Transformation: Brief Exploration Of Two Radically Distinct Customer Experience Paradigms

What Is The Context For This Conversation?

I am following the lead taken by Dawna MacLean in her recent post on encouraging businesses to become more human. It occurs to me she is a brave lady worthy of admiration and respect. I dedicate this post to her, in service of the stand she is taking and the possibility that she is living from and into.

There are many actions that I regret. Few bring me shame. One in particular is etched within me despite it occurring ‘a lifetime ago’.  I reckon I was 14 at the time, walking, alone, on my way into the town centre. I am stopped by an old lady, she has a walking stick, she tells me she is lost, she asks for directions. I draw closer to hear-understand what she is saying. She smells! I tell her that she need to turn around. I tell her she is only ten minutes walk from her destination. And I spell out the directions – twice.

A voice speaks to me along the following lines: “Take her hand, walk her there, it is even on your way somewhat. Without your help she will struggle.” Another voice speaks: “She smells awful! You are in a hurry and it will take ages to take her there. You have given her what she asked for. She’ll be fine.” I listen to the second voice, leave her to make her own way, and I walk into town.  I cleaned up a lot of history whilst participating in Landmark Education. And that is one that I never got to clean up.  If that old lady were here today, I’d ask for her forgiveness.

Why am I sharing this with you?  So that you have the context from which to make sense of what I speak-write.  I write is not to help you make it: sell more, be more successful, obtain higher status, live happily ever after.  I write to open eyes, unblock ears, touch hearts. I write to encourage-facilitate a shift of worldview. I write from the possibility of meaningful-fulfilling human lives and the possibility of a ‘world that works for all, none excluded’.  Arguably a world that works must include meaningful-fulfilling human lives.  And such a world has plenty of space for businesses that do great by doing good: enriching human lives, and life as a whole.

What Is The Experience That Goes With Transformation?

The last post ended with “So the challenge of Customer Experience is the challenge of a transformation in worldview.”  When I speak transformation, what am I pointing at?  Look at the following picture, keeping look at it until a shift occurs in what you see.

Gestalt Shift Cuble

 

What occurred? If you are like me then you probably started out seeing a small cube sitting inside of a an ‘open box’ and then came a moment when you saw a big cube from which a small cube (left hand corner) was cut-out, missing.

Please notice, the reality (that which is) has not changed. It is the same picture – nothing about the picture itself changed. Yet, that which you perceived-saw changed and you had something like a surprise: an ‘aha’ experience.  Why?  Because the perceptual switch that occurred was not simple a change-adjustment-variation of what you saw originally. What you saw was distinct from what you had seen earlier. Put differently, a transformation occurred in your seeing.

What can we learn from this?  Given the same ‘that which is so’ you made sense of it in two distinct ways.  And, this is important, each way of seeing ‘that which is’ occurred as natural, correct and absolute whilst is was occurring the way it was occurring for you. Only by looking at the picture for a sufficient period of time, in a specific manner, did the gestalt like shift in your seeing occur. And when it did occur, it occurred in an instant.  Transformation is like that.

Now think of business and organisational life and apply that which you have experienced here. And learned. Ask yourself this question: is the way that the business world is ‘pictured and talked about’ the only way of picturing and talking about it?  Is it possible that there are many ways of picturing, talking about, and showing up in the business world?  I say that there are numerous ways of seeing-interpreting the business world – that the number of ways is only limited by our imagination AND the influence-strength of the dominant paradigm of seeing.

Customer Experience: Two Radically Distinct Paradigms

Let’s take a brief look at each in turn.

CX Model 1: The Dominant Way of Seeing-Using Customer Experience

It occurs to me that a lot has been written about Customer Experience. For me most of it shows up as shallow, or simply putting ‘lipstick on the pig’.  What am I pointing at when I speak that which I have spoken. Take a look at the following picture:

Dominant Model of CX
Dominant Model of CX

In this way of seeing, Customer Experience is viewed-treated simply as a means of:

  • Increasing revenues
  • Reducing or containing costs e.g. through using lower cost channels to ‘serve’ customers; and
  • Risk management given that every customer has access to a smartphone and social media and thus is in a position to damage brand-corporate reputation.

The goal of business within this dominant paradigm is that which it has been since the ascendency of shareholder value and ‘greed is good’ ethos. This goal is characterised by a focus on self (oneself and one’s tribe), and greed: to extract as much value as possible in the short-term. Any value created for the customer is the minimum that it is necessary to create in order to extract as much value for ‘Self”.

Within the dominant paradigm, CRM (including social CRM) is simply a technology that is used to augment-strengthen the existing business logic: getting as much money out of the customer as possible whilst giving away the minimum; and getting as much value (productivity) out of employees whilst giving back the minimum.

Finally, in this model (as practiced) the deep business logic stays the same. Competition rather than collaboration. Self at the expense of others. Efficiency rather than effectiveness…… Importantly, people are neither trusted nor treated with respect and accorded the dignity that goes with being a full human being; threat, fear, and game playing are pervasive.

CX Model 2: A World Waiting To Be Invented, And Mastered By Few

I call the second model ‘A World Waiting To Be Invented’ because it is only practiced-mastered by a few. The rare few that come to my mind include: John Lewis/Waitrose, USAA, and Amazon/Zappos.  What constitutes this second model? Here is a picture:

 

A World Waiting To Be Invented
A World Waiting To Be Invented

In this model Customer Experience is a subset of Experience. Experience encompasses the experiences of all the participants-actors-stakeholders: customers, ‘partner’s (the people who actually work in the organisation and create value for customers), value chain partners (suppliers, channel partners, outsourced partners…), and the community.

The ‘Goal’ of the business within this paradigm (way of seeing the world of business) is one of creating value for and sharing this value with the whole system (all the participants, all the stakeholders). Such a business is focussed on making a contribution and serving: enriching the lives of all participants. And usually takes a stand and operates from-into a specific possibility. Take a good look at the John Lewis constitution and you will see the stand and the possibility spelled out. Read Jeff Bezos’ annual letters or Tony Hsieh’s book, Delivering Happiness, and the possibility-stand is clearly articulated.

In the model, the business logic of the organisation is designed-operated from the context of creating-generating the kind of ‘Experience’ that is mandated the ‘Goal’.  Put differently, the ‘Business Logic’ now serves as the means of delivering the Experience.  Not the other way around.  Put differently, ‘Experience’ precedes’ Business Logic’.

From where does the design of ‘Experience’ flow?  From the ‘Goal’. Remember the goal is to cater for the needs-welfare of the whole. Which is why ‘Experience’ encompasses all the actors, all the stakeholders.

In this way of looking at the world of business, and according to me, Customer Experience takes it’s rightful place. Rather than dominating the discussion, Customer Experience is seen for what it is, just one component whose meaning-impact comes from how it fits into the other components of Experience. And how it gives life to the ‘Goal’.

What becomes of CRM in this model?  CRM systems are simply tools to give life to the ‘Experience’ that the organisation is committed to creating-generating.  As such CRM systems must take into account the needs of Customers and ‘Partners’ (people who will use the systems) and deliver the kind of experience(s) that these folks are looking for.

Enough for today. I may elaborate on these models in the future. If you find yourself moved to share your thoughts then I invite you to do so.

 

What is the ‘secret sauce’ of success?

What is the ‘secret sauce’ of this company’s success?

I was at a gathering where the topic of ‘secret sauce’ came up in the context of the ‘secret sauce’ of the company’s success.  After the main forum I ended up in a conversation with two colleagues  – one of whom (D) had posed the ‘secret sauce’ question and other of whom (J) has been working with me on a recent consulting engagement.  Talking about ‘secret sauce’ J pointed out what he sees as my secret sauce: analytical skills, financial skills, workshop facilitation skills, consulting skills, being straight with clients, articulating my point of view, getting along with people……

What is my ‘secret sauce’? Is it what it seems to be?

Does my secret sauce come down to a bunch of skills, behaviour, frameworks and tools?  Is it possible that what J is pointing at are simply the visible aspects of the iceberg and the ‘secret sauce’ is hidden from view especially from those with a scientific orientation which neglects the inner dimensions of the human being? If I have a ‘secret sauce’ then it lies in my inner dimension – my being, my stance, the context from which I operate, how I see myself.

What if I told you that my ‘secret sauce’ is CARING?  I care deeply about this client – the people who have placed their trust in me. I care deeply about the what we (the client and I) are up to – the project we have taken on, the outcome which we wish to manifest in this world. I care deeply about the impact this will have on the lives of prospects and customers who touch this business.  I care deeply about how it will impact/improve the lives of the people who work within this business;.  And I care deeply about excellence – doing great work impeccably.

What if I told you that my ‘secret sauce’ is the conscious choice to operate from a context of service and of contribution – of making a difference to the quality of our lives and the ‘workability’ of the world that we share?  Yes, I am straight with people and that includes sharing/disclosing what they do not necessarily want to hear.  What J does not see is that I can only be straight because this being straight arises out of this context of service.  What J does not see is that when it does not matter, when it does not contribute to the game I am playing, I strive to keep my mouth shut.  Furthermore, what J does not see is that in my consulting work I operate from the  educational/coaching paradigm:  I help clients see, explore and get to grips with the options that are available to them and once this is done I make it clear that the responsibility for choosing the path lies with them as it is ‘their baby’ and I am simply the ‘midwife’ – they have to live with the consequences of their choices whereas I can walk away.

Lessons

Am I sharing this with you because I am on an ego trip today?  Possibly and I hope not.  I am sharing this with you to point out the following:

  • We live in a culture where the default is to look for success recipes that take away the inherent uncertainty, unpredictability, messiness of life and replace it with certainty, security, guarantees;
  • The number of explanations for anything that shows up is limited only by the number of worldviews / ideologies / perception filters that are available and used to make sense of the ‘situation/data at hand’;
  • We live in a culture where our search for these recipes is often only on the outside – that which is visible to the naked eye;
  • Often the recipes don’ work out because we only looked at the surface and did not dig deeper to get at the true ‘secret sauce’.

This probably occurs as ‘abstract and intellectual’ to you so let me share some example with you to make it more concrete.  Lets start with Honda to show how smart people can come up with multiple interpretations based on their worldview or the secret-sauce they want to promote (because they have a vested interest in promoting it).

Honda: what was the secret sauce behind Honda’s successful entry into the US motorbike market?

What accounts for Honda’s successful entry into the US motorbike industry back in the 60s/70s?  The answer depends on the worldview that you hold, the lens that you use to pose that question and dig around for answers.  Here are three different answers due to three different lenses:

“The first is the BCG Report [1975] story of Honda’s cost advantage, developed (the story goes) by the successful exploitation of scale and learning, and of the “segment retreat” response of British and American competitors. Anyone who received an MBA between 1979 and 1985 was almost certainly exposed to this version of history.

The second, explicated by Pascale [1984], offers a revisionist account of Honda’s motorcycle success.’ According to Pascale’s interview with six Honda executives, the company’s early scale in Japan came from its having a better product, flowing from design skills. Furthermore, Honda did not “target” specific market segments in the U.S., but rather showed an ability to experiment, to learn quickly from mistakes, to rapidly revise design problems, and thereby to discover opportunities.

The third, described by Prahalad & Hamel [1989, 1990], couples Honda’s success in motorcycles with its successful entry into the U.S. automobile market. Here the center of the story is Honda’s remarkable ability to go from “nowhere” to prominence despite the earlier entry of very efficient competitors like Toyota and Nissan. Prahalad and Hamel have given the names “intent” and “stretch” to the processes which underlay this success and the name “core competence” to the central skills and abilities that Honda built upon.”

If you want to read more then check out / download the following:  HONDA Enters Into US

Zappos: what is the secret sauce?

If you read about Zappos the taken for granted answers are: culture and wow service.  One or more astute observers have also noted logistics – Zappos wow service is enabled in part because Zappos has a finely tuned logistics operation that can get goods quickly to customers.   So is that the secret sauce?

I say that these are simply the visible manifestations of the secret sauce.  I say that if you read “Delivering Happiness” by Tony Hsieh you will find that the secret sauce is Tony Hsieh.  Tony has a particular philosophy: living a meaningful life, an affinity for people, an affinity for fun, strongly family ethos, a desire to get into and be a part of the nuts and bolts of business, getting that when you create happiness you are the first one to be lifted by this happiness.  And everything that is visible at Zappos is a manifestation of Tony Hsieh.

Starbucks: what is the secret sauce?

Is it the quality of the coffee?  Is it the location of the stores?  Is it the layout / feel of the stores?  Perhaps it is the baristas that serve customers?  Maybe it is the machinery and the processes?

From where I stand I am clear that the secret sauce is Howard Schultz.  Go read “Pour Your Heart Into It: How Starbucks Built a Company One Cup At a Time” and “Onward: How Starbucks Fought For Its Life Without Losing Its Soul”.  Read deeply enough and you are likely to find that Starbucks is simply the manifestation of Shultz’s love of coffee, the coffee experience and his stance/relationship towards ordinary people.

Schultz knows first hand what happens to people and families when people are not treated well, recognised, acknowledged, not given an opportunity to develop, to progress, to shine.  So is it a surprise that he fought so hard to give the barista’s – part time employees – pay and rights (including medical coverage) that were unheard of in the retail industry?

What happened when he handed over the reins?  Starbucks did lose its soul – the person who replaced Shultz was not Schultz and did not live Shultz’s philosophy  when it came to the quality of the coffee, the coffee experience, how people should be treated…..  Incidentally, I do know that Howard Behar and is philosophy about people and relationships complemented and made a big impact on Schultz and how he ran Starbucks.

Final thought

Be skeptical of any and all ‘secret sauces’ that are put forward.  Why?  For any phenomenon a multiplicity of stories can be constructed to explain and give meaning to that phenomenon.  The number of stories is limited only by the imagination and the number of voices that get to speak and be heard.  Furthermore, perhaps the challenge is to come up with, create, construct ‘secret sauces’ rather than find existing ones.  Where would Apple be if it had looked for the ‘secret sauce’ rather than invented it?  Where would Starbucks be?  Where would Facebook be?  Where would Google be (remember that Yahoo was the master of the online universe then)?