Stakeholder Management in challenging times Why retaining your key stakeholders is more important today

Transcription

1 Stakeholder Management in challenging times Why retaining your key stakeholders is more important today Margit Huber Global Head Stakeholder Management March 13, 2009 The 19 th Global TRI*M Conference Long Island

2 The times we live in

3 The current economic environment the most serious financial crisis since the Great Depression." Barack Obama, US President The Q42008 QES results highlight a frightening deterioration in the UK economic situation no positive features in the Q4results...signal huge declines in investment and big unemployment increases... downturn is deepening at an alarming pace. Worst economic crisis in the post-war era China fears recession riots. German economy declines most since UK Chamber of Commerce 1 Economic and Fiscal Policy Minister Kaoru Yosano, Japan 2 Outlook, Xinhua news agency 3 Deutsche Welle 4 3

4 Crisis at an individual level There were enough construction workers in Spain to build 800,000 houses in Now these workers and families have been thrown into poverty Many people in Ireland have lost so much on housing or the stock market that they will not be able to repay in their lifetime. Couples around the world are postponing having a baby as their homes and jobs are under threat. The credit crunch is leading to an entire generation not being born. Pensioners in Taiwan, Hong Kong and Singapore have found out that their pensions based on Wall Street Credit, now no longer exist. Not only an economic event but a personal tragedy on a mass scale 4

5 Customers become more cautious Seek greater certainty and value More rationality and change in habits Cautious and circumspect Increased time spent in research before a decision Even more attention to word-of mouth But, no increase in switching seen barriers and risk high 5

6 Managing your customers experiences

7 Customers today know more than their suppliers Customers have more information at their disposal and are using it for decision making more than ever before The ability to organise and access at will up-to-date customer experiences and word of mouth is a new challenge that companies have never faced offers 20,000,000+ traveller reviews & opinions of hotels, destinations & sights. is a free online and phone based comparison and switching service in UK that helps customers compare prices on a range of services including gas, electricity, home phone, broadband providers and personal finance products. Opportunity to leverage product differentiation as a competitive advantage no longer exists Ability to manage the holistic customer experience is as important today as product development, innovation, advertising, sales and distribution. June 2007 June June

8 Customer Experience Management - CEM Customer experience is the sum of all experiences a customer has with a supplier of products or services, over the duration of their relationship with that supplier. Aim of CEM is to offer customers an outstanding and reliable experience which ties them emotionally and thus permanently and profitably to the company CEM represents a holistic concept combining both strategic and tactical customer retention management 8

9 Integrated CEM The Strategic and Tactical Side of CEM A Route to Lasting Corporate Success Strategic CEM Tactical CEM Measure Manage Monitor Prioritisation of Process Improvements based on aggregated customer feedback Action planning based on diagnostics Activate Behaviour Integrated CEM Delivered quality at the particular touch point Consistency of services being delivered at the relevant touch point 9

10 The CEM Roadmap Strategic approach to customer experiences must be long-term oriented Anchorage of CEM in the corporate strategy Excellent customer experiences as a corporate objective Core parameters relating to CEM as an integral part of the company s KPIsystem Evaluate and Reassess priorities Build customer strategy within company context Communicate and have clear accountability Identify Big Bets and Quick Wins 10

11 The CEM Roadmap Tactical approach - strong daily performance and execution excellence Managing customer experience at key touch points is dependant on immediate feedback for quick adjustments in the daily customer interaction Monitor everyday customer contact at individual interfaces and touch points Flawless execution of basic services, strong service quality, reliability, trust, and core competencies Behaviour, processes, guidelines, targets must be achievable and replicable Consistency is critical but with enough room for customisation of an experience Employees must be motivated and understand their role in managing each experience 11

12 Example from the Automotive Sector After Sales Service Clearly a problem with managing the servicing experience at the workshops TRI*M Grid TRI*M Index 59 After Sales Service A01 Fix problems on first visit A02 Quality of repairs and service A03 Explanation of service requirement and cost A04 Courtesy and helpfulness A05 Location of service centre A06 Availability of spare parts A07 A08 Performance Far above average Above average Average Below average Far below average Low High Stated Importance HYGIENICS A08 A05 POTENTIALS?/ SAVERS? A06 A07 A04 MOTIVATORS A02 A03 A01 HIDDEN OPPORTUNITIES Low Impact on Customer Retention High 12

13 Example from the Automotive Sector After Sales Service Detailed analysis of the service interaction reveals process issues Process & Execution Analysis Perceived Process Variation based on Customer Ratings High variation Average variation Low variation Service acceptance Requirement documentation Customer Interaction Perceived Process Performance based on Customer Ratings 13

14 Employee Companies engagement are relooking fundamental at strategy, to business consistent processes delivery and of outstanding Need to better manage customer experiences customer relationships experiences Customer Experience Management Customer Touchpoint Analysis Customer Retention The Customer Centric Company Strategy & Business Processes Internal Customer Orientation Employee Experience Management Engagement Surveys Mystery Shopping/ Calling Retailers/ Wholesalers Distributors Employer Branding 360º Feedback Communication Surveys Supplier Partnership Exit Interviews 14

15 Motivating environment more critical than satisfaction to drive unique customer experiences, more so in these challenging times Weaker driver Satisfaction TRI*M Employee Commitment + Motivating environment Customer Retention Strong driver 15

16 Key Drivers for motivating environment as a dimension of Employee Commitment Image Cooperation within team Motivating Environment Cooperation across teams Leadership 16

17 Keeping stakeholders engaged in times of economic and financial turbulence Execution Challenge Business Challenge Trust Challenge 17

18 Consistency of Business Processes Execution Challenge TRI*M Index 78 Perceived Process Variation based on Customer Ratings High variation Average variation Low variation Perceived Process Performance based on Customer Ratings 18

19 Re-evaluation of relationships First research insights Satisfaction ratings go down Shift in the client base Increasing number of Hostages Business Challenge Satisfaction Mercenaries Apostles Loyalty Terrorists Hostages 19

20 Sustainable Business Success Trust based relationships will be crucial to all facets of customer experience and employee motivation in these difficult times Smooth, operational processes and outstanding experiences will inspire trust in customers Increased sensitivity to employee needs will motivate and build trust in the organisation Trust will have a major role to play in the corporate image across sectors and companies Many companies will not survive this crisis. Those that do, will be because they are able to maintain trust among all their stakeholders. Trust Challenge Business success cannot come at the expense of society, the planet or employees. If it does then that success will be fleeting. Indira Nooyi, Chairman and CEO of PEPSICO Inc 20

21 The Relationship Map Serving key stakeholders beyond expectations Customer Experience Management Customer Touchpoint Analysis Customer Retention The Customer Centric Company Strategy & Business Processes Internal Customer Orientation Employee Experience Management Engagement Surveys Mystery Shopping/ Calling Retailers/ Wholesalers Distributors Employer Branding 360º Feedback Communication Surveys General Public Supplier Partnership Corporate Reputation Exit Interviews 21