Find out if your organization has transformed into a Customer and Market-Driven one or how far or near it is.
In our last article, we discussed the importance of becoming a customer and market-driven organization. But how does such an organization look like?
1. Flattened hierarchies: Getting everyone closer to the customer involves reducing bureaucracy, which means the number of bureaucratic layers. It also involves practicing an upside-down perspective that put the customer at the top. The customer comes first, everyone serves the customers, and all activities are performed having the customer at the top of mind.
2. Risk-taking: Customer’s demands tend to be unpredictable. Responsiveness requires agility and willingness to change quickly, which involves uncertainty and risk. Of course, mistakes will be made, but what is important is to learn from them. If you are going to make a mistake, do it quickly! To learn quickly! Employees should be encouraged to act on their own best judgments.
3. Communication: During the transformation, the main task of leaders is the clear, consistent, and unambiguous transmission of their vision to others. Leaders should also realize that their behavior carries tremendous symbolic meaning. This can contribute to the failure of convincing employees; a single action that is inconsistent with the stated message is enough to destroy all credibility. On the bright side, actions that clearly show a commitment to the vision help to spread the word that “They are serious this time!”. Leaders should seek out stories that capture the essence of the new organization and repeat these stories often. For example, a very known story is the one at Nordstrom. Nordstrom employees, all have heard the story of the sales clerk who allowed the customer to return a tire (Nordstrom doesn’t sell tires!). This story captures the essence of Nordstrom’s “rule book” which states:
Rule #1: Use your own best judgment
Rule #2: There are no other rules
What is the “rule book” of your company? As a leader, how had you reacted to the decision of the sales clerk? As a front-line employee, do you feel empowered to use your best judgment to make decisions that impact customers?
Be aware of the different aspects that must be transformed in order to become a Customer and Market-Driven company:
a. Product and service planning
b. Measures of performance
c. Attitudes toward customers
d. Quality of products and services
e. Marketing focus
f. Process management approach
g. Product and service attitude
h. People orientation
i. The basis for decision-making
j. Improvement strategy
k. Mode of operation
Where is your company on this journey?
We’re here to help. Find out if your organization has transformed into a Customer and Market-Driven one or how far or near it is.
