Module 3:

Overcoming the Organizational Challenge

Leah van Zelm

Principal Consultant

T-Mobile: Trustworthy and Honest

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.

Lessons learned

KPIs

CultureStructure Roles 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

Lesson 1:

Start with the customer experience

KPIs

Customer

Experience

1

Lesson 1

Data, Technology:The underlying tools 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.

T O U C 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

This means that when 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 pointsExecute and

Measure

Translate

Journey to

Interactions

Execute and

Measure

Design Overall

Journey

Corporate Goals

Measure

From silos of touch 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

Lesson 2

Lesson 2:

Assign organizational authority and accountability

for the customer experience

2

Structure

Customer experience inconsistent across 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

Different organizational models are optimal in different circumstances.

Hig

hL

ow

Cu

sto

mer

Cen

tric

ity

HighLow

Media/Channel Integration

Degree of Customer Centricity

Custo

me

r C

en

tric

Pro

du

ct C

en

tric

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.

Hig

hL

ow

Cu

sto

me

r C

en

tric

ity

Degree of Media/Channel Integration

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

Different organizational models are optimal in different circumstances.

Hig

hL

ow

Cu

sto

mer

Cen

tric

ity

HighLow

Media/Channel Integration

Division Centric

Low Integration

Customer

Centric

Low Integration

Customer

Centric

High Integration

Division Centric

High Integration

Card Services

President

Branded Card

Services

President of

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

Lesson 3

Lesson 3:

Whatever you call it, create a Chief Customer

Officer role

3

Roles &

Responsibilities

Source: Forrester 2014

Chief Customer 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

Chief Customer Officer

Chief Marketing 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

Lesson 4

Lesson 4:

The business and technology are in this together4

Culture

Culture

People /

Organization

Culture

Culture:

The set of 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.

Culture must support rapid 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

CCO and CIO roles changing

Shared

accountability for

experience

Define and drive portfolio objectives via

an optimized customer experienceEnable 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

Marketing Technologist to Integrate 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

Lesson 5

Lesson 5:

You are what you measure5

Incentives &

Rewards

Tying strategy to employee 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

Trend

From

Focus on salary

Pay for 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 assessmentManagement, peer, customer assessment for a sense

of purpose

Summary lessons learned

KPIs

CultureStructure Roles 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

“Many companies lose sight 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

Discussion

1. What’s the biggest 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

Thank You!

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