How to move up the S-Curve: Ingredients of my "secret sauce".

Change Customer Service to CustomerChange Customer Service to Customer--FocusFocus

What it takes to move up the SWhat it takes to move up the S--CurveCurve

Eric Fraterman - Customer-Focus ConsultingToronto, ON Canada - (416) 465-0800

[email protected]

Eric Fraterman - Customer-Focus ConsultingToronto, ON Canada - (416) 465-0800

[email protected]

www.customerfocusconsult.com

Seasoned Customer Service Consultant: Seasoned Customer Service Consultant:

Source of My Lessons LearnedSource of My Lessons Learned

Improved Customer

Satisfaction

Enhanced Enhanced ProfitsProfitsStrengthenedStrengthened

CustomerCustomerLoyaltyLoyalty

Increased Increased Shareholder Shareholder

Value Value

Increased Employee

Engagement

Customer-Focused Operating

Environment and Culture

Organizational Alignment

“Outside-in”Game Plan

“Outside-in”Game Plan

Representing the voice of the customer, help maintain customer-focus and act as an objective organizational catalyst

Representing the voice of the customer, help maintain customer-focus and act as an objective organizational catalyst

Helping orchestrate and implement performance enhancing Customer-Focus initiatives and processes, and weave them into the present modus operandi

Helping orchestrate and implement performance enhancing Customer-Focus initiatives and processes, and weave them into the present modus operandi

Assessing opportunities and needs for alignment of mission, vision, values, strategy, structure, systems, individual style and skills

Assessing opportunities and needs for alignment of mission, vision, values, strategy, structure, systems, individual style and skills

In working with senior management I help develop an “Outside-in Game Plan”.

In the implementation my work typically involves three roles which are the source of my 10 Lessons Learned

In working with senior management I help develop an “Outside-in Game Plan”.

In the implementation my work typically involves three roles which are the source of my 10 Lessons Learned


ContentsContents

IntroductionIntroduction

Need IndicatorsNeed Indicators

From CS to CFFrom CS to CF

Lessons LearnedLessons Learned


What is CustomerWhat is Customer--Focus?Focus?

IntroductionIntroduction Need IndicatorsNeed Indicators From CS to CFFrom CS to CF Lessons LearnedLessons Learned

Customer-Focus is an aligned whole-organization approach to customer satisfaction and service


In a CustomerIn a Customer--Focused CompanyFocused Company……

… Leadership, Processes and People are customer-aligned:

Every action is shaped by a relentless commitment to meeting and exceeding its' customers expectations regarding product and service quality

Internal processes are constantly evaluated and improvedto meet or exceed those expectations

Employees are aware of their role in maintaining a valued relationship with their customers


CustomerCustomer--Focus Wins BigFocus Wins Big


Customers Great Products/Great Service

Shareholders Loyal Customers = Profits

Employees Engaged and Motivated

Organization Efficient and Effective


CustomerCustomer--Focus Need IndicatorsFocus Need Indicators


Voice of Voice of the the

CustomerCustomer

CustomerCustomer--FocusFocus

Customer Customer AlignmentAlignment

Link to Link to ResultsResults


Need Indicator: Need Indicator:

Voice of the CustomerVoice of the Customer

Insufficient or no customer satisfaction measurement No platform for a data-driven improvement plan No measures for each customer-interface Mediocre customer satisfaction ratings


www.customerfocusconsult.com IntroductionIntroduction Need IndicatorsNeed Indicators From CS to CFFrom CS to CF Lessons LearnedLessons Learned

Need Indicator:Need Indicator:

CustomerCustomer--FocusFocus

Saying and meaning that Customer-Focus is important, but not having a clear strategy and/or improvement game plan

Delegation of improvement ownership by CEO to functional managers

Improvement efforts and plans are focused “inside-out” rather than “outside-in”

Current Customer-Focus initiative is faltering and needs ramping up

People not “turned on” and engaged to deliver legendary service Seeing service quality improvement as a program rather than a

holistic organizational redesign process that requires fundamental change and endurable commitment from management and employees alike



Customer AlignmentCustomer Alignment

Developing and implementing a brand strategy in a services business, but not fanatically managing Moments of Truth

A service brand’s promise is at stake each time a customer is served

External customer service is seen as important, but internal customer service remains lacking

Misalignment between Improvement Goals and SPPC (Strategy, People, Processes, and Customer)




Link to ResultsLink to Results

Having a number of improvement initiatives and programs underway, but people don’t see cohesion and connections

Being focused on service quality improvement programs rather than outcomes: “Activities versus Results Focus”


www.customerfocusconsult.com Lessons LearnedLessons Learned

Communication with customers is

Customer data is gathered by

Responsibility for customer satisfaction belongs to

Customer problems are solved by

Communication with customers is

Customer data is gathered by

Responsibility for customer satisfaction belongs to

Customer problems are solved by

Complaint or problem based

Strategists or specialists

Customer service departments

Strict, preset policies and procedures

Complaint or problem based

Strategists or specialists

Customer service departments

Strict, preset policies and procedures

Continuous, multidimensional, solicited and encouraged

Everyone in the organization, with a lead role assigned to employees with direct customer contact

Everyone in the organization, starting with senior management and cascading down

Employees who are given the authority to act on behalf of the customer within defined boundaries

Continuous, multidimensional, solicited and encouraged

Everyone in the organization, with a lead role assigned to employees with direct customer contact

Everyone in the organization, starting with senior management and cascading down

Employees who are given the authority to act on behalf of the customer within defined boundaries

The Power of Alignment - G. Labovitz & V. Rosanski

Customer Service

Customer Customer Service Service

Customer-Focus

CustomerCustomer--Focus Focus

Moving Up from Customer Service Moving Up from Customer Service to to CustomerCustomer--FocusFocus

IntroductionIntroduction Need IndicatorsNeed Indicators From CS to CFFrom CS to CF


Moving from Customer Service Moving from Customer Service to to CustomerCustomer--FocusFocus

Customer needs are interpreted by

Feedback mechanisms are

Customer satisfaction is defined by

Measurements of effectiveness are

Customer needs are interpreted by

Feedback mechanisms are

Customer satisfaction is defined by

Measurements of effectiveness are

Strategists, specialists, or top levels of management

Preset, static, supplier focused

Complaints or problems

Internally focused

Strategists, specialists, or top levels of management

Preset, static, supplier focused

Complaints or problems

Internally focused

People throughout the organization, with the voice of the customer driving everything they do

Continuous dynamic & driven by customer data

Continuous improvement based on actual customer data

Focused on satisfying the unstated needs of the customer

People throughout the organization, with the voice of the customer driving everything they do

Continuous dynamic & driven by customer data

Continuous improvement based on actual customer data

Focused on satisfying the unstated needs of the customer

Customer Service

Customer Customer Service Service

Customer-Focus

CustomerCustomer--Focus Focus

The Power of Alignment - G. Labovitz & V. Rosans

Lessons LearnedLessons LearnedIntroductionIntroduction Need IndicatorsNeed Indicators From CS to CFFrom CS to CF

www.customerfocusconsult.com Lessons LearnedLessons LearnedIntroductionIntroduction Need IndicatorsNeed Indicators From CS to CFFrom CS to CF

10 Lessons Learned10 Lessons Learned

Building Customer-Focus Commitment: Making the Ca$e Leadership is at the Core of Success Communication, Communication, Communication... Bad Processes Stop Good People The ‘New’ Process: Customer Relationship Management Be Results-Driven – Not Activity Centered Results-Focus Through Project Culture People Orientation for Building Lasting Engagement Internal Customer-Focus Often Lacking or Lagging Alignment is Fundamentally the Name of the Game


Building CustomerBuilding Customer--Focus Commitment: Focus Commitment: Making the CaseMaking the Case

Management Fad-ism

Management Management FadFad--ismism

• Pitfalls and learning: Bain Study

• Cynicism of Flavor of the Month: B O H I C A

• “Bend Over – Here It Comes Again”

• Pitfalls and learning: Bain Study

• Cynicism of Flavor of the Month: B O H I C A

• “Bend Over – Here It Comes Again”

Coherent, Strategic

Rationale for C-F

Coherent, Coherent, Strategic Strategic

Rationale for Rationale for CC--FF

• Achieve consistent, defined levels of growth and peak performance

• Differentiation from competition

• Coalesces with Vision & Values

• C-F strategy supports and blends in with other strategies and is an integral part of the Modus Operandi

• Based on real-time customer information

• Achieve consistent, defined levels of growth and peak performance

• Differentiation from competition

• Coalesces with Vision & Values

• C-F strategy supports and blends in with other strategies and is an integral part of the Modus Operandi

• Based on real-time customer information

The Business Ca$e

The Business The Business Ca$eCa$e

• Business At Risk

• Market Damage Assessment

• Non-Value Add analyses

• Business At Risk

• Market Damage Assessment

• Non-Value Add analyses

What if No Burning

Platform?

What if No What if No Burning Burning

Platform?Platform?

• High-growth organizations: Unique challenge

• High-growth organizations: Unique challenge



Leadership Is at the Core of SuccessLeadership Is at the Core of Success

Hard to raise an organization above the level of senior leadership

Hard to raise an organization above the Hard to raise an organization above the level of senior leadershiplevel of senior leadership

Senior Leadership StyleSenior Leadership Style

Pivot around which the pyramid “inverts” Lack of middle managers with people

skills/life experience in growth industries Manager-to-Leader transition Listen-Feedback-Action process as a catalyst

Pivot around which the pyramid Pivot around which the pyramid ““invertsinverts”” Lack of middle managers with people Lack of middle managers with people

skills/life experience in growth industriesskills/life experience in growth industries ManagerManager--toto--Leader transitionLeader transition ListenListen--FeedbackFeedback--Action process as a catalystAction process as a catalyst

The Middle Management IssueThe Middle Management Issue

Personal Financial Long-term view

PersonalPersonal FinancialFinancial LongLong--term viewterm view

Sustainable CommitmentSustainable Commitment

“Walking The Talk” - Leading by example Visibility – “MBWA” ““Walking The TalkWalking The Talk”” -- Leading by exampleLeading by example Visibility Visibility –– ““MBWAMBWA””

Behavioral Communication Behavioral Communication

Values definition & clarification Values deployment throughout improvement

initiatives

Values definition & clarificationValues definition & clarification Values deployment throughout improvement Values deployment throughout improvement

initiativesinitiatives

Values Driven Leadership: Values Driven Leadership: ““Values are the BossValues are the Boss””



Communication, Communication, Communication, Communication, CommunicationCommunication……

Everybody Understanding the

C-F Strategy –Seeing the ‘Big Picture’

Everybody Everybody Understanding the Understanding the

CC--F Strategy F Strategy ––Seeing the Seeing the ‘‘Big PictureBig Picture’’

• Cascading process, with interaction/ questions. Social Intranet is best practice

• Continuous reinforcement: “Stumping” by CEO and senior team

• Integral part of the business

• Cascading process, with interaction/ questions. Social Intranet is best practice

• Continuous reinforcement: “Stumping” by CEO and senior team

• Integral part of the business

Continuous Communication

About Improvement Initiatives and

Projects

Continuous Continuous Communication Communication

About Improvement About Improvement Initiatives and Initiatives and

ProjectsProjects

• Consistently reinforcing the big picture

• Demonstrating the Why, What, How and Who of each project

• Ensuring understanding of where the initiative/project fits into the big picture

• Using a Social Intranet

• Consistently reinforcing the big picture

• Demonstrating the Why, What, How and Who of each project

• Ensuring understanding of where the initiative/project fits into the big picture

• Using a Social Intranet

Behavior Communicates!

Behavior Behavior Communicates!Communicates!

• Actions speak louder than words!

• Consistency, consistency...

• Actions speak louder than words!

• Consistency, consistency...



• Focus on underlying blockages and recurring themes• Focus multi-functional improvement teams on root

causes

• Focus on underlying blockages and recurring themes• Focus multi-functional improvement teams on root

causes

NearNear--Term Improvement Term Improvement Projects Uncover Bad Projects Uncover Bad ProcessesProcesses

Bad Processes Stop Good PeopleBad Processes Stop Good People

• Shortcoming of TQM and BPR• Not deployed throughout the process• Insufficient in-process measurement and

accountabilities• Insufficient alignment of measurements and

accountabilities with desired customer outcomes

• Shortcoming of TQM and BPR• Not deployed throughout the process• Insufficient in-process measurement and

accountabilities• Insufficient alignment of measurements and

accountabilities with desired customer outcomes

Often, Processes Lack Often, Processes Lack Voice of the CustomerVoice of the Customer

• Widespread process awareness and ‘horizontal’thinking is essential

• Widespread process awareness and ‘horizontal’thinking is essential

Hard to Break Hard to Break ‘‘SiloSilo’’ParadigmParadigm

• Experimental approach• Uses intranet effectively• Experimental approach• Uses intranet effectively

““Process AnimationProcess Animation””



• Requires systematic & proactive Customer Relationship Management

• “Hear me - Grow me”• “Sticky” relationships that are mutually beneficial

• Requires systematic & proactive Customer Relationship Management

• “Hear me - Grow me”• “Sticky” relationships that are mutually beneficial

The Challenge: Move from The Challenge: Move from Reactive Customer Satisfaction Reactive Customer Satisfaction Management to Creating Management to Creating Enduring Customer LoyaltyEnduring Customer Loyalty

The The ‘‘NewNew’’ Process (in BProcess (in B--toto--B) = CRM: B) = CRM: Customer Relationship ManagementCustomer Relationship Management

• Documented• Sequential steps• Measurements & Accountabilities

• Documented• Sequential steps• Measurements & Accountabilities

Need to Realize that Customer Need to Realize that Customer Relationship Management is a Relationship Management is a Business ProcessBusiness Process

• Pre-recruitment testing/screening• Team hiring• (Service) Strategy-based competencies

• Pre-recruitment testing/screening• Team hiring• (Service) Strategy-based competencies

Requires Alignment of Requires Alignment of Recruitment and Performance Recruitment and Performance ManagementManagement

• Sales force automation• Data base management• Sales force automation• Data base management

Requires Sophisticated Requires Sophisticated TechnologyTechnology



•• There are measurable shortThere are measurable short--term performance term performance improvement goals, even though the effort is a improvement goals, even though the effort is a longlong--term sustaining oneterm sustaining one

Management takes action steps because Management takes action steps because they appear to lead directly to some they appear to lead directly to some improved resultsimproved results

The mood is one of impatience. Management The mood is one of impatience. Management wants to see results now, even though the wants to see results now, even though the change process is a longchange process is a long--term commitmentterm commitment

Staff experts and consultants help managers Staff experts and consultants help managers achieve resultsachieve results

Managers and employees are encouraged to Managers and employees are encouraged to make certain for themselves that the approach make certain for themselves that the approach actually yields resultsactually yields results

Relatively little investment is needed to get the Relatively little investment is needed to get the process started; process started; conviction builds as results conviction builds as results materializematerialize

The improvement effort is defined The improvement effort is defined mainly in longmainly in long--term global termsterm global terms

Management takes action steps because Management takes action steps because they are they are ““correctcorrect”” and fit the programand fit the program’’s s philosophyphilosophy

The champions counsel patienceThe champions counsel patienceand fortitudeand fortitude

Staff experts and consultants Staff experts and consultants indoctrinate everyone into the mystiques indoctrinate everyone into the mystiques and vocabulary of and vocabulary of the programthe program

Staff experts and consultants urge Staff experts and consultants urge managers and employees to have faith managers and employees to have faith in the approach and to support itin the approach and to support it

The process requires management to The process requires management to make big investments upmake big investments up--front front -- before before results have been demonstratedresults have been demonstrated

Be ResultsBe Results--Driven Driven –– Not Activity CenteredNot Activity Centered

ResultsResults--DrivenDriven ActivityActivity--CenteredCentered



Multi-disciplinary project teams Multi-disciplinary project teamsFollowFollow--up to Customer up to Customer Survey Data in a Project Survey Data in a Project Based FashionBased Fashion

ResultsResults--Focus Through Project CultureFocus Through Project Culture

Goal Directed Project Management methodology

Reward & Recognition; Performance Management alignment

Practicing/ Deploying Values during Project work

“What gets measured gets completed”

Goal Directed Project Management methodology

Reward & Recognition; Performance Management alignment

Practicing/ Deploying Values during Project work

“What gets measured gets completed”

Developing a Developing a Project CultureProject Culture

Under-resourced Under-skilled Under-communicated

Under-resourced Under-skilled Under-communicated

Frequent PitfallsFrequent Pitfalls



Buy-in of line management The work goes on… Buy-in of line management The work goes on…

Solicitation ProcessSolicitation Process

ResultsResults--Focus Through Project CultureFocus Through Project Culture

Need for a project management cadre Situational leadership required Need for a project management cadre Situational leadership required

Project Leadership/Project Leadership/Management SkillsManagement Skills

Senior leaders need to assume clearly identified responsibilities, and be held accountable through aligned performance management and incentives

Senior leaders need to assume clearly identified responsibilities, and be held accountable through aligned performance management and incentives

Corporate Sponsor Role/ Corporate Sponsor Role/ Responsibility and Responsibility and AccountabilityAccountability



People Orientation for Building People Orientation for Building Lasting EngagementLasting Engagement

Climate Surveys a Process, Not an ‘Event’

Climate Surveys a Process, Not an ‘Event’

Involvement of Involvement of management and employees in management and employees in planning: Advisory Boardplanning: Advisory Board

Intranet/email maybe suspect as Intranet/email maybe suspect as data collection methoddata collection method

Feedback of data and Feedback of data and actioningactioningessentialessential

LFA Process a Proven Key Catalyst to Change and Strong

Employee Retention Tool

LFA Process a Proven Key Catalyst to Change and Strong

Employee Retention Tool

Listening to employees Listening to employees in small groupsin small groups

Focus on Action to make Focus on Action to make customercustomer--focused changefocused change

Empowers and involves employeesEmpowers and involves employees Transitions managers to (servantTransitions managers to (servant--) leaders) leaders

Requirements to Succeed with LFARequirements to Succeed with LFA

Coaching supportCoaching support Admin supportAdmin support Time allocationTime allocation Measurement of successMeasurement of success Accountability of managersAccountability of managers Dealing with Dealing with ‘‘meme--issuesissues’’

before business issuesbefore business issues Making LFA a way of lifeMaking LFA a way of life


www.customerfocusconsult.com Lessons LearnedLessons Learned

Internal CustomerInternal Customer--Focus Often Focus Often Lacking or LaggingLacking or Lagging

Customer-Focus required for internal service providers, e.g., HR, IT, Finance/Accounting

Same principles of customer feedback, surveying and closing performance gaps as external

Internal Customer Experience Workshop™ good kick-off instrument

Customer-Focus often good way of dealing with resource allocation and prioritization for time/resource strapped internal providers

Creates mutual accountability for internal providers and internal customers: Internal customers often seen as unrealistic in demands

Service Cycle Workshop is available through Eric Fraterman.


Strategy

Customer

People

Process CultureCultureLeadership Values

Alignment is Fundamentally the Alignment is Fundamentally the Name of the GameName of the Game



Strategic HR processes need alignment to attract, retain and manage performance of Valued PeopleStrategic HR processes need alignment to attract, retain and manage performance of Valued People

Sample: Sample: Human Resources AlignmentHuman Resources Alignment

Strategic Human Resources ProcessesStrategic Human Resources Processes

Key CompetenciesKey Competencies

Behavioral IndicatorsBehavioral Indicators

MissionMission

ValuesValues StrategyStrategy

Business ResultsBusiness Results

Recruitment& Selection

Training & Development

JobProfiling

SuccessionPlanning

PerformanceManagement

ExecutiveCoaching

CompensationSystem

Reward & Recognition

Organizational StructureOrganizational Structure

Business ProcessesBusiness Processes


Builds/supports organization-wide Customer-Focus culture

Builds/supports organization-wide Customer-Focus culture

PrePre--Employment Testing for Employment Testing for ‘‘CustomerCustomer--Focus GenesFocus Genes’’

Sample: Sample: Human Resources AlignmentHuman Resources Alignment

Requires extensive Competency development work to reflect the Strategy and Values

“Feed Pigeons - Fire Turkeys –Reward Eagles”

Requires extensive Competency development work to reflect the Strategy and Values

“Feed Pigeons - Fire Turkeys –Reward Eagles”

Walking the Talk in Walking the Talk in Performance ManagementPerformance Management

To do it right, requires more attention and resources than appears

Departmental inconsistencies -Centralized vs. Decentralized

To do it right, requires more attention and resources than appears

Departmental inconsistencies -Centralized vs. Decentralized

Reward & Recognition Reward & Recognition Often Either Overlooked or Often Either Overlooked or Done Unsystematically and Done Unsystematically and InconsistentlyInconsistently


Sample: Sample: Managerial Practices AlignmentManagerial Practices Alignment

Accountability for the essentials of Customer-Focusing is often sorely lacking!

Accountability-based management to match managerial leadership to organizational Customer-Focus needs is key to success

“Ensure accountability is clear throughout the organization; the right work is getting done at the right level; and there is the right balance between managing for today and shaping the business for the future.”

(COREinternational Managerial Practices Alignment)

Questions?

Go to my website www.CustomerFocusConsult.com

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How to move up the S-Curve: Ingredients of my "secret sauce".

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Transcript of How to move up the S-Curve: Ingredients of my "secret sauce".