Customer Experience and Outside-In

In a recent article we covered McKinsey’s take on Outside-In. This time let’s look at a practical toolkit that can help you define any process, set of activities, or indeed enterprise in terms of the Customer Experience.

Our guidance ultimately links every task and activity in the organization with a Successful Customer Outcome. The Customer Experience is therefore the sum of all interactions; both those seen by the customer and those taking place backstage.

Customer Experiences should ultimately be designed and controlled for the mutual benefit of the customer and the organization.

Mastering digital marketing – McKinsey’s David Edelman shares his thoughts

McKinsey are pushing out their interpretation of Outside-In.

Pretty much on point there is still however a legacy thought or two in there; on the other hand we know the senior executive team listen to these guys so get ahead of the game with this 10 minute video.

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Advanced BPM (Outside-In) Glossary

If you have the attention span of a goldfish (like me) which is about 3 seconds… what was I saying?

Sorry, let’s go again. Occasionally you discover gems and the info referenced here was produced by stalwart Australian Customer Experience genius, David Mottershead.
It is a glossary of terms in the modern version of BPM/CX i.e. since 2009.

Don’t thank me – connect with David over at
https://www.linkedin.com/in/thecustomerexperiencecoach

Oh and the goldfish thing… save this document for future reference, before you forget… now where was I?

Advanced BPM (Outside-In) Glossary

Action Plan – is a documented set of steps that can be taken, or activities that can be performed for to achieve organization improvement.

Break Point (BP) – any point within a process where work is handed off. Break points are a point of failure and can be people-to-people, people-to-system, system-to-people, system-to-system.

Business Rule (BR) – are points within a process where decisions are made, they control the behaviour of the process and are highly prone to obsolescence. Business rules are a point of failure, can be operational, strategic or regulatory and they can be system based or manual.

Customer Expectation Management (CEM) – an emergent management and business approach with the powerful idea of defining your business, not in terms of the goods and services you provide, but in terms of “customer expectations.”

CEMMethod(tm) – a set of 9 foundational techniques which help to deliver Triple Crown benefits i.e. simultaneously reducing costs, improving revenues and enhancing service.
  • Understand and Develop Successful Customer Outcomes (the basis for the alignment of the organisation to the customer),
  • Perform a simple “As Is” analysis to understand what the current customer process is (this “As Is” analysis provides a base from which we can apply the diagnostics)
  • Apply the Risk Assessment and Action Planning diagnostics, resulting in the development of an implementation plan for the improvement of the customer process.
Customer alignment – aligning strategy to customers, process to strategy and technology to process, in this sequence.

EVA – Economic value added.
In the field of corporate finance, Economic Value Added is a way to determine the value created, above the required return, for the shareholders of a company.
Flow-level – the combination of work, data and communication flows uncoupled from individual work process
Four dimensional process – Outside-In process that redesigns what work is done; who how it’s done; and enabling technology.

Future State PAM – (Process Activity Map) emerges following the completion of the Risk/Impact Assessment. The content is determined by context however as a minimum it should contain Tasks/Activities, owners, elapsed/cycle time, touch/task time and outputs. In the context of CEMMethod(tm) should also have an associated SCO Mind Map. (functionally) does it;
Hyper-Planning – a compressed, Outside-In approach to developing customer-centric strategies; differs from conventional planning because the customer perspective drives the process and internal goals are an outcome rather than a starting point

Individual Scorecard – a personalised aggregation of KPIs into higher level initiatives and objectives.
Individual work process – work performed by individuals without involving other functions
KPI – A key performance indicator is a measure of performance used to indicate a level of success.
Maturity modeling – assessments that predict an organization’s readiness to move towards customer-centrality and identifies potentially interfering deficiencies
Migration mapping – method of assessing consequences of Outside-In driven change that reveals both intended and potential unintended consequences

Process Modeling – the activity of representing processes so that they may be analyzed and improved in future.

Moment of Truth (MOT) – any interaction with a customer is a moment of truth and every moment of truth causes work within an organisation. They can be people-to-people, people-to-system, system-to-people, system-to-system and people-to-product.

OI Strategy Map

Outside-In (O-I, OI) – a means of viewing an organisation from a customer’s perspective, i.e. from the outside looking in. Outside-In organisations are aligned to provide solutions for customers. Those organisations with an inside-out orientation, on the other hand, just focus on products, sales, and the organization.

Outside-In Action Plan – is a set of steps that can be taken, or activities that can be performed for organisational improvement and alignment of the organisation to the SCO.

Outside-In Process – An outside in process is one which has been created to successfully deliver a customer outcome and has been designed from the customer’s perspective. This process is likely to reduce the number of moments of truth (MOT) or interactions with the organisation and is “doing the right things”, in terms of delivering the process as part of an overall customer success strategy.

An inside-out process may be thought of as one which also provides the goods or services to the customer, but the process to provide these are viewed from the organisation’s perspective. It may be “doing things right” but not necessarily “doing the right things”. It may seek to improve the customer’s experience, but not necessarily aligned with delivering a successful customer outcome, or what the customer really wants.

POF Dependencies – MOTs, BPs and BRs are all points of failure, where thing can go wrong in the process. MOTs cause work within an organisation as they are work and also trigger dependent work to be commence including other MOTs, BPs and BRs.

Points of Failure Factor (PoFF) – Demonstrates how close a process (or processes) is to an optimum Successful Customer Outcome (SCO). Expressed by the formula [(MOT-1) x MOT-1)] + BP

Points of Failure profile – The graph that emerges when you plot POFF

Process Activity Map (PAM) – The visual representation of the process, usually consisting of as a minimum Tasks/Activities, owners, elapsed/cycle time, touch/task time and outputs. In the context of CEMMethod(tm) should also have an associated SCO Mind Map.

Process Diagnostics – Moments of Truth (MOT), Break Points (BP), Business Rules (BR), Business Habits (BH)

Process Elasticity – The greater the POF(f) the less flexible the process, and the more prone it is to breakage. The more elastic a process the more customer oriented.

Process Performance Landscape (PPL) – all tasks, activities, outputs, outcomes, customer outcomes and successful customer outcomes performed within an organisation.
Relationship mapping – visually representing connections from among internal functions, customers, suppliers and outsources

Risk and Impact Assessment – a determination of the impact of the process diagnostics to the customer and to the organisation.

SCO Mind Map – The mind mapping techique is used to help understand and develop the  successful customer outcome (SCO) and the SCO Mind Map incorporates elements such as who is the customer, what is their expectations and what do they really need.

Simulation – the imitation of a process in order to gain insight into the what actually occurs.

Successful Customer Outcome (SCO) – a resulting outcome, and the “process” experienced by the customer behind that outcome, that the customer would define as making their lives simpler, easier and more successful.

Triple Crown – simultaneously reducing costs, increasing revenue and enhancing service.

Validated Process Diagnostics  – the process diagnostics (MOTs, BPs, BRs, BHs) that remain after performing the process analysis and designing the improved process activity map.

Visual Work flow – the first, formal Outside-In process approach (launched in 1996). VW focuses on customer-aligning strategy, process and technology

The man with a new idea is a crank..

..until the idea succeeds.
Mark Twain.

What ideas have you dismissed this week? Might they deserve a second look?

Another one in the Twainy vein..

All great truths begin as blasphemies.
George Bernard Shaw.

Remember…. if you are not part of the solution you may be the problem.