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Putting customer experience at the heart of next-generation operating models | McKinsey & Company
“The other imperative for companies is to explicitly tie the reinvented customer experience to their operations. If they focus only on the front-end experience and don’t change the back-end operations that support it, the new experience is unlikely to be sustainable. Changes will be needed in both underlying processes and the way employees work.”
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More broadly, the effect of customer satisfaction on total return to shareholders (TRS) is dramatic.
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- Digitization: the process of using technology to automate and improve journeys directly.
- Advanced analytics: the autonomous processing of data using sophisticated tools to discover insights and make recommendations.
- Intelligent process automation: a suite of business-process improvements that combines process redesign with automation and machine learning to eliminate repetitive routine tasks.
- Business-process outsourcing: using resources outside the main business to complete specific tasks of functions.
- Lean: a systematic approach to streamlining processes, eliminating waste, and fostering a culture of continuous improvement.
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- Start with a clear understanding of what customers value and use it to decide where to focus (and what to deemphasize).
- Guided by these priorities, simplify and streamline your underlying product and services; if you don’t, you’re likely to digitize existing complexity.
- Link customer value to the operational drivers that underpin it, then design a new operating model based on these linkages, working back from the customer and using digital tools to streamline or automate your processes in line with what customers care about.
- Tackle the most important customer journeys one by one and support the effort with operational changes to improve efficiency and speed.
- Embed agile, cross-functional ways of working and reengineer your management system to support continuous improvement.
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Design thinking meets the HR operating model
“Why is this so important? The potential benefits of applying design thinking extend beyond customer satisfaction and engagement—business growth is also a reported outcome. Deloitte’s Global Human Capital Trends 2016 research revealed that companies growing by 10 percent or more per year are more than twice as likely to report they are ready to incorporate design thinking compared to their counterparts that are experiencing stagnant growth.”
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Understand HR’s customers and the problems they face. The foundation of this principle is the ability to empathize.
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Generate a variety of options and shape them into potential solutions. This principle involves imagining the widest possible range of options, rather than attempting to define and evaluate a single “best†idea.
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Test potential solutions with real customers and refine them with data and feedback. Testing in a real context while collecting both qualitative and quantitative data enable additional empathy with customers, more precise definitions of the problems, and continuous refinement of solutions.
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Reduce Turnover: Develop an Employee Experience Strategy – #WorkInspired
“So, what really helps organizations attract and retain the best talent is having an exceptional candidate and employee experience. At Kronos, they call this WorkInspired. Chief People Officer David Almeda calls it a mutual promise between employees and the company”
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Make it easy for job seekers to find and apply for jobs.
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Create a robust internship experience.
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Give candidates a realistic job preview.
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Develop a meaningful feedback process for the employee experience.
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Offer employees a competitive pay and benefits
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Create a productive office environmen
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Why the Millions We Spend on Employee Engagement Buy Us So Little
“Organizations are spending hundreds of millions of dollars on employee engagement programs, yet their scores on engagement surveys remain abysmally low. How is that possible? “
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A perk is introduced to boost scores, but over time the effect wears off and scores go back down. Another perk is introduced, and scores go back up — and then they fall again.
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When organizations make real gains, it’s because they’re thinking longer-term.
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I identified three environments that matter most to employees: cultural, technological, physical.
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just 6% were investing heavily in all three — and those “experiential organizations†(Adobe, Accenture, Facebook, Microsoft, and others) saw performance gains.
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When I interviewed business leaders at the top-scoring organizations, they told me their investments in the three employee experience environments had led not only to happier employees but also to larger talent pipelines and greater profitability and productivity.
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Compared with other companies, the experiential organizations had more than four times the average profit and more than two times the average revenue. They were also almost 25% smaller, which suggests higher levels of productivity and innovation.
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Adobe, for instance, has an EVP of customer and employee experience and is making considerable investments in real-time employee feedback programs, beefing up diversity and inclusion efforts, giving employees access to consumer-grade technologies, and building workspaces according to multiple floor plans to accommodate different styles and preferences.
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Airbnb treats its physical space like software: The company is constantly experimenting with different layouts and floor plans, and employees get to volunteer to design and build their conference rooms, with a modest budget
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