Build a World Class Operation in Customer Success

© 2016 Service Excellence Partners

Build a World Class Operation in Customer Success

Ed Powers


My Territory



What makes organizations world class performers?


Organizational Maturity

Control

Continuous Improvement

Firefighting

Optimization

Innovation

2x


Results from Continuous Improvement

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

OperatingIncome

Sales TotalAssets

Employees Return onSales

Return onAssets

Per

cen

t C

han

ge

Award Winners

Control Firms

Source: Hendricks, K. and Singhal, V. March, 2000 “The Impact of Total Quality Management (TQM) on Financial Performance: Evidence from Quality Award Winners” DuPree College of Management, Georgia Institute of Technology


Organizational Maturity

Control

Continuous Improvement

Firefighting

Optimization

Innovation

10x


Sources: J. Collins, M. T. Hansen, 2011. Great by Choice: Uncertainty, Chaos and Luck—Why Some Thrive Despite Them All. Cumulative stock returns, dividends reinvested. © CRSP, Center for Research in Security Prices, Booth School of Business, The University of Chicago.

10X Case Dynastic Era of Study

Value of $10K Invested

Performance Relative to Market

Performance Relative to Industry

Amgen 1980-2002 $4.5M 24X 77X

Biomet 1977-2002 $3.4M 18X 11X

Intel 1968-2002 $3.9M 21X 46X

Microsoft 1975-2002 $10.6M 56X 119X

Progressive Insurance 1965-2002 $2.7M 15X 11X

Southwest Airlines 1967-2002 $12.0M 63X 550X

Stryker 1977-2002 $5.3M 28X 11X

10x Performers


10x Companies Are not: • more creative • more visionary • more charismatic • more ambitious • more blessed by luck • more risk seeking • more heroic • more prone to making big, bold moves Source: J. Collins, M. T. Hansen, 2011. Great by Choice: Uncertainty, Chaos and Luck—Why Some Thrive Despite Them All.


Empirical Creativity Don’t look to other people, conventional wisdom, authority figures or peers, but to empirical evidence; direct observation, practical experimentation, and direct customer engagement

Source: J. Collins, M. T. Hansen, 2011. Great by Choice: Uncertainty, Chaos and Luck—Why Some Thrive Despite Them All.


Productive Paranoia Hyper-vigilant, highly attuned to threats and changes even when things are going well; channel fear and worry into action and preparation, and maintain large margins of safety Source: J. Collins, M. T. Hansen, 2011. Great by Choice: Uncertainty, Chaos and Luck—Why Some Thrive Despite Them All.


Fanatic Discipline Extreme consistency of action, goals, performance standards and methods; utterly relentless with an unbending focus on their quests



The Secret to 10x Success

“Disciplined people engaged in disciplined thought and taking disciplined action.”


A disciplined culture comes from a specific, methodical and consistent leadership approach.


We are what we repeatedly do. Excellence, then, is not an act, but a habit.

– Aristotle

System->Discipline->Repetition->Habit->Culture->Excellence!


Many Approaches…


Strategic Management Systems Sensory System

Planning and Review System

Work System

Metrics System CI System

People System

Leadership System


Strategic Management Systems Sensory System


Work System


People System

Results

Leadership System


Example: Emerging Segment Sensory System

Work System People System

Results


CI System Metrics System

Leadership System

Fanatic Discipline

Empirical Creativity

Productive Paranoia


CCS Benchmarking


CCS Benchmarking Results? Sensory System


Work System


People System

Results

Leadership System

71%

41%


Sensory System Opportunities

- Defining personas by market segment (47%)

- Using CSAT and loyalty data in planning (47%)

- Analyzing competitor’s customer experiences (47%)

Strengths

+ Analyzing defections by reason, segment and competitor (63%)

+ Revisiting assumptions throughout the customer lifecycle (63%)



Opportunities

- Articulating specific changes and what’s required to implement them (39%)

- Tracking systems to monitor execution and results (39%)

Strengths

+ Aligning and integrating functional and corporate plans (78%)


People System Opportunities - Aligning staffing levels,

knowledge and skills to the customer experience (40%)

- Measuring and improving learning and development systems (27%)

Strengths + Measuring and acting on employee feedback (87%)


Work System

Opportunities

- Identifying and tailoring journeys to specific segments and personas (33%)

Strengths

+ Using personas and segments to drive process requirements (60%)


Metrics System

Opportunities

- Deploying leading and lagging indicators (29%)

- Indicating progress on plans (29%)

- Calibrating metrics (14%)

Strengths

+ Defining the right set of metrics (64%)

+ Reviewing and acting on metrics (64%)


Continuous Improvement System Opportunities

- Using statistical methods (21%)

- Separating special from random causes (21%)

- Set aside time for improvement projects (21%)

Strengths

+ Working cross-functionally (71%)


Leadership System

Opportunities

- C-level ownership of the customer experience (29%)

Strengths

+ Leaders modeling ideal behaviors (93%)

+ Leaders emphasizing customers and key communities (93%)


Next Steps for 2017

1. Take the survey by Thanksgiving

2. Review your capabilities in the Seven Systems

3. Prioritize the gaps

4. Pick one area to improve

5. Plan and execute!

http://www.surveygizmo.com/s3/3117542/Benchmark-Customer-Excellence


Thank You!

Ed Powers Principal Service Excellence Partners www.se-partners.com [email protected] 970-235-0078

http://www.se-partners.com/



mailto:[email protected]

