6 reasons why companies continue to struggle with customer centricity

I can think of six reasons why many publicly quoted companies continue to make slow, painful, progress towards customer centricity:

  • They are publicly listed enterprises and they are expected to be shareholder centric not customer centric;
  • They make a significant part of their revenues and profits at the expense of their customers and are not willing to forgo the practices that deliver these ‘bad profits’;
  • They are designed to make and sell standard products not to create and deliver customer experiences;
  • They are structured into silos and each silo has its own agenda, priorities and metrics that makes it rather difficult to play the joined up game of customer experience;
  • The Tops are totally divorced from the day to day reality of the way that the organisation works (just watch Undercover Boss); and
  • They seem to believe that customer centricity lies in the realm of the marketing function rather than a total transformation in business philosophy, corporate strategy, management mindset and organisational design.

What do you think?

Posted on January 9, 2011, in Customer Strategy and tagged , , , , , , , , . Bookmark the permalink. 2 Comments.

  1. Hi Maz – on this one the thing we see most is that the organisation is designed and run from the inside out. It needs to be completely redesigned from the outside in (i.e. from the customer). We showed this to a sceptical FD and he suddenly realised that designing from the outside in allowed him to understand which cost buckets were delivering real value and which weren’t Road to Damascus moment

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    • Hello Bob
      Many thanks for sharing your experience. Yes, a fundamental redesign is required. The way I put it is that you don’t end up with a F-16 fighter plane by starting with a frigate and adding wings to it.

      Maz

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