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2. VISION DEFINITION DemoCo’s Vision for the nature of Customer Centricity it will achieve


The Vision Shaper Approach and Structure The Vision Shaping Dimensions

Stakeholder Input

Summary of Inputs

The objective of the SCHEMA® Vision Shaping approach is to take the relevant stakeholders in an organisation through a process of creating a definition of the nature of Customer Centricity that they want to achieve. This is based on a clear understanding that there is no such thing as a one-size-fits-all definition that is meaningful in terms of driving change.

Input has been sought from individual stakeholders as a first stage of the Approach. This was done by providing them each with a Spreadsheet-Based proforma with a description of the two ‘extremes’ of each dimension.

The inputs from each Stakeholder were brought together for each dimension and summarised in the series of charts shown over the next two pages.

The approach is based on 20 Dimensions of Customer Centricity that require clarity of direction and alignment among management teams. These dimensions cover the same scope as the Model that underlies the SCHEMA® Assessment and the positioning on each dimension informs the level of capability required in many of the Areas of the Model.

For example:

Number of stakeholders selecting each of the options on the ‘Current Capability’ scale shown by blue bars

17. Influencing of customer channel selection

The dimensions are not intended to run from ‘Good’ to ‘Bad’ but represent two opposite, but potentially valid, approaches to each one. They are:

10

0

1. Core Financial Focus

10

3. Readiness for Building on the Basics 4. Approach to Change

6. Approach to Understanding Customers 7. Opportunity for Competitive Advantage They each provided a view of:

9. Differentiated or Vanilla Customer Experience

•Where they thought that DemoCo was currently positioned on the dimension

10. Nature of Relationships built with Customers

•Where they believe that DemoCo should be in 3 year’s time

11. Level of Satisfaction being Sought

•The relative (to the other dimensions) priority of achieving the change The Stakeholders included in the initial exercise were:

14. Growth / Defence Emphasis

•John Jackson (Chief Executive Officer)

15. Level of Customer Targeting

•Brian Nixon (Chief Operating Officer)

16. New Media and Channel Adoption

•Laura Murphy (Finance Controller)

17. Influencing of customer channel selection

•Jill Watson (Director of Strategy)

18. Selling Culture

•Graham Smithe (Head of Direct Sales)

19. The Role of Influence 20. Visibility of Customer-related Performance

•Carole Heartsmere (Head of Partner Sales) •Wayne Dibley (Head of Marketing) •Michael Paynton (Chief Technology Officer) •Hilary Tones (Head of HR)

2

1 2 3 4 5 6 1 2 3 4 5 6

7 7

Free Choice

Stra tegy

Number of stakeholders selecting each of the options on the ‘Strategically Required’ scale shown by green bars

5. Style of Management

13. Customer inquisitiveness

0 5

2. Timescales demanded for ROI

12. Approach to Understanding the Experience

10

5

Highly Prescribed

8. Criticality of High Value Customers

Current


Summary of Stakeholder Inputs 1. Core Financial Focus

6. Approach to Understanding Customers Current

10

10

10

5 0

Revenue

0

1 2 3 4 5 6 1 2 3 4 5 6

7 7

Experience-Based & Intuitive

Profitability

10

10

1 2 3 4 5 6 1 2 3 4 5 6

7 7

0

Short-term Value Requirement

Product and/or Brand

10

10

10

5

5

0

0

1 2 3 4 5 6 1 2 3 4 5 6

7 7

No Disproportionately Valuable Customers

Need to Move On and Innovate

10

10

10

1 2 3 4 5 6 1 2 3 4 5 6

7 7

0

Explicit Differentiation

Responsive & Agile

0

10

10

Stra tegy

Current

10

10

3

10

1 2 3 4 5 6 1 2 3 4 5 6

7 7

Command and Control

High Involvement & Engagement

0 0

Current

10

5

1 2 3 4 5 6 1 2 3 4 5 6

7 7

0

Only by Customer Experience

Constant Listening

0

1 2 3 4 5 6 1 2 3 4 5 6

7 7

Pro-active Questioning

5 10

Stra tegy

Stra tegy

13. Customer inquisitiveness

Current

10

10

Current

10

5

1 2 3 4 5 6 1 2 3 4 5 6

7 7

HVC's must be a Core Focus

Data Collected at Every Opportunity

0 0

1 2 3 4 5 6 1 2 3 4 5 6

7 7

Data Collected when Needed

5 10

Stra tegy

Current

Stra tegy

14. Growth / Defence Emphasis 10

10

Current

10

5

1 2 3 4 5 6 1 2 3 4 5 6

7 7

New Customer Acquisition

Same for Everyone

0 0

1 2 3 4 5 6 1 2 3 4 5 6

7 7

Retain/Develop Existing Customers

5 10

Stra tegy

Current

Stra tegy

15. Level of Customer Targeting 10

10

Current

10

5

1 2 3 4 5 6 1 2 3 4 5 6

7 7

Operationally Excellent

Targeted Selling & Retention

0 0

5

5

5

10

10

10

Stra tegy

Just Enough for Repurchase

Stra tegy

10

5

5

0

Current

10. Nature of Relationships built with Customers

5. Style of Management

7 7

12. Approach to Understanding the Experience

5

5

0

10

Stra tegy

5

5

0

1 2 3 4 5 6 1 2 3 4 5 6

5

9. Differentiated or Vanilla Customer Experience Current

10

10

0

10

Stra tegy

4. Approach to Change

0

Universal Delight

5

5

0

0

Analytical & Researched

8. Criticality of High Value Customers

Current

10

Empowering & Inclusive

0

10

Stra tegy

3. Readiness for Building on the Basics

Planned & Structured

7 7

5

5

0

1 2 3 4 5 6 1 2 3 4 5 6

5

5

10

5

7. Opportunity for Competitive Advantage

Current

10

Still need to Fix the Basics

0

10

Stra tegy

2. Timescales demanded for ROI

0

0

Current

10

10

5

10

0

Current

5

5

Long-term Value Creation

11. Level of Satisfaction being Sought

Stra tegy

1 2 3 4 5 6 1 2 3 4 5 6 Stra tegy

7 7

Everyone Welcome


Vision Alignment

(Dimensions 1-6)

The Alignment Process

4. Approach to Change

1. Core Financial Focus

Current

Current

The output from the previous pages was circulated in advance of an alignment workshop held with the Leadership Team to ensure that maximum time was spent where the greatest level of misalignment occured At this workshop alignment was achieved on current and required positions for all dimensions except those shown below where the subsequent alignment activity was undertaken: 2. Timescales demanded for ROI Discussions were held with the Group Investment Board and the input received confirmed that ROI requirements for the new plan period are tightening and that 3 year pay-backs would no longer be acceptable for major investments. 9. Differentiated or Vanilla Customer Experience The new Brand Personality guidance notes were reviewed with the Service team and the future acceptability of some differential based on customer value confirmed as being in line with Brand. 12. Approach to Understanding the Experience Meeting held between Head of Research and the Digital and Social Manager to confirm the increasing role of on-line listening but with a continuing strong focus on NPS. 17. Influencing of customer channel selection New Multi-Channel Strategy document reviewed and meeting held with new Head of Self-Service. Confirmed increasing need to migrate customers to this channel.

Revenue

Profitability

Low

Responsive & Agile Strategy

Stra tegy High

Low

The clear focus for judging performance will be in terms of operating profitability having taken into account all direct costs (and overheads wherever achievable). Costs will be allocated to products, business units and to individual customers or at least to groups of customers. Direct costs (cost of product, delivery, returns, commissions) will based on actual values from Accounting systems. Most interaction costs (at least direct marketing, service visits and complaints) will be based on accurate activity-based costing. A high level of confidence will have been built throughout DemoCo that the profitability calculations are at least useful if not 100% accurate.

High Priority

Priority

Change in customer-impacting areas of DemoCo will be far more driven by the formal, annual plans of the stakeholder groups. These plans will be recognised as commitments to the organisation and colleagues. They will be based on research of the perceived need for change and a structured analysis of the options. Plans will form 'living' reference points on an on-going basis with regular review and clear processes to allow them to be changed in response to opportunities or challenges throughout the plan period.

5. Style of Management Current

2. Timescales demanded for ROI

Empowering & Inclusive

Current

Short-term Value Requirement

Long-term Value Creation

Low

Low

Priority

The absolute driving force behind most behaviours in DemoCo will remain short term value (in which ever way we define value). This will be mainly focused on current year value with limited assessment or targeting of the long-term value being created. Returns on customerrelated investments will be assessed over no more than 2 years and a break even will be required within 1 year. Lifetime value measurement will be focussed mainly on past value with limited attention being paid to predicted future value.

Associate engagement and inclusion will be a central element of the management style within DemoCo. There will be high levels of collaboration across functions and hierarchical levels, supported by appropriate technology. Strategic decision-making will rarely, if ever, carried out by a single individual and the quality of decisions will be more important than the speed with which they are taken. Tactical decisions will however be pushed 'down' the organisation so that they are made (within reason) as close to customer interactions and needs as possible.

6. Approach to Understanding Customers Current

Current

Need to Move On and Innovate Stra tegy

Low

High Priority

High

Still need to Fix the Basics

Command and Control Strategy

Stra tegy

3. Readiness for Building on the Basics

Experience-Based & Intuitive

Analytical & Researched Strategy

Low

High Priority

There is a consistent understanding that many of the basics are not right in terms of the experience that customers have and DemoCo's ability to maximise the value of customers. Senior Managers and operational teams will be focussed (by targets and measures) on fixing the basics before moving onto more advanced or innovative activity. Points of failure and comparative performance to competitors will be clearly understood and taken extremely seriously.

4

Planned & Structured

High Priority

DemoCo will have built deep analytical insight into the needs, purchase behaviours and attitudes of its customers and prospects. This will have been done by analysis of everything that is analysable (sales, complaints, campaigns etc.), wide-ranging customer research and sophisticated modelling. It will have been enabled by substantial investment in data-warehousing, analytical tools and dedicated (possibly external) expertise to deliver it. This level of insight will have been demonstrated to provide a more reliable input to customerimpacting decisions and plans than received wisdom or even real experience.


Vision State Summary Vision State Summary •More focussed on the profitability of the customer base than the number of customers, market share and customer spend.

1. Core Financial Focus

•Less willing to allow long term payback and ROI on investment made in Customer-impacting areas.

2. Timescales demanded for ROI

•Re-focussed on getting the basics right all the time and less time on ‘interesting initiatives’.

3. Readiness for Building on the Basics

•More structured approach to driving customer-impacting change with a clearer commitment to documented strategy and plans.

4. Approach to Change

•Greater empowerment to make tactical decisions ‘close to the customer’ and more collaboration on strategic decision-making.

5. Style of Management

•Much more challenge to ‘received wisdom’ about customers and how they behave from research and deep analytics.

6. Approach to Understanding Customers

•Slightly more recognition of the real competitive advantage that can be gained from the brand and the new product set.

7. Opportunity for Competitive Advantage

•Increased investment in the highest value 20% of customers as long as the basic service level to all customers is not affected.

8. Criticality of High Value Customers

•Noticeably ‘better’ service for higher value customers but not explicit enough to be visible to other customers,

Revenue

Long-term Value Creation

Still need to Fix the Basics

Planned & Structured

Empowering & Inclusive

Experience-Based & Intuitive

Product and/or Brand No Disproportionately Valuable Customers

Profitability

Short-term Value Requirement

Need to Move On and Innovate

Responsive & Agile

Command and Control

Analytical & Researched

Only by Customer Experience

HVC's must be a Core Focus

9. Differentiated or Vanilla Customer Experience Explicit Differentiation

•More opportunities for deeper engagement with DemoCo, for all customers, exclusively on-line for most, in person for higher value customers.

10. Nature of Relationships built with Customers

•Far greater focus on driving more ‘WOW’ experiences that delight, as opposed to just satisfy, customers.

11. Level of Satisfaction being Sought

•More ‘real-time’ approach to understanding what the current customer experience is like, but with a continued focus on NPS.

12. Approach to Understanding the Experience

•Higher levels of training, motivation and system support for customer data collection at a wider range of interfaces.

13. Customer inquisitiveness

•Increased sales force focus on retaining the best customers as well as winning new customers, supported by KPI’s and pay.

14. Growth / Defence Emphasis

•More targeted sales force activity with some types of customer being de-targeted for both acquisition and retention.

15. Level of Customer Targeting

•Substantial upgrade of social media presence and self-service technology for purchasing and receiving support.

12

Change Summary

High Involvement & Engagement

Universal Delight

Constant Listening Data Collected at Every Opportunity

New Customer Acquisition

Targeted Selling & Retention

Same for Everyone

Operationally Excellent

Just Enough for Re-purchase

Pro-active Questioning

Data Collected when Needed Retain/Develop Existing Customers Everyone Welcome

16. New Media and Channel Adoption Front-of-the-Wave

•Active encouragement of lower value customers to move to selfservice channels and some withdrawal of access to physical channels.

17. Influencing of customer channel selection

•Just enough reduced focus on the ‘Always be Selling’ ethos to dramatically reduce the number of sales complaints.

18. Selling Culture

•Major focus on advocacy as an objective and on advocates as a channel that are actively managed.

19. The Role of Influence

•Much more active and visible reporting of Customer measures at all levels and meaningful review at all Board Meetings.

20. Visibility of Customer-related Performance

Highly Prescribed

Always be Selling

Critical Sales Channel

Enforced visibility

Wait for the Proof

Free Choice

Softly, Softly

Support to all Selling Effort

'Need to know' Basis

SCHEMA Output - Vision Shaper  

Vision Shaper Section of SCHEMA Output Document

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