Implement Customer Value
4. Time needed is a realistic estimate of the time needed to complete the task
This is important for two reasons. First, it enables you to calculate the full amount of resources needed for implementation. Second, it enables each individual to be fully aware of his or her commitments and to set them against available time. One of the greatest mistakes made in implementation is over-committing time. Many old clichés are the truth and the reality in this step, for example, “If a job’s worth doing, it’s worth doing well,” “You can’t fit a quart into a pint pot.” Or for the metric-minded, “You can’t contain a liter in a half-liter jug.”
5. Desired outcome should clearly describe what is the final outcome or result of the action. Once again, we recommend a full description and not shorthand. As simple as this may be, we’ve never seen such a simple and practical linkage between the customer value commitment and an action plan in any business text.
We recommend two simple matrices in setting the priorities for cost-effective, efficient implementation of your customer value commitment.
In Matrix 1 in Exhibit 5-9, each individual action is plotted on the matrix based on their delivery of customer value and their ease of implementation. The
“Winners” actions should receive the highest priority, indicated by the A. Winners’
actions are those which most readily enable you to deliver superior customer value.
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Simple Customer Value Commitment Template
CUSTOMER VALUE COMMITMENT ELEMENT
1. To be first to the Innovator 1. To be the first to expose our customers to innovations from our customer value segment with R&D labs
innovative, leading-edge
products 2. To develop a meaningful feedback mechanism from these meetings for the R&D function
The “Strive for Improvement” actions, indicated by the B, should be your second priority. These are the actions that enable you to deliver superior customer value that you are not currently proficient in providing. For those actions in the “Wasted Energy” sector, focus on reexamining the actions against the value drivers of your target customer value segments to identify your capabilities that add no value. Either take away the value-added things you do at a cost to you that have no value for the
STEP 3: CREATE—CREATE CUSTOMER VALUE 95
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Customer Value Commitment Action Plan Template
CUSTOMER COMMITMENT ACTION PLAN
CUSTOMER ENHANCED
COMMITMENT DETAIL ACTION PLAN
Customer Commitment Action By By Time Desired
Value Element Detail Whom When Needed Outcome
1. To be first 1. To be the 1. Define a Marcom 31 November 2 person A one-year to the Innova- first to expose monthly R&D Director 2002 days schedule
tor customer your customers outputs review arranged with
value segment to innovations with key cus- customers in
with innovative, from your R&D tomer value the target
leading-edge labs segments customer
products value segment
for monthly R&D reviews 2. Commit one- R&D 15 November 0.5 person Ensure that half day each Director 2002 days each customers will
month to sharing month be able to
your latest capa- quickly benefit
bilities and tech- from our latest
nologies with the ideas and
customer value technology
segment 2. To develop a Etc.
meaningful feed-back mechanism from these meetings for the R&D function 2. Etc.
3.
customer or shift these actions to “Winners.” “Loser” actions receive the lowest or no priority and probably should be removed from your action list.
The classification in Matrix 2 in Exhibit 5-10 is based on Ease of Implemen-tation of the customer value commitment and the Impact on customer value or your business results. Focus on the “Must-Do/Quick Hits” actions, the A in the
“High/High” sector of the Matrix. The second priority is B, “Strategic Wins,”
where the impact is high despite the difficulty with implementation. The actions in the high ease of implementation—indicated by the C in the “Low Impact” sector—
may be infrastructure items which still need to be undertaken.
The rule is that you need to prioritize all actions required to implement cus-tomer value in the cuscus-tomer value segments, define and design the organization required to create and deliver customer value, and deploy resources appropriately for the customer.
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Action Prioritization Matrix for Implementing Customer Value Commitment
DELIVERS CUSTOMER VALUE
LOW HIGH
Wasted Energy Winners
A
Losers Strive for Improvement
B FITS YOUR CAPABILITIES LOWHIGH
K E Y I N S I G H T S
1. Customer value processes must be identified, defined, and implemented. This goes against the concept of focusing on core competencies and insists that the company’s activities be aligned to excellence in the processes necessary to deliver superior value to the customer.
2. Link staff motivation to customer value delivery through training and development programs, scorecards, and compensation systems.
3. Plan customer value processes before defining, designing, and investing in infrastructure.
4. Lead all customer value creation from the top.
5. Link all actions to the elements of the customer value commitment—if they don’t add customer value, don’t do them. And prioritize all actions based on customer value creation, business impact, and ease and capability of implementation.
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Impact Prioritization Matrix for Implementing Customer Value Commitment
IMPACT ON CUSTOMER VALUE/BUSINESS RESULT
LOW HIGH
Infrastructure Items Must-Do/“Quick Hits”
C A
Why do? Strategic Wins!!
B EASE OF IMPLEMENTATION LOWHIGH
C H E C K L I S T
❑ Have you developed a customer culture throughout the organization and empowered the workforce to implement it? Is it led from the top?
❑ Have you planned the key customer value processes?
❑ Have you populated your customer value processes by defining the requisite people skills and competencies, deploying people resources, training and developing the staff, and measuring and compensating for value performance?
❑ Have you invested in an infrastructure to deliver customer value by building knowledge management systems, defining a channel strategy, and selecting channel partners and using E-commerce where appropriate?
❑ Have you implemented a customer value orientation by planning and prioritizing your actions, defining and implementing organizational structure to support customer value, and deploying resources accordingly?