The #1 Cause Of Organizational Dysfunction

At some level, I see dysfunction in almost every client I work with. This isn't something new. There probably isn't an organization on the planet without some level of dysfunction. Perhaps a degree of dysfunction is acceptable or even desirable. But eventually organizational dysfunction reaches a point where it begins to impede the ability of the enterprise to function. One area where this appears to occur with great frequency is between IT and the rest of the business. In far too many organizations IT is seen as out of alignment with the business, or worse, as an impediment to business units. So why is this?

It's been my opinion for some time now that there is a root cause for almost all the dysfunction in organizations. The cause is metrics. Specifically, the metrics we use to measure employee performance. Sometimes we suffer from the unintended consequences of what appear to be sound metrics.

Take for example a conversation I recently had with a client in marketing with responsibility for e-commerce. He wanted to gain a better understanding of IT because it appeared to him they were making bad decisions. On investigation it turned out "IT" had taken the website offline in the middle of the fading day, much to the consternation of the e-commerce team. To understand why IT might do this you need to understand metrics. It turns out the help desk had received a call about a problem with SAP. In order to fix the problem with SAP, the database technician decided the fastest repair would require restarting SAP. Unfortunately the website was tied to SAP so when it went down, so too did the website. Had the help desk and the database engineer not been measured on how long it takes to repair a problem, they may have made a different decision.

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Why Customer Experience Will Become The #1 CIO Priority

Customer experience isn’t typically at the top of the CIO’s priority list but it was certainly front and center in New York this week.

I believe things are about to change for CIOs. In the new era of always-connected consumers – what Forrester calls The Age Of The Customer – customer experience is so critical that I predict it will become the #1 priority for CIOs. In part because unhappy customers have the power to alter the course of any organization, as Netflix CEO Reed Hastings discovered in 2011, when his US customers forced him into an about-turn on his strategy to split movies-by-mail from online streaming.

But investing in customer experience is tricky because it’s often seen as an abstract thing with little tangible ROI. Companies like USAA, a US insurance company with a strategic focus on customer experience, have spent years re-shaping their entire organizations to think from the outside-in, focusing on the end customer. USAA did this because they believed it was the right thing to do, not because of some compelling business case.

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CX And An Ex-CIO

This week's Customer Experience Forum was far more than just an event for customer experience (CX) professionals. It was an event for any business leader who truly cares about customers. And this includes many CIOs.

Attendees gather at the 2013 NYC Forrester CX Forum

As far as I'm concerned, the best CX presentation by a guest speaker was given this morning by a former CIO, Paul Heller. Paul is now Managing Director of the Retail Investor Group at Vanguard. While his session was energetic and full of humor, it also conveyed his message about the business of delighting clients very clearly. Paul suggests we all need to get in touch with the why, how and who of our business: 

  • Why are customers doing what they do? To answer this question we really need to get to know the reasons for customers doing business with us. Vanguard took the time to ask their customers why they invest and they discovered people want to have more time to do the things they enjoy, they want less stress and to avoid being bored. Trust me, it's way funnier the way Paul describes it.
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How To Retain Your Most Creative Employees

There have already been plenty of articles written on the importance of creativity in the workforce. Assuming you buy into the importance of attracting creative types to your team, you will have an understanding of what to look for in hiring creative people. And then you will face the challenge of keeping these people on your team. I see this as a challenge because I don't believe our typical individual performance metrics are well suited to measuring creative individuals. 
 
Consider some of the common metrics used to assess individual employee performance: on-time task completion; task management; completion of specific goals; project management — all of these measures are heavily geared toward favoring individuals who have a natural ability to be well-organized, methodical and goal-oriented. Perhaps this describes your ideal employee.
 
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