It is pretty much accepted wisdom these days that companies should be customer focused. It is however unfortunate that most companies go the wrong way about this by asking their customers what they want. Customers describe their requirements in terms of products and services and then when the company builds and delivers they are not desired or bought. Henry Ford put it very well âif we ask customers what they want theyâll ask for faster horsesâ.
And yet at the end of the first decade of the 21st century a surprising and somewhat alarming majority of companies do precisely that. Why does this fail?
Fundamentally when the customer is asked the question âwhat do you want from usâ the answer comes in terms of product and service. Customers when faced with this question extrapolate from their own experiences and what they know of your products and service. Hence it shouldnât be any great surprise when the requirements are bounded by current âinside outâ thinking. Our organizations then construct complex systems and processes to meet the requirements, develop âcustomer focusedâ strategies and seek to demonstrate with measurement systems, scorecards and the like that what they are doing is what the customer asked for. Meanwhile competitors are beating us at our own game.
So how can we resolve this apparent conundrum? The answer is delightfully simple, as are most things involving Successful Customer Outcomes (SCOâs). We should be asking the more relevant question “what is the customers desired outcome?”. This subtlety takes us to a new place of understanding and opens the potential for innovation and the opportunity to challenge our existing business thinking.
Making customers lifeâs simpler, easier and more successful is a cornerstone of SCOâs. Once we have understood the SCO we should then align everything in our organization to achieve that endeavor â without exception. We can design measurement systems which understand the SCO and the various steps to achieving it. Measuring becomes a simpler task. We should create systems which contribute directly to achieving the SCO. In fact no development should be taking place if there isnât a demonstrable direct linkage to getting the SCO. In fact everything the company does should be progressively aligned to achieving SCOâs, and not as we often see in delivering faster horses.
How do we create this new order? Again the answer is a simple one and not bounded by the inside-out complexity which befuddles so many companies. Your improvement approaches should also be aligned to creating, understanding, and implementing approaches that, yes, contribute to the SCO.
Thatâs where Customer Expectation Management (CEM) comes in. As an Advanced form of business process and performance management it goes the extra mile and applies our focus to SCOâs. As a consequence these âoutside-inâ companies are able to progressively and continually innovate and create clear water between themselves and rivals and in many instances becoming market leaders. Thatâs what US based Best Buy did with their customer centricity strategy. Thatâs what FedEx Kinko are doing with their massively simplified idea to delivery process. This is what Virgin Group do across their network of more than 100 companies.
It isnât always about market leadership though. Simply getting better against a backdrop of increasing competition, technology innovation, tightening regulation and customer promiscuity would be great for most. Going the CEMMethod(tm) route gets you where you want and need to be.
In our 2006 book âCustomer Expectation Management â Success without Exceptionâ we reviewed the theory and several case studies which is now accessible as a complete method, with supporting toolkits, resources and techniques. The CEMMethod(tm) can be taught, customized and developed to suit different environments and commercial challenges. In the last 5 years more than 8000 people have qualified as Certified Process Professionals and incorporated this approach into their thinking at all levels â from the board room to the lunch room.
In summary then we should be asking customers what is their successful outcome and once we understand that progressively move to align everything we do to achieving that through our people, process, technology and ultimately strategy.
Good hunting for your Successful Customer Outcomes.