Building a customer focused organization (january 2015)

© 2015 Blue Canyon Partners, Inc.

JANUARY 21, 2015

Building a Customer-Focused Organization


What behaviors have separated the “winners” from the “losers” in other industries?

Winners: “We just focus on responding to our

customers, not trying to change them.”

“They understand our main source of profits is parts and service, and they help us with that part of the business as much as with selling new equipment.”

“I like our strong dealer relationships and like knowing who our customers are. That gives us a good ear to the market.”

“… really good at listening.”

Many Firms: “Our focus has been on cut-backs

and layoffs.” “…on acquisition assimilation”. “… on rationalizing our supply base.” “I spent more time negotiating with

[supplier] than I do with my customers.”

“I used to be on the Customer Council for [ XYZ Manufacturer]. The last meeting that I heard about was four years ago. Maybe they didn’t think we had anything useful to say?”

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Building a Customer-Focused Culture


B2B Customer Experience

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Discover Evaluate Buy Receive Use Get Support

The Customer Experience

R&D

Marketing

Sales

Operations & Supply Chain

Customer Service

Corporate Functions: Finance, HR, IT, etc.


Lesson Promote customers to think…. Avoid situations wherecustomers say….

1. Be proactive and build trust with customers

“…helped us get out in front of [some situation]…”

“they left us hanging…”

Lessons from Best-in-Class Customer Focused B2B Organizations

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2. Connect your people to the right people in the customer organization

“We should have our marketing team work with XYZ Company’s marketing group to learn about the company’s knowledge.”

“XYZ Company marketing came with a salesperson for one meeting and then we never heard from them again.”

3. Interact with customers to focus on the future.

“Our meetings are interesting and exciting…we talk about the ‘what if’ and I am sure XYZ Company will help us introduce something new.”

“All we talk about are ongoing operational problems or contractterms. I can’t wait to get these meetings over with.”

4. Bring clarity, energy and purposeful protocol to these interactions

“XYZ Company asked us-- what can we accomplish together? And from this simple question we have jointly build a blueprint of actions that will push both of our organizations forward.”

“We tried it once, but it really didn’t work…”; “We do have an annual executive meeting with XYZ Company, but it’s largely ceremonial.”

5. Establish meaningful measurements

“Planning is done together. We know what we need to do, who needs to be involved, and how to ensure there are no unhappy surprises…”

“Working with XYZ Company is confusing, complex, and is just too hard.”


1. Set the Foundations for Success

2. Design the Implementation

3. Deploy

Building a Customer-Focused CultureWhat is the vision for the

future? What best practices help companies shift toward a customer

focused change? What is the current state for

customer focus at my company? What is

missing and what needs to be changed and how?

Upon deployment, how will my company’s leaders

know that change is effective? What can be

learned? How will course correction take place

when needed? How will we measure success?

Who will be accountable for this transformation?

Which customer-focused initiatives are critical and why? When and how will this transformation take

place?

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6-Step Approach

1. Develop Framework

2. Prepare Leadership & Organization

3. Assess Impact of

Framework

4. Plan & Organize for

Implementation

5. Deploy Implementation

Plan

6. Learn & Course Correct

Goals: Set the Foundations

• Create a case for change

• Build a framework for transformation

• Prepare leadership and organization to receive and participate in the transformation

Goals: Design Implementation

• Define and mobilize teams

• Test, resolve and refine initiatives

• Build initiatives into a master implementation plan

• Communicate plan

Goals: Deploy

• Roll out master plan

• Course correct, as needed

• Celebrate successes

• Learn to continuously improve customer-focused culture

I. Set Foundations for Success

II. Design Implementation

III. Deploy

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Vision: Better Serve the Customer

Transformation Framework

To describe the story line and drive the Transformation:Build One Bold Underlying Initiative: Customer-Focused CultureCreate audacious, massive customer- focused / customer care training to change the organization's mindset, culture and infuse “customer first” into the organization’s DNA.

Initiative 1 Initiative 2 Initiative 3Priority Initiatives

Initiative 4 Initiative 5 Initiative 6Secondary Initiatives

Illustrative

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Role Description AssignmentSponsor Individual with highest line authority; “owner”, influencer of values /

culture; has veto power over all decisions

Executive Team Makes strategic decisions for transformation with sponsor; reports to functional leaders, coaches team heads

Project Steering Committee

Leaders and key stakeholders authorized to shape the transformation process; focuses on the vision, strategy and planning of transformation activities; assures adequate resources

Customer-FocusedProject Leader

Individual authorized by sponsor to lead the customer-focused project; facilitates the process of defining and planning the transformation strategy; clarifies scope, outcomes, pace, constraints; advocate for key initiatives; shapes how the change is led, designed, implemented and corrected. Responsible for communicating quick wins and successes

Sub-Project Team Heads

Sub-project leaders who brings business know-how to lead the specific initiatives outlined in the master implementation plan. Sub-Project Heads work closely with the Project Leader to plan and deploy key initiatives

Sub-Project Teams Sub-project team members who are organized to implement the initiatives. Team members to work under the direction of the Project Team Head. Team members bring a mixture of cross-functional expertise, project management, change management and communication skills

Customer-Focus Project Leadership Illustrative

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Master Implementation Plan

1Q 2015

2Q 2015

3Q 2015

4Q 2015

1H 2016

2H2016

2017 2018

Priority 1

Prio

rity

Priority 2

Priority 3

Priority 4

Seco

ndar

y Priority 5

Priority 6

Priority 7

Design Plan Deploy

Design/Plan

Design/Plan

Deploy

Design

Design

Design

Design

Design

Plan

Plan

Plan

Plan

Plan

Deploy

Deploy

Deploy

Deploy

Deploy

Deploy

Illustrative

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The best companies thoroughly understand their customers and fully incorporate customer insights into their plans and priorities.

The challenge is implementing that vision.

It’s far easier to profess the desire to be a customer-facing company than it is to actually build such a culture.

Source: Building a Customer-Facing CulturePublished November 2011 in Business Excellence MagazineGeorge F. Brown, Jr.Co-Founder, Blue Canyon Partners

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Building a customer focused organization (january 2015)

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