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Finding the Right Organizational Design for Your Customer Experience

A customer experience overhaul—whether within or across a company’s channels to customers—must involve every organizational unit that touches customers. That includes customer-facing business functions (marketing, sales, service); product/service lines; units based on channels (for example the e-commerce division) and regions.

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Finding the Right Organizational Design for Your Customer Experience

  1. 1. | Copyright © 2015 Tata Consultancy Services Limited Finding the Right Organizational Design for Your Customer Experience Tonya McKinney, Principal and Head – Customer Experience Solutions, Global Consulting Practice, TCS Denise Friedman, Practice Head – Organizational Performance, Global Consulting Practice, TCS October 2015
  2. 2. Companies are shifting from product-centered approaches to customer- centered organizational designs. To overhaul customer experience and execute new initiatives, companies must update obsolete business processes. Organizational Design, 2015 Introduction: Organizational Design
  3. 3. Inflexible silos of functions, lines of business, channels to market, and regions can affect Customer Experience (CX) improvement initiatives. Organizational Design, 2015 The drawbacks of rigid organization design
  4. 4. As digital strategies and experience initiatives converge, ownership of the customer experience becomes blurred. Trying to graft new customer experience onto old organizational models is a recipe for trouble. Three dominant organizational models are currently being used to support improved experience. Two emerging models may become prevalent in coming decades. Organizational Design, 2015Perspectives—The Responsive Enterprise Tweet thisRead MoreOrganizational Design, 2015 Organizational Models
  5. 5. In the oversight model, the group in charge of experience transformation has the power to recommend but not to mandate its advice. To use the oversight model effectively, companies should develop business cases and ROI models for customer experience programs. They must set up a program management office and keep programs on track across silos. Organizational Design, 2015Perspectives—The Responsive Enterprise Tweet thisRead MoreOrganizational Design, 2015 1: Oversight Model
  6. 6. Organizational Design, 2015Perspectives—The Responsive Enterprise Tweet thisRead MoreOrganizational Design, 2015 In this model, companies have shared services centers to support the customer experience vision. The enablement model creates a single source of customer information that’s fed across all channels. By using shared insight, this model breaks down silo barriers. 2: Enablement Model
  7. 7. The authority model ensures that groups central to the initiative are aligned with the experience vision. Centralizing control means changes can be implemented quickly. This model addresses organizational silos. It leads company-wide transformation to customer-centricity. Organizational Design, 2015Perspectives—The Responsive Enterprise Tweet thisRead MoreOrganizational Design, 2015 3: Authority Model
  8. 8. In the dominant models, customers are passed along various internal units throughout the customer experience. Customer service can easily become a silo-to- silo bucket brigade and positive experience can be lost. Emerging models are trying to remedy those problems and further break down silos. Organizational Design, 2015Perspectives—The Responsive Enterprise Tweet thisRead MoreOrganizational Design, 2015 4: Emerging Models
  9. 9. In this emerging model, companies go to market through customer segments that span traditional product silos. Experience managers own the end-to-end experience for one or more target segments. Channels and functions—from R&D to the supply chain—are essentially shared services. Organizational Design, 2015Perspectives—The Responsive Enterprise Tweet thisRead MoreOrganizational Design, 2015 4A: Segment Experience Model
  10. 10. This model depends heavily on digital capabilities to facilitate collaboration with customers. Customers co-design the experience with the company by selecting from digital modules of services and features. A flexible, modular, and interactive digital infrastructure is essential for this model. Organizational Design, 2015Perspectives—The Responsive Enterprise Tweet thisRead MoreOrganizational Design, 2015 4B Customer-driven Experience Model
  11. 11. Advanced models seek to break silos and build experience around the customer. The organizational model adopted will be crucial to achieving the experience vision. A shift to customer- centered design requires deep customer insights and mature systems of engagement. Organizational Design, 2015Perspectives—The Responsive Enterprise Tweet thisRead MoreOrganizational Design, 2015 Conclusion: Breaking Silos
  12. 12. IT Services Business Solutions Consulting Finding the Right Organizational Design for Your Customer Experience Do Not Let Silos Sink Your Customer Experience; Break Through the Walls Contact a ConsultantRead More

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