I've started reading the Walter Isaacson biography of Jobs this week to try to answer a question on my mind since Mr. Jobs passed away last month: Can Apple sustain its leadership position?
Few can argue that during the past 10 years Apple garnered huge advantages over competitors in three markets: (i) PCs (ii) phones (iii) music players. We can roughly quantify this advantage via the $60B+ sitting on the company's balance sheet and/or its stock performance from a split-adjusted $4.00 price in 1997 to $400.00 in 2011. But is it possible that the decisions of one man have had this kind of impact?
My current thinking is that Apple's advantage will erode; and thus, it was Mr. Jobs that enabled the company's success. He excelled tremendously at two basic things, making decisions and understanding customers. And he did this perhaps better than any CEO in history. What resulted is a business optimized to utilize technology towards customer needs more seamlessly than anything the world had seen before.
So if Jobs created the competitive advantage, then it is certainly possible that the company did not develop capabilities that can translate into future innovation over time.
In a great piece on strategy building, Heather Fraser, of the heavily design-influenced Rotman School, wrote about Apple's strategic "Activity System" (See page 8). Looking at Apple's capabilities we find a web of interconnected and mutually supporting activities at Apple. Its not surprising that "Integrated User Experience" sits at the center.
What Jobs brought to the fold was customer focused user experience, and this is at the center of Apple's success. Only time will tell if Mr. Jobs successfully institutionalized this in the company.
Sunday, November 27, 2011
Tuesday, April 19, 2011
Employee-Centric Breeds Customer-Centric
What impact do happy employees have on happy customers? With tens of thousands of front-line employees, Starbucks is a great case study. They've built a winning employee-centric culture with their stock plans and health plans for part-time workers. Is there a better place to work 20 hours a week?
Starbucks' focus on employees comes directly from the top. Howard Schultz drives transparency in the organization that creates one of the most notable brands in the world with superior customer loyalty.
I recently picked up Howard Schultz's book, Onward, a surprisingly detailed autobiographical account of his return to the CEO seat at Starbucks. He is a strong leader that I admire because of his principles and passion. It is an amazing feat of leadership to take a retailer into the "Great Recession" and come out stronger for having gone through it.
Starbucks is relentless in its customer focus. Providing an outstanding customer experiences places this business, and its profits, among the highest in its industry. Schutlz's story is enlightening because it offers insights in particular to one source of a customer-centric business: employee focus.
For Starbucks, as with most organizations, this spirit of employees comes straight from the top. As exhibited even by the book itself, Schultz goes to great lengths to create transparency widely and broadly in the company. Transparency used correctly will engage employees. It will engage customers as well.
Successful transparency is not just in sharing the reasoning behind re-orgs or in sharing performance feedback or financial results. Customer and employee engagement for a company comes from transparency in leadership. What do the leaders believe to be true? Where do their personal convictions lay?
For Schultz, he communicates effectively based on his beliefs about what the Starbucks experience should be and who he is personally. It is this guiding light that serves to set priorities in the company. Employees undoubtedly harness this, and with free-will they build the kind of service experience that continually delights customers.
Starbucks' focus on employees comes directly from the top. Howard Schultz drives transparency in the organization that creates one of the most notable brands in the world with superior customer loyalty.
I recently picked up Howard Schultz's book, Onward, a surprisingly detailed autobiographical account of his return to the CEO seat at Starbucks. He is a strong leader that I admire because of his principles and passion. It is an amazing feat of leadership to take a retailer into the "Great Recession" and come out stronger for having gone through it.
Starbucks is relentless in its customer focus. Providing an outstanding customer experiences places this business, and its profits, among the highest in its industry. Schutlz's story is enlightening because it offers insights in particular to one source of a customer-centric business: employee focus.
"The only reason our partners can make our customers feel good is because of how our partners feel about the company. Proud. Inspired appreciated cared for. Respected. Connected."
- Howard Schultz, Onward
For Starbucks, as with most organizations, this spirit of employees comes straight from the top. As exhibited even by the book itself, Schultz goes to great lengths to create transparency widely and broadly in the company. Transparency used correctly will engage employees. It will engage customers as well.
Successful transparency is not just in sharing the reasoning behind re-orgs or in sharing performance feedback or financial results. Customer and employee engagement for a company comes from transparency in leadership. What do the leaders believe to be true? Where do their personal convictions lay?
For Schultz, he communicates effectively based on his beliefs about what the Starbucks experience should be and who he is personally. It is this guiding light that serves to set priorities in the company. Employees undoubtedly harness this, and with free-will they build the kind of service experience that continually delights customers.
Tuesday, October 12, 2010
From Satisfied Customer to Raving Fan
Enthusiasm is contagious. Just ask the teammates of a someone like the Colts' Peyton Manning. Or look at how the Net Promoter Score is calculated. Indifference won't move the needle. Perhaps satisfaction will, but the energy of delight can do wonders. The best term that I've come across for enthusiastic customers is the "raving fan."
With customer-centric strategies, hundreds of companies are creating value through innovation that creates raving fans. This goes beyond customer service however. And these are not necessarily technological breakthroughs. This is business model innovation that provides real value to customers. Customer centric strategies are commercial successes that enhance the user experience and delight customers while augmenting the supplier's bottom line.
An example:
The Situation:
A customer experience that results in indifference is a lost opportunity in my mind. I am a customer of AAA auto and they recently asked me to provide them with feedback. The first question I got was the NPS of course (Full disclosure: I gave them a 6). My only interaction with the company during the last two years was renewing my annual membership. The experience of receiving an email notification for my loyalty was chock full of indifference. Isn't my loyalty worth more than a receipt?
The Innovation:
Why not turn this humdrum interaction into an exciter? Innovate on the renewal transaction with a congratulatory package that delights the customer. To my mind, this might come in a couple of flavors: A letter highlighting how many times the customer used AAA and avoided being stranded on the roadside. A travel guide on the customer's local area to help them discover new attractions such as hiking trails or historic sites. The cost of either of these could be offset by including targeted marketing programs for add-on services or advertisements.
Would I jump up-and-down because of this? Not likely. But it would change my NPS response. When was the last time a web-based renewal gave you a memorable experience?
(Note: See McGrath & MacMillan for more on exciter product features).
With customer-centric strategies, hundreds of companies are creating value through innovation that creates raving fans. This goes beyond customer service however. And these are not necessarily technological breakthroughs. This is business model innovation that provides real value to customers. Customer centric strategies are commercial successes that enhance the user experience and delight customers while augmenting the supplier's bottom line.
An example:
The Situation:
A customer experience that results in indifference is a lost opportunity in my mind. I am a customer of AAA auto and they recently asked me to provide them with feedback. The first question I got was the NPS of course (Full disclosure: I gave them a 6). My only interaction with the company during the last two years was renewing my annual membership. The experience of receiving an email notification for my loyalty was chock full of indifference. Isn't my loyalty worth more than a receipt?
The Innovation:
Why not turn this humdrum interaction into an exciter? Innovate on the renewal transaction with a congratulatory package that delights the customer. To my mind, this might come in a couple of flavors: A letter highlighting how many times the customer used AAA and avoided being stranded on the roadside. A travel guide on the customer's local area to help them discover new attractions such as hiking trails or historic sites. The cost of either of these could be offset by including targeted marketing programs for add-on services or advertisements.
Would I jump up-and-down because of this? Not likely. But it would change my NPS response. When was the last time a web-based renewal gave you a memorable experience?
(Note: See McGrath & MacMillan for more on exciter product features).
Subscribe to:
Posts (Atom)
