Driving performance through. Customer Centric Mindset

Transcription

1 Driving performance through Driving leadership Performance and employee through behavior a Customer Centric Mindset Ana Dutra November 6, 2007 November 26, 2007 Copyright 2007 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 1

2 We investigated over 500 HPBs to find what they shared in common Disciplines Leadership People development Technology enablement Performance management Agility and Innovation Marriott 3M P&G Microsoft Starbucks Coffee MBNA Corporation UPS Dell Best Buy Wellpoint Harrah s The Royal Bank of Scotland Johnson & Johnson Samsung Johnson Controls Nokia Constellation Energy Group BMW Research Mindsets Balance market-making with execution Multiply talent View IT as a strategic asset Use a selective scorecard Renew continuously Copyright 2007 Accenture All Rights Reserved. 2

3 A series of cases underscored the role that culture and employee engagement play in creating sustainable High Performance Observable and actionable Balance market-making with focus on execution Leadership values, i.e., the statements that management makes about what s really important to the organization Strategic stories, i.e., the images, events and lessons that management selects from the organization s past to illustrate how espoused values translate into action Leadership Values Strategic stories Multiply talent View IT as a strategic asset Use a selective scorecard Renew continuously Winning mindsets, i.e., the mindsets that guide how and how well an organization approaches tasks that are critical to execution of its strategy Hidden and hard to influence Collective memory, i.e., stories and events that, over time, become stereotypes and expectations Collective memory Unwritten assumptions Unwritten assumptions, i.e., the advice and rules-of-thumb that permeate the informal organization Historical coping strategies Historical coping strategies, i.e., the lingering consequences of fixes to past failures Copyright 2007 Accenture All Rights Reserved. 3

4 The Marriott story revealed the importance of continuously engaging employees Marriott s Performance Anatomy Leadership Values Take care of associates and they will take care of customers Value the organization more than individual players Attention to detail Team work Fact-based decisions Success is never final Humility Strategic Stories Annual Award of Excellence publicly recognizes exemplary employees Executive visitors tour the kitchen and employee areas first J.W. Marriott inspected beneath the beds as a reminder to pay attention to detail Hot food hot and cold food cold (J.W. Marriott) Success is never final. I don t care how good you get here, in a positive way, you re only as good as what you re going to do next. (Bill Marriott) Balance market-making with execution Pursue new business models and ideas while paying careful attention to the execution of current and new ideas. Multiply talent Carefully select candidates to hire and once hired provide them with ample training opportunities to keep them motivated and engaged. View IT as a strategic asset Converge IT and business to create to new service and product offerings. Use a selective scorecard Have a keen interest in measurement and apply analytics to make decisions. Renew continuously Remembers that that success success is is never never final final and and mistakes mistakes are are learning learning opportunities. Copyright 2007 Accenture All Rights Reserved. 4

5 The Harrah s case study showed what s possible when employees mindsets and practices are aligned Harrah s Entertainment s Performance Anatomy Leadership Values Participative performance Explore contemporary management techniques Hire MBAs and non-gaming professionals into executive positions Customer experience comes first Information-driven decision making Strategic Stories Hired Gary Loveman, a former academic, to become COO then CEO We hire people all the time for whom we don t have a job for. I just want a smart person. (CFO Charles Atwood) The customer focus we have throughout the entire organization is world class. (COO Tim Wilmott) Managers are expected to rigorously analyze the business and justify their plans and decisions with data Balance market-making with execution Changes its customer loyalty program from a general reward program to one that segments customers while also identifies and encourages customers to play in Harrah s chain of casinos Multiply talent Believes that hiring people who already embody Harrah s values is key to retaining outstanding contributors View IT as a strategic asset Judges technology investments in terms of their contribution to improving client experience Use a selective scorecard Continually assesses performance and relies on survey data, market feedback and financial measure to gauge success relative to the industry Renew continuously Views continuous renewal as a corporate imperative and understands the need to balance marketplace responsiveness with staying focused on its core competencies Copyright 2007 Accenture All Rights Reserved. 5

6 Cultural Elements of Strategic Success There may not be one ideal culture, but there are foundational elements or best practices Best Practices that cut across all 3 value propositions: Customer centricity Nimbleness Learning Commitment to excellence Elements of culture to avoid: Silo mentality Bureaucracy Pressure and Stress Copyright 2007 Accenture All Rights Reserved. 6

7 Best Practices in creating Customer Centric organizations Focus extensively on delivering value to customers. Intentionally trade some short-term results for long-term business value. Include senior-level buy-in in their customer-based programs get them closer to customers. Share customer-focused initiatives with employees, partners and customers. Recognize that traditional measurement tools may not adequately track customer values, such as emotions and loyalty. Incorporate employee (plus partner and contractor) training as part of the customer-centric movement. Identify key stakeholders (owners, employees, partners, suppliers) and work to build support within these groups. Establish the two or three metrics that count (satisfaction, repeat and promotion indexes). Copyright 2007 Accenture All Rights Reserved. 7

8 Building a deep understanding of your consumers Buying behavior Functional requirements Unmet product-related needs Traditional customer segmentation and research Income / budget, opportunity cost / time savings, systems economics Purchase convenience, ease of use and decision making, complexity reduction Frustrations, peace of mind, entertainment / enjoyment, emotional fulfillment Decision making process, affinity / community Understanding customer needs What are the consumers key cost and process friction points? What new opportunities do these suggest? Personal priorities, personalization / flexibility Copyright 2007 Accenture All Rights Reserved. 8

9 Where can you expand beyond your services or product to address consumers higher order needs? The Consumer s Total Economic Equation Reduced Hassles Personalization Faster Response Easier on Budget Peace of Mind Time Savings Reduce Uncertainty My Service or Product Affinity Experience Convenience Predictability X Low Small Opportunity potential Value added/differentiation Ability to set vs. respond to the customer s agenda 20X High Great Copyright 2007 Accenture All Rights Reserved. 9

10 Shaping Culture in the Context of Strategy and Value Proposition Product Leadership Operational Efficiency Customized Solutions Supportive Culture Elements Supportive Culture Elements Supportive Culture Elements Nimbleness Customer Centricity Commitment to Excellence Learning Acceptance of Change Creativity and Innovation Risk Taking Systems and Procedures Commitment to Excellence Customer Centricity Financial Awareness External Focus Nimbleness Learning Customer Centricity Commitment to Excellence Learning Nimbleness Supp. Employee Growth Creativity and Innovation Acceptance of Change Cultural Barriers Cultural Barriers Cultural Barriers Bureaucracy Silo Mentality Pressure and Stress Silo Mentality Silo Mentality Bureaucracy Copyright 2007 Accenture All Rights Reserved. 10

11 The bottom-line: aligning Strategy and Operating Model is critical to deliver Superior Results Strategy & Value Proposition Alignment Operating Model Capabilities External Environment Culture Processes & Technology People Business Success Metrics Organization Architecture & Infrastructure Leadership Execution Superior Business Results Copyright 2007 Accenture All Rights Reserved. 11

12 Culture... It is the game "I came to see, in my decade at IBM, that culture isn't just one aspect of the game it is the game." Lou Gerstner Who Says Elephants Can't Dance? Copyright 2007 Accenture All Rights Reserved. 12