Monday, April 4, 2016

Designing the Customer-Centric Organization

In order to be successful & viable firm the twenty first century a company must have a customer centric capability. The early movers will gain a competitive advantage, while straggles will scramble for competitive necessity
Today, nobody owns the customer, the customer own you. The customer may want to talk to the salesperson or to the distributor. The customer may want to talk directly to the service department. He or she may want to deal face to face or by telephone, fax, or e- mail. And customer who poses a question or complaint be email expects the salesperson to provide an answer to query during their next face to face meeting. If the salesperson cannot answer the question, the customer sees no relationship. To have a relationship, the company need to be able to do business the way the customer wishes.
1.       Surviving the customer revolution
o   That being customer- centric means literally organizing around the customer
o   The complete definition of organization (its more than just structure)
o   The definition of customer-centric organization and its contract to a product centric organization
o   How your organization compares to a complete customer centric design
o   How customer centric your organization really is

2.       Customer Centricity
o   That different solution strategies require different levels of customer centric organization
o   The solution strategies very in their scale and scope and integration requirement
o   How do determine your solution strategy with strategy locator
o   How to use the strategy locator to position your company on the customer-centric continuum
o   Hoe to use lateral form or organization to align the power and authority of your organization with your solutions strategy

3.       Light Level Application
o   How to apply the strategy locator to the light version of customer centric strategy
o   How to use customer tern as the structural form for light strategy
o   How to implement the total organization design by using management process, measure, reward, and people practice to complement the strategy and structure
o   That the leadership is the key ingredient for putting all of the pieces together

4.       Medium Level Application
o   How to apply the strategy locator to a more complex customer strategy.
o   The more complex strategy requires more complex organizations
o   How to evolve the organization by building, capabilities and then moving to more complex forms
o   How to use customer account units to customize package for different customers.
o   How to use CRM systems in the customer – centric organization

5.       Complete level application
o   How to apply the strategy locator to the most complete solutions strategies
o   How IBM created an organization that can act as One Company”
o   The definition of the front back organization model, which combines a customer centric front end with product centric back end
o   The different between horizontal generic solution and vertical industry specific solutions
o   How a solution process like CRM are used to manage the complex interface that go with high scale and scope solutions.
o   About the Kind of Human resources practice that are needed to support customer-centric organization.
6.       Alternate High Level Solution Companies
o   About the companies in their industries that have
o   That there are variation in the front back structure. Samsung applies it to division: Procter & Gamble, Like IBM, Applies it to the whole company.
o   That a successful solutions strategy requires the selection of customer who desire solution
o   That doing business the way the customer wants to do business causes a complex front end of the structure and value for the customer
o   That Procter & Gamble evolved first in the United States and then moved globally
o   How to manage the change process itself
Conclusion
The effective solutions providers are those with strong leadership teams that confront and resolve the contentious issues. These conflict are channelled into three key management process for discussion, debate, and resolution. These process are the strategic reconciliation of product and customers plans, the product portfolio, and opportunity management process. These process are the forum for exercise of strong leadership.

Adopted book of Jay R. Galbraith (Author of Design Organization)




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