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Catapult your Success With Orchestrated Performance TM

2011

CAMMI Model and Framework Mike Paradis and Scott Boedigheimer CAMMI Logic, LLC 1/7/2011


This material is proprietary to CAMMI Logic, LLC and is protected by U.S. and international copyright law Š copyright 2010. All rights reserved. No part of this book may be reproduced in any form whatsoever, by photography or xerography or by any other means, by broadcast or transmission, by translation into any kind of language, nor by recording electronically or otherwise, without the express written permission of CAMMI Logic, LLC. CAMMI Logic, LLC. 8877 Aztec Dr. Eden Prairie, MN 55347 www.cammilogic.com


Right Running Head

Catapult your Success With Orchestrated Performance TM

Table of Contents Introduction...........................................................................................................4 Capability Maturity Model................................................................................6 Market Capabilities Defined.............................................................................8 CAMMI Model and Framework........................................................................9 Competencies..................................................................................................... 10 Strategic Leadership......................................................................................... 12 Business Planning............................................................................................. 14 Strategic Marketing.......................................................................................... 16 Operational Marketing.................................................................................... 18 Sales....................................................................................................................... 20 Service................................................................................................................... 22 Performance Management............................................................................ 24 Strategic Relationships.................................................................................... 26 Market Innovation............................................................................................ 28 CAMMI Diagnostic............................................................................................ 30 CAMMI Score....................................................................................................... 32 Closing Summary.............................................................................................. 33 About the Authors............................................................................................ 35

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CAMMI Model and Framework 3


Introduction

To orchestrate means to arrange or control the elements of, as to achieve a desired overall effect. To orchestrate performance is to take control of situations and not leave things to chance. That’s what the CAMMI Model and Framework is all about—incorporating structural elements to control business development and improve performance. Companies that focus on improving business development performance in this way achieve meaningful and sustainable results.

everything but marketing, but that one weakness exposes the entire team. We have worked with companies that engaged us because they thought their limitation was sales, but our analysis identified the real issue as something else. They would have been working on the wrong issue; improving something that was already mature. That’s like our example baseball team giving extra batting practice to its star player while ignoring the real problem affecting performance—the 10-year-old.

Orchestrated performance also requires balance across the various elements. An orchestra won’t sound as good if you can only hear the first violin. A football team with a great quarterback won’t win many games without a good offensive line, running backs and receivers. A major league baseball team with one 10-year-old player would be at a significant disadvantage; that one immature area would expose the entire team and make it very difficult to win games. To achieve real success there must be balance; every area must be addressed and have an appropriate level of maturity.

For orchestras and sports teams it can be easy to identify the limitations preventing them from succeeding. It is obvious to the conductor or the coach through recordings, game film, observation and statistics to determine where the issues are and correct the performance. In fact, their jobs depend on their ability to identify weaknesses and make corrections.

It may be hard to believe, but companies often operate like the major league baseball team described above. A company might have strong business development capabilities in

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So how does an organization get a perspective on its relative strengths and weaknesses? Companies don’t have game film. They usually have pretty limited metrics on which to base decisions. Annual strategic planning sessions, quarterly reviews and weekly management meetings are all focused on trying to gain a collective understanding of the organization’s strengths and weaknesses so strategy can be

CAMMI Model and Framework TM


Orchestrated Performance

set. One way that leadership teams get some perspective on the company is by creating some structured questions, then interviewing its employees and capturing the results. However, this approach is time consuming and leads to inconsistent, qualitative results.

making it a reality. The most successful organizations have strong capabilities across the board that come together to maximize overall performance.

The best way to quickly obtain objective, measurable and quantitative results is by using structured business assessment tools like those based on the CAMMI Model and Framework. The results lead to new insight about an organization’s relative strengths and weaknesses and the alignment of the team. These results allow the organization to take corrective action to improve overall performance. Regular, ongoing assessments lead to sustainable performance. Orchestrated performance means everyone in an organization understands the strategy and their role in “Measurement is the first step that leads to control and eventually to improvement. If you can’t measure something, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it.” —Dr. H. James Harrington

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Capability Maturity Model

Capability maturity is a constant throughout the CAMMI Model and Framework. The concept of capability maturity is documented in several different ways; varying definitions can be found on numerous Web sites. We adopted this concept because it is relatively easy to understand without creating too many levels to consider when evaluating an organization’s capabilities. Our results have shown that higher levels of maturity lead to improved results for an organization. Our model is based on balancing capability maturity throughout the organization. Organizations that emphasize certain capabilities and attempt to drive the maturity of one or just a few capabilities to a very mature level are likely wasting some of their efforts. The best approach is a balanced approach where the focus is on improving the least mature capabilities because they are most likely limiting the organization and preventing it from realizing its potential.

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CAMMI Model and Framework TM


Capability Maturity Model

We use the following capability maturity rating scale throughout our model and framework.

5. Leading—Performance is

proactively improved based on internal metrics or insight from external sources.

4. Measured—Performance

data is captured and measured to assess and improve productivity.

3. Consistent—Performance is

driven by a documented process, which is used to train employees.

2. General Understanding— Performance is driven by routine and habit, with only a general understanding of the process.

1. Ad hoc Reactionary—

Performance is driven on an ad hoc basis by reacting to issues as they arise.

Figure 1 - Capability Maturity Model

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Market Capabilities Defined

Capabilities are the ability to produce outcomes. Our model focuses on capabilities that are elemental to business development: The ability to create and sustain long-term profitable relationships with customers. If an organization does these things well, everything else falls into place.

A Capability: 1. Is built around a tight business focus closely linked to the company’s vision and values. 2. Is based on value proposition that can be measured in terms of time, value or cost. 3. Is a corporate property, and therefore it is a corporate responsibility to ensure its development and deployment. 4. Is broadly based across the value chain. 5. Consists of an integrated set of enablers across business functions:

a. b. c. d.

Organization’s knowledge and skills; Business process and organization structure; Supporting systems and technology; Positional assets and resources.

From “The Centerless Corporation” by Bruce A.Pasternack and Albert. J. Viscio

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CAMMI Model and Framework

The CAMMI Model is designed for organizations managing larger, more complex customer selling and servicing relationships with meaningful lifetime value. It provides the structure organizations require to manage their capabilities in alignment with customer needs. Our model includes the elements necessary to maximize performance in business development. The outer wheel contains the categories of capabilities that are explained in the rest of this document. Each category contains two objectives and each objective includes two capabilities; one relates to effectiveness and the other relates to efficiency.

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Competencies

Four key foundational competencies underpin the model. These competencies are incorporated into each category and capability. Competencies are not always readily apparent in an organization. Through our model and framework we have established that a) a pattern exists, and b) these competencies can be measured using our diagnostic tool. The organizational competencies tend to reflect the leadership of the organization. An understanding of the competencies leads to a unique understanding of an organization’s key strengths. The foundational competencies are explained in more detail below:

1. Strategic Clarity Strategic Clarity includes the ability to capture market and customer insight to define your company’s strategic value proposition and align the organization to carry out this vision. Prioritized strategic initiatives and tracking mechanisms ensure alignment and performance.

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2. Fact-Based Planning Fact-Based Planning includes analysis to effectively segment your markets for prioritizing your go-to-market activities and the related plan/budget for allocating resources.

3. Consistent Execution Consistent Execution includes defining shared work processes and training employees to consistently target, acquire and maintain a loyal customer base. Clearly defined expectations and inprocess activity measurements ensure consistent execution.

4. Proactive Learning Proactive Learning includes the ability to collaborate effectively with your strategic

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Competencies

customers to understand their objectives and proactively revise your methodologies to meet their changing expectations and capture the new value exchange. The numbers that define each capability throughout the rest of this document refer back to these four competencies.

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Strategic Leadership

The first set of capabilities involves defining value exchange and establishing strategic alignment within the organization. The Strategic Leadership Category has two primary objectives: First, to create a clear understanding of how the organization exchanges value with its markets; second, to build a shared sense of what goes into value-based decision making. This requires a balancing act between the two, with the complex objective of capturing the greatest profit with the least amount of effort. The senior leadership team is usually the group responsible for Strategic Leadership in the organization, but it can involve the entire management team.

Defining Value Exchange The first objective of the Strategic Leadership team is to clearly define what a market values that the organization is capable of producing, and why the market values it. This requires an understanding of value-exchange, which is the ability to match an organization’s value with market potential. It therefore requires the identification of those markets that offer the greatest potential value for the organization to expend its resources.

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Value Proposition (Effectiveness) Clarify organizational purpose 1. Define the potential for the organization to create value based on general market needs. 2. Rank the value exchange options based on overall productivity and market share potential. 3. Produce effective core value proposition statements to articulate to the stakeholders, employees and market. 4. Maintain an understanding throughout the organization as to “why� markets value core value propositions.

Market Prioritization (Efficiency) Prioritize broad market options 1. Describe the broad markets and general attributes that represent opportunities to exchange value. 2. Rank the potential of all likely markets based on their overall efficiency and effectiveness. 3. Deliver clear market focus to the organization to maximize overall productivity. 4. Recognize new markets and changing markets based on the most relevant and current market research.

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Strategic Leadership

Strategic Alignment The second objective of Strategic Leadership is maintaining the strategy of the organization and establishing alignment across the various teams and functions. This involves communicating where the organization is heading and what underlying drivers should influence key decisions. By clearly articulating the organizational strategy and defining what drives priorities, it’s possible for individuals to have a positive impact, even when a particular task or decision isn’t well defined for them.

Organizational Consensus (Efficiency) Promote clear go-to-market vision 1. Build a clearly defined strategy for achieving overall go-tomarket objectives. 2. Track who understands the strategy and who isn’t aligned with it. 3. Maintain the communication of the strategy as teams and the strategy itself changes. 4. Capture an understanding of how the strategy impacts customers in order to proactively refine it.

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Decision-Making Alignment (Effectiveness) Establish a fundamental understanding of decisions 1. Define the core drivers of good customer and marketdriven decision-making based on the go-to-market strategy. 2. Create a set of cascading priorities that help everyone understand what’s most critical to the success of the organization. 3. Reinforce team member decision-making processes with periodic review and mentoring. 4. Educate team members on why the organization does what it does, so they can make sound decisions without direct instruction.

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Business Planning

The second category of capabilities includes identifying business improvement initiatives, sales channels, product mix and key performance targets. Business Planning can also be thought of as organizational readiness. It is about understanding the resources and results needed for success. It is where the organization starts to get focused on the best approach to attract customers. For example: What is the best way to reach customers—Telesales, field-based sales or by using channel partners? Business Planning is where the organization assesses its products and determines if one or multiple approaches are required to realize its potential. The management team is usually the group within the organization responsible for the business planning. It is where the vision created in Strategic Leadership starts to become more real for the organization. The growth strategy execution plan starts to take shape in this category.

creating the most effective and efficient way to attack the markets identified in Strategic Leadership.

Assessing Initiatives (Effectiveness) Continually improve go-to-market potential 1. Identify the critical capabilities and related performance potential based on insight from prospects, customers, team members and competitors. 2. Prioritize key business requirements and improvement initiatives based on 360-degree business intelligence. 3. Create regular reviews of the business and business improvement initiatives to drive continual improvement and greater results. 4. Request continuous feedback from customers and employees to understand current needs and track the impact of resulting initiatives.

Go-to-Market Planning (Efficiency)

Improvement Initiatives and Channel Plan The first objective of Business Planning is to consider all possibilities and allocate resources to best support the strategic direction set forth in the Strategic Leadership category. The emphasis with this objective is profitability,

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Allocate resources based on need 1. Identify all potential go-to-market resources and channels to balance cost of pursuit and customer buying needs. 2. Prioritize and budget for the necessary go-to-market resources based on a sound understanding of market and business needs.

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Business Planning

3. Document key decisions regarding the go-to-market plan and disseminate them to the entire organization so they can be consistently applied. 4. Routine and regular fine-tuning of go-to-market resources based on financial results and feedback from prospects, customers and team members.

Organizational Performance Scorecard The second objective of Business Planning is to clearly document business performance objectives. This is where the measurements of success are created so that everyone in the organization knows what is expected and how their roles are linked to the overall success of the organization.

Activity Measurement (Efficiency) Assign critical-to-success activities 1. Create clear cross-functional process measurements and standards that correlate with high performance. 2. Prioritize the measurements that are most important for the organization to achieve in order to realize its potential. 3. Communicate the measurements and results to the team on a regular basis.

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4. Proactively improve the activity measures based on various feedback loops and results.

Outcome Measurement (Effectiveness) Maintain scorecard of outcome measures 1. Define key performance metrics for the organization. 2. Prioritize the measurements that are most important for the organization to achieve in order to realize its potential. 3. Communicate and assign the measurements and results to go-to-market teams. 4. Proactively improve the performance measures based on various feedback loops and results.

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Strategic Marketing

The third category of capabilities is the macro level of marketing. It includes performing market segmentation and customer data analysis, allocating resources and analyzing market coverage. It is about researching and selecting the best markets for an organization’s products. The impact on the organization is decreased cost of sales by focusing on the right markets and not wasting time on markets with less potential. The management team, particularly the VP of Marketing and marketing teams, are primarily responsible for this category.

Market Selection The first objective of Strategic Marketing is to identify which markets have highest potential for the organization. Focusing on the right markets reduces the cost of sales and marketing and allows for greater flow and a higher return. Market selection is the opposite of a shotgun approach in which marketing is done to any market without regard to the potential fit for the organization.

Customer Data Analysis (Effectiveness)

2. Analyze current customer data and prospect win-loss information. 3. Provide the centralized customer data analysis and insight of the organization to be incorporated into all common processes. 4. Check insights with direct customer and employee validation activities such as surveys, interviews and panels.

Market Segmentation (Efficiency) Create manageable markets 1. Define market segmentation based on the Customer Data Analysis and other key market data. 2. Prioritize the markets with the highest potential for the organization. 3. Disseminate the market segmentation information so everyone in the organization has a clear understanding of the markets and submarkets. 4. Adjust market segmentation proactively based on an understanding of upcoming changes to global customer and market variables.

Transform data into business insight 1. Drive insight from the information the organization has or can easily acquire.

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Strategic Marketing

Market Reach The second objective of Strategic Marketing is focused on assigning adequate resources to ensure all targeted market segments receive the organization’s message.

3. Create consistent approaches to ensure that the market is adequately reached by the organization. 4. Fine-tune the market coverage to consistently improve organizational productivity in reaching desired markets.

Market Focus (Efficiency) Create go-to-market team focus 1. Define focused teams and their requirements for pursuing high priority market segments. 2. Analyze team impact on assigned markets to prioritize additional market-focused efforts. 3. Create market-focused processes for the various teams to ensure that the unique needs of markets are met. 4. Continuously refine the teams to ensure market focus is maintained through changing conditions.

Market Coverage (Effectiveness) Ensure adequate pursuit of markets 1. Understand the best category funnel model to ensure the market is adequately touched by the organization. 2. Analyze the market coverage and prioritize the approaches that yield the best results.

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Operational Marketing

Operational Marketing is the last category of capabilities where the organization is developing potential. The rest of the categories are all focused on realizing that potential. The value of an organization’s market insight and resource allocation ultimately depends on connecting with prospects. The ability to quickly identify, connect with and create awareness within the right potential customers (suspects and prospects) is critical. Operational Marketing drives revenue with an improved methodology for creating effective awareness. The marketing team and VP of Marketing are most often responsible for the operational marketing capabilities in an organization, but these capabilities do not rest solely with marketing.

Best Customer Profile The most successful organizations have a clear understanding of their best customer profile. This leads to more effective and efficient marketing. It also reduces overall marketing costs for the organization because the activities are focused on the “right� customers: those with the highest long-term potential value.

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Customer Segmentation (Effectiveness) Identify specific accounts and/or contacts 1. Identify the most trustworthy account and contact information available to the organization. 2. Measure size and value of clearly definable market segments and prioritize their potential value and ease of access. 3. Create and distribute the priority segmentation profiles that represent unique contacts within targeted accounts. 4. Review segment performance changes and redefine segments as proactively as possible.

Market Messaging (Efficiency) Create customer and/or account messaging 1. Identify all of the marketing treatment strategy options available to the organization based on prior conclusions. 2. Compare cost and productivity estimates and measures to determine which will best meet overall objectives. 3. Design messaging options based on customer profiles and their unique role and value exchange. 4. Identify response trends and performance to better refine and proactively improve messaging by segment.

CAMMI Model and Framework TM


Operational Marketing

Demand Generation This objective is critical and more tactical within the organization. It is where the “rubber meets the road” and the growth execution strategy starts to become real in the organization. It is very difficult for an organization to grow without attracting new customers. To attract new customers, an organization must become mature in its demand generation capabilities.

Lead Generation (Efficiency) Uncover specific revenue potential 1. Identify all of the campaign delivery options available to the organization based on information availability and prospect accessibility. 2. Prioritize the lead generation activities that will yield the greatest desired results. 3. Execute each campaign and capture the various levels of response that meet current objectives. 4. Understand how each response or lack of response provides an understanding of the campaign’s impact.

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Lead Qualification (Effectiveness) Validate each lead’s potential against the business objectives 1. Clarify the parameters of a qualified lead based on all available understanding. 2. Identify the points at which an unqualified lead becomes a qualified lead and establish a next step for every lead. 3. Score or evaluate each lead or lead list with the best available metrics and distribute accordingly. 4. Proactively learn from the results and feedback of all go-to-market functions based on performance of leads and the lead evaluation criteria.

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Sales

The Sales category of capabilities is where the organization starts to realize the potential created through the first four capability categories. When organizations have revenue issues, they tend to blame sales first. This is because sales is most closely associated with revenue and is the area that most companies try to improve first. However, our research has shown that—more times than not—the capability maturity in sales is not the organization’s limiting factor. The Sales category of capabilities includes the ability to manage opportunities, accurately measure the sales funnel, fine-tune the sales process to match customers’ buying processes and consistently apply best practices across sales territories. The entire sales team is most responsible for the sales capabilities within an organization and it is usually the VP of Sales who has ultimate accountability for the capability maturity in sales.

Buyer Alignment - Selling The first objective of the Sales category is to manage and measure the sales cycle from lead to close. With this objective it is imperative to align the sales process with the customer’s buying process to ensure the process is effective and efficient.

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Opportunity Tracking (Effectiveness) Identify current state of sale 1. Define the degrees or stages of sale progress and ultimate disposition options. 2. Prioritize each opportunity based on size, close date, strategic value or timing of customer. 3. Capture each disposition and the degree of sale close and report to the organization: a) closed business, and b) a forecast of unclosed opportunities. 4. Review the forecast against the actual results and identify where opportunities were hung up or lost and research what changed to identify buyer shifts.

Funnel Modeling (Efficiency) Measure the progress of future revenue 1. Identify the trending and ultimate impact of the opportunity tracking system reporting. 2. Isolate and prioritize correlations between volumes and associated activities with results. 3. Build a forecasting model to reflect and isolate future revenue flow based on known metrics of flow by stage and related activity.

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Sales

4. Compare forecasts with actual results and validate changes with customers where change may indicate changing behavior.

Sales Methodology The second objective of the Sales category of capabilities is focused on developing a consistent sales methodology. It is imperative that the organization follow a well-defined sales process for identifying and gaining commitment from its customers. An organization should never sell to its customers based on guesswork or an opinion of need, but rather based on achieving the desired outcomes.

Sales Process (Efficiency) Meet shared objectives with buyers 1. Define the interactions and activities each buying role requires to efficiently meet its buying objectives. 2. Prioritize its importance in accelerating the sale. 3. Train team members on the activities and performance expected throughout the lifecycle with the customer. 4. Proactively review win, loss and closed-won tracking data and durations to identify and validate changing customer buying considerations.

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Selling Methodology (Effectiveness) Promote the perspective of the buyer 1. Document the buying objectives of each unique customer segment. 2. Prioritize the buying objectives based on the difficulty the organization will have overcoming them, along with the importance to the buyer role. 3. Define the underlying methodology needed with direct links to the opportunity tracking stages and train teams on why they do what they do. 4. Proactively review direct feedback from customers and employees to identify and validate changing buying objectives.

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Service

The Sales and Service categories of capabilities are very similar; Sales capabilities are engaged before the closing event and Service capabilities happen after the closing event. Service is generally not an area in most organizations that has the most dramatic effect on revenue, but it has been the limiting factor in several cases where the service was so bad that it caused the organization to lose customers faster than it could attract new ones. The Service category of capabilities includes an organization’s ability to manage inquiries and complaints, establish service level agreements, fine-tune the service process and maintain rules and best practices. There are several functional groups within an organization that are responsible for the Service capabilities. The exact groups vary widely based on the industry and company but they include customer service, consulting and shipping— anyone in the organization responsible for delivering what was purchased by the customer.

Buyer Alignment – Servicing The first objective of the Service category of capabilities is Buyer Alignment – Servicing. With this objective it is important to follow a well-defined process for meeting customer objectives.

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Complaint/Inquiry Tracking (Effectiveness) Identify the current state of delivery 1. Define the degrees or stages of delivery and ultimate satisfaction disposition options. 2. Prioritize each complaint or inquiry based on degree, revenue impact, strategic value, expectation or timing of customer. 3. Capture each disposition and the degree of completion and report to the organization the rate at which is fulfilled commitments. 4. Compare performance with satisfaction and identify where service delivery was short and research what may have changed to identify shifts in expectation.

Speed/Quality Service Model (Efficiency) Measure the drivers of satisfaction 1. Identify the trending and ultimate impact of the complaint and inquiry tracking system reporting. 2. Isolate and prioritize correlations between volumes and associated activities with results. 3. Build a forecasting model and SLA approach to reflect and isolate future service needs based on known metrics and related activity.

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Service

4. Compare forecasts with results and validate changes with customers where change may indicate new expectations or behavior.

Service Methodology The second objective of Service is about developing and maintaining a consistent process for fulfilling the commitments made during the sales process. It is critical that the organization understand the expectations of its customers based on the impact it has on their objectives.

Service Process (Efficiency) Meet the expectations of customers 1. Define the interactions and activities customers expect to efficiently meet their individual expectations. 2. Prioritize the interactions and activities to perform in order to accelerate completion and satisfaction. 3. Train team members on the activities and service levels (SLA) expected throughout the delivery lifecycle. 4. Proactively review activity and satisfaction with customers and employees to identify and validate changing expectations or behavior.

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Servicing Methodology (Effectiveness) Promote the perspective of the customer 1. Document the loyalty drivers of each unique customer segment. 2. Prioritize the loyalty drivers based on the difficulty the organization will have meeting them, along with the importance to the customer. 3. Define the underlying servicing methodology needed with direct links to the complaint and inquiry tracking stages, and train teams on why they do what they do from a customer’s perspective. 4. Proactively review direct feedback from customers and employees to identify and validate changing loyalty drivers.

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Performance Management

In this third category of realizing potential in the organization, the capabilities are centered on overall performance management of the people in the organization who engage with customers. The balance in the CAMMI Model is evident in this category because many of the prior capabilities have more to do with process and technology than the people-centered aspects of the organization. Performance management includes process and technology, but the emphasis is on the performance of the customer-facing employees. The Performance Management category of capabilities includes the ability to correlate activities to results, personnel decision making, establishing key performance indicators and improving individual performance through coaching and mentoring. The human resources department and management team are generally responsible for the maturity of the capabilities in this category. It is usually the HR Director who has ultimate accountability for this category.

Performance Tracking (Effectiveness) Monitor individual activity and outcome 1. Identify and capture individual activity and measure results. 2. Provide performance reports indicating achievement levels. 3. Create regular reporting processes that meet management needs. 4. Capture direct customer understanding of individual performance.

Personnel Decision Making (Efficiency) Make fact-based personnel decisions 1. Correlate individual impact to team performance. 2. Review individual impact looking for trends, leaders and laggards. 3. Manage personnel by reviewing reports and taking immediate action. 4. Make sure customers understand the transition of personnel.

Individual Performance Dashboard The first objective of Performance Management is focused on the hiring, management and termination of employees.

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Performance Management

Active Coaching The organization cannot operate without employees and it is important to set the right expectations and manage employees to those expectations throughout the lifecycle.

4. Build an understanding for why the customer perspective is critical.

Establishing Expectations (Efficiency) Assign individual activity and result expectations 1. Determine each individual’s specific role in success. 2. Align metrics with an overall scorecard from strategy to individual metrics. 3. Meet with team members regularly to explain and review expectations. 4. Make sure the expectations include a clear link to customer objectives.

Mentoring and Coaching (Effectiveness) Improve understanding of individual impact 1. Identify gaps in individual performance or expectation. 2. Select critical areas of concern based on a priority of objectives. 3. Meet with individuals to discuss situations and needed change.

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Strategic Relationships

The Strategic Relationship category of capabilities is about increasing the value of an organization to its customers. Many organizations start out as just vendors to their customers but they desire a more strategic relationship and ultimately want to be considered “partners” with their customers. To obtain “partner” status the relationship has be based on a unique and strategic value that the customer does not feel it can get from other relationships. Creating that unique and strategic value requires maturity in the Strategic Relationship category of capabilities. The Strategic Relationships category includes an organization’s ability to conduct behavioral research and apply “personality” driven treatment strategies, manage expectations and collaborate with its most strategic customers to create shared value. There are various functional groups responsible for Strategic Relationship capabilities but responsibility often rests with the overall management team.

Strategic Account Development The first objective in the Strategic Relationship category involves establishing performance quotas and monitoring the

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results. The organization knows its best customers well and continually sets clear expectations of shared outcomes with them.

Customer Collaborative Learning (Effectiveness) Uncover breadth of strategic customer need 1. Establish a complete set of customer goals for your best potential strategic customers. 2. Measure which has the greatest potential impact for expanding breadth of relationship value. 3. Meet with strategic customers to discover how the organization can achieve additional value. 4. Understand what the business objectives are and why they have a positive impact.

Strategic Value Expansion (Efficiency) Personalize offerings for greater strategic impact 1. Define customer needs for greater personalization, or gaps in current product/service offerings. 2. Determine the additional revenue or loyalty potential if personalization is provided. 3. Build products that allow for adaptation to new or specialized situations.

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Strategic Relationships

4. Work with customers to isolate needs vs. wants, or symptoms vs. root cause.

Proactive Collaboration The second objective in the Strategic Relationship category includes building growth plans for the typical customer. The organization works with its best customers closely and each party trusts the other to deliver on its commitments.

Dynamic Process Adaptation (Efficiency) Deploy processes that are built for change 1. Collect process inefficiencies from internal and external sources. 2. Prioritize those with the greatest negative impact on the organization. 3. Improve those processes to allow for key variations in specialized situations. 4. Work closely with key customers to identify value-added processes based on their needs.

1. Create a complete set of customer objectives. 2. Align how the organization can best meet additional client value. 3. Create shared processes that align the objectives of the organizations. 4. Collaborate with the customer on their internal objectives and how they might improve them with support.

Collaborative Value Exchange (Effectiveness) Align internal objectives with customer objectives

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Market Innovation

This final category of capabilities is Market Innovation. This includes product and market innovation; developing new products and determining the best way to bring them to market. The research and development team and general management are most often responsible for the capabilities in this category.

Product/Service Innovation The first objective in the Market Innovation category is Product/Service Innovation. This includes the ability to capture ideas internally and from customers and then prioritize them based on the fit for high-value markets. The organization must continually assess the relevancy of its products and services and adjust to the market.

3. Extend the process for collecting new ideas into all key customer touch points. 4. Improve collection of ideas by capturing an understanding of why it will have a positive impact.

Idea and Concept Prioritization (Efficiency) Prioritize ideas to meet growing needs 1. Understand the complete listing of ideas and relative value. 2. Rank each idea based on the impact each has on the value exchange of the organization. 3. Create a formal process that ensures each idea is processed and recorded by the degree of value. 4. Work directly with customers to thank them for ideas and prioritize with voting influence/involvement.

Idea and Concept Tracking (Effectiveness)

Product/Service Launch

Capture external and internal innovative ideas 1. Gather a complete listing of external and internal ideas for new offerings or ways of servicing customers. 2. Capture a sense of priority through voting, compiling similar captures and assigning value of source.

The second objective in the Market Innovation category is Product/Service Launch. An organization should continually improve its products and services to meet the needs of its high-value markets.

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Market Innovation

New Product Launch (Efficiency) Manage change internally and externally 1. Document the entire cycle of introduction using isolated teams and resources, or preferably the standard functions. 2. Plan the order and priority of customers needing to transition or be introduced to the new product or service offering. 3. Deploy a process that ensures each prospect or customer is introduced through a complete selling process. 4. Request customer feedback about their awareness of the new offering.

4. Understand the degree of value created or lost, and work directly with customers to ensure future loyalty regardless of prior impact.

Transitioning Value Exchange (Effectiveness) Educate everyone on the value of transition 1. Capture the adoption across the prospect and customer community to the change or new offering. 2. Determine points of adoption needing further discussion. 3. Create a formal approach to reviewing change with a customer and how it could have better improved their performance.

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CAMMI Diagnostic

The CAMMI Diagnostic is a web-based assessment tool that measures an organization’s capability maturity based on the CAMMI Model and Framework. Using a powerful analysis engine, it derives an organizational CAMMI Score through dynamic questioning patterns and real-time response analysis. The CAMMI Score analytical engine analyzes each response against an analysis of all prior insight before determining its next question. The analysis framework used is based on complex interdependencies between the 36 elemental market capabilities. As a result, the CAMMI Score is continually validating responses and capturing inherent alignment opportunities or issues. An organization may be scored at the enterprise, division or business unit level; go-to-market autonomy is the only requirement. The CAMMI Diagnostic is the only objective and effective way to measure an organization’s maturity and team alignment. The process works like this:

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1. The process starts with a kickoff meeting for the leadership team and all the participants selected for the Diagnostic campaign. During this meeting we outline the objectives, process and timing for the overall project. 2. A link is sent to the participants via e-mail with a unique login to the Diagnostic. 3. The participants log in and complete the Diagnostic online from a secure Web site. The participants score the organization from questions that vary based on the answers to all the previous questions. The Diagnostic takes approximately 35 minutes to complete for each participant. 4. After all the participants have completed the Diagnostic, we close the campaign and generate the results. 5. We work with our partners to interpret the results and prepare for the workshops. 6. We have two meetings with the leadership team to present the results, baseline the results with the team and develop a prioritized approach to improving key capabilities.

CAMMI Model and Framework TM


CAMMI Diagnostic

7. Our partners work with the leadership on the execution of the projects and programs necessary to implement the solutions. The Diagnostic results are comprehensive and include the following key information: 1. Organization-wide capability maturity results; also summarized by objective and category. 2. Organization-wide competency maturity results. 3. Individual results for each participant. 4. Alignment results comparing the maturity at each level by participant. 5. Overall CAMMI Score.

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CAMMI Score

The CAMMI Score is an overall measurement of an organization’s maturity and alignment results. The purpose of the CAMMI Score is to provide one summarized score so an organization can get a big picture perspective of their overall maturity and alignment based on the CAMMI Model. The CAMMI Score allows organizations to compare their results to those of their peers, competitors and other organizations.

• Demonstrates a proven correlation between the score

and overall market effectiveness and revenue growth.

Leader 960 to 1280

Details of the CAMMI Score

• Delivers a single score on a 1280-point scale. • Calculated using a patent-pending model • •

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Contender 640 to 959

and unique algorithm that considers all of the capabilities that lead to market success. Provides time-based comparisons to track improvement. Allows for benchmark comparisons to other organizations.

Competitor 512 to 639

Target 256 to 511

CAMMI Model and Framework TM


Closing Summary

Orchestrated performance means everyone in an organization understands the strategy and their role in making it a reality. The most successful organizations have strong capabilities across the board that come together to maximize overall performance.

Orchestrated performance requires: 1. Alignment with customer needs. 2. Internal support for the organization’s strategy. 3. An understanding of the organization’s strengths and weaknesses. 4. A systematic, prioritized approach to improvement. 5. Technology that supports the business. Companies are finding that the old ways of doing things are not always the best ways. Today, organizations need to execute better and more consistently as a team to beat their competition. Leaving things to chance, without a common framework and metrics, often leads to disappointing results. In the past year organizations of all sizes, from small, closelyheld companies to Fortune 100 firms, have engaged with CAMMI Logic’s consulting firm partners to improve their results. The organizations had various reasons for engaging one of CAMMI Logic’s partners:

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1. A lack of clarity about what was holding them back. 2. Disappointing revenue results. 3. A desire to improve overall sales performance. 4. A need to implement new CRM technology to support their growth plans. In every engagement the organization was unsure where to start and what solutions would have the most impact on their results. They didn’t want to focus on the wrong things or the wrong technology. Current economic realities require organizations do more with less, so they had to make sure they were focused on the right things. CAMMI Logic provided the strategic clarity for the organizations to understand their priority improvement areas and engage with the consulting partner to implement solutions. Comments that we heard from these projects included: ––“I don’t know how you can possibly know so much about our organization from just reading the diagnostic results. I can’t believe you never talked to anyone in our company but were able to gain so much insight.”

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Closing Summary

––“The quantifiable diagnostic results gave us confidence that we had identified the right priorities and we were able to agree on an approach that everyone would support.” ––“The diagnostic results highlighted a priority area that our leadership team had overlooked. Once we saw the weakness the light bulb went on and we took steps immediately to improve that area.” ––“The results and roadmap allowed our team to agree on an approach to select and implement a new CRM solution that we had been struggling for years to replace.” Take the next step for your organization and investigate how a CAMMI Logic consulting partner can help you masterfully orchestrate your performance. For more information and a free consultation contact: Scott Boedigheimer sboedigheimer@cammilogic.com (952) 856-0759

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CAMMI Model and Framework TM


About the Authors

Mike Paradis

Mike is passionate about developing organizations that accelerate and sustain growth by managing customer value-exchange. In fact, he devoted the past 15 years of his career to that single leadership objective. During his career, Mike and his team have systematically researched, defined and tested every aspect of an organization’s ability to maximize customer value. Working with large and small organizations from all industries made it possible to isolate the core and common relationship capabilities. Mike’s dedicated effort has produced patent pending business models, processes and technology, including the CAMMI Model, Buy/Sell Alignment, Building Customer Framework and the CAMMI Diagnostic. Joining GE in the 1995, Mike was one of the first members of a new customer relationship management team. Through GE, he became involved in hundreds of customer facing solutions nationally. Through these engagements, Mike maintained a personal framework detailing each customer’s successes and challenges. Mike was eventually named Executive VP of the CRM Business, where he led a team of 80 consultants for GE, establishing offices in New York, Boston, Atlanta, Chicago, LA and Minneapolis. In late 2001, Mike founded BenNevis Inc., and designed the organization to provide growth strategy consulting based on the CAMMI Model and Framework. Mike is the founder of CAMMI Logic and other organizations focused on helping customers grow. Mike holds certifications and training including, Six Sigma, Consultative Selling, Solution Selling, Customer Centric, GE Business Integration and Balanced Scorecard. During his tenure with GE, Mike was nominated four years for the prestigious General Electric Circle of Excellence Award and was the recipient three times.

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Scott Boedigheimer

Scott has seen firsthand how organizations have struggled with Orchestrated Performance. He has a lifelong passion for helping companies improve their results; initially focused on accounting and now by improving sales and leadership. Scott often refers to himself as a “recovering CPA” since he started his career in public accounting and gained his CPA certificate in 1990. That background has served Scott well throughout his career in public accounting, technology consulting, sales and management. Scott started his career with Larson, Allen, Weishair and Co., a Minneapolis based regional CPA firm right out of college at St. John’s University in Collegeville, MN. Scott spent several years at LarsonAllen in the commercial services, auto dealer and manufacturing groups doing audit, tax and consulting work. Scott’s passion for technology led him to form LarsonAllen Technology Solutions, a wholly owned subsidiary of the firm that helped clients select and implement ERP solutions. Scott spent the next several years running that practice then other Value Added Reselling (VAR) organizations at Virchow Krause and Altara. At Altara, Scott was responsible for the Central Region of the US and also served as the firm’s VP of Sales. Scott left Altara to join Microsoft in a Strategic Engagement Manager role. In that capacity he worked on larger ERP opportunities with Microsoft Dynamics partners. Scott was recruited to CAMMI Logic by the founder and was instrumental in forming the company and launching the solutions.

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Left Running Head

CAMMI Logic, LLC. 8877 Aztec Dr. Eden Prairie, MN 55347 (952) 241-9009 info@cammilogic.com www.cammilogic.com

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CAMMI Model and Framework TM


Orchestrated Performance