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How to make change management happen in the most effective way

Many things can put your business at risk, including changes to your organisation, people or technology. The current pandemic has put many businesses under unprecedented pressure, and some even teetering on the brink of survival. Crises like this quickly turn change...

Future-ready part 2: Diversity – an essential ingredient for a future-ready organisation

In his seminal 1937 essay, “The nature of the firm,” the economist and eventual Nobel laureate Ronald Coase argued that corporations exist to avoid the transaction costs of the free market. Yet with transaction costs plummeting (spurred by rising connectivity)...

Future-ready part 1: What does a future-ready business look like in the new normal?

The pressure to change had been building for years. Well before the COVID-19 pandemic, senior executives routinely worried that their organisations were too slow, too siloed, too bogged down in complicated matrix structures, too bureaucratic. What many leaders feared,...

Organisation Design: Restructuring or Reshuffling to enable Strategy

Customer expectations are not just changing; they are exceeding the ability of a business to deliver on time. They are looking for alternatives, with more emphasis on experience and convenience. To keep up, companies are evolving their offering to meet the...

How to fill the gap between Strategy and Execution

Organisations are great at setting their strategy and identifying their goals, but they fall short when it comes to their operating model review and redesign, the key component that enables the strategy and drives the achievement of goals. Operating models consist of...

Culture PART 2: The role of leaders in a culture shift

In the previous article in this series we examined the effect of COVID-19 on an organisation’s culture. Now, we turn the focus onto the role of leadership and technology in leveraging culture. When an organisation decides to change its culture – be it planned or...

Culture PART 1: Did COVID-19 signal the end for hierarchical organisations?

According to the Organisation for Economic Co-operation and Development, human capital is defined as: “the knowledge, skills, competencies and other attributes embodied in individuals or groups of individuals acquired during their life and used to produce goods,...

Meet MAC’s Executives: Karina Jardim, Senior Executive

“Exceptionally talented consultant” “An absolute pleasure to work with” “Driven by a desire to see people grow” If you know Karina Jardim, you know that these phrases used to describe Karina ring undoubtedly true. She is a name that is valued to every MACer, whether...

Thriving in the Age of Digital Adoption: Embracing the Workforce Ecosystem (part 2)

In the first part of this series, we looked at how the fears of technological innovation are resulting in an unproductive resistance toward modernisation, even as it gains extraordinary pace in 2021. We also delved into the importance of a growth mindset in allowing...

Thriving in the Age of Digital Adoption: Overcoming the Fear of AI (part 1)

“What if artificial intelligence takes over my job? What if I become redundant?” Every one of us has experienced technology encroaching on our lives, more and more so with each year that passes. It appears that technological innovation is a certainty that is only...



Mac Consulting

What is Customer Value and why is it important?

WHAT IS CUSTOMER VALUE AND WHY IS IT IMPORTANT?

Customer Value is the key differentiator in business today. Most organisations get caught up in the digital transformation, but it does not eliminate the fact that customers want personalised treatment or want to feel cared for.

Customer Value is a science. In order to grasp this science, the direction of the organisation needs to be understood. Here are some questions that must be answered in regard to direction setting:

  • What kind of service is the customer experiencing?
  • What obstacles are in the way of the customers?
  • Why do we want to change our current service experience to a new way?
  • Are service providers “on board” with the decision?
  • Is there “buy in” from the team?

The biggest risk of the above approach is that we must navigate through untested or uncertain territory. Many leaders stick with past knowledge and experiences as they are familiar to them and leave Customer Value on the table.

This uncertain territory becomes even more complicated in “service industries” as opposed to manufacturing industries where deviation from the standard is very clearly seen – like when a red door is fitted onto a blue car. In service industries we only know about bad customer experience when it has already happened and by then it is too late! So, how do we make the Customer Value visible?

Making the process visual is critical for the Customer Value to be understood by the entire team instantaneously. This way we can easily identify customers who had a bad experience and act accordingly before the entire experience or relationship is damaged. This visual process is key in leading this transformation.

Centering on Customer Value helps shape leaders to change from a “command-and-control environment” to a “mentoring-coaching environment”. What is ultimately accomplished here is:

  • Mindsets of staff start to change by coaching through experimentation.
  • Leaders grow by continuously coaching and developing their teams.
  • Business expands by listening and responding to the customers, hereby delivering on Customer Value.

With the right leadership and strategy, Customer Value is aligned to the target operating model, hereby delivering the value that is expected.

At the end of the day, the most important elements of customer experience should be achieved. Test these by asking “has the customer received value from the organisation?” “Have the customer needs been met in the manner that they expected it?” And ultimately, “will this make the customer loyal to the brand?” If not, continue with the process.

Written by Clive Jainarain

Connect with MAC Consulting to enhance your Customer Value.

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