Leveraging Centers of Excellence Can Propel Your Company into a Market Leadership Position

How a Center of Excellence Can Benefit Your Company

How a Center of Excellence Can Benefit Your Company

COE

This blog is dedicated to educating you on a widely used function of many market leading companies, namely a center of excellence.  Specifically, I cover the following points associated with a center of excellence:

  1. Center of excellence definition (a.k.a. competency center or a capability center

  2. What benefits are gained by a company that develops & deploys a center of excellence

  3. What existing companies utilize centers of excellence

  4. What types of centers of excellence are typically setup and utilized

  5. Detailed example of the following:

    • Specific benefits of a type of center of excellence

    • The specific functions of a center of excellence

    • Typical services delivered by a center of excellence

    • Sample organizational structure for a center of excellence

    • On-off shore considerations for centers of excellence

Center of Excellence Definition

Center of Excellence Definition

Above: Center of excellence defined. Another way to think of a center of excellence is as an internal set of expert consultants available to assist you with specific sets of initiatives.

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Simpler Center of Excellence Definition

Simpler Center of Excellence Definition

Above is another, more simple, definition of a center of excellence.

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Center of Excellence Benefits

Center of Excellence Benefits

Above is a few (of many) benefits of implementing a center of excellence.  The most important aspect of a center of excellence is that it facilitates your company to getting ahead of your competitors and increases the chance that the company will attain market leader status.

COE

Companies That Have Utilized a Center of Excellence

Companies That Have Utilized a Center of Excellence

Above is a list of sample companies that utilize centers of excellence. In order to explore the details associated with these companies and their center(s) of excellence, merely Google the company name along with “center of excellence” to find out more. 

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Center of Excellence Applications

Center of Excellence Applications

Above are the types of centers of excellence that have been implemented by Fortune 500 companies in the past. Recently, I helped a Fortune 500 company implement both a CRM center of excellence (COE) and a Testing COE. We will perform a deeper dive into a testing center of excellence later in this post to illustrate a few details associated with a COE’s setup, operation, functions, etc.

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Testing Center of Excellence Example

Testing Center of Excellence Example with Functions and Benefits

The illustration above depicts the types of functions specifically delivered by a testing center of excellence (TCOE) as well as the associated benefits. For example, a TCOE maintains a training and certification function in order to help train other company teams on delivering higher quality testing and associated consumer products/services.

COE

Testing without a COE

Testing without a COE

“Hold on a minute you” might say at this point and then ask, “Why would you need a testing center of excellence (TCOE)?” Anticipating your potential push-back, the above illustrates the inefficiencies associated with performing one-off testing in a decentralized basis without TCOE support and oversight.

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Inefficiencies of Traditional Testing Methods

Inefficiencies of Traditional Testing Methods

The illustration above lists some specific examples of additional inefficiencies associated with performing case-by-case ad-hoc testing in lieu of having implemented a TCOE.

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Typical Functions Delivered by a Testing COE

Typical Functions Delivered by a Testing COE

What are the functions and/or organizational components of a testing COE you might ask? Above is my viewpoint on the typical organizational components and functions delivered by a TCOE. There are many others, but the above are the most frequent functions delivered by TCOE organizational components.  

COE

TCOE Delivered Testing Services

TCOE Delivered Testing Services

The first service typically delivered by a TCOE is to provide testing services to various company team and development initiatives. The above illustrates the types of testing services provided by a TCOE to other company teams/department. 

COE

TCOE Methods and Tools Delivery

TCOE Methods and Tools Delivery

The second service typically delivered by a TCOE is to develop, maintain and deploy testing methods, tools and processes to other company departments and associated testing initiatives. 

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TCOE Expert Services Delivery

TCOE Expert Services Delivery

The third service typically delivered by a TCOE is to provide consulting style expertise to other company departments and associated testing initiatives. 

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TCOE On/Off-Shore Considerations

That concludes my overview of what a center of excellence is and what it can do for your company.

If your organization is seeking world-class and experienced assistance developing and implementing a center of excellence or any of the following: associated services:

  1. Determining whether there is a viable business case to implement a COE

  2. Developing a strategic implementation plan for COE

  3. Developing an organizational structure and resource plan for a COE

  4. Developing a COE pilot program

If yes, please give me a call, I call help you implement world-class center of excellence that enable you to surpass your competition and bring your organization to the next level of market performance and share.

Lastly, this is just one article of 40+ total I have written on Customer strategy, CRM, marketing, product management, competitive intelligence, corporate innovation, change management – all of which I have significant experience in delivering for Fortune 500 companies.  In fact, my blog is now followed by nearly 160,000 world-wide and was just named one of the top 100 CRM blogs on the planet by Feedspot, alongside Salesforce.com, Infor, Microsoft, SAS, etc. – Reference this informative site here: https://blog.feedspot.com/crm_blogs/

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Blow Away Your Competition by Replacing Your Old CRM Program with the New Customer Relevant Relationship Management (CRRM) Model – Part 2: The Necessary Components.

1) Introduction:

In my previous blog, I covered what the new Customer Relevant Relationship Model (CRRM) is and the benefits of adopting this new model. In this blog, I will cover the components of the new CRRM model and what you need to put in place to make this new model a reality.

Ever wonder why companies like ESPN, Apple, Google, Zynga, Amazon, and Marriott dominate their respective markets? The reason is that they are ‘Customer First’ organizations and are passionate about listening to, understanding and then delighting their customers based on leveraging true customer insights. They treat their customers as business partners vs. commodities and include them in many critical decision making processes. They get this new CRRM model. Why/how ? – Read the rest of this blog to find out…

The differences between the old CRM model and how these companies are embracing the newer CRRM model are depicted in the following chart:

The Old CRM Model vs. New CRRM Model – Customers as Business Partners

2) Customers are fed up with old Dictatorial Management Style & Want to be Empowered as Business Partners

Customers and stakeholders today are longing for a company to partner with them and include them in the corporate decision making process.  These same constituencies are sick and tired of political, corporate, and other organizations making unilateral decisions for them that are really not in-line with their needs,  wants, etc. The backlash from this unwanted dictatorial management style of some companies can be seen in the Bank of America fee customer rebellion, the customer backlash from Netflix deciding to  split their company without first consulting with their customers and HPs initial decision to exit the computer market.

3) Components of the New CRRM Model:

In order to progress your organization from the old CRM model to the new CRRM  model, a few key essentials must be put in place and are as follows:

A. New CRRM Model that includes the 360° Cultivation of Customer & Market Insights.  This model enables a 360° view of all customer and market insights including customer feedback, preferences, likes, dislikes, social sentiment, competitor activity, etc. This new model takes your insights to an entirely new level whereby you are now enabled to delight customers, stakeholders and stockholders by having insights that are light-years ahead of insights provided by a traditional CRM model.

B. Customer First Culture driven by management that is passionate about their customers including a set of customer first principles and guidelines developed by company leaders

C. Customer Ratings & Feedback Structure that will identify areas where you will collect customer 360° feedback from customer and stakeholder interactions

D. Customer Feedback & Preferences Cultivation Process and corresponding infrastructure in order to allow your customers to continually rate how well you are serving them

E. Customer Health Scorecard that provides real-time insights on how well the customers, stakeholders and stockholders perceives you as serving them as well as insights into a Continuous Customer Improvement Process (CCIP) that enables you to continually improve your customer perceptions, satisfaction, brand loyalty, etc.

These components can apply to large enterprises as well as Small to Medium Businesses (SMBs).

The following graphics are all sample components from the list above (A-D) that need to be put in place to enable this new CRRM Model.

New CRRM Model – 360° Cultivation of Customer & Market Insights

 3A) The above chart “New CRRM Model – 360 Cultivation of Customer & Market Insights” demonstrates the new insights model that must be put in place to deliver world-class stakeholder and customer programs.

These enhanced insights will enable you to deliver products and services that delight your customers, stakeholders and stockholders as well as enable you to leapfrog the competition in terms of market share if they continue to rely on their antiquated CRM data and analytics insights only model. 

For Small to Medium sized Businesses (SMBs), some of the insights do not apply, but the following charts (3B-3E) most certainly apply and can be tracked via simple Microsoft Excel spreadsheets.

CRRM Customer First Policies & Organizational Principles

3B) The above chart “CRRM Organizational Guiding Principles” demonstrates the principles that must be in-place to be customer first culture. This culture is driven by management that is passionate about their customers and governs the company around a set of customer first policies.

Sample Enterprise CRRM Customer Rating & Feedback Structure

3C) The above chart “Enterprise CRRM Customer Rating & Feedback Structure” illustrates a sample structure (will vary for each type of business) whereby customer feedback and preferences will be cultivated in order to develop 360° insights into customer needs, wants, likes, etc.

Enterprise CRRM Customer Feedback & Preferences Cultivation Process

3D) The above chart “CRRM Customer Ratings & Feedback Cultivation Process” illustrates a how customer feedback and preferences will be cultivated in order to develop 360° insights into customer needs, wants, likes, etc.

Sample Enterprise CRRM Customer Scorecard Ratings Visualization

3E) The above chart “Enterprise CRRM Customer Scorecard Ratings Visualization” illustrates a how customer feedback and preferences ratings will be visually represented in a scorecard. 

Sample Enterprise CRRM Customer Scorecard Metrics

3E-2) The above chart “Enterprise CRRM Customer Scorecard” illustrates a how customer feedback and preferences ratings will be rolled up into an analytical scorecard that provides insights into customer trends,  customer feedback, customer issues, core customer strengths and weaknesses, etc. 

This scorecard can also be used to manage a Continuous Customer Improvement Process (CCIP) that continually drives improvements to customer perceptions, ratings, satisfaction, etc. 

Sample Scorecard for “Shopping Experience”

The above depicts how analytics and metrics would be maintained for a business who had a retail or wholesale shopping function.

Sample Shopping Experience Scorecard – #2

Robust Scorecard Analytics and Metrics should support Customer Trend Identification and Root Cause Analysis for Customer Issues.

Sample Branding & Public Relations Scorecard

Sample Public Relations Scorecard Above gives you insights into how well your company and brands are perceived by customers, stakeholders, stockholders, etc.

Sample Customer Service Scorecard

Sample Customer Scorecard Above from Customer Service tells how well you are serving your customers.

Sample Marketing Scorecard

Sample Marketing Scorecard Above Gives you insights into how well your Marketing Efforts are resonating with your customers.

Sample Product Management Scorecard

The Sample Product Management Scorecard above gives you insights into how well perceived your products and services are with customers and prospects.

4) Company & Customer Benefits of Adopting the CRRM Model:

By treating customers as business partners (vs. commodities) and including them in the corporate decision making process, as well as allowing them to rate how well you are serving them from an array of customer facing areas, companies can reap huge rewards including the following:

1. Better insights into the types of products and services customers want & need

2. Fiercely loyal customers who feel part of the corporate team

3. Customers who are most likely to spend more, be retained longer and purchase at premium prices with higher profit margins

4. Customers who are very likely to be brand advocates and refer others to your company, brands, and services.

5. Customers who feel connected to the company and empowered to improve company operations

The following are actual customer comments from those who have participated in a customer feedback program to help shape products & services:

“I feel like xyz company cares about me since they ask my opinion”

“Finally a company that listens to us”

“It is so refreshing to have a company ask you your opinions on products and services vs. ramming something down our throats that we don’t like”

“Wow – this is fun. I enjoy providing my opinion”

“As silly as this might sound, xyz company is the only company that ever asked me what I wanted”

“In my opinion, xyz company is much more progressive than their competitors by seeking consumer opinions, what matters to them, etc.

 5) Conclusion:

More dynamic companies like Goodle, Zynga, Amazon, etc. are inviting customers to become part of the corporate decision making process and empowering them to provide feedback, insights and rate company operations in order to drive continous customer improvements. Companies who adopt this new CRRM model whereby company management is democratized by including stakeholders and customers into the decision making process will reap the rewards of ever higher customer acquisition, retention and spend – leading to ever higher profits and share price.

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