Change Management Best Practices & World-Class Change Deployment Methodology

 

slide1

Best Practice Change Management Framework

 

Any change initiative should employ a proven & world-class change management implementation framework

slide2

Best Practice Change Management Project Approach & Plan – Define Goals, Obtain Buy-In

Change Management Methodology: Any change initiative should employ a proven & world-class change management implementation framework. Best Practice Steps to Define Change Goals and Obtain Buy-In for the Change

slide4

Best Practice Change Management Project Approach & Plan – Design Change Approach

Change Management Methodology: Best Practice Steps to Designing a Solid Change Approach

slide5

Best Practice Change Management Project Approach & Plan – Develop and Deploy Change

Change Management Methodology: Best Practice Steps to Developing and Deploying Change

slide6

Best Practice Change Management Project Approach & Plan – Deliver Change Results

Change Management Methodology: Best Practice Steps to Delivering Change Results

slide3

Management’s Crucial Role In Supporting Change

Management Must Have Clearly Articulated Roles in Facilitating and Supporting any Change

slide7

Organizational Change Alignment Possible Outcomes

The graphic above depicts the various change outcomes possible. Following a solid change methodology can ensure the optimal state of “total alignment”

slide8

Change Initiative Ranking Analysis Techniques

A best practice change approach includes proven methods and techniques to evaluate potential change initiatives to undertake

slide9

Typical & Critical Change Initiative Roles & Organizational Structure

A world-class change approach includes mapping out change roles and delivering sufficient training and role change orchestration. This approach ensures that aspect of the organization is pulling together in synergy on every level following the implementation of the change.

slide10

Change Management Initiative Resource Plan

A world-class change approach includes mapping out a change implementation organization including the organizational inter-relationships, special committees and groups as well as specific roles and responsibilities.

slide11

The Role of Middle Management in Change Management

A world-class change approach must include middle management inclusion strategies

slide12

Managing & Mitigating Organizational Change Resistance

Careful Considerations must be made to anticipate and mitigate change resistance, including from middle management

slide13

Executive Support for Change Management

A world-class change approach includes planning how executive support will be applied during any change initiative

slide14

Change Management Strategies for Institutionalizing Change

Best practice change methodologies and strategies can mitigate the pitfalls associated with not institutionalizing a change which risks, over time, organizational drift away from the desired change state.

Advertisements

Achieving Market Leadership by Effectively Managing Customer Loyalty and Advocacy

 

  • Do you know which of your customers is destroying your company and brand value via negative word-of-mouth comments?
  • Do you know which of your customers is on the verge on defecting from your company and brands to one of your competitors?
  • Do you know which of your customers is promoting your company and brands and generating positive company and brand value on your behalf?
  • Do you know which of your customers is as passionate about your company and brand as your CxOs and should be rewarded as such?

 

To find out the answer to these questions, read the rest of this informative blog article below.

Customer Loyalty & Advocacy

     Customer Loyalty & Advocacy

{Click on image above for a larger/clearer view}

Your customer base is almost always represented by the above spectrum of customers. What varies from business to business is the percentage in each segment group. The more well managed your business, the more skewed to the right your customers tend to be. Therefore a business must develop strategies to migrate customers continually from the left to the right from segment group to segment group in increasing numbers. The rest of this blog is dedicated to sharing best practices on how to migrate more of your customers to the right of the spectrum.

Customer Loyalty and Advocacy Framework

    Customer Loyalty and Advocacy Framework

{Click on image above for a larger/clearer view}

For any company to achieve world-class status, one must carefully map out a customer loyalty and advocacy framework including the following component steps from the chart above:

  1. Clearly articulated customer segment definitions based on customer satisfaction levels, in addition to customer buy/sell segment definitions (top independent seller, high volume digital seller, etc.)                                                     
  2. A clear customer segment strategy and detailed tactics on the customer treatment that should be employed for each customer satisfaction segment               
  3. Customer cross-segment best practices and processes to drive segment migrations from the far most left segment to the far most right segment (i.e. from dissenters to super advocates)
Customer Loyalty & Advocacy Framework Segments

   Customer Loyalty & Advocacy Framework Segments

{Click on image above for a larger/clearer view}

The above customer loyalty & advocacy framework includes the following segments:

  • Customer Brand Dissenters or Malcontents – Very negative and detrimental to the company’s brand(s)
  • Customer Company Defectors – Very likely to defect to a competitor
  • Customer Neutral or Indifferent – Neither brand supporters or detractors of the company’s brand(s)
  • Customer Brand Supporters – Slightly positive about the company’s brand(s)
  • Customer Brand Advocates – Very positive and generating positive value to the company brand image
  • Customer Brand Super Advocates or Delighted Customers – Active promoters of the company’s brands, adding continuous & tremendous value to the company brand image

A formal social and company/brand listening and tracking program is a best practice on how to identify which of your customers exist in each of the above segments (see my previous blog entry on the topic of Social listening programs).

Customer Dissenters & Defectors

Customer Dissenters & Defectors

{Click on image above for a larger/clearer view}

From this graphic above, we can see clearly that the strategy should be as follows:

  • Dissenters: Diffuse and redirect customer angst and anger and come to some sort of closure agreement on for the source of their angst/anger.
  • Defectors: Get the defectors to see the entire spectrum of value the company has to offer and get them back to the level of positive company engagement vs. disenfranchisement. Provide insights to how a more positive company relationship would reward them – loyalty programs and other rewards.

Unless the individuals in these segments are high value or high profitability customers, then you would want to minimize the financial rewards to these customer satisfaction segments.

In addition and based on my research and experience, you are wasting your marketing and sales $$ spend to these two segments as they are much more unlikely to respond to any marketing offers due to being so currently dissatisfied with the company and brands (think about it – why would they trust you and buy more of the same when their initial experiences were so terrible?). 

Customer Neutrals & Supporters

  Customer Neutrals & Supporters

{Click on image above for a larger/clearer view}

From this graphic above, we can see clearly that the strategy should be as follows:

  • Neutrals: Develop strategies to more of these customers to a net positive relationship by communicating more frequently and effectively with this segment group. The path toward becoming a company/brand supporter should be clearly and frequently communicated to these customers so that they are encouraged to become ever more value to the company and its brands. This group is likely to be lukewarm to your sales and marketing efforts so expenditures here should be highly selective. 
  • Supporters: Develop these supporters into more loyal and more committed customers by developing brand ‘stickiness’ through company loyalty rewards, referral programs, by making it easy (discounts) to buy additional company brands or products, etc. The path toward becoming a company/brand advocate should be clearly and frequently communicated so that these customers become ever more value to the company and its brands. You should have formal programs in place that amplifies their support of your company and brands via social media, forums, etc. 

 

Customers in these segments should be offered tiered financial rewards to incentivize them to want to contribute at even higher levels to brand value and to remain even more loyal to the company and its brands.

Customer Advocates & Super Advocates

 Customer Advocates & Super Advocates

{Click on image above for a larger/clearer view}

From this graphic above, we can see clearly that the strategy should be as follows:

 

  • Advocates: This group should be provided with an array of rewards and accolades for helping effectively spread the word about the company or value of the company’s brands, especially if the individual customer is of high value, profitability or influence. The path toward becoming a company/brand super-advocate should be clearly and frequently communicated to these customers so that they are encouraged to become ever more value to the company and its brands. You should have formal programs in place that amplifies their advocacy of your company and brands via social media, forums, etc. 
  • Super Advocates: This group should be provided with top tier rewards and accolades for helping effectively spread the word about the company or value of the company’s brands, especially if the individual customer is of high value, profitability or influence. You should have formal programs in place that, not only amplifies their super-advocacy of your company and brands via social media, forums, etc., but also provides significant rewards for helping increase your brand value (i.e. via a “brand ambassador” rewards program). 
Customer Loyalty & Advocacy Cross-Segment Best Practices

Customer Loyalty & Advocacy Cross-Segment Best Practices

{Click on image above for a larger/clearer view}

The graphic above highlights just a few of the cross-segment customer loyalty & advocacy best practices I recommend that companies continually practice to migrate customers from the negative segments that hurt the company’s brand value (dissenters, defectors) to positive segments (advocates and super advocates) that adds incredible value to a company’s brand.

 

Here are the brands for which I am a Dissenter, Defector, Neutralist, Advocate and Super-Advocate for based on my own personal experience and opinions:

 

  • Companies and Brands for which I am an official dissenter:
Companies For Which I am Dissenter

Companies For Which I am a Dissenter

{Click on image above for a larger/clearer view}

Sears

Sears

Sears – I received abject customer service back in the late 1980’s and don’t want anything to do with the retailer ever again. I have tried to give them a second chance and continue to have an unsatisfactory experience.  I pledge to never set foot in a Sears store again.

Target

Target

Target – I interviewed for a senior management position at Target a several years ago was treated so poorly that even the HR manager at the time said the treatment of me was ‘questionable’. She then shared with me that she asked upper management “are we really trying to hire the best candidate here?” before she left the company.  I vowed to never shop in Target again and have held true to my word. 

Empire Carpet Today

Empire Carpet Today

Empire Carpet – We had several issues with our carpet installation and follow up customer service.  They are very disorganized, non-customer friendly and do not seem to keep with the volume of sales that they generate.  I will never use this company ever again. We steer people away from this company if asked.

2) Companies and Brands I am likely to Defect from or have defected from and tell everybody about why I am about to leave (or have left) these company & brands:

Companies for which I am a (potential) Defector

Companies for which I am a (potential) Defector

Bank of America

Bank of America

Bank of America – Closed many of the local branches where I live and the abundance of local branches was the reason I opened an account with BOA in the first place. The remaining branches are now crowded and not staffed adequately. This tells me they care more about the bottom line than customer satisfaction.

Marriott

Marriott

Marriott – In my opinion Marriott has lost its way. I used to be a Platinum member at Marriott for many years. Their properties since that time have become worn as compared to their competitors and they seem to not listen well to their customers. An example of this myopia is when they converted the Courtyards to the Bistro concept. Every customer I speak to was disappointed by this change but they went ahead and did it anyway (presumably to save $$ on operations costs).

Frigidaire/Electrolux

Frigidaire/Electrolux

Frigidaire/Electrolux – Our dehumidifier stopped working after only 1 year.  We have been trying to get a credit from them for six months with no end in sight.  The return process is the most customer unfriendly I have ever encountered with no possibility of human interaction. We have been without a dehumidifier for an entire year due to their poor customer service process.

3) Companies and Brands I am Neutral about and don’t really have much to say about them:

Companies For Which I Have Neutral Sentiment
Companies For Which I Have Have Neutral Sentiment

Samsung, Sony, Direct TV, Time Warner Cable, Panasonic, Cuisinart, Hunter Fans, Home Depot, Lowes, Macy’s, Sunoco, US Air, Delta, Tractor Supply, Wal-Mart, McDonalds, Burger King, Chili’s, Pizzeria Uno, American Airlines, Holiday Inn and many more. This category contains the most number of brands due to the distribution across segment group being shaped like a bell curve

4) Companies and Brands I am an Advocate of and share positive stories with anybody who is willing to listen:

 

Companies For Which I am An Advocate
 Companies For Which I am An Advocate
American Express

American Express

American Express – I have worked with American Express as a consultant on several different strategic projects.  They are an extremely well run organization with some very smart people running the company. I have also been a Platinum card member for many years.  They provide excellent customer service and their fee structure is the only thing keeping me from being a super-advocate. I tell everyone I meet I consider American Express a world-class company.

Southwest Airlines

Southwest Airlines

 

Southwest Airlines – Southwest is just a great airline and makes the flying experience pleasurable. They are almost always on-time, the employees are friendly (some even humorous) and they try to be reasonable to their customers at every turn. I used to hate Southwest and am now a Southwest lover/advocate.

Hilton Hotels

Hilton Hotels

Hilton Hotels – Did you guess what hotel I become more loyal to after minimizing my Marriott loyalty? Guess no further. Hilton has been on a roll creating new and invigorating hotels and I am now an advocate/loyalist and stay at Hilton Hotels whenever possible.

Dooney & Bourke

Dooney & Bourke

Dooney & Burke – Dooney & Bourke creates high quality, classic and trendy handbags and accessories that last over long periods of time even with heavy usage.  Styles and collections are priced to reflect the consistent durability and attractiveness of this brand. If something goes wrong with their products, they stand behind them through high quality customer service.

5) Companies and Brands I am a Super – Advocate of and go out of my way to tell everyone how wonderful my experience has been with dealing with these companies:

 

Companies For Which I am a Super Advocate

Companies For Which I am a Super-Advocate

 

Cox Automotive

  Cox Automotive

Cox Automotive – Cox Automotive has a great company culture consisting of many top automotive brands that includes Kelly Blue Book, Autotrader, Manheim, NextGear, DealSheild to name a few. The company is one of the best places I have ever worked and includes an employee first culture that they actually adhere to and practice. The company is run by a world-class CEO named Sandy Schwartz that has a great vision for the company’s future and is very visible in his support for the employee oriented culture.

Toyota

Toyota

Toyota  – My family has owned Toyota vehicles for many years.  Toyotas are extremely reliable automobiles. I have a Tundra with 132,000 miles on it and have had zero major issues with it. I have such an affinity with my Tundra I have a hard time thinking about trading it in for another vehicle even though it would most definitely be another Toyota.

Ritz Carlton

Ritz Carlton

Ritz-Carlton – I love staying at Ritz-Carlton since the experience each and every time is truly memorable. I also worked as a consultant for Ritz-Carlton to help design the perfect customer experience for guests.  Ritz Carlton’s goal is to create an experience to remember and smile about and they live up to this promise every time.

 

The amazing (or sad) part about my sentiment rankings of the above companies is that, despite spending millions ($$$) on analytic systems and databases, I am willing to bet that very few, if any, actually were knowledgeable about my sentiment toward their brands prior to my writing this article.

This relates directly to a previous blog entry I developed on why CRM (Customer Relationship Management based on historical analytic insights) is dead and a new CRRM model is now a best practice. In this article I point out how world-class companies now query their customers how they feel about the company and brands on a periodic basis. Like me, many customers would be more than willing to share their sentiment and how they are feeling towards the company and their associated brands. Bottom Line: Analytic models provide minimal understand of true customer sentiment when it is primarily focused on historical purchases, spend, etc.

Change Management 101 Primer for Senior Executives (CEOs, COOs, CSOs, CMOs, CFOs, CCOs, etc.)

The following blog was written to provide a simple primer on Change Management for Top Executives. It is written so you ‘get it’ in 15 minutes or less of reading this article.

Change IS Disruptive, but Change Management Can Mitigate Impacts to Productivity

Change IS Disruptive, but Change Management Can Mitigate The Impact on Productivity

As a business leader, have you ever encountered the following challenges within your company:?

1. Implemented new technology or IT system and people failed to adopt & fully utilize it?

2. Implemented new processes and ways of doing business and your employees continued to follow the older methods?

3. Your competition continually seems to be evolving and innovating, developing new and more effective ways of doing business, while your company culture resists change and new ways of doing business?

The remainder of this blog is dedicated to sharing some of the techniques to get your organization to embrace and be supportive of change.  These change management techniques are based on my years of implementing change at organizations like Macy’s, American Express, Intuit, AT&T, Pfizer, Bristol-Myers Squibb, Oracle, CBS Interactive, Wells Fargo, and numerous other Fortune 500 companies.


Topics in this blog:

1)      What is Change Management – A Simple Definition

2)      Why is it Important?

3)      Why is change resisted by so many employees?

4)      Do all employees approach change the same way and how do you harness the power of the innovators and change ‘early adopters’?

5)      How Change Management Helps Accelerate Change

6)      Change Management Mitigates the Impact on Productivity while Implementing Change

7)      The Organizational Change Model Facilitates Change Success & Greater Business Results

8)      Steps in the Organizational Change Model Ensure Change Project Success

9)      The Importance of the eight (8) Change Management Steps

10)   Summary – Change Management & Innovation Requires a 360°, holistic approach driven by skilled and experienced change management professionals

1)    A simple definition of what change management is:

A Simple Definiton for Change Management

A Simple Definiton for Change Management

2)    Why is change management so important?

Why Is Change Management So Important?

Why Is Change Management So Important?

3)    Why is change resisted by many employees?

Why is change resisted by many employees?

Why is change resisted by many employees?

Bottom Line: Without proper education and motivation, change is naturally resisted within the workplace by all but a few.

4)    Do all employees approach change the same way?

Employee Change Adopter Curve

Employee Change Adopter Curve

As depicted by the above chart, employees range from ardent resisters to innovators. Change management solicits the support from innovators and early adopters to help diffuse organizational change to the remainder of the organization.   

5)    How Change Management Helps Accelerate Change

How Change Management Helps Accelerate Change

How Change Management Helps Accelerate Change

Change management not only removes obstacles to change, it helps develop enthusiasm and excitement for accelerated change in the future. 

6)    Change Management Mitigates the Impact on Productivity While Implementing Change

Change Management Productivity Curve

Change Management Productivity Curve

By having a robust change management methodology and plan, disruptions to business productivity can be minimized until the desired change state is achieved.  

7)    The Organizational Change Model Facilitates Change Success & Greater Business Results

Organizational Change Management Model

Organizational Change Management Model

By having a robust change management methodology and model, change success and enhanced business performance can be nearly guaranteed.

8)    Steps in the Organizational Change Model Ensure Change Project Success

Change Steps in The Change Management Approach

Change Steps in The Change Management Approach

Change projects must have clearly defined and measurable steps that align with the overall change methodology.  This approach greatly enhances the chance that the change project will be successful as well as facilitates the achievement of desired-positive business outcomes.

9)    The Importance of the eight (8) Change Management Steps

The next set of graphs highlight the importance of each step in the change management (project) process:

Step #1

Change Management - Step #1

Change Management – Step #1

Step #2:

Change Management - Step #2

Change Management – Step #2

Step #3:

Change Management - Step #3

Change Management – Step #3

Step #4:

Change Management - Step #4

Change Management – Step #4

Step #5:

Change Management - Step #5

Change Management – Step #5

Step #6:

Change Management - Step #6

Change Management – Step #6

Step #7:

Change Management - Step #7

Change Management – Step #7

Step #8:

Change Management - Step #8

Change Management – Step #8

10)         Summary – Change Management & Innovation Requires a 360°, holistic approach

Holistic Organizational Change Components

Holistic Organizational Change Components

In summary, change management requires leveraging a proven change methodology, skilled change management practitioners and a holistic approach to implementing corporate innovation and change. The above is a simple depiction of a best practice approach I have used on many change management projects at many of the Fortune 500 companies in the US.

%d bloggers like this: