The BIG gap in managing customer experience

The BIG gap in managing customer experience

Managing customer experience is in vogue at the moment. This is particularly the case for competitive industries where there is little differentiation in terms of price points and services offered such as banking and utilities. Touting the company’s focus on ‘customer experience is the new mantra for a lot of companies.

Most financial services firms and telecom companies, amongst others, have been jumping on this bandwagon and have built various customer experience teams and centres of excellence. However, for large innovative US companies such Starbucks, Apple and Intel Customer Experience has been at the heart of how products and services have been designed for over 10 years.

What are the key challenges in driving customer experience management? Research by Harvard Business Review Analytics Services in 2014 showed that 51% of companies surveyed indicated one of their top challenges to be achieving a single view of the customer. In addition, 51% of companies surveyed also indicated that building new customer experiences is another key challenge. These two are not mutually exclusive as you may point out.

This conundrum strikes at the heart of the reality for large organisations – the ability to integrate different sources of customer data across different departments, channels and systems into a picture that can be easily understood and utilised. This is necessary to truly achieve a single view of the customer. It is then through a single view of the customer that companies may be able to change or build new customer experiences.

However, there is one very large gap in this equation. The key focus on driving customer experience improvements through data has been on CRM systems that capture various customer and marketing data. CRM systems have focused on providing effective marketing automation, salesforce automation and contact centre automation. Other than data companies have also invested heavily in digital and other self service channels. What about the other side of the equation? I.e. an integrated single picture of the initiatives that the company is driving to define/change the customer experience (intentionally or unintentionally)?

These initiatives include not only marketing and promotional campaigns, but also product changes, legislative change communications, pricing changes, IT changes, and even other companies initiatives that can indirectly impact customer service or the media. Most large organisations either have no way of creating this integrated picture or have disconnected spreadsheets that track segments of the overall initiatives.

What risks does this create for companies? By not having an integrated picture of how a company is impacting and shaping its customer experience it cannot truly manage that experience holistically. Banks often experience this. One department called for a credit card to be end of life whilst another called for increased sales to meet target. The bankers and customers became very confused as you can imagine. A 2013 Ernst & Young survey found that companies are losing $720 per negative customer experience. The same research also found that 40% of households have had a negative experience with a telecommunications company, whilst 25% have had a negative experience with a utilities company. There is a lot of money at stake here as you can see.

The solution is to piece together all company change initiatives that impact customers (directly, and indirectly through employees) with specific focus on change impacts. Single view of change impact data of what type of customer, when, to what level, with what change, etc. can be integrated with other sources of customer data (e.g. CRM system data and customer experience mapping info) to create a powerful picture of:

-What the company is planning to roll out to customers at a holistic and aggregate level, and how this is shaping the customer experience?

-How aligned or misaligned these customer change impacts are with the customer strategy?

-To what extent there are clashes amongst different change initiatives from different departments in conveying the targeted customer experience?

-To what extent there is too much or too little change in shaping the customer experience within the initiative pipeline, as aligned with the strategy?

-From these powerful integrated pictures of what is happening to the customer’s experience critical decisions may be made to best design the optimal experience?

7 ways to design an outstanding change journey

7 ways to design an outstanding change journey

Right now I am writing this article from a Four Seasons resort in Hawaii after having 3 flights cancelled in a row.  It has been quite a stressful experience as you can imagine and it’s the fourth day of delay.  I’m not able to get back home!  However, this started to get me thinking about the change experience for the employee or the customer.  As change drivers or leaders we tend to focus on how to design the change at a program level and it’s rare for us to really get down to the lowest level of people experience and how this is perceived at a humanistic level throughout the change process.

In the past I’ve used the airport analogy to describe the change journey and how we work to design each of the elements of the whole ecosystem, including pre-departure, transit, in-flight experience, runway preparation and post-landing experience.  To read more about each of these elements refer to this article on Landing multiple changes in a complex environment.

Now let’s take a look at my recent bad flight experience and you will see that this easily translates to a typical change experience for those impacted.  My first flight was cancelled, and after several hours all passengers were feeling frustrated, wondering what was really going on, and when or if the flight will take off.  The announcement did not provide any substantive information and so as a result each passenger had to queue up to ask for further information.  This is similar to a restructuring announcement or other major changes whereby there is a generic corporate email sent to all impacted, however the information is so generic that employees will need to resort to their managers (or rumours) to get further information that will meet their individual needs.

For the managers, they often don’t receive the right information or it is insufficiently tailored so that they are not able to translate the organisational level impact to how their specific department or team will be impacted.  This could be due to lack of information or skill set in translating the impact for their teams.  To this end, we need to ensure we engage with those managers to ensure that their questions are answered and that they’re able to field employe questions, versus having no information.

Part of a good change experience is in anticipating any reactions, feelings and designing an effective process that tackles these head on. To do this, use a human-centred design approach of observation, interviewing, analysing precious incidents and basically adopt a human-centred mindset to pick out key experience insights that need to be addressed.  To read more about the human-centred design process please click here.

So what can we learn from the bad pre-departure experience when applied to change?

1.      Provide managers and leader with sufficient information so that they are able to engage with and consult with their impacted employees to ensure that their needs are met

2.     Conduct a detailed analysis from an end-user perspective to pre-determine potential humanistic needs and reactions and address these head-on.  For example, What types of information are needed?  What are potential employee questions?  How do we provide them with effective engagement prior to them asking for it?

3.     Proactive engagement to manage potentially negative feelings.  Being on the receiving end of a flight cancellation or change initiative is often frustrating and stressful.  How do we anticipate these experiences to redesign it into a more positive one?  For example, are there certain employee groups we can garner to be change champions to provide additional people support?  What artefacts can we provide to shape these experiences?  Visually-catching cheat sheets, posters, branded sweets, morning-tea, etc.

4.     Involve all layers of management so that they are well-equipped to support the change and are clear with their role in the process.  Are we simply asking them to be on-hand to answer questions?  Or do we expect certain layers of management to be change coaches to guide first-line managers on how to lead change.  What are we asking our Human Resources colleagues to be doing?  Or our Risk partners or Finance partners?  Be explicit about what specific behaviours and outcomes we are asking for.

5.     Empathy.  When people are frustrated, feeling vulnerable or stressed, the most important thing to do to address their feelings is to acknowledge and address these feelings by showing empathy. After all we are dealing with people’s emotions.  Emotions are not logical and therefore data and facts usually do not create empathy.  Empathy is between two individuals.  One person showing another person that their feelings are valid, acknowledged and supported.  Empathy is best demonstrated through verbal or nonverbal behaviours rather than through emails and online information.  This is about a leader or another colleague showing genuine acknowledgement that a fellow colleague feels a certain way, without providing any judgment or even advice.  During one of the days when the flight was cancelled, a staff walked around and chatted to everyone in the queue to just listen to them and acknowledge their frustrations – this did more good than anything else the airline did.

6.     Create an element of surprise in designing the change process.  Most corporate change processes are similar in that they follow a set way of engaging with employees according to the corporate norm of what has worked in the past.  However, there are some organizations that keep follow norms and do not create a good change experience and keep repeating the same mistakes.  I’m sure we have all experience this J.  For example, it could a senior leader walking the floor to connect with impacted employees during the change process, or corporate artefacts that were not anticipated and could be perceived in a positive light.

7.     Appealing to the senses.  A lot of people remember sensory information more than data or facts.  How do we leverage this to create the overall experience?  Retail stores often dispense aromatherapy scents to create and environment or calm or excitement depending on the desired experience.  Visual information is also important to create the right imagery so that employees can visualise the light at the end of the tunnel and be inspired to go through the tunnel.  One can design visual images that help employee remember themes, or analogies that are easily understood and visualised (and therefore easily memorised).

My experience with The Four Seasons hotel from when I entered the hotel through to using its various amenities is that there is significant care and detailed anticipation of user needs.  From personal interactions with staff that show care and rapport, through to facilities that are carefully designed to incorporate guest needs.  For me the surprise element was the room iPad greeting me with my name and giving me a run down of the weather, things to do and other location and hotel references.  The challenge for us as change leaders is to learn from this and think through how we design great change experience that are out of the ordinary and far from the typical ho-hum corporate approaches in initiative roll out.

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How the sea inspires a different way of managing change

How the sea inspires a different way of managing change

How the sea inspires a different way of managing change

In taking my vacations in Hawaii I thought I would start a series of Change Management articles inspired by my trip to Hawaii. For those who have not been to Hawaii or have only stayed around Waikiki, the Islands of Hawaii is quite astoundingly beautiful.  There is something magical about Hawaii that inspires the mind and soothes the soul. It’s welcoming people, amazingly jagged mountains, fantastic beaches, and sensational food is enough to bewitch any visitor.

As change or project managers we usually plan our approach in managing change from a top down perspective.  We look at what senior executives would like employees to change, how much change is required, what benefits would be achieved through change, and which parts of the organization would need to change.

There is the usual focus that change leadership is critical and that without strong senior sponsorship that the initiative will fail.  The senior leader is expected to have all the answers, to know exactly how to steer the employees towards an end state and be able to convince them the ‘what’ and the ‘why’ of the change.  On top of this, if there is any resistance, the leader needs to identify these and overcome them in order to successfully drive the change successfully.

This all sounds like the standard recipe for change success does it not?  So what is wrong with this?

Hawaii and leading change

When I was snorkelling in the North Shore of Oahu Island I was amazed at how much tropical fish I could see literally just metres from the beach.  In fact, as soon as I had put my head down I could see the various sizes of amazing tropical fish.  And the farther I go the more I notice at the abundance and variety of fish and coral around me.

When we surround ourselves purely with the top down approach of change, we start to develop a fixed mindset of how change should be done.  Most of change literature resolves around adopting a top down approach.  However, when we start to adopt a user mindset, an employee lense of change, we start to see things very differently.

The diversity of the ocean and the diversity of employees

Similar to the fish in the sea, there isn’t one type of employee.  There are many types of employees with varying interests, backgrounds and preferences. It is easy for us to interview employees through conducting surveys and declare that we are intimate with employee concerns.  However, in most situations there isn’t just one set of employee beliefs and concerns. Different employees have different concerns, just like in the ocean there is star fish, tetra, gold fish, carp, etc.

Whilst we cannot cater for every type of individual employee concerns and interests, it is also important to be able to see through impacted employees and what they are seeing.  I became amazed at the wonderful world under the sea and how colourful and stunning it really is.  If we really start to see through the different groups of employees, sense what they are sensing, we can really harness their power to drive change.

How do we leverage different employee groups in driving change

For example:

  • For employees who are change champions and early adopters – How do we harness their influence and positivity to quickly spread the word, and advocate for the change?
  • For those who have had bad change experiences in the past and are cynical and critical – How do we involve them closely to design the change process, so as to avoid any past mistakes and leverage to enhance success?
  • For those who were agnostic and did not either support or resist the change – How do we give them accountabilities to progress and promote the change
  • For those who strongly resist the change and actively counter against the change – How do we listen to them and address this head on.  And leverage the influence of other employee groups such as the change champions?
  • For those who tend to be overly cautious and do not feel confident when there is change – How do we actively identify them and spend more time to nurture their confidence, or leverage change champions to hand-hold them?

Dipping below the surface of what various senior stakeholder groups are looking for in change, we start to see a different picture of what employees see.  Let’s open our eyes to the various colours, shapes, and sizes of the attitudes, preferences and feedback of employees.  When we start to see the diversity of different types of employees and where they are at, we can then leverage them to better drive and position the change for success.

Disco, diversity and managing change

Disco, diversity and managing change

I recently went to a concert to see some of the super soul bands of the 70s and 80s including The Jacksons, Sister Sledge, The Village People and Pointer Sisters. In addition to funk and soul there was a big component of disco music as well. I started becoming more interested about the history of disco music and how it came about. According to Wikipedia, disco music emerged from the late 60s and 70s and started as a mixture of music from venues popular with African Americans, Hispanic and Latino Americans, Italian Americans and the LGBT. “Disco can be seen as a reaction to both the dominance of rock music and the stigmatisation of dance music by the counterculture during this period”.

This led me to think more about dominance of one idealism or concept over others and how limiting it is to only be able to operate with one concept, whether it be dancing or a way of working. I often hear in organizations that we should aim for ‘one-way, same-way’ to simplify things for people. Do we really think that one way of approaching something is the best for developing that particular capability? And do we really believe that people can only ever handle one way of doing something? Yes, in the beginning, taking a step-by-step process and not introduce multiple concepts may make sense. But in the longer term would we not benefit from different concepts, different methodologies and different ways of working? (I.e. more diversity vs. no diversity).

Most large organizations are focused on ‘diversity’ within the organization. Diversity can be in the form of gender, sexual orientation, cultural background, age, etc. Having diversity in the organization is premised to provide a richer set of perspectives and points of view and therefore an important part of building talent. Diversity is also critical from a PR and public perception perspective as it paints an image of the type of organization and the types of people in it. For example, a company with low percentage of women in senior leadership roles or management roles could be seen as one where women may have equal opportunities. The same can also be said for other diversity areas such as age, sexual orientation and ethnic background.

Why do we need diversity in change management?

Change management, like other disciplines, such as IT management, or HR, or Project Management is an area that cannot be fully covered with one singular framework or perspective. Just as there are countless frameworks, concepts and methodologies in HR so is the case in change management. Models include Kubler-Ross, Lewin, ADKAR, Bridges, Kotter, etc. Different models may suit different types of changes. Please read our article ‘Diagnosing for change‘ on how different change management models may be better for certain types of changes.

By using just one singular model we could be restricting our organization’s change management capability. At university we study different theories and concepts with the goal that by understanding different approaches, we start to build our understanding of the whole discipline. This allows us to pick and chose one or a combination of different approaches based on the situation. The same applies to change management. It is by understanding different change management approaches that we start to be able to tailor our approaches given any change situation.

For leaders across an organization many would argue that it is best to provide only one framework or concept for all of change management. If it is really the case that all leaders have never been exposed to any change management frameworks at all (which is unlikely to be the case for large organizations) then starting with one framework may be a good idea.

However, business leader may need to understand:

  • leading people from an engagement and emotional connection perspective
  • How initiatives are implemented and their role in it to make it a success
  • How to coach others through the change process
  • How to track, measure, analyse and report on change and embedment progress
  • The art of how to communicate in a verbal and written way using the right words and tone

All of these could have different concepts and frameworks to provide the richness of building understanding and skills. Yes it is possible to simplify different frameworks and connect them. However, as leaders continue to grow, they will need to be exposed to different concepts and approaches. In the past, projects used a waterfall methodology where tasks were planned in detail and there was little room for plan changes. Now most organizations utilise some form of agile methodology for many of their projects. For some projects waterfall methodology may be more appropriate and for others agile. Having the diversity helps organizations achieve more successful initiative outcomes.

How do we achieve diversity in change management?

Here are some areas in which to build diversity of thinking and approaches to enrich your organization’s change management capability.

  1. Change management frameworks

As mentioned before, having several change management frameworks build a richness of understanding of different approaches

  1. Change analytics

Collecting a range of change management data is incredibly valuable. Data on the impact of change across the organization enables leaders to make effective planning, sequencing and prioritisation decisions on how initiatives should be rolled out. This includes impacts to stakeholder groups such as employees, third parties, partners and customers.  Other data such as change readiness levels for initiatives, initiative benefits and business performance indicators are critical to ensure initiatives will land effectively.

  1. Change leadership

Managing change is a part of leadership. Therefore, just as there is a big range of leadership frameworks so is the case in change leadership. For example, Daniel Goleman’s emotional intelligence, Situational Leadership, Kotter, etc.

  1. Change service offering

Providing a rich set of change services can also help build change capability. Change services may include such as:

  • Initiative change management
  • Portfolio change management
  • Change leadership capability development
  • Change analytics and decision making support
  • Change coaching for leaders
  • Business-as-usual initiative coaching/support
  • Change communications support
  1. Project delivery methodology

Change management should also be geared to support a range of project methodologies that the organization is using to implement its projects. The richness of being able to flex between different project methodologies mean greater value and overall Organizational capability in managing change. Different project methodologies could include:

  • Agile – Scrum
  • Agile – Kanban
  • Lean
  • Waterfall
  • Prince2
Designing quality change experiences

Designing quality change experiences

Successfully achieving business outcomes through change requires good people change experiences.  A good employee change experience means that he/she is more likely to be engaged and more able to deliver a great customer experience.

How does one go about designing and crafting this experience?  To achieve accolades in people experience one needs to think broadly about a range of experiences.  This could involve anything ranging from manager discussions, online discussions, avenues for peer conversations, senior leadership behavior and supporting collateral.

Designing a great change experience for employees working in an organization is no different than designing a great quality of life for dwellers living in a particular city.  A city needs to focus on having a vibrant economy, happening retail scene, good access to parks and nature, great transportation links, and developed sports and arts scenes.  All of these contribute to the quality of life of those who call the city home. In a similar way, in organizations we need to focus on designing a range of experiences so that employees are not only engaged but supportive where the organization would like to move to.

There are foundational ways of engaging with employees during change that apply for all organizations, such as manager-employee conversations, authenticity, and clarity of the message, and involvement in the change process.  On the other hand, progressive ways to engage with employees using technology can also contribute to making a great change experience.

Here we outline 7 ways to design great employee experiences.

  1. A dynamic change champion network supporting various change initiatives.

A well-organized change champion network provides great development opportunities for employees to get involved in change initiatives. This is a forum for grass-roots action to drive organizational change.  Employees come to share their ideas, work on preparing their respective teams for change, and help disseminate critical information.  Change champions are preachers who internalize the accountability to sell to their colleagues the end state of where the change is going.  They also see it their role to provide feedback from the frontline so that upper levels understand their concerns and input.  Change champions that support the business across a range of changes can mean that they have the ability to mature and grow in capability over time.

  1. Active social network channels to discuss, share and support one another during change.

Active social network channels such as Yammer is a great way to engage employees and encourage idea sharing.  Like any social network channel it needs to be monitored, however the benefits greatly outweigh any disadvantages.  Those who may not have the time to attend town halls or too shy to speak up can leverage digital channels to be heard.  There are some great examples of employees leveraging social network channels to come up with suggestions of how best to address customer needs, creating a hotbed of ideas for continuous improvement.  Employees can also share their experiences in using the new system and raise any questions they may need help with.

  1. Effective learning processes

Progressive organizations are realizing that effective learning outcomes can be achieved by providing different options for employees to learn in their own terms.  In standard face to face learning settings, there is always some employees who breeze through the content and do not require a lot of time to digest the learning. At the same time, there are always those who need a lot more clarification, support, and hands-on experience to feel confident.  Self-paced online learning is a good option to cater for varying speed of learning. Change champions can also be leveraged to provide any face to face support.  Sand-pits (or training environment) may also be made available so that employees may get their hands dirty and play with the new system, process or way of working prior to the release of the change.

  1. Effective air-traffic control of changes to manage change capacity

A great change experience requires careful planning and coordination.  Most employees experience multiple changes at any given time.  Careful thought needs to be given to how the organization coordinates the ‘air-traffic’ of change initiatives so that we don’t have multiple things landing at the same time.  There needs to be one-view of change impacts so that employee experiences may be carefully designed.  This involves having the right forum and routines to review the change impact data so that effective sequencing decisions can be made.  To read more about how to do this and how to manage multiple initiatives click here.

  1. Engaging manager behaviours throughout the change process

Manager behavior is probably the most critical part of an effective change experience.  A manager who is open, authentic and engages in open conversations with the employee about change has significant influence in the employee’s change experience.  We all know managers who are absent, who don’t have one-on-ones with the employee, not share information, and who do not gage for feedback or concerns regarding the change.  These managers contribute to a significantly negative experience for the employee.   Senior managers have a strong role to play as do formal sponsors of the change.  They are tasked with selling the change and ramping up support and momentum within the organization to transition to the new state.

  1. Engaging and interesting collateral about the change

Change marketing is a key success criterion for creating engaging employees experiences about the change.  To support the marketing process effective collateral needs to be designed to send the right messages to the right channels.  Visual imagery, quotes, infographic, and slogans through engaging mediums such as videos and posters can go a long way.  With so much information clouding the employee on a daily basis, the collateral needs to stand out.  The collateral needs to aim to simplify the message and clearly articulates what the employee needs to know, whether it is the ‘why’ of the change, or what the employee needs to do.

  1. Positive and fun events to generate buzz and excitement

In the corporate world, there is the standard show-case or meeting to talk about what the change is and demonstrate what the new changes are. After a while, these can become ho-hum and do not contribute to a positive and energetic employee experience. Think fun, loud and even un-conventional ways of designing events to generate buzz.  Examples could be costume characters aligned with the change theme, theme dress days, fun competitions or morning/afternoon tea events.


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