Unleash Your Customer-Driven Operating Model

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14.09.22
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“Changing from within has enabled us to accelerate outcomes and operate at the speed of a startup. I have seen levels of collaboration between teams, that I’ve never seen before. We want to see this way of working continue.” — Chief Digital Officer

We all want to design products and services that rapidly react to customer needs. This leads us to the idea of the ‘Target’ Operating Model, or TOM, which is simply a way to refer to the desired state. A TOM is a way to describe how the business (or part of it) should operate to best deliver on its strategy and objectives. It often comes with a roadmap that describes the steps to change from the “AS-IS” operating model to the TOM over time.

So far so good ….. ? Not really.

How do we know that a service, or a process change, is going to be successful? Different people, different places, and different experiences- it’s impossible to anticipate all of the obstacles and how to overcome them to make them successful.

We’ve seen a common pattern emerging from our networks where companies are challenged when executing their growth strategies.

Upfront design, Top Down Operating Model Design DOESN’T WORK.

Change involving people and dynamic customer needs is complex, unpredictable and difficult to manage

So, creating a growth strategy for an unpredictable world needs to be emergent, adaptive and relevant. This is why switching to an outcome-based culture of experimentation can lead a faster time to deliver value.

Netflix set out to build a product that optimises customer lifetime value (CLV), but they realised that they can’t wait for 29 months to see whether someone takes more or less time to churn as a result of an experiment.

Ultimately, Netflix turned to data science to predict user CLV based on short-term changes in behaviour by building habits of experimentation to make better decisions and improve customer experience quickly using a number of experimentation habits;

  • Experimentation culture starts from the top, the first habit is the necessity of leaders to ask about experiment results. This shows that ideas are valued, giving the team confidence
  • Teams can “protect” their ideas by framing them as experiments. This changes the conversation from risk and investment to testing and data
  • The third habit is that leaders should always celebrate wins and losses; while wins have a positive effect on customers, losses allow for teams to re-evaluate, re-test, and find a solution

So it’s clear that a significant change to approach is required!

The S&S SPEED TO VALUE ACCELERATOR BRIDGES THE GAP BETWEEN INVESTMENT AND VALUE REALISATION.

Transforming Customer Experience Through The Glass Tube 🧪

In essence, The Glass Tube is designed to move you from your current state to a new ‘Ways of Working’ (WoW) blueprint which is right for your business context. When we place clients into The Glass Tube, it’s with the single objective to deliver a high-value outcome within 90-days.

We are currently working this way with several clients in both the public and private sectors, making breakthroughs in short periods that would have otherwise taken them months.

The Results so Far

  • Scaled-up major technology platform in key sites within the North East
  • Customer fulfilment times were reduced from 43 days to 1.5 days
  • CSAT scores increased by 40%
  • New Ways of Working (WoW) Blueprint was used to scale out
  • Created a sought-after organisation to work in, and work with

Longer Term Benefits

  • Able to onboard ‘000s new customers faster
  • 30% increase in Employee Engagement

ALL ACHIEVED IN JUST 90 DAYS!

 

 

The Bottom Line

  • Value can be delivered at speed. It’s now an imperative
  • The Operating Model is best changed from the inside out using empowered, mission-based teams

If you need help establishing your own mission-oriented team, get in touch…

shenton
Written by Richard Shenton
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