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Customer Focused Change…Do it!

Nearly every survey done over the past 30-some-odd years asking about why large scale technology or process improvement projects fail indicates a weakness in change management. Hmmm..Isn’t that interesting. A recurring failure point. Why?  Why is managing change such a challenge?  In my mind and experience the answer is quite simple. A weak connection to the change’s impact on customers.

Every process improvement guru focuses on understanding customer wants, needs and perceptions before embarking on any business intervention. Improve efficiency, implement new technologies, bring a new product to market, change pricing and packaging, you name the change it should always be underpinned by driving customer retention and/or acquisition. Yet, when I walk into a client situation and ask a simple question about customer metrics the change will impact, I get blank stares. When I ask a Six Sigma Black Belt what the CTQ’s (Critical to Quality) are that made this effort important I get the same result, a thousand-mile stare. And we wonder why employees don’t adopt new practices or technology.

In my earliest interactions with any client the customer is always a topic. How will this change impact the customer’s wants, needs and perceptions? Will it make you easier to do business with? Will your employees be engaged with the change because they know how it will affect customer satisfaction?  Very few clients can answer these questions. Very few consultants working on the change can answer these questions. Hence, all the communication and training in the world won’t make adoption happen or the change stick.

CUSTOMER FOCUSED CHANGE: A PRIMER

DEFINITION: Customer-focused change is a strategic approach where businesses prioritize the needs and experiences of their customers in every aspect of their operations. This involves a shift from product-centric to customer-centric thinking, where the ultimate goal is to enhance customer satisfaction, loyalty, and advocacy.

Imagine!! Putting the folks that pay the bills at the center of the universe. What a strange concept.

A FEW TIPS

Here are some tips on exercising customer-focused change:

Understand Customer Needs: Understand clearly the wants, needs and perceptions of your customers.

Align with Customer Success: If you want a sticky change align your success with that of your customers, ensuring that all facets of the change prioritize the impact on customer wants, needs and perceptions. Don’t be fooled by thinking you know what the impact will be, know if well enough to measure against. 

One of my favorite stories is about a client I worked with to improve their ease of doing business by implementing a new ERP solution. On a customer visit we asked what would make their experience better with the client.  The answer was both hilarious and sad. “If we knew before the FedEx truck drove past the dock we weren’t getting our shipment today.” That’s big. We turned that story into a primary message for the change.  Making sure the investment in time and money wasn’t focused on just hitting a go-live date but on giving that customer and others transparency to their order status.

Prioritize Customer Feedback: Take all customer feedback seriously. Make decisions with that feedback in mind. One of my clients painted on the wall of their main conference room these words: “How will this impact our customers?” At every meeting about the change project the leadership team would point to that question when being asked to decide on a modification to the project.   

Operationalize Customer Empathy: Make it real! Implement practices that operationalize empathy towards customers. Add technology where appropriate to aid in understanding and meeting their needs more effectively. Change should not be just about reducing costs, which it often is, but about reducing operating costs while improving the customer experience.

Engage Employees: Link the change message internally to customer outcomes. Employees really do care about their customers, they want to know how this change will make customers more loyal to the brand and keep their jobs safe.

Exercising customer-focused change, may require businesses to adjust change strategies, processes, and even their organizational structure to ensure that customer needs are at the forefront of decision-making.

Put customers at the center of any change and watch the success rate of adoption increase dramatically.

June 20, 2024 Posted by | Uncategorized | , , , , | Leave a comment

Consultant or Contractor. What are you looking for?

Consultant or Contractor What are you looking for?

Every so often I delve into the business consultant versus contractor conversation. When I started in the consulting profession, we were pure consultants providing solutions to complex problems being addressed by our clients. Over time the role of the business consultant has evolved into more of a blend between consultant and contractor where clients’ expectations changed from independent trusted advisor to tactical executors.

Appreciating the roles of business consultants versus contractors is pivotal yet distinct. Understanding the nuanced differences between these two roles is essential for organizations seeking to optimize their operations and strategic initiatives.

Business Consultants: Trusted Advisors

Business consultants are akin to architects in the realm of strategy and problem-solving. They are typically engaged for their deep expertise and the ability to provide high-level insights into a company’s challenges and opportunities. Consultants are the analytical thinkers who diagnose problems and devise strategic plans to steer businesses toward success.

Consultants work with senior management to refine business models, enhance competitive advantage, and improve overall performance. Their role is advisory in nature; they suggest, guide, and advise. They are not usually involved in the day-to-day execution of business operations but rather focus on long-term strategic goals.

Contractors: The Tactical Executors Contractors

Contractors are the skilled builders who turn blueprints into reality. They are engaged to perform specific tasks or projects with a clear scope and a defined timeline. Contractors bring specialized skills to the table, which might not be present within the organization, such as IT development, marketing campaigns, or construction work.

Unlike consultants, contractors are hands-on, working on the ground to deliver tangible results. They are the doers who manage their workload, tools, and methods to complete the task at hand.

Key Differences

The primary difference between a business consultant and a contractor lies in their engagement with the client organization:

Scope of Work: Consultants are engaged for their advice and strategic expertise, while contractors are hired to perform specific operational tasks1.

Duration of Engagement: Consultants may work on a project basis or provide ongoing support, whereas contractors are usually hired for a set period or until a particular project is completed.

Level of Expertise: Consultants bring a broad understanding of industry trends and strategic insights, while contractors possess specialized skills pertinent to the job at hand.

Outcome Focus: The consultant’s success is measured by the quality of their advice and the impact of their strategic recommendations. In contrast, a contractor’s performance is evaluated based on the successful completion of the assigned task or project.

Blended Options

In essence, business consultants and contractors serve different but complementary functions within an organization. Consultants are the strategists who provide the roadmap for success, while contractors are the operational experts who execute the plan. Both roles are crucial for an organization’s growth and efficiency, and understanding their distinct differences enables businesses to make informed decisions about whom to engage for their specific needs.

But here’s the rub, clients tend to blend their expectations when engaging consultants. Subsequently, consulting firms have, in many cases, responded by diluting their mission. From a business perspective, this is a great decision. Long term execution engagements are predictably forecastable. 36-month system implementation projects can be staffed and forecasted easily versus the need based 12-week consulting project. It makes total sense that most consulting firms have fallen into the blended consultant/contractor mix. A small, elite group of classic problem-solving consultants mixed with an army of contractor skill sets to execute the solutions road mapped by the consultants.

Picking the Right Option

Be intentional when looking for independent problem-solving help.  If the need is to replace or just implement a technology solution look for the specialized contractor that best fits your needs. Understand that the contractor will implement to the scope the client provides. Issues will be addressed as they arise in the context of the technology being implemented.

If the need is to solve complex multi-layered problems look for the consulting support that can evaluate the situation independently, provide insights you may have missed then offer options for addressing the challenges and highlight opportunities for success.

By leveraging the unique strengths of both consultants and contractors, you can navigate complex business landscapes, implement effective strategies, and achieve your objectives with precision and expertise.

June 11, 2024 Posted by | Uncategorized | , , , | Leave a comment