The word 'transformation' is probably one of the most overused words in business and IT. I put my hands up and confess that in the past, as an enterprise management consultant, I have tagged IT management solution projects as 'transformations' as it just sounds so much sexier than the word 'change' or 'implementation'. Come on, you have to agree it does, doesn't it? But my call to you today is to help Forrester to eradicate the abuse of this word during 2013.
How can I help? We are currently working on The I&O Practice Playbook at Forrester which looks to address the I&O organisation of the future in terms of its people, process, technology and culture. Before I go on any further, I am going to say that in order to get to this 'future', I&O organisations really do need to go through true 'transformation' which can be defined as:
A major shift in people, processes, technology and culture. An example is an IT organization which wants to transform to be more customer-centric. The vision to be customer-centric will potentially require a change to people (skills, recruitment etc), process (structure, activities, measurement etc) technology (end-user, infrastructure etc) and culture (fostering customer-centricity).
Chris and I recently published a report describing how to build risk and compliance principles into your company’s corporate culture. As we worked to finalize, edit, and publish the report, a flurry of new corporate scandals emerged, all related to this topic.
Here are just a few of them:
Wal-Mart executives accused of trying to hush up bribery cases in Mexico (article here).
A whistleblower accuses Infosys of engaging in a systematic practice of visa fraud (article here).
A former Goldman Sachs employee writes an op-ed for the New York Times blasting the company’s ethics (article here).
JP Morgan suffers a $2 billion trading loss due to “poorly monitored” trades (article here).
The only way your company will differentiate based on customer experience is if the culture of your organization aligns closely with the brand promise to customers. Zappos CEO Tony Hsieh puts it in his blog post entitled “Your Culture Is Your Brand”: “Advertising can only get your brand so far . . . So what’s a company to do if you can’t just buy your way into building the brand you want? In a word: culture. At Zappos, our belief is that if you get the culture right, most of the other stuff — like great customer service, or building a great long-term brand, or passionate employees and customers — will happen naturally on its own.”
When Forrester looks at building a customer-focused culture, we believe firms need some precursors in place, such as a clear strategy and vision, metrics that reflect customer perceptions, and governance mechanisms that set standards and hold people accountable for changes.
Once those are in place, rewards systems are one powerful lever to keep employees focused on what’s important. My colleague Belle Bocal and I identified nine ways that companies use reward systems to build a customer-centric culture.
Celebrate Target Behavior
Many companies make the mistake of trying to tie variable compensation (e.g., bonuses) to customer experience metrics too early. What many firms have learned is that the more informal recognition programs can be even more powerful at moving culture than the compensation metrics.
ITIL, the IT service management (ITSM) best practice framework, is now in many ways bigger than its “master” — IT service management. From its origins in the UK government, its use has grown rapidly in the last decade and ITIL continues to dominate corporate thinking in IT operations, IT support, and IT service delivery best practice.
There are many potential benefits from ITIL adoption, particularly around productivity, service quality, business reputation, and cost savings. However, ITIL is fraught with adoption challenges that could be prevented or at least minimized through better planning and execution.
The key ITIL adoption challenges and pitfalls (at a very, very high level)
Focusing too much on the reactive elements of ITIL and ITSM (for some, however, this might be enough).
Overstating ITIL and ITSM adoption levels – “We do ITIL.”
Overstating ITIL and ITSM maturity – where IT infrastructure and operations (I&O) organizations often think that they are more advanced than they actually are – “We have a super-duper service catalog.”
Not focusing on the customer and business outcomes.
Lacking momentum post technology implementation project.
Noticeable dissatisfaction with traditional service desk tools.
With people-related challenges to be found in most if not all of the above.
Want more detail on the challenges?
These are explored in greater detail in the Forrester report from which this high-level extract is taken:
Like it or not, government services face many of the same pressures that companies face. Companies like Amazon.com, USAA, Disney, and Zappos.com raise customer expectations when they deliver stellar service. As they raise the bar, other companies and government agencies risk getting fired when they fail to deliver the value that customers expect, make customers jump through hoops to access it, or begrudgingly deliver it through unengaged employees. Customers and citizens simply choose to take their money elsewhere.
It’s through this lens that I’ve watched the recent battles over state budgets and public employees along with their unions. When citizens don’t perceive they're getting a good value for the buck, they take their money elsewhere, even if that is through the ballot box — no wonder, when the citizen experience is so often sub-par.
Here are a few examples I’ve witnessed just in the past couple weeks: A group of on-duty cops spend an hour drinking coffee in Starbucks when people don’t feel comfortable walking around the streets a few blocks away; DMV workers look bored and move at the pace of sloths while I spend an hour waiting in line, even though they’re likely making way more money than the waitress at a local restaurant who’s super-friendly and efficient; a public transportation worker holds a sign at a street car stop urging people to smile, even when the lines often experience large delays; a gruff postal worker begrudgingly gets off his stool to get my package and then throws it on the counter.
I visited a client recently, a large company with global operations and a large application delivery organization. A senior VP in charge of a large part of that organization told me an interesting story about its experience with a change in the way it approaches EA over the past few years. In brief, he said:
“A few years ago our architects were mostly dispersed into various parts of the delivery organization; we didn’t have an EA group.
“Then we recognized that we needed an EA group to better manage our use of technology, so we pulled those people out of delivery and formed them into an EA group.
“Since then EA has spent a lot of time understanding our business, building capability maps, and focusing on a more strategic level.
“But now I’m hearing cries of anguish from the delivery teams that they don’t have enough direct engagement and support from the architects in their delivery efforts. The delivery teams are concerned that EA has moved too far away from the actual delivery of business value, that EAs are not helping enough, and that it’s harming the effectiveness of the delivery organization.”