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Building a Customercentric Organisation

http://linkedin.com/in/janneohtonen
Customer Centric Transformation
Change methods are evolving
rapidly and with good reason.
Currently accepted “best practice”
approaches miss opportunity and
simply take too long to be truly
effective in an agile work
environment.

The latest wave of Customer
Centricity is designed to create a
mind shift in approach to solving a
company’s most pressing
problems, focusing on the
Outcome and working backwards.
How to create a Customer-Centric culture…
Best Practice

Next Practice

Symptom, defect, pain

Cause of Work, Point of Failure
Corporate Agenda, Customer Outcome

Complex

Appropriately Simple

Measures of Success

Internal and related to problem

Corporate Success Measures
Process specific KPIs

Change Methods

Slow, complex, foster resistance

Rapid, domain of all, inclusive

People

Controlled

Empowered
Common focus

Structure

Hierarchy/
Functional

Team

Systems

Prescriptive

Adaptive

Internal Activities

Customer Outcomes

End of chain
Segmented, Outside Organisation

Inclusive
Individual, Outcome Focus

Extrapolating the past

Extending the Customer Experience

Domain of the “gifted” few
“Hit and Miss” and often no focus

Expanding the Customer Experience
Potentially the domain of all

Change Focus
Processes

Measurement
Role of Customer
Preparing for the Future
Innovation
Outside-In vs. Inside-Out Company
Outside-In = Customer Centric

Inside-Out = Organization Centric

 Decisions are made based on market
and opportunities for advantage.

 We will sell to anyone who wants to
buy from us.

 Profits are gained through a superior
value proposition.

 Profits are gained through cost
cutting and efficiency improvements.

 Customer knowledge is a valuable
asset and channels are value-adding
partners.

 Customer data are a control
mechanism and channels are
conduits.

 We know more than our competitors.

 Competitors are doing it, so it must
be good thing.

 Customers buy the expectation of
benefits.

 Protect the cash flow stream.

 Quality is defined by customers as
”fitness for use”.

 Customers buy performance
features.

 The best ideas come from living with
customers.

 Quality is conformance to internal
standards.

 Customer loyalty is appreciated.

 Expanding the customer base.
How to structure your organisation?
Target
Customers

Successful
Customer
Outcomes

Outcomes

Outputs

Activities /
Tasks

Activity / task

Outcome

Output

Activity / task

Activity / task

Successful
Customer
Outcome

Activity/Task
Outcome

The Customer

Output
Activity / Task

Successful
Customer
Outcome

Outcome

Output

Activity / Task

This is a way to structure
your organisation based
on the customer. This will
lead us from the
successful customer
outcomes towards
everything that is done in
an organisation…
 Does this approach
challenge how we move
from “best practice” to
“next practice”?
 Is the division of staff
customer or silo
focused?
Companies doing
it well…
The results you get when the customer is
put at the centre of business…
The most successful organisations align every aspect of their
business to the customer to achieve:
Decreased costs
Improved customer experience & satisfaction
Increased and new revenue opportunities
Smaller customer churn & higher commitment
Higher NPS – Easier to sell to new customers
Higher customer lifetime value
More committed personnel
A new wave of Customer Centricity
through Outside-In thinking

Outside-In thinking
is a way of managing
an organisation by
understanding and delivering
Successful Customer
Outcomes!
Food for thought…
“If you use standard research methods you will have the same insights as
everyone else!”
“Customer Service shouldn’t be a department, it should be the entire company!”

“However beautiful the strategy, you should occasionally look at the results!”

“It is not the strongest of the species that survive, nor the most intelligent, it is
those most responsive to change!”

http://linkedin.com/in/janneohtonen
Get a FREE book!
Connect with me!

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Building a customer centric organisation

  • 1. Building a Customercentric Organisation http://linkedin.com/in/janneohtonen
  • 2. Customer Centric Transformation Change methods are evolving rapidly and with good reason. Currently accepted “best practice” approaches miss opportunity and simply take too long to be truly effective in an agile work environment. The latest wave of Customer Centricity is designed to create a mind shift in approach to solving a company’s most pressing problems, focusing on the Outcome and working backwards.
  • 3. How to create a Customer-Centric culture… Best Practice Next Practice Symptom, defect, pain Cause of Work, Point of Failure Corporate Agenda, Customer Outcome Complex Appropriately Simple Measures of Success Internal and related to problem Corporate Success Measures Process specific KPIs Change Methods Slow, complex, foster resistance Rapid, domain of all, inclusive People Controlled Empowered Common focus Structure Hierarchy/ Functional Team Systems Prescriptive Adaptive Internal Activities Customer Outcomes End of chain Segmented, Outside Organisation Inclusive Individual, Outcome Focus Extrapolating the past Extending the Customer Experience Domain of the “gifted” few “Hit and Miss” and often no focus Expanding the Customer Experience Potentially the domain of all Change Focus Processes Measurement Role of Customer Preparing for the Future Innovation
  • 4. Outside-In vs. Inside-Out Company Outside-In = Customer Centric Inside-Out = Organization Centric  Decisions are made based on market and opportunities for advantage.  We will sell to anyone who wants to buy from us.  Profits are gained through a superior value proposition.  Profits are gained through cost cutting and efficiency improvements.  Customer knowledge is a valuable asset and channels are value-adding partners.  Customer data are a control mechanism and channels are conduits.  We know more than our competitors.  Competitors are doing it, so it must be good thing.  Customers buy the expectation of benefits.  Protect the cash flow stream.  Quality is defined by customers as ”fitness for use”.  Customers buy performance features.  The best ideas come from living with customers.  Quality is conformance to internal standards.  Customer loyalty is appreciated.  Expanding the customer base.
  • 5. How to structure your organisation? Target Customers Successful Customer Outcomes Outcomes Outputs Activities / Tasks Activity / task Outcome Output Activity / task Activity / task Successful Customer Outcome Activity/Task Outcome The Customer Output Activity / Task Successful Customer Outcome Outcome Output Activity / Task This is a way to structure your organisation based on the customer. This will lead us from the successful customer outcomes towards everything that is done in an organisation…  Does this approach challenge how we move from “best practice” to “next practice”?  Is the division of staff customer or silo focused?
  • 7. The results you get when the customer is put at the centre of business… The most successful organisations align every aspect of their business to the customer to achieve: Decreased costs Improved customer experience & satisfaction Increased and new revenue opportunities Smaller customer churn & higher commitment Higher NPS – Easier to sell to new customers Higher customer lifetime value More committed personnel
  • 8. A new wave of Customer Centricity through Outside-In thinking Outside-In thinking is a way of managing an organisation by understanding and delivering Successful Customer Outcomes!
  • 9. Food for thought… “If you use standard research methods you will have the same insights as everyone else!” “Customer Service shouldn’t be a department, it should be the entire company!” “However beautiful the strategy, you should occasionally look at the results!” “It is not the strongest of the species that survive, nor the most intelligent, it is those most responsive to change!” http://linkedin.com/in/janneohtonen
  • 10. Get a FREE book!