touch Points Offline Objectives Design Touch Points Execute & Measure Execute & Measure Execute & Measure Execute & Measure Translate Journey to Interactions Execute & Measure Design Overall Journey Corporate Goals Measure E X P E R I E N C ET O U C H P O I N T S
- 10. Lesson 2 Lesson 2: Assignorganizational authority and accountability for the customer experience 2 Structure
- 11. Customer experience inconsistentacross product and media/channels •Divisions own P&L, strategy •Marketing, sales and service controlled by divisions •Media execution lack efficiency and coordination Customer experience drives product and media/channels •Marketing, sales and service - single governance •Divisions support the customer experience •Media measured and executed holistically Changes to processes, mean changes to organizational structure. T O I N T E G R AT E D S T R U C T U R E F R O M S I L O E D S T R U C T U R E
- 12. Different organizational modelsare optimal in different circumstances. HighLow CustomerCentricity HighLow Media/Channel Integration
- 13. Degree of CustomerCentricity CustomerCentricProductCentric KPI Goal Culture Makes Sense Looks Like • Customer value • Share of wallet • Customer experience • Best solution for customer • Find products for customers • Relationship management • Customer knowledge and experience delivery is a competitive advantage • High degree of customer overlap across products • Customer insight led • Customer specific metrics in place • Product P&L • New products • Share of market • Best product • Find customers for its product • Product or process innovation • Innovation is a competitive advantage • Limited customer overlap with product • Product managers own P&L • If segments exist, they are aligned with division Clarity on the degree of product vs. customer focus must understood, rationalized and shared among leadership. HighLow CustomerCentricity
- 14. Degree of Media/ChannelIntegration Regardless of product vs. customer focus, media and channel integration is important to eliminating artificial silos. Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Email & DM Digital Media Integration Mass Media Integration Digital Channels Integration Offline Channel Integration Fully Integrated Experience Regardless of product vs. customer focus, media and channel integration is important to eliminating artificial silos. HighLow Media/Channel Integration
- 15. Different organizational modelsare optimal in different circumstances. HighLow CustomerCentricity HighLow Media/Channel Integration Division Centric Low Integration Customer Centric Low Integration Customer Centric High Integration Division Centric High Integration
- 16. Card Services President Branded Card Services Presidentof Product 1 Product Advertising Analytics Customer Ex. President of Product 3 Product Advertising Analytics Customer Ex. Centers of Excellence Operations Direct Mail Digital Database Service Credit and Collections Product Centric Media/Channel Integration Branded Card Services PRODUCT STRATEGY EXECUTION CENTRALIZED PRODUCT P&L President of Product 1 Product Advertising Analytics Customer Ex. Centers of Excellence Operations Direct Mail Digital Database Service Credit and Collections
- 17. Lesson 3 Lesson 3: Whateveryou call it, create a Chief Customer Officer role 3 Roles & Responsibilities
- 18. Source: Forrester 2014 ChiefCustomer Officers are on the rise. • AKA: Chief Experience Officer, Chief Client Officer, SVP Customer Experience • Still a new role, with average tenure of 2 years • 58% are internal hires: operations, GM, marketing, sales, service • 85% are part of executive team (up from 50% in 2012) • Various spans of control CCO
- 19. Chief Customer Officer ChiefMarketing Officer Chief Customer Officer • Controls the marketing experience • May influence other experiences • Single point of control over experience • Owns P&L outcomes • Nurture the customer centric culture • Marketing, sales and service Increasing span of control
- 20. Lesson 4 Lesson 4: Thebusiness and technology are in this together4 Culture
- 21. Culture People / Organization Culture Culture: The setof habitual and traditional ways of thinking, feeling and reacting that are characteristic of the ways a particular society meets its problems at a particular point in time. Organizational Culture: The pattern of beliefs, values and learned ways of coping with experience that have developed during the course of an organization’s history and which tend to be manifested in its material arrangements and in the behaviors of its members.
- 22. Culture must supportrapid learning, application of insight to decisions, nimble collaboration around customer. • Accountability to customer metrics; reward differentially for customer related performance • Place trust in and empower employees to drive to customer experience goals • Communicate customer experience achievements Customer Centricity • Support informed risk taking by rewarding and measuring innovation and learning rather than punish it • Embrace constant changes and tweaks - “fail fast, learn fast” (as opposed to a big bang) Agile Decisioning
- 23. CCO and CIOroles changing Shared accountability for experience Define and drive portfolio objectives via an optimized customer experience Enable and deliver on the customer experience CCO CIO FROM • React quickly to market • Business focus, customer focus • Develop own solutions TO • Be tied at the hip with CIO • Know data and technology • Plan for long term with CIO FROM • Mitigate risk • Process oriented • Well-established governance • Aligned with Finance or Operations TO • More agile and nimble • Aligned with business • Have a seat at the table with CCO • Aligned with customer priorities
- 24. Marketing Technologist toIntegrate CIO and CCO VP of Marketing and IT to harness the power of Marketing and Information/IT alignment Customer journey to define roles and tools Systems, processes, tools to enable experience Half the team are marketers with affinity for technology Half the team are technologists with affinity for marketing and sales IT and marketing culture of collaboration
- 25. Lesson 5 Lesson 5: Youare what you measure5 Incentives & Rewards
- 26. Tying strategy toemployee motivations Financial • Translate strategy and vision into tangible measures for decision makers • Link these measures to compensation - monetary means to recognize and motivate performance • Link these measures to Reward and Recognition - non monetary ways to motivate employees Customer Innovation Efficiency
- 27. Trend From Focus on salary Payfor time Value position, skills, knowledge Reward individual To Total compensation, reward and recognition, culture, professional development Pay for performance and results Value role being played and behavior demonstrated Reward team and tie to culture Management’s assessment Management, peer, customer assessment for a sense of purpose
- 28. Summary lessons learned KPIs CultureStructureRoles and Responsibilities Incentives and Rewards Lesson 3: Whatever you call it, create a Chief Customer Officer role Lesson 5: You are what you measure Lesson 4: The business and technology are in this together Lesson 1: Start with the customer experience Customer Experience Lesson 2: Assign organizational authority and accountability for the customer experience Experience enabling Operating model components 1 2 3 4 5
- 29. “Many companies losesight of the experience they’re creating for their customers. Processes form organically over time, and few organizations consider the customer experience as a whole, let alone explicitly design, implement, and measure it consistently across the board. That’s where we hope to be different.” Will you be disrupted or disruptive? - Mass Mutual Life
- 30. Discussion 1. What’s thebiggest organizational barrier (to delivering an above average customer experience) that currently encounter? 2. How can structure and process help overcome barriers? 3. How customer centric is your organization? How agile? 4. What roles need to be clarified or created in your organization to advance the customer experience? 5. What can you change starting this month to improve organizational performance with regards to the addressable experience
- 31. Thank You! To watchthe full webinar presentation, please head here: http://bit.ly/1vJ2YvZ
Editor's Notes
- #3 Why you should care
- #4 To deliver experience, need organization designed for experience
- #5 5 lessons on how to deliver on customer experience
- #7 Hard to deliver on customer experience when touch points aren’t aligned
- #8 Examples: Call centers have their own business rules for customer prioritization IVR offers defined by call center team Branch has their own way of delivering an experience Marketing defines their own treatment strategy Brand and direct marketing processes completely separate Corporate objectives translated into product objectives, which are translated into media/channel objectives. Consumer experience defined very narrowly (for a product within a media/channel) Result is a disjoined experience Measurement and optimization limited to narrowly defined experiences. Lack a true view of experience measurement and investment contribution Results in sub-optimal budget allocation
- #9 Example: USAA has identified approximately 100 keyexperiences associated with customer journeys like buying a car or preparing to deploy abroad, all of which have owners and cross-functional teams held accountable for underlying processes. Steve Jobs: Design is a funny word. Some people think design means how it looks, but of course, if you dig deeper, it’s really how it works”
- #10 Customer strategy and associated experience defined up front and holistically. Cross experience KPIs developed and tied to individual performance goals – accountability Coordinated development and execution of the customer experience across media/channels Seamless and positive experience Efficiencies realized through media/channel integration Measurement across the experience and across the organization
- #12 Reminder: not one size fits all
- #13 Framework to think about components of your organization - highlight 2 dimensions
- #14 It’s a continuum, rarely black and white. Ask what’s going to give you competitive edge Product innovation Customer and brand experience
- #15 Hard to deliver on customer experience without integration at thouch points – this can mean formal organizaiton or other ways of alignment
- #16 Framework to think about components of your organization - highlight 2 dimensions
- #17 Example of Product focus with strong media/channel integration
- #18 Who should be responsible for the experience?
- #23 Dogs Ass – agility example. Define the behaviors that you need to enforce. Culture can be polarizing (either feel natural or wont enjoy). Merkle culture guide – intentional . Example – safety vs. agility (every meeting started with tailgate meeting that included a safety story) VS disney Zappos – see call center connections as marketing opportunity not operational How do you take disparate functions and ask to work cross functionally – resistance Evolve vs revolution? (Big change at best buy book) – introduced playbooks to unfreeze/refreeze
- #24 Key message: Moving to a modern marketing organization means developing processes that drive agility and collaboration Majority of the processes in the PM context are those that support decisioning within CCO and CIO organizations. The joint decisioning has emerged from the digital world - the world where customer engagement relies on technology to supplement traditional touch points. Example: Mike Collins, travelers
- #27 Examples Google - financial and efficiency outcomes : monetary - innovation: provide time to innovate
- #28 Objective Retain high performers Drive needed financial results and associated behavior Support agility in organizaiton