Chief Customer Officer (CCO) Roundtable On CX Maturity

“Customer experience (CX) maturity” was the topic of Forrester’s recent chief customer officer (CCO) roundtable meeting. Based on a recent report by Megan Burns called “Customer Experience Maturity Defined,” the customer experience leaders present took Forrester’s self-test of key CX practices, discussed their own company’s strengths and weaknesses, and shared successes and challenges they faced at their companies in interactive discussions throughout the day.

Here are some of the highlights from the discussion.

Governance and project investment. A significant portion of the discussion revolved around customer experience governance and getting funds for projects. There was clear agreement in the room on needing CX leaders at the top levels of management. For instance, the CCOs were saying:

  • “Customer experience loses at the corporate budgeting level. You need to be there or have an exec like the CFO fighting for you there.”
  • “Get on the decision-making body for investments and make sure you at least have veto power over projects.”
  • “When I’m making the business case for CX-related projects and pushing it up to the C-level, I always build ranges into the outcomes (e.g., reduce churn by 0.5% [worst case], 1% [middle case], and 2% [best case]; increase word of mouth by 2% [worst case], 5% [middle case], 10% [best case]). I get less argument about even the low number . . . people are overly optimistic.”
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Isn't It Time To Move Beyond Alignment?

It's strange, but some things about the CIO role change very little from year to year -- and one of the most consistent priorities for CIOs has always been achieving better "alignment" with “the business.” But should this really be a top priority?

I can’t help it, I really dislike the term “alignment” -- it suggests to me that CIOs are trying to bring together two separate and distinct things: “the business” and “IT.” But the really successful CIOs already know this specific language sets everyone up to perceive IT as something apart from the business. And we all know that every business has technology woven intricately throughout -- to suggest technology is not a vital part of business success is simply wrong. So instead of talking about aligning IT with the rest of the business, we need to focus on ensuring the business is using technology to achieve defined goals and deliver business results.

Unfortunately, for many companies, IT appears to be in the software development business -- responding to “orders” from “internal customers” and busily delivering applications. CIOs need to ask: “what business are we in?” For most CIOs, the answer will undoubtedly NOT be the technology business. For these CIOs, the most precious skill IT can bring to the organization is business knowledge and process understanding coupled with technology know-how. By helping identify how technology can change the business dynamics and move the organization more efficiently toward its objectives, IT becomes the foundation for competitive advantage. In other words, IT needs to be in the business of helping shape business strategy.  

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