When the Upside is greater than the pain of adopting something new, a new approach can breakthrough. If however the upside is not sufficient, then the status quo will remain.
So if you don’t want change personally or in your organization keep doing what you have always done. That way you will get what you have always got.
On the other hand if change is necessary you need to demonstrate a significant upside, whether that is in terms of cost reduction, revenue improvement, service enhancement and better compliance – that is the triple crown plus.
Ideally the approach you adopt will give you the capability to deliver all triple crown benefits simultaneously and in a truly sustainable, repeatable pattern.
If you are a Certified Process Professional this is the place to monitor the updates of all things customer experience and process related to your profession. http://cpp.tweetwally.com/projection
We feature #certifiedprocessprofessional via @stowers and @jdodkins
Stop making dumb things happen faster for less money!
A lot of companies pay lip service to customer-centricity, write contributors Steve Towers and James Dodkins, but not many “walk the talk”. Here are 10 differences between inside-out and outside-in companies.
There is a lot of talk today, more than ever, about customer centricity, client focus, customer experience strategy and Outside-In. Many organizations have adopted aspects of these disciplines and where many have achieved monumental success others have fallen by the wayside. Why is this? The problem is perception.
Is your company just paying lip service to customers?
Countless organizations have said all the right things to make the workforce believe that they are becoming a customer-focused organization and then doing the complete opposite.
The effect of this is rising costs, shrinking revenues and ever lowering customer satisfaction.
The problem with this is that there is now a collective of organizations that have a “customer centricity doesn’t work” mentality. It’s like putting a rain hat in your pocket, going out into a storm, getting wet hair, then swearing the hat is useless. Just having the Outside-In customer centricity ideals is not enough; you have to use them in the right way.
So, how do you know if you work in an Outside-In organization or an Inside-Out organization wearing an Outside-In mask?
Table 1: Inside-Out or Outside-In?
Inside Out – attending to tasks and activities
Outside In – aligning to Successful Customer Outcomes (SCO’s)
Doing things right
Doing the Right things AND doing things right
1
Pyramidal management knows best
Context and customer defined
2
Business as a factory (left to right)
Customer Oriented Architectures
3
Benchmarking competitors
Determine customer needs and trends
4
Customer feedback retrospective
Customer needs designed and delivered
5
Process Improvement and optimization
Customer Experience innovation
6
DMAIC/SIPOC/DFSS/Lean
CEMMethod/4D’s
7
Improving efficiencies
Developing value for the customer
8
Model and method oriented
Customer journey and experience focus
9
Top down business architectures
Customer centric frameworks (context sensitive)
10
Remuneration for tasks completed
Rewards based on delivery of SCO’s
Let’s review the not so subtle differences
#1: Pyramidal management
Does your CEO really know the most about your organization? Can your CEO really relate to customers? Let’s face it, your CEO probably hasn’t spoken to a customer in years (if ever) so, why are they best qualified to determine how your organization is run? Maybe they aren’t…
#2: Business managed as a factory (left to right)
What percent of the work within your organization is manufacturing? What if you don’t manufacture anything? Then why does everything within your organization look like a factory?
We can’t meet the future with an industrial age mindset… join the rest of us in the 21st century.
#3: Benchmarking competitors
If you benchmark against other competitors you will, at best, only ever be as good as them, no better, most of the time worse and you will always be one step behind the trend.
Are you still managing a business that you think looks like this?
Rather than focusing on what your competitors are doing, focus on what the real need of the customer is and deliver that, innovate the customer experience, there is no easier way to become a market leader…let your competitors benchmark you.
#4: Retrospective customer feedback
Asking customers “how did we do” is stupid, asking customers “how did we do” 3 weeks after it happened is even more stupid, allowing customer to self-select for a survey to tell you how you did 3 weeks after is happened is even more stupid than that.
If you want to get totally non-representative, inaccurate, and relatively useless data on how some customers may have felt you performed at some point then the traditional methods are fine (NPS, CSi, etc).
To measure a customer experience properly and objectively you need to first know what makes a great customer experience and measure if you are doing those things, we need to get scientific about the customer experience (CXRating).
If you are still in the land of subjective, self-selecting, retrospective feedback, chances are you have no idea just how well, or poorly, you are performing…even if you think you do.
#5: Focus only on process improvement and optimization
Taking what you are already doing and making it happen in a shorter time frame, more efficiently or for less operating cost is not good enough any more. If you are doing dumb things all you are doing is making dumb things happen faster for less money.
You should focus on innovating the customer experience. Any work within your organization is caused by a customer interaction somewhere down the line. If you engineer and innovate at the causal level, you will make the customer experience better and eliminate swathes of pointless dumb work that you are wasting time on every single day…simple really isn’t it?
#6: Trying to use DMAIC/SIPOC/DFSS/Lean to optimize the customer experience
If you are using process improvement methodologies that were created to optimize manufacturing processes to optimize the customer experience then you will find yourself in a mess.
Use a 21st century methodology like the CEMMethod that was designed for this day and age to really turbo charge your customer experience efforts. Have you ever heard the phrase “trying to fit a square peg into a round hole”? Methodologies like Lean and Six Sigma were great at what they were created to do, but they were not created to improve customer experience… and therefore won’t.
#7: Improving efficiencies for internal customers only
Trying to make things more efficient for yourselves inside your organization – more often than not – will actually make things worse for the customer. Don’t just perpetuate the Inside-Out mindset. You need to make sure that everything you are doing is actually creating value for customers. Don’t focus on internal customers, focus on real customers… they pay your wages.
#8: Model and method oriented
Don’t get shackled by the oppression of the models and methods that ‘the man’ has said you should use. You shouldn’t focus on trying to implement a model or method you should be focused on how to make the customer experience better… whatever it takes.
#9: Top down business architectures
Do you work in an environment when the person above you tells you what to do and you tell the people below you what to do? If your whole working life is focused on trying to make your boss happy what aren’t you focusing on?
That’s right, the customer.
As soon as we enter a habitat like this we make a habit out of ignoring what’s right for the customer over what is perceived to be right for the organization. I’m not saying you’ll be able to change this overnight, I’m just saying it’s wrong and will eventually lead to your organizations downfall… don’t get left behind.
#10: Remuneration for tasks completed
If you pay people for doing stupid things, they get very good at doing them. Traditionally, you will get paid for completing tasks and activities, filling in forms, processing invoices, taking calls etc.
If everyone (and I mean EVERYONE) was paid for delivering customer success just imagine how different your working environment would be. Empowering workers to be able to do whatever it takes to deliver customer success is the polar opposite of workers having to complete X number of forms in a day… this is maybe the biggest game changer of them all.
One day a fisherman was lying on a beautiful beach, with his fishing pole propped up in the sand and his solitary line cast out into the sparkling blue surf. He was enjoying the warmth of the afternoon sun and the prospect of catching a fish.
(from the desk of James Dodkins)
About that time, a businessman came walking down the beach, trying to relieve some of the stress of his workday. He noticed the fisherman sitting on the beach and decided to find out why this fisherman was fishing instead of working harder to make a living for himself and his family.
“You aren’t going to catch many fish that way,” said the businessman to the fisherman, “you should be working rather than lying on the beach!” The fisherman looked up at the businessman, smiled and replied, “And what will my reward be?”
“Well, you can get bigger nets and catch more fish!” was the businessman’s answer. “And then what will my reward be?” asked the fisherman, still smiling.
The businessman replied, “You will make money and you’ll be able to buy a boat, which will then result in larger catches of fish!” “And then what will my reward be?” asked the fisherman again.
The businessman was beginning to get a little irritated with the fisherman’s questions. “You can buy a bigger boat, and hire some people to work for you!” he said. “And then what will my reward be?” repeated the fisherman.
The businessman was getting angry. “Don’t you understand? You can build up a fleet of fishing boats, sail all over the world, and let all your employees catch fish for you!” Once again the fisherman asked, “And then what will my reward be?”
The businessman was red with rage and shouted at the fisherman, “Don’t you understand that you can become so rich that you will never have to work for your living again! You can spend all the rest of your days sitting on this beach, looking at the sunset. You won’t have a care in the world!”
The fisherman, still smiling, looked up and said, “And what do you think I’m doing right now?”
How do Outside-In companies achieves 20-30% annually sustainable improvement across costs, revenue and service?
If there was a book of secrets featuring Outside-In one chapter would focus on Steve Jobs observation You have to start with the customer experience and work backwards to the technology” Watch the 5 minute video to get the perspective.
So what? We can really get to grip with the principle involved here with a couple of ideas. The first looks at the world which sees the organization and its resources as being the key strategic motivator. We have resources (people, systems, structure and so on) that develop products that we then approach the market with and pitch at customer segments. Hopefully gaining market share and establishing customers who buy the product. This model has really been the pervasive approach until this century. Born in the industrial age, updated and upgraded and taught in business schools globally as the way of business. We can represent that idea with this diagram – Inside-Out:
Until the explosion of information brought about by the internet this model worked OK. However with information customers have become choosey, promiscuous, fickle and have immediate and ever changing expectations. The resulting complexity – trying to sell many things to everyone – is the journey to ruin. Go ask Kodak, Nokia, Blockbuster and Blackberry how they have fared faced with the prosumer of the 21st century. On the other hand we have a view of the world which starts with the customer experience (ala Apple, Emirates, Zappos, Zara and Virgin) and literally understands and then manages the expectations of the prosumer. This idea does not seek to segment customers by circumstance, but categorizes customers on the basis of need. This picture emerges – Outside-In:
By understanding customer needs, even when they may not know themselves, and developing appropriate products for your chosen categories of customer, the world is a simpler place. Yes you do also need to be flexible and agile to preempt (and for the best create new needs) however the starting point isn’t the product and the market. It is the customer and their needs. Creating the necessary skills and competence to achieve Outside-In and deliver consistently improving results requires this foresight and understanding. The previous approach is as obsolete as the horse and cart is to the electric car. So how can we do this? More on that soon however as a starter you can download a complimentary copy my book “Outside-In The secret of the 21st centuries leading companies” here. Also join us and the global community exploiting the benefits of Outside-In: LinkedIn: BPGroup Facebook: www.facebook.com/BPGtraining Twitter: @stowers@jdodkins Website: www.bpgroup.org More soon as we journey Outside-In. Ciao, Steve
Outside-in approaches create a completely new reality that reshapes how we manage and organize work so much so that functional pyramidal structures become artifacts of the past.
Born in the complexity of the 21st century Outside-In companies believe that all effort in an organization should be centered around the customer and ultimately deliver Successful Customer Outcomes (SCO).
Part of the insight of Outside-In companies is the identification of work that does NOT contribute to the SCO and accordingly may be ‘dumb stuff’ – work that can be eradicated and removed. In doing so Outside-In wins the triple crown of simultaneously reducing costs, enhancing service and growing revenues. Leading practice organizations include Apple, Southwest airlines, Google, Samsung and Zara. In our book “Outside-In – The secret of the 21st century leading companies” we review many examples and lay the foundations for systematic approaches to enable Outside-In thinking and practice by all.
We can probably reasonably observe, without fear of understatement, that the
customer has changed forever. The reason our organisations exist, the people
who pay our wages, the cause of all the work we do has evolved beyond
recognition.
And yet has your organisation changed in response to this evolution?
Do we do our work in a different way from the last century?
Is work still flowing top to bottom and left to right?
Are we thinking about how our processes connect with customer success?
In the BP Groups research and experience with the leading companies of the
21st century the answer is … YES, some in fact do understand and act on
this new imperative. However the majority, including some previously
prestigious names are not getting it. Look at the troubles of Nokia, Kodak,
Sony, British Airways, Air India, United… the list is extensive and
disturbing.
For our examples of successful transformation and realignment we can include
Emirates, Zappos, Zara, Apple, Indigo, Hallmark and BMW. A wide selection
from different industries, cultures and operating models. We will get to
specifics later, for now let’s review the reason for their successful
adoption of Advanced BPM, otherwise known as Outside-In. The customer!
If things are changing faster Outside than in you will fail
The accepted business wisdom until the end of the last century was the
adoption and exploration of ideas originally described by Adam Smith in theWealth of Nations, published in 1776. This seminal work introduced the world to the concept of the sub division of labour.
Written during the advent of the industrial revolution the ‘Wealth of Nations’ created a framework for organising manufactories and people into similar skills and disciplines. In fact the original work in a Scottish pin factory demonstrated 20 fold improvements to productivity and as such became a template for achieving industrial and commercial success.
Two and a half centuries later the model is still taught in business schools and academia as the way to structure and organise work. After all it worked for 200+ years?
We can’t solve problems by using the same kind of thinking we used when we
created them (Einstein)
And there is the rub. The challenges we face in the 21st century are very different to those being addressed by Adam Smith and the industrialists of the Napoleonic era. Let’s get to grips with some of the shifts…
There is a saying that the map is not the territory. And yet so many treat their representation of the world as fact and reality. When you draw a process and agree with others that is how it looks just because you may all agree doesn’t make it real. It is just a collective hallucination. It is an abstract of reality.
Does your world always flow top to bottom and left to right, or is it more real than that? KBO, James Dodkins
The best Customer Experience insights should be quick to deliver and directly to the point.
This interview hosted by Adam Toporek with author Daniel Newman (CEO of MillennialCEO.com) has several interesting reflections with a few home truths in less than 5 minutes.
