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AI and the Complex Sale

Ever try selling something that doesn’t exist? Well, I suppose most software developers do that on a regular basis, but something BIG that takes years to design, build and deliver? I’ve been doing that for decades. From selling advanced weapons systems to governments to closing multi-year global technology implementations. It’s really complicated, hence the term Complex Sale.

They’re basically fancy words for “it’s going to take forever, and there are too many people in the room who think they’re in charge.” You’ve got committees, stakeholders, decision-makers—it’s like trying to agree on a group vacation, but worse because it involves money, egos, and PowerPoint slides.

Now, throw AI into the mix. What would take tons of work and years of intelligence gathering and suddenly, you’ve got insights, data, and predictions coming out of your ears.

The integration of artificial intelligence (AI) into the complex sales process is revolutionizing how businesses approach high-stakes transactions. By combining the computational power of AI with human expertise, sales professionals can navigate intricate sales cycles more effectively and deliver tailored solutions to meet diverse stakeholder needs. This fusion of technology and strategy is reshaping the landscape of complex sales.

AI’s Role in Chaos Control

AI is brilliant at sifting through the nonsense. Got a dozen people with different opinions? AI can sort out who actually matters in the decision-making process—spoiler alert: it’s not Geoff from Procurement. It analyzes emails, tracks behaviors, and somehow knows which stakeholder’s approval is critical. It’s like Sherlock Holmes but without the creepy violin.

And when it comes to objections, AI’s all over it. It’ll tell you things like, “They’re worried about price,” or “They think your delivery timeline is about as reliable as a politician’s promise.” Handy, right?

AI streamlines stakeholder management. By analyzing communication patterns and engagement levels, AI systems identify key decision-makers, anticipate objections, and tailor messaging to resonate with individual stakeholders. This data-driven approach ensures that every interaction is purposeful and aligned with the client’s needs

Relationship Building: AI Does the Admin

Let’s not pretend AI can charm its way through a room like a stand-up comedian. That’s still your job. But it’ll handle the boring stuff sellers hate—follow-ups, scheduling, tracking who said what and when. It’s like having an assistant who doesn’t complain or take weeks off to find themselves. Meanwhile, you can focus on the big stuff: being nice to people, listening to their concerns, and trying not to look too desperate.

Strategy, But Make It Smart

Here’s where AI really shows off. Predictive analytics—sounds fancy, doesn’t it? But basically, it’s AI looking at a load of numbers and going, “Yeah, they’re going to buy,” or “Forget it, they’ve already chosen someone else.” It’s brutally honest, which is refreshing in sales. No fluff, just facts.

And when it comes to negotiation, AI’s your secret weapon. It’ll tell you what worked in past deals, what’s likely to win them over, and even suggest a discount if that’s what it takes to close the deal. It’s like having a ringer on the softball team who slugs it out of the park every game but won’t take the credit.

Keeping It Human

The successful integration of AI in complex sales requires a balance between technological capabilities and human judgment. AI is clever, but it’s not human. It doesn’t do empathy, it doesn’t crack jokes, and it definitely doesn’t understand why you’re still trying to make “fax” happen in 2025. That’s where you come in. You’re the one who builds the relationships, makes people laugh, and convinces them that you’re the best option without actually saying, “Please, please pick me.”

The successful integration of AI in complex sales requires a balance between technological capabilities and human judgment. While AI provides valuable insights and efficiencies, it is ultimately the sales professional who interprets these insights and builds meaningful connections with clients. Emotional intelligence, creativity, and adaptability remain irreplaceable skills in navigating the nuances of human interaction.

The Future Is Here (and It’s a Bit Smug)

AI isn’t going anywhere and thank goodness for that. It’s saving us time, making us look smarter than we are, and helping us close deals that would otherwise take months. Just remember it’s a tool, not a miracle worker. The magic still happens when you combine its brilliance with your charm, wit, and uncanny ability to survive endless meetings.

So, embrace AI, but don’t let it get too cocky. After all, it’s just a machine. You’re the one

Sales teams must also remain vigilant about the ethical use of AI. Transparency in data usage, respect for client privacy, and avoiding biases in AI algorithms are critical to keeping trust and credibility.

Good sales teams are a tough crowd, they stick to what’s worked for them in the past. Bringing new tools and tech into the world of complex sales can be challenging, but AI is a true optimization enabler, apologies for the consultingese.

In the age of AI, the art and science of complex sales are converging like never before. By using the strengths of both, businesses can achieve new heights of efficiency, effectiveness, and customer satisfaction.

January 14, 2025 Posted by | Uncategorized | , , , , | Leave a comment

Chief Digital Officer (CDO) The What’s and Who’s

Digital transformations don’t happen all by themselves. Over the past decade as digitization of the enterprise has taken hold a new C-Level role has been appearing, the Chief Digital Officer.

The term “Chief Digital Officer” (CDO) started gaining traction in the early 2010s. According to Gartner, a leading research and advisory company, the CDO role was predicted to become a “hot executive title” by 2012, and they forecasted that by 2015, 25% of organizations would have a CDO. As is often the case, adoption predictions take longer to materialize than is thought. According to research from PwC, about 21% of large public firms now have a CDO. A little short of the 25% number predicted for 2015 but still a significant presence in the board room.

CDO’s play a crucial role in modern organizations, spearheading digital transformation efforts essential for businesses to remain competitive in today’s fast-paced, technology-driven world. The importance of the CDO lies in their ability to integrate digital technologies into every aspect of a company’s operations, driving enhanced efficiency, improving customer experiences, and unlocking new revenue streams.

What does a CDO do? CDO Role and Value

Driving Digital Transformation: At the heart of the CDO’s role is the responsibility to drive digital transformation across the organization. This involves not just implementing innovative technologies, but also rethinking and redesigning business processes to use digital capabilities fully. This transformation is essential for companies to stay relevant in an increasingly digital economy, where traditional business models are continually being disrupted by innovative digital solutions.

Enhancing Customer Experience: The CDO is tasked with improving the customer journey by using digital tools to provide seamless, personalized experiences. In a world where customer expectations are at an all-time high, businesses must deliver consistent, high-quality interactions across all digital touchpoints. The CDO ensures that the organization is equipped to meet these expectations by integrating customer data, leveraging artificial intelligence, and employing user-friendly digital interfaces.

Optimizing Operations: Digital transformation is not just about customer-facing changes; it also involves refining internal operations. The CDO works to streamline workflows, reduce inefficiencies, and improve decision-making through data analytics and automation. This can lead to significant cost savings and enhanced productivity, providing the company with a competitive edge.

Fostering Innovation: A critical aspect of the CDO’s role is to foster a culture of innovation within the organization. This involves encouraging experimentation with modern technologies, supporting digital initiatives, and promoting a mindset of continuous improvement. By driving innovation, the CDO helps the organization to stay ahead of technological trends and respond quickly to market changes.

Ensuring Cybersecurity: As businesses become more digitally integrated, the risk of cyber threats increases. The CDO handles implementing robust cybersecurity measures to protect the organization’s data and digital assets. This includes ensuring compliance with data protection regulations and fostering a culture of security awareness among employees.

What does a CDO look like? Typical Profile

Technological Smarts: A successful CDO must have a deep understanding of various digital technologies, including cloud computing, artificial intelligence, data analytics, and cybersecurity. This technical knowledge allows them to find and implement the right digital solutions for the organization.

Strategic Vision: The CDO should have a strong strategic vision to drive the digital agenda. This involves understanding the broader business context and aligning digital initiatives with the company’s overall goals. The ability to think long-term and anticipate future technological trends is crucial.

Leadership Skills: Effective leadership skills are essential for a CDO, as they must inspire and motivate the organization to embrace digital change. This includes leading cross-functional teams, managing resistance to change, and fostering a collaborative environment.

Business Acumen: The CDO needs a solid grasp of business fundamentals to ensure that digital initiatives deliver tangible business value. This includes understanding key performance indicators, financial metrics, and market dynamics.

Change Management: Driving digital transformation often involves significant organizational change. The CDO must be adept at managing this change, including communicating the benefits of digital initiatives, training employees, and ensuring a smooth transition.

Final Thoughts

The role of the Chief Digital Officer is pivotal in navigating the complexities of the digital age. By driving digital transformation, enhancing customer experiences, optimizing operations, fostering innovation, and ensuring cybersecurity, the CDO helps organizations to thrive in an ever-evolving technological landscape. What I find interesting is that in collaborating with my clients over the past decade since the inception of the CDO title I’ve never run into that role in any of my clients. It’s most often a project specific role that fills that space working with the C-Suite versus being a member of it. I’m looking forward to seeing the continued expansion of the role in all organizations over the next few years.

November 13, 2024 Posted by | Uncategorized | , , , , | Leave a comment

Digital Transformation:Erecting the House

The Challenge

In my last installment I discussed building the foundation for Digital Transformation.  It’s time to erect that digital house on the strong foundation of business alignment that’s been poured and the clean-up of software debris completed. Adoption of new tools and processes always, and I mean always, represent the highest hurdles any enterprise must overcome to achieve digital transformation. Just a reminder that 38% of spend on these projects DO NOT mee their ROI objectives. So, 38 dollars or every 100 spent gets flushed into oblivion. In my experience that number is often higher but unrecorded.

Focus on Adoption

In my neighborhood a home built in the 1980’s has been undergoing a massive renovation, it’s been nearly 2 years since the whole process started. We were all very glad to see the changes, at first. To say that the neighbors are over-it is an understatement. Trucks everywhere blocking the street, a never-ending stream of contractors, noise and distraction have made all of us less than excited about the outcome, we just want it OVER! It’s the same phenomenon with digital transformation projects, employees see the value when the work begins but over time if the distraction of the change overshadows the intended outcome interest wanes and resistance builds. Consider that on any given day over 60% of employees are frustrated by new technology implementations. Successful digital transformation efforts understand this challenge and plan to reduce the risk.

Adoption Critical Success Factors

  • Modernize Processes
    • Redesign the business processes impacted by the change BEFORE implementing the digital tools. Never hope that the technology will change the processes by default.
    • Work closely with key influencers in the process areas impacted to understand the work and build confidence that the technology improvements with make their lives easier and more productive.
    • Memorialize the modernized processes on paper. Yes, on paper. Despite the notion that no one reads paper, employees want to see their new processes in front of them to understand, review and provide feedback.
  • Design a Unified User Experience
    • One password, one landing page, a unified experience that allows employees easy access to the new technology experience.  There is no bigger mistake than to add passwords and landing pages to the already overloaded technology stack.
    • Unified experiences that clearly mechanize the modernized processes give users the confidence needed to dive in and build competency. Forcing users to navigate new paths on top of old paths will make time to value increase significantly.
  • Engage, Engage, Engage
    • Introducing digitally transformed processes requires time and effort in engagement with the impacted employees. Build that time into the roll-out calendar. Shorting the initial adoption period is the biggest miss I see most often.
    • Ensure senior leadership and process influencer involvement early and often.
    • Focus on the WIIFMs (What’s In It For Me) value in every conversation. Users really don’t care much about the “bigger picture” value the digitization will produce; they focus on how it helps them do their job faster and easier. Unless everyone in the business owns stock in the company shareholder value is a poor WIIFM.
  • Measure Adoption Religiously
    • Observe usage regularly. Regularly depends on the process being performed some processes occur daily, others monthly or even less often, build a measurement scheme that takes these periods into account.
    • Digital observation is only one way to measure adoption, it’s often the least reliable method. Digital monitoring will only provide a signal that adoption is weak, physical observation and measurement offers stronger data to assist users in adoption.
  • Recognize Early Adopters
    • Positive reinforcement of early adoption through highlighting success stories builds momentum for the changes implemented.
    • Publicize stories about how customers are served more quickly and accurately than ever before or any other positive outcomes from early adopters.

Closing Thoughts

Digital transformation with embedded artificial intelligence is underway across the business community. Massive investment in digital technologies only produces the desired outcomes when these technologies become institutionalized as leading practice in your business. Be mindful of the positive steps you can take to reduce the risk of failure by planning carefully and executing flawlessly.

November 6, 2024 Posted by | Uncategorized | , , , , | Leave a comment

Digital Transformation: Real or Marketing Jargon?

Digital transformation—it sounds like the latest buzzword cooked up in a marketing lab, doesn’t it? But when you peel back the layers, you realize it’s far more substantive than flashy jargon. Let’s dig in.

A Little History

In my career I’ve been fortunate to grow and change at the pace of technology. In college I used a typewriter and carbon paper to author assignments and punch cards to program mainframes. So, I get the whole digital transformation thing deeply. But hasn’t it been going on since the mid-20th century? Understanding the contemporary version of digital transformation demands a look at history. The transition from analog to digital processes has been happening for decades. From the introduction of computers in the workplace to the rise of the internet, the shifts have been profound and continuous.

Take the Industrial Revolution, for instance. It was a period of tremendous change, with new machinery and technologies altering the way work was done. Similarly, the advent of computers in the mid-20th century marked the beginning of a new era. Businesses began to automate tasks that were previously manual, leading to increased efficiency and productivity.

Digital Transformation Evolution

The term “digital transformation” itself might feel new, but the concept is rooted in these historical shifts. Today, it refers to integrating digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. This transformation is driven by the rapid advancement of technology and ever-increasing customer expectations.

In the 1990s, the rise of the internet brought about the first wave of contemporary digital transformation. Companies began to create websites, explore e-commerce, and digitize some of their operations. Some of us have scars to show from these early experiments where the website was the only digital part. Orders or inquiries may have been posted to the website but behind the scenes it was “rip and read” where we would rip the paper from the printer and read the internet result then manually execute the rest of the process. The early 2000s saw the rise of social media and smartphones, further pushing businesses to adapt. The current wave of digital transformation goes beyond mere digitization—it’s about rethinking and reimagining how businesses function in a digitally-driven world.

Not Just Marketing Hype

So, is digital transformation just marketing language? The evidence suggests otherwise. True digital transformation involves significant changes to business processes, culture, and customer experiences. It’s not about slapping a digital interface on an old process; it’s about fundamentally rethinking how to use technology to drive growth and efficiency.

Real-World Impact

Consider companies like Netflix and Amazon. Netflix started as a DVD rental service but transformed itself into a streaming giant by embracing digital technologies. Amazon, once an online bookstore, now dominates e-commerce and cloud computing thanks to its relentless focus on innovation and technology.

In manufacturing, digital transformation is manifesting as the Industrial Internet of Things (IIoT), where machines communicate with each other to optimize production, and digital twins allow virtual simulations of supply chain automation. In healthcare, digital transformation means better patient engagement through electronic health records and telemedicine.

Final Thoughts

Digital transformation isn’t just a shiny new term invented by marketers. It’s a continuing evolution that requires businesses to integrate digital technologies at their core. It’s about embracing the future while learning from the past. While the term may be relatively new, the concept is deeply rooted in the historical progression of technological innovation. So next time you hear the phrase, know that it’s more than just a buzzword—it represents today’s challenges and the future of business.

Over the next few weeks, I’ll be sharing tips and tricks to aid in the identification and adoption of digital technologies that drive transformations efforts.

October 23, 2024 Posted by | Uncategorized | , , , , | Leave a comment

The Price is Right: Cracking the Code of Productivity

Leading a highly productive organization—that’s every executive’s dream, isn’t it? But here’s the catch: it’s like herding cats. I mean, have you ever tried to herd cats? Exactly.

In my line of work, productivity issues pop up like whack-a-mole. Weak leadership, lousy tools—you name it. Clients think tech can magically fix these bumps and potholes on the productivity road. Some even go all out on training programs, as if a few webinars will turn Bob from accounts into Steve Jobs. Spoiler alert: it won’t. Enter Price’s Law.

Understanding Price’s Law: The Square Root of Productivity

Price’s Law—the square root of productivity. Sounds fancy, right? Derek J. de Solla Price, who probably had too much time on his hands, came up with this in ’65. He basically said that if you have 100 employees, about 10 of them will do half the work. So, next time you’re in a meeting with 100 people, look around. Ten of them are actually doing something. The rest? Well, they’re probably forwarding memes.

This isn’t just office gossip. It’s everywhere! Academia, business, creative industries—yep, same story. It’s like we’re all part of one big, inefficient sitcom.

Then there’s the Pareto Principle—the 80/20 rule. It’s like Price’s Law’s less nerdy cousin. It says 80% of the effects come from 20% of the causes. Both say productivity is uneven, but Price’s Law is more like, “Hey, let me give you a precise math equation to show you just how much everyone else is slacking off.”

The Origins of Price’s Law

In the 60s, Price noticed that a few scientists were making most of the significant contributions. So, while everyone else was pretending to read their emails, these folks were doing all the actual work. Thus, Price’s Law was born and applied everywhere. Sales teams, coding departments, universities—you name it.

Organizational Structure Implications

Businesses can learn a thing or two from this. In a sales team of 100, about 10 people will close half the deals. The rest are probably just updating their LinkedIn profiles. Managers should identify their top performers and maybe, just maybe, reward them. Shocking idea, I know.

As companies grow, the number of genuinely productive people doesn’t keep pace. You end up with more dead weight, and things slow down. So, the key is to create an environment that keeps those top performers happy. Maybe don’t give them an open-plan office right next to the kitchen, yeah?

Real-world examples? Sure. In a research lab with 100 scientists, about 10 will come up with the groundbreaking stuff. The rest? Well, someone’s gotta make the coffee. In a tech company with 200 developers, about 14 will write the code that actually matters. The rest are probably arguing over tabs vs. spaces. In academia, out of 40 professors, around 6 will publish the papers that get all the citations. The rest are perfecting their PowerPoint animations.

Critics argue that Price’s Law simplifies complex human behavior. No kidding! But, even with its flaws, it’s a handy way to understand productivity.

Take Aways

Price’s Law offers a compelling perspective on productivity and performance within groups. By recognizing that a small number of individuals often drive a significant portion of the results, organizations can better allocate resources, identify top performers, and create environments that foster high performance. While it is not a one-size-fits-all solution, Price’s Law provides a valuable framework for understanding and refining productivity in various domains.

So, takeaway time: Price’s Law tells us that a small group often drives the bulk of the results. Spot these people, reward them, and don’t let the other ones drag the whole thing down. Easy, right? Well, it’s a start.

October 16, 2024 Posted by | Uncategorized | , , , | Leave a comment

The Age of the Itinerant Professional

White collar professional employees in the U.S. have become itinerant workers over the past 20 years. We would typically use this term in relation to seasonal workers like fruit pickers, construction workers or ski instructors, someone who travels from place to place to find work, typically for short periods. These workers seldom have a permanent residence and move frequently to follow job opportunities. Does this sound familiar? Can you relate?

In working with my clients, it’s not unusual to find high tenure employees on the cusp of retirement mixed with lower tenure staff. The higher the tenure the higher the competency in their role and more innovative response to business challenges.

A variety of factors have prompted the rise of these itinerants:

  1. Decreasing Median Tenure: Over the past two decades, the median tenure for white-collar workers has remained relatively low, around 4.1 years. Let’s break this down and estimate it takes about 9 months to get integrated into the new organization and around 6 months to find a new job which leaves real effective tenure at 2.5 years.
  2. Increased Job Mobility: The labor market has seen significant changes, with more opportunities and a higher rate of job switching. Economic conditions, such as the strong labor market in recent years, have encouraged employees to seek better opportunities, leading to shorter tenures.
  3. Changing Career Expectations: Modern professionals often prioritize career growth, skill development, and work-life balance over long-term loyalty to a single employer. This shift in career expectations has contributed to more frequent job changes as employees seek roles that better align with their personal and professional goals
  4. Impact of Technology and Remote Work: Advances in technology and the rise of remote work have made it easier for employees to transition between jobs and even industries. This flexibility has reduced the barriers to job mobility, allowing white-collar workers to explore new opportunities more readily.
  5. Economic and Industry Shifts: Economic downturns, such as the 2008 financial crisis and the COVID-19 pandemic, have led to layoffs and restructuring in many industries. These events have forced many professionals to change jobs more frequently, contributing to the perception of white-collar workers as itinerant.

This itinerant trend of white-collar professionals frequently changing jobs has several negative impacts:

  1. Career Development Challenges: Employees who frequently change jobs find it harder to develop deep expertise in a particular area. Research suggests that to reach mastery in a competency 20,000 hours are required. Average tenure of 4.1 years in a role is less than half those hours. This can impact their long-term career growth and advancement opportunities.
  2. Weak Job Security: Frequent job changes can lead to a sense of instability and insecurity among employees. This can be particularly stressful during economic downturns or periods of organizational change.
  3. Reduced Employee Loyalty: Companies may struggle to build a loyal workforce. High turnover rates can disrupt team cohesion and make it difficult to maintain a consistent corporate culture.
  4. Increased Recruitment and Training Costs: Organizations may face higher costs associated with recruiting and training new employees. This can also lead to a loss of institutional knowledge and expertise.
  5. Impact on Mental Health: Constantly adapting to new roles, environments, and expectations can lead to increased stress and burnout. The pressure to continuously prove oneself in new positions can be mentally taxing.
  6. Disruption of Work-Life Balance: Frequent job changes can disrupt personal lives, making it harder to establish a stable work-life balance. This can affect overall well-being and job satisfaction.

These downsides highlight the importance of finding a balance between job mobility and stability to ensure both employee well-being and organizational effectiveness.

It’s not easy to please the itinerant professional. However, there are a few tips to reduce job hopping and increase retention in your organization.

Table Stakes:

  1. Positive Work Environment: Foster a supportive workplace culture where employees feel valued and respected. This can enhance job satisfaction and loyalty.
  2. Competitive Pay and Perks: Ensure that salaries and benefits are competitive within the industry. This includes health benefits, retirement plans, and other perks that can make employees feel more secure and appreciated.
  3. Employee Engagement: Regularly seek feedback from employees and involve them in decision-making processes. Engaged employees are more likely to feel connected to the company and less likely to leave.

Big Bets:

  1. Hire the Right Fit: During the recruitment process, look for candidates who align with the company’s values and culture. Employees who feel a strong connection to the company’s mission are more likely to stay long-term.
  2. Invest in Employees: Invest in employees’ growth by offering training programs, workshops, and opportunities for career advancement. This helps employees feel that they are progressing in their careers and gaining valuable skills.
  3. Employee Retention Programs: Develop programs that recognize and reward long-term employees. This could include bonuses, additional vacation days, or other incentives for staying with the company.
  4. Promote Work-Life Balance: Promote policies that support a healthy work-life balance, such as flexible working hours, remote work options, and adequate paid time off. This can reduce burnout and increase job satisfaction.

Employees often move on when they feel underappreciated, bored by the work or unhappy with their direct leadership.

Take a moment and evaluate what it would take to keep you at a business for 7 years or more.

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

TOP 5 MOST IRRELEVANT BUSINESS METRICS

Metrics, metrics, metrics there are so many business metrics in the world today that most of them have little or no relevance. Sometimes I think business gurus stay awake at night concocting a new metric, so they have something new to talk about or sell to clients.

Making decisions based on numbers a.k.a. metrics the numbers need to be relevant, meaningful and actionable. Here are a my Top 5 most irrelevant numbers that businesses collect:

Number 5- Customer Satisfaction (CSAT)Scores: You would think that CSAT scores are the most valuable number any business can collect. They are highly subjective and bias laden. The results of these scores seldom reflect actual customer behavior but more a snapshot perception of a specific interaction with a product or service. Using CSAT or Net Promoter Scores (NPS) alone provides minimal insights into customer behavior or advocacy. Understanding customer needs, perceptions, and behaviors require a combination of hard metrics like customer retention and share of wallet, average order value (AOV), Customer Lifetime Value (CLV) along with softer metrics like CSAT, NPS, Customer Effort Score (CES) and the most valuable piece of data, unstructured feedback like product reviews, complaints and praises. A holistic approach to understanding customer behavior offers far more value than a single CSAT, CES or NPS number.

Number 4-Gross Revenue: Gross revenue is a totally meaningless number. Focusing on gross revenue without considering costs is highly misleading. Top line revenue without taking into account the costs required to achieve that revenue can lead to complete misunderstanding the health of the business. Insights into the business that are actionable financial metrics should include all costs associated with the gross revenue. Getting to the core of understanding business health requires metrics that reflect net values. Examples include net income and net profit margin that reflect both the incoming revenue stream and outgoing costs.

Number 3-Vanity Metrics: Vanity metrics are interesting but often totally irrelevant to business decisions. Vanity metrics include social media followers, page view or app downloads. While they might look impressive or depressing, depending on the numbers, they don’t necessarily connect with business success or profitability. Some would argue these vanity metrics have value for understanding the success of marketing efforts. I would argue that a more valuable and actionable metric is Return on Marketing Investment (ROMI). ROMI requires a bit of work to calculate because it focuses on the profits of incremental sales attributed to marketing activity like social media, page views, promotions and campaigns. It can be calculated uniquely for each marketing or advertising channel providing insights into the value creation of marketing activities in each channel.

Number 2-Customer Count: Focusing on the gross number of customers doesn’t tell you much about your business. It doesn’t reflect the value of those customers, their behaviors, retention or loyalty. There is no insight with this metric, it’s just a number. Insights leading to action comes form hard metrics that reflect the value of your customer base through understanding segmentation of that customer base, retention of customers, customer lifetime value (CLV) or in B2B scenarios average revenue per account (ARPA). In today’s business world customers move and shake like an 8.0 earthquake. Rely on the data beneath the customer count to make decisions that create value for the business and the customer.

Number 1 – Employee Hours Worked: Not many businesses use this metric but for those that still see value in knowing how many hours employees put on a timecard it’s time to wake up. Simply tracking hours worked doesn’t account for productivity, competency or efficiency. Unless your business relies on timesheets for billing customers to generate revenue hours worked is the top irrelevant metric in history. Focus on output and results to truly measure employee performance. Revenue per employee provides a read on the entire workforce. The more revenue per employee, the more productive is and the more likely its efficiently using resources.

Metrics drive insights that drive action. Use that valuable real estate on an executive dashboard for meaningful metrics that provide a snapshot of business health.

July 24, 2024 Posted by | Uncategorized | , , , , | Leave a comment

Self Service Off the Rails

Yesterday I spent 2 hours climbing in my attic, crawling under sinks and behind toilets in service to my insurance company. Seriously? Apparently to save money my outrageously expensive insurance company decided that I should conduct my own self-inspection using a really shitty app providing them access to the perils of my toilet connections.

This is a version of self-service that is off the rails, out of bounds and an affront to the value I get from any insurance company. By the way, in over 4 decades of paying tens of thousands of dollars for homeowners’ insurance I have never filed a single claim, not one. The reward, go ahead and spend your time doing our job.

If this sounds like a rant, it’s because I’m angry and disappointed in how far businesses have taken self-service. Apparently, today’s business just provides a “thing” whether it’s a product or service they take no responsibility for actually serving their customers. Your app not working, try finding a human to help. Car breaks down and need a tow, you better have signal coverage and the app installed. I think you get the drift here. This all started when we began pumping our own fuel at service stations and has gotten wildly out of control.

I take some responsibility for these practices as a customer experience expert advising clients on how to both be efficient and customer focused simultaneously. Self-service is a tool in the bag but shouldn’t be the only tool.

I’m quite sick of having to download an app for everything in my life. From coffee shops to banking to utilities the world has gone application crazy. Data is the true commodity that every business is selling today, the insatiable appetite for more data has destroyed customer service. The thirst for personalizing every offer through the endless number of apps. On average we have about 35-40 apps installed on our smartphones. That means we carry between 35 and 40 cards in our wallet to conduct daily life. Imagine the size of your wallet. But since these cards are virtual and have no physical footprint, we don’t care, it’s just another icon on a screen.

I hope my point is clear, if a business wants to differentiate itself in a wildly competitive market take a stand and care for your customers with real-time support for your product and service.  Self-service or Level Zero support is important for the mundane like password resets but don’t put customers into an endless loop of time wasting to access Level 1,2, and 3 support. Your customer’s time is just as valuable as your time, even more valuable as they pay your bills. Understand that one simple concept and you can differentiate.

July 17, 2024 Posted by | Uncategorized | , , , , | Leave a comment

Paranoia: The Foundation of Business Agility

North American Aircraft (NAA)produced around 42,000 aircraft during World War II that included the iconic P-51 Mustang and B-25 Mitchell bomber. employing over 90,000. At the conclusion of the war effort then company president James “Dutch” Kindelberger had a business problem.  What do we do now? The P-51 and B-25 lines were shut down. He put his executives to work to build a new, innovative business.  The results were astonishing with NAA developing the F-86 Sabre, the first military jet as well as other jet aircraft based off the Sabre technology.

I tell this story only to illustrate how quickly a business model can experience dramatic change overnight. I had the honor to work at NAA for several years following the end of the Cold War when a similar dramatic transition occurred. We would often raise Dutch as the model for embarking on a new, innovative era following the B-1 Lancer and Space Shuttle contracts expiration.

Are you prepared to adapt at a moment’s notice?  Do you have agility built into your business model and organization?  Can you adapt or will you die?

Business agility is crucial for organizations to respond to market changes and emerging opportunities quickly and effectively. Dutch Kindelberger was a leader that made change happen at NAA through his hands-on style and a strong focus on innovation and efficiency.

Here are the key components that make up business agility:

  1. Leadership: Agile leadership focuses on communication, collaboration, and commitment. Leaders develop others as leaders and work towards a shared purpose1.
  2. Governance: Effective governance ensures that decision-making processes are flexible and responsive to change. It involves setting clear guidelines and frameworks that allow for quick adaptation1.
  3. People: The workforce must be skilled, adaptable, and empowered to make decisions. Continuous learning and development are essential to maintain agility1.
  4. Culture: An agile culture promotes innovation, risk-taking, and a willingness to adapt. It encourages a mindset that embraces change and values continuous improvement1.
  5. Strategy: Agile strategies are dynamic and flexible, allowing organizations to pivot quickly in response to new opportunities or threats. This involves regular reassessment and adjustment of strategic goals1.

It’s easy to lay out the pieces required for business agility and the challenges to pull it off are numerous. Everything from our old friend resistance to change to the mechanics of having flexible processes.

In my experience, agile organizations are always in a state of change. Every planning cycle promotes investment in innovation. Andy Grove, the former president, and CEO of Intel, was famously known for the mantra, “only the paranoid survive.” Being paranoid isn’t a bad thing, it keeps us looking forward, not accepting the status quo as lasting forever.

A couple of tips to think about:

1. Always have an eye beyond the next 24 months. Look beyond the end of your desk calendar for possible disruptions and innovations.

2. Take succession planning seriously. Succession planning is not just for the most senior leaders in the business, it’s a process that should evaluate talent at all levels of the organization for either new opportunities or skill building.

3. Be honest and accountable. Be honest with yourself about the state of your business model and accountable for goal achievement. Don’t allow yourself to get comfortable or complacent.

4. Make changes in the business part of the business. Change is the only constant in life, make it part of doing business every day. Changes may be small but making it a norm in the culture will pay dividends.

Be paranoid…in a good way!  

July 10, 2024 Posted by | Uncategorized | , , , , | Leave a comment

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

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