WAVES OF CHANGE

Prof.Dr.Aung Tun Thet

WAVES OF CHANGE

Prof.Dr.Aung Tun Thet

Oceans of Opportunities

Introduction

http://www.google.com.mm/url?sa=i&rct=j&q=philosophy+quotes&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCLfS-o6ih8kCFYobjgodGqUNFA&url=http://refe99.com/quotes/philosophy/&psig=AFQjCNFmj02zA8_605zlg2oIaQBedYRydQ&ust=1447293325106023

The world has changed, and

Companies must change with it.

Future Thrusts of Business

• Developing Better Products/Services• Serving Customers Better• Creating Better World

Future Thrusts of Business

• Corporate Centric• Customer Centric• Stakeholder Centric

Future Thrusts of Business

• Segmenting• Targeting• Positioning

Future Thrusts of Business

• Core Competencies• Customer Focus• Collaborative Network

Future Thrusts of Business

• Changing Mindsets• Addressing Mandate for Change• Crafting Operating Models• Driving Social Movements

New Business Environment

• Shift focus • From commodity • To customer • Customer-centric transformation• Strategic advantage

Fundamental New Direction

• New Business Model • Consistently put customer at heart of all activities

• “Customer Centricity”

Customer Centricity

Customer-centric Organization• Recognizing market segments• Implementing segment-specific strategies• Expanding market share

Customer-centric Organization

• Match capacity, cost structure, and business conditions to right customer at right time

• Identify opportunities • Drive profitability and growth

Customer Centricity

• Enhance customer satisfaction • Achieve sustainable growth

Customer Centricity

• Close relationship with customers • Understand actual needs• Tailored products and services • Gain trust • “Hearts and minds” of customers

Customer Centricity

• Customer pride of place• Leveraging social media• Redefining business concept • Targeting specific segments

Customer Centricity

• Delight customers• Create deep trust and loyalty• Putting users at center of product universe – Apple

• Delegating ownership of customer experience to front line – Disney

Customer-centric Organization

• Marketing campaigns and selective improvements not enough

• Radically change perspective• Aligning entire business model towards Customer

• Weaves into DNA• Implement at all levels of organization

Holistic Customer Centricity

• Translating deep customer insights into tailor-made products/services

• Segment-specific differentiation strategies• Aligned Organizational Structure

Four Areas

Customer-centric Transformation1. Visioning &Positioning

4. Organization Capabilities &Insights

3. Development Agenda

2.Customer Engagement

Four Areas1. Vision and positioning: “Create institution

customers want to do business with and employees feel proud of”

2. Customer engagement model: “Delivers exceptional customer service where customers expect it, and excites them where they do not”

Four Areas

3. Development agenda: “Integrated to drive short-term gains and long-term growth”

4. Organization, capabilities, and insights: “Build insights, organizational capabilities, and governance to sustain momentum”

1. Visioning &Positioning

Living and Breathing Customer

Living and breathing Customer

Clear-cut Vision

• Starting point of every transformation• Strategic direction • Shape image of company

Clear-cut Vision

• Guide employee mind-set – code of behaviour

• Translated into balanced scorecard and “go-to-market” model

• Bonus payments tied to level of customer loyalty

Clear-cut Vision• Not just promise• Framework for activities • Give employees purpose they identify with• Staff proud

Clear-cut Vision

• Positive energy leads to better performance• Motivate employees • Live customer centricity

Test 1• Are brand and vision built around customer promise?

• Is company-wide vision translated into clear promises for all stakeholders?

• Do brand and vision relate to one another? • Is brand proposition built on insights into customer needs/behaviour?

Test 1• Are brand and vision visible for everyone, and do they guide behaviour?

• Has proposition translated into visible statements to customers?

• Do internal communication embed customer-centric idea?

Test 1• Do customers and employees know and understand vision?

• Do they like it?• Is there platform to engage employees?• Are balanced scorecards linked to vision, proof points and incentive mechanisms?

2. Customer Engagement

Exciting customers

and curbing costs

Customer Engagement

• New communication strategies• Establish customer focus internally • Surface it externally

Customer Engagement

• Communication not enough• Company thinks and acts from customer perspective

• Purchasing more products/services• Recommend to others

Customer Engagement

• Creating outstanding customer experience• Systematic process shape customer touch points – service or product offerings

“Customer Journey”• Throughout entire purchasing process• Identify customer archetypes • Determine specific elements of purchasing process for each archetype

• Offers tailored

Test 2• Does company have clear understanding of customer insights?

• Is there clear understanding of customer experiences across customer journey?

• Is process in place to keep customer insights fresh and up to date?

• Do insights come synthesized in digestible format?

Test 2• Does company invest intelligently in superior customer experience?

• Is there thoughtful profit optimization of customer experiences (balancing revenues vs. cost increases)?

• Are investments focused on highest return on customer centricity?

• Do actions dovetail with brand proposition?

Test 2• Can customers interact in engaging way?• Is customer experience centered around superior customer experience?

• Is there clear understanding of tangible and intangible levers to create “wow” experience for customers?

• Does company have process in place to systematically generate and update touch points?

3. Development Agenda

Increasing sales and profit by focusing on

customer needs

Development Agenda• Customer-centric means not ends• Develop existing clients• Acquire new ones• Increase satisfaction and loyalty of customers • Strengthen growth and profitability

Development Agenda

• Translate customer activities into clear actions that boost revenues

• Priority to customer segments with greatest profit potential

• “Niche” segments

Development Agenda

• Brand management• Agile sales staff • Identifying attractive segments

Test 3• Are customer-oriented activities rooted in economic goals, not just satisfaction?

• Does company distinguish between different customer segments based on value and needs?

• Does it have understanding of profit dynamics and actionable levers for different customer segments?

Test 3• Do insights describe where future sales come from?

• Does company target “hearts and minds” to drive loyalty and wallet to drive share?

• Is there structured approach that stimulates loyalty?

Test 3• Does company have customer value metric in terms of acquisition, loyalty, and cross- and up-selling?

• Is it being applied?• Do staff know and act on it?• Does company coordinate initiatives across functions and leverage marketing and sales?

Test 3• Are cross-functional teams focused on single development agenda?

• Are revenue initiatives orchestrated top down?• Does each function have assigned roles and end products?

4.Organization, capabilities, and

insights

Anchoring customer

centricity deep within company

Customer Centricity• Anchor within organization • Install core functions• Align governance • Adapt incentive systems• Customer Insights Unit • CRM

Test No. 4• Does company have organizational structure that enables customer centricity?

• Does company have customer insight unit/customer insight owners?

• Is well-structured process in which customer insights required inputs?

Test No. 4• Have employees developed mindsets and capabilities?

• Is there evidence that mindsets and behavior support customer centricity?

• Are supporting tools and processes enabling customer delivery?

• Are reinforcing coordination practices ensuring constant customer focus?

7 Secrets Of Building Customer-Centric Culture

Building Customer-Centric Culture

1. Articulate central philosophy in meaningful words

2. Elaborate central philosophy with core values3. Reinforce commitment to values continually4. Make it visual5. Make philosophy focus of orientation6. Train, support, hire, and use discipline7. Include wider world

Conclusion

Customer Centricity• Core functions represent customer focus • Implement solutions to customer’s benefit• Overarching customer and product management

• “Voice” of customer integrated in all business processes

Customer Centricity

• Anchoring in employees’ hearts and minds crucial

• Staff live and breathe dedication to customers• Balanced scorecard and incentive systems for each employee

Customer Centricity

• Implements transformation consistently• From vision and operational processes• To individual targets for every employee • Greater loyalty, higher cross-selling, less attrition, and higher sales and profits

Journey Towards Customer Centricity• Golden opportunity• New trust-based bond with customers• More than “Marketing” • Implement multiple changes• Challenge foundations of traditional business

Thank You!