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CX Organizational Transformation
Copyright © Kinetic Consulting Services FZE
2
What is Business Transformation?
The word “transformation” has become
one of the most overused words in
modern business. The term is often
associated with a myriad of initiatives that
are nothing more than optimisation or
remedial projects. In the context of this
paper organizational transformation
refers to a fundamental shift in how
employees think and behave in an
organization. In this instance we have
assumed a set of blueprints have been
designed to transition the organization
from its current thinking and practices
around its customers to one which will
elevate it to the position of a leading CX
organization. The transformation, in this
instance, will require its people to shed
old practices and ideas in favour of new
ones more aligned with customer –
centricity and the objectives of the CX
blueprint.
Transformational change
The size of the organization will normally
dictate how, when and who will
implement the CX blueprints of your
organization. However, there are some
important considerations that are
relevant for all size organizations. The
implementation plan should
acknowledge there is more than one
implementation required in a strategic
implementation of a customer
experience initiative aimed at
organizational transformation. There are
three key implementations to consider:
1. Organisational Changes
2. Customer experience iniatives
3. Governance model to master
customer experience excellence
Often these implementations will operate
in parallel with varying timelines for
completion. Assuming there is no
governance model in place the third
implementation is designed to ensure
whatever changes are made are
properly maintained to achieve
sustainable results over the long-term. The
governance model will play an important
role in achieving transformational CX. The
implementation will need to incorporate
any third parties directly impacting the
ongoing success of your program. This is
particularly relevant if you are
outsourcing, to a third party, any
component of an interaction in the
customer journey. Most organizations will
use partners to deliver aspects
throughout the customer journey and
being able to control the outcomes of
that interaction is a critical aspect of
being a truly customer centric
organization. The governance model
needs to effectively manage third party
vendors to ensure they are able to
achieve consistency across the entire
customer journey.
Collectively the three types of
implementations are designed to
achieve transformational change in the
organization. Aspects of your blueprint
should be designed to either accelerate
or optimise customer outcomes but
collectively any strategic implementation
will transform the organization by making
it more customer centric and more
competitive in the marketplace enabling
it to deliver a uniquely branded
experience. The financial targets of the
program are a necessary and strategic
imperative to demonstrate and validate
the commercial benefits achievable from
delivering a purposeful and well-thought
customer experience program. Without
clear financial objectives directly
Copyright © Kinetic Consulting Services FZE
3
impacting the organization the customer
experience iniatives will be underfunded,
poorly conceived by senior executives,
and incorrectly implemented in the
organization.
Planning the Organizational
Implementation
The transformative objective of the
program enables us to select the best
methodology to use for implementation.
The organizational implementation will
require you to address specific aspects of
the organization preventing full and
proper practice of customer centricity. To
achieve this outcome people will be
required to change attitudes and
behaviours in the workplace. Changing
behaviour is one of the most difficult tasks
to achieve. Standard project
management will not suffice in this
situation. Instead using a change
management methodology such as the
Prosci ADKAR® model will ensure the
organizational initiatives achieve their
objectives. The ADKAR model is a
research-based, individual change
model that represents the five milestones
an individual must achieve in order to
change successfully. ADKAR creates a
powerful internal language for change
and gives leaders a framework for
helping people embrace and adopt
changes. The five milestones are
identified as:
1. A - Awareness of the need for
change
2. D – Desire to support the change
3. K – knowledge of how to change
4. A – Ability to demonstrate new skills
and behaviours
5. R – Reinforcement to make the
change stick
During the process of implementing
organizational changes you will
encounter resistance from different
stakeholders. The change management
methodology equips you with the
necessary tactics required to deal with
the resistance and to minimise the impact
on your project. There are a number of
key success factors in a change
management program like this one. The
main ones are identified as follows:
1. Well pronounced and high
exposure sponsorship from the CEO
2. The positioning of customer
experience within the organization
3. Stakeholder engagement and
communication
4. Selection of influential and
capable change agents with the
organization
5. Leadership by example
These five success factors will determine
how well you can implement your
organizational changes. The strong
backing from the CEO throughout the
implementation process is both necessary
and instrumental in elevating the
importance of the program to all
stakeholders. Without this the program is
likely to be perceived as a tactical
project and will never achieve any
transformational outcomes.
CX positioning
Likewise, the positioning of customer
experience within the organization will
also determine the level of influence to
change aspects of the organization. For
example, if customer experience is
positioned within a marketing
department then internally it will be
perceived as a marketing initiative and
Copyright © Kinetic Consulting Services FZE
4
the ability to make or suggest
organizational change is likely to be met
with resistance. However, if customer
experience belongs to an autonomous
unit and the leadership is at the c-level
then influencing change will become a
lot easier than if it belonged under
marketing or the customer care team.
Progressive organizations who lead in
customer experience will normally
position customer experience at the
highest level and allocate responsibility to
a Chief of Customer. This role will normally
be at the same level of a Chief Operating
Officer or Chief Commercial Officer.
Departments such as marketing and
customer care would report through to
the Chief of Customer ensuring
consistency is messaging and experience
to the customer. Having senior level
accountability around the customer
elevates the focus of customer
experience in the organization
contributing towards greater customer
centricity.
Stakeholder Communication
Stakeholder communication and
engagement is required to be
maintained at the highest levels
throughout the entire implementation
process. Stakeholders can become
quickly disenfranchised if changes are
occurring without their input or
knowledge. If you have properly
engaged senior stakeholders in the
design stage then it becomes easier to
procure support from senior stakeholders
during the implementation stage. By
engaging with stakeholders early in the
process you are able to reduce any
resistance by the time you reach the
implementation stage. Collaboration with
stakeholders is equally important as
ensuring regular communication. They will
need to feel they are actively involved in
the change process so they are
voluntary, and not involuntary,
participants in the change process.
Change Agents
The ability to change behaviours within
the organization will also depend on how
effective change agents are in their
ability to influence and demonstrate the
changed behaviours. Identifying and
selecting the change agents requires
careful consideration of what role the
change agent is required to perform. In a
change management program the role
played by the change agent is
multifaceted. However, they are best
viewed as influential ambassadors to the
change program. They are often
identified as a “champion” of the cause
because they take on the responsibility of
leading the change within a particular
department.
To be successful at this role the change
agent needs to possess certain
characteristics. They need to be
influential in their department, have a
high level of enthusiasm for the customer
centricity objectives of the program, and
have an ability to coach others. In
addition, the change agent needs to be
someone who can take instructions and
follow through with set deliverables. The
role of the change agent is a voluntary
role and often not directly compensated
for the work required. Instead, the
change agent takes on the additional
workload because of the future
positioning within the organization and
potential for promotion. Direct
compensation is normally provided in the
form of time off and a bonus for
completing set tasks. The key tasks
Copyright © Kinetic Consulting Services FZE
5
Kinetic is an award winning consulting company
that has provided numerous organisations, and
government around the globe with consulting in
strategy, operational best practices, &
transformation, contact us at:
Email: joe.tawfik@kineticcs.com
Australia: 1300 780 556
U.S.A: +877-318-6826
Dubai: +971 4455 8410
Web: www.kineticcs.com
normally performed by the change agent
will be:
1. Explaining the need and
value of the change to the
impacted employees
2. Outlining the agreed reward
plan to encourage the
change
3. Outlining the process for
change and what is
expected from the impacted
employees
4. Provide coaching and
training on the new changes
required from them
The change agents will work closely with
the change manager to determine the
actions to take. Monitoring of behaviour
and evidence of demonstrated changed
behaviour in real life work situations is
required to confirm whether the change
has been adopted by the impacted
employees. A cycle of coaching and
evaluation will continue until the desired
results are achieved and reinforced.
Occasionally, the change manager will
intervene when there is evidence of
persistent resistance from certain
individuals. The role of the change
manager is to provide the direction and
mentoring required for the change
agents to perform the necessary
functions of their role. The change
manager ensures the program receives
the necessary focus to achieve its
objectives on time.
The Role of HR
The implantation of the organizational
initiatives will require significant support
and involvement from the HR or People
and Culture department. The main
reason their involvement is required is that
in any customer centricity project there is
always a requirement for employees to
change some sort of behaviour with the
aim of achieving a new performance
outcome. To ensure there is alignment
between the new expectations and
existing performance reviews the HR
director will need to be actively involved
and championing any changes required
in existing processes.
Often KPIs and targets will need change
to reflect the changes as well as job
descriptions. Employees cannot be
expected to demonstrate changed
behaviour if their performance reviews
evaluate them on different criteria. The
alignment of KPIs, targets, and
performance reviews to the new
behaviours will often trigger the need for
a secondary implementation. As outlined
there are three key implementations that
need to be completed but as you begin
planning the implementation you will
soon discover there are often secondary
implementations required to achieve your
primary transformational outcomes. These
secondary implementations should be
controlled by the impacted departments but
have direct reporting to the change
manager.

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CX Organizational Transformation

  • 2. Copyright © Kinetic Consulting Services FZE 2 What is Business Transformation? The word “transformation” has become one of the most overused words in modern business. The term is often associated with a myriad of initiatives that are nothing more than optimisation or remedial projects. In the context of this paper organizational transformation refers to a fundamental shift in how employees think and behave in an organization. In this instance we have assumed a set of blueprints have been designed to transition the organization from its current thinking and practices around its customers to one which will elevate it to the position of a leading CX organization. The transformation, in this instance, will require its people to shed old practices and ideas in favour of new ones more aligned with customer – centricity and the objectives of the CX blueprint. Transformational change The size of the organization will normally dictate how, when and who will implement the CX blueprints of your organization. However, there are some important considerations that are relevant for all size organizations. The implementation plan should acknowledge there is more than one implementation required in a strategic implementation of a customer experience initiative aimed at organizational transformation. There are three key implementations to consider: 1. Organisational Changes 2. Customer experience iniatives 3. Governance model to master customer experience excellence Often these implementations will operate in parallel with varying timelines for completion. Assuming there is no governance model in place the third implementation is designed to ensure whatever changes are made are properly maintained to achieve sustainable results over the long-term. The governance model will play an important role in achieving transformational CX. The implementation will need to incorporate any third parties directly impacting the ongoing success of your program. This is particularly relevant if you are outsourcing, to a third party, any component of an interaction in the customer journey. Most organizations will use partners to deliver aspects throughout the customer journey and being able to control the outcomes of that interaction is a critical aspect of being a truly customer centric organization. The governance model needs to effectively manage third party vendors to ensure they are able to achieve consistency across the entire customer journey. Collectively the three types of implementations are designed to achieve transformational change in the organization. Aspects of your blueprint should be designed to either accelerate or optimise customer outcomes but collectively any strategic implementation will transform the organization by making it more customer centric and more competitive in the marketplace enabling it to deliver a uniquely branded experience. The financial targets of the program are a necessary and strategic imperative to demonstrate and validate the commercial benefits achievable from delivering a purposeful and well-thought customer experience program. Without clear financial objectives directly
  • 3. Copyright © Kinetic Consulting Services FZE 3 impacting the organization the customer experience iniatives will be underfunded, poorly conceived by senior executives, and incorrectly implemented in the organization. Planning the Organizational Implementation The transformative objective of the program enables us to select the best methodology to use for implementation. The organizational implementation will require you to address specific aspects of the organization preventing full and proper practice of customer centricity. To achieve this outcome people will be required to change attitudes and behaviours in the workplace. Changing behaviour is one of the most difficult tasks to achieve. Standard project management will not suffice in this situation. Instead using a change management methodology such as the Prosci ADKAR® model will ensure the organizational initiatives achieve their objectives. The ADKAR model is a research-based, individual change model that represents the five milestones an individual must achieve in order to change successfully. ADKAR creates a powerful internal language for change and gives leaders a framework for helping people embrace and adopt changes. The five milestones are identified as: 1. A - Awareness of the need for change 2. D – Desire to support the change 3. K – knowledge of how to change 4. A – Ability to demonstrate new skills and behaviours 5. R – Reinforcement to make the change stick During the process of implementing organizational changes you will encounter resistance from different stakeholders. The change management methodology equips you with the necessary tactics required to deal with the resistance and to minimise the impact on your project. There are a number of key success factors in a change management program like this one. The main ones are identified as follows: 1. Well pronounced and high exposure sponsorship from the CEO 2. The positioning of customer experience within the organization 3. Stakeholder engagement and communication 4. Selection of influential and capable change agents with the organization 5. Leadership by example These five success factors will determine how well you can implement your organizational changes. The strong backing from the CEO throughout the implementation process is both necessary and instrumental in elevating the importance of the program to all stakeholders. Without this the program is likely to be perceived as a tactical project and will never achieve any transformational outcomes. CX positioning Likewise, the positioning of customer experience within the organization will also determine the level of influence to change aspects of the organization. For example, if customer experience is positioned within a marketing department then internally it will be perceived as a marketing initiative and
  • 4. Copyright © Kinetic Consulting Services FZE 4 the ability to make or suggest organizational change is likely to be met with resistance. However, if customer experience belongs to an autonomous unit and the leadership is at the c-level then influencing change will become a lot easier than if it belonged under marketing or the customer care team. Progressive organizations who lead in customer experience will normally position customer experience at the highest level and allocate responsibility to a Chief of Customer. This role will normally be at the same level of a Chief Operating Officer or Chief Commercial Officer. Departments such as marketing and customer care would report through to the Chief of Customer ensuring consistency is messaging and experience to the customer. Having senior level accountability around the customer elevates the focus of customer experience in the organization contributing towards greater customer centricity. Stakeholder Communication Stakeholder communication and engagement is required to be maintained at the highest levels throughout the entire implementation process. Stakeholders can become quickly disenfranchised if changes are occurring without their input or knowledge. If you have properly engaged senior stakeholders in the design stage then it becomes easier to procure support from senior stakeholders during the implementation stage. By engaging with stakeholders early in the process you are able to reduce any resistance by the time you reach the implementation stage. Collaboration with stakeholders is equally important as ensuring regular communication. They will need to feel they are actively involved in the change process so they are voluntary, and not involuntary, participants in the change process. Change Agents The ability to change behaviours within the organization will also depend on how effective change agents are in their ability to influence and demonstrate the changed behaviours. Identifying and selecting the change agents requires careful consideration of what role the change agent is required to perform. In a change management program the role played by the change agent is multifaceted. However, they are best viewed as influential ambassadors to the change program. They are often identified as a “champion” of the cause because they take on the responsibility of leading the change within a particular department. To be successful at this role the change agent needs to possess certain characteristics. They need to be influential in their department, have a high level of enthusiasm for the customer centricity objectives of the program, and have an ability to coach others. In addition, the change agent needs to be someone who can take instructions and follow through with set deliverables. The role of the change agent is a voluntary role and often not directly compensated for the work required. Instead, the change agent takes on the additional workload because of the future positioning within the organization and potential for promotion. Direct compensation is normally provided in the form of time off and a bonus for completing set tasks. The key tasks
  • 5. Copyright © Kinetic Consulting Services FZE 5 Kinetic is an award winning consulting company that has provided numerous organisations, and government around the globe with consulting in strategy, operational best practices, & transformation, contact us at: Email: joe.tawfik@kineticcs.com Australia: 1300 780 556 U.S.A: +877-318-6826 Dubai: +971 4455 8410 Web: www.kineticcs.com normally performed by the change agent will be: 1. Explaining the need and value of the change to the impacted employees 2. Outlining the agreed reward plan to encourage the change 3. Outlining the process for change and what is expected from the impacted employees 4. Provide coaching and training on the new changes required from them The change agents will work closely with the change manager to determine the actions to take. Monitoring of behaviour and evidence of demonstrated changed behaviour in real life work situations is required to confirm whether the change has been adopted by the impacted employees. A cycle of coaching and evaluation will continue until the desired results are achieved and reinforced. Occasionally, the change manager will intervene when there is evidence of persistent resistance from certain individuals. The role of the change manager is to provide the direction and mentoring required for the change agents to perform the necessary functions of their role. The change manager ensures the program receives the necessary focus to achieve its objectives on time. The Role of HR The implantation of the organizational initiatives will require significant support and involvement from the HR or People and Culture department. The main reason their involvement is required is that in any customer centricity project there is always a requirement for employees to change some sort of behaviour with the aim of achieving a new performance outcome. To ensure there is alignment between the new expectations and existing performance reviews the HR director will need to be actively involved and championing any changes required in existing processes. Often KPIs and targets will need change to reflect the changes as well as job descriptions. Employees cannot be expected to demonstrate changed behaviour if their performance reviews evaluate them on different criteria. The alignment of KPIs, targets, and performance reviews to the new behaviours will often trigger the need for a secondary implementation. As outlined there are three key implementations that need to be completed but as you begin planning the implementation you will soon discover there are often secondary implementations required to achieve your primary transformational outcomes. These secondary implementations should be controlled by the impacted departments but have direct reporting to the change manager.