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The power of the operating model in customer experience | McKinsey
Source: mckinsey.com
Article summary:
1. Redesigning the customer experience (CX) organization and operating model is crucial for CX transformation success, with companies that effectively manage CX realizing significant improvements in customer satisfaction, sales conversion, cost-to-serve, and employee engagement.
2. To avoid common pitfalls in CX organizational transformations, companies should clearly define their CX ambition, focus on agile cross-functional collaboration rather than formal reporting lines, establish decision-making criteria based on CX principles, take a holistic approach to organizational redesign, and minimize functional silos.
3. Companies can integrate CX into their commercial organization and operating model by establishing clear design principles and capabilities in line with CX ambitions, translating these principles into an actionable CX blueprint, and bringing the redesigned organization to life through systematic change management and an effective day-to-day operating model. The ideal approach will depend on the company's business archetype.
Article analysis:
The article "The power of the operating model in customer experience" by McKinsey provides a comprehensive guide for companies looking to transform their customer experience (CX) organization and operating model. The article highlights the importance of integrating CX into the organization and operating model, which can lead to significant improvements in customer satisfaction, sales conversion, cost-to-serve, and employee engagement.
The article presents three key areas that companies need to focus on when transforming their CX: building aspiration and purpose, transforming the business, and enabling the transformation. It also provides clear design principles for creating a customer-centric organization, such as cross-functional collaboration, data-driven decision making, and minimizing functional silos.
However, the article does not provide enough evidence or examples to support some of its claims. For instance, it states that companies that effectively organize and manage customer experience can realize a 20 percent improvement in customer satisfaction but does not provide any specific case studies or data to back up this claim.
Additionally, the article seems to promote McKinsey's consulting services by providing a step-by-step plan for companies to follow when integrating CX into their organization. While this may be helpful for some readers, it could also be seen as biased towards McKinsey's services.
Furthermore, the article does not explore potential counterarguments or risks associated with transforming an organization's CX. For example, it does not address how changes in organizational structure could impact employee morale or how implementing new processes could lead to resistance from employees.
Overall, while the article provides useful insights into transforming an organization's CX organization and operating model, it could benefit from more evidence-based examples and a more balanced approach towards promoting consulting services.
Topics for further research:
Risks associated with transforming CX organization
Impact of organizational structure changes on employee morale
Resistance to new processes in CX transformation
Case studies of successful CX transformations
Criticisms of McKinsey's CX consulting services
Best practices for measuring CX improvements