"Know Thy Customer"
That may sound like a no-brainer, but how can CIOs truly understand the needs of their customers, whether external or internal? To find out, Smart Enterprise interviewed several experts on the subject of customer-centricity. Here are their tips for CIOs who wish to enhance their customer focus.
By Paul Hyman
ESTABLISH A POWER BASE by
developing a program of systematic customer
satisfaction surveys, says Curtis
Bingham, president of Predictive Consulting
Group in Littleton, Mass.
"You need to have a way of measuring
where you are now and where you are
going," Bingham says. CIOs who can't
make the case that their customer-centric
programs are reaping rewards could be in
trouble, he warns, "As soon as budgets
start feeling any pressure, they will be the
first things to be cut."
Bingham further recommends that CIOs
begin by surveying their internal customers.
"When internal customers are satisfied
that you're meeting their needs and helping
them get work done on behalf of the
outside customers, you start establishing a
power base," he says. Then, when the time
comes to defend the IT budget and activities,
he adds, "you have the power base
from which you can draw."
The initial survey could ask marketing
how well the CIO is enabling them to do
their lead generation, their market segmentation,
their data analysis and so forth, says
Bingham, adding, "In other words, how well
are my departments enabling you to do your
job, which brings in money for the company?"
CREATE TRUST within your own
company, recommends Craig Lawton,
senior partner and managing director at
Boston Consulting Group.
One of the biggest issues affecting IT is
a lack of transparency regarding what the
IT department does within the company,
Lawton says. "Not everyone completely
understands what IT does for the business,"
he explains, "from the business benefits
that will be achieved by IT's efforts, to
the metrics used to measure IT's contribution
to the bottom line."
To deal with these multiple misunderstandings,
one savvy CIO composed a
"state of the union" letter at the end of each
year, then delivered it to all his key internal
customers, Lawton recalls. "Basically, it
said, 'Here are our seven key initiatives,
here's what they cost and
here is how those initiatives
are benefiting the company,'"
Lawton says. The
tactic has "done wonders" for
making the efforts of the
CIO's groups transparent, he
adds. More important, that
CIO has also gained trust
— and support — from his
organization.
BECOME INTIMATELY
FAMILIAR with the business
of your customers' companies, not
just their technology needs, advises Dr.
Michael Hammer, president of Hammer &
Co. Inc., a business education and research
firm in Cambridge, Mass.
"Technology per se is diminishing as
the focus of the IT organization," Hammer
says. "The IT organization was originally created
because technology was difficult and
quirky. But that's not so true anymore."
What the IT organization is really about
now, Hammer adds, is not computer systems,
but business systems. What's more, IT
will be increasingly called on to solve a
broad range of customer problems. "IT is
being called on not just when the customer
needs a new computer system, but also
when it needs a new way of doing business,
which happens to be supported by a new
computer system," he explains.
This new role for CIOs and their staffs
is analogous to Louis Gerstner becoming
CEO of IBM in the early 1990s, Hammer
says. "Gerstner wasn't a computer guy; he was
a customer guy," Hammer explains.
"Similarly, the CIO will need to be a customer-
focused business person, rather than
an inward-focused technology person."
LEVERAGE TECHNOLOGY to evaluate
the effectiveness of your customercentric
activities, says David Hicks, CEO of
London-based Mulberry House Consulting.
CIOs can use new technology
platforms to ask
external customers how
they're doing, Hicks says.
These include "customer
experience man agement"
services, which capture and
deliver customer experience
information.
Not only do you get the
results in real time, but the
responses also have a high
correlation with business
performance, Hicks says.
"As CIO, you can report
back to your organization that these are the
elements that are working for your company
to create advocates," he explains.
"Conversely, these are the elements that
are creating detractors."
These platforms can also alert and warn
CIOs when their company is at risk with a
particular customer. They can even indicate
which services or features need to be fixed
immediately. "These are powerful tools,"
Hicks adds, "and they can enhance the customer-
centric image of any CIO."
Paul Hyman is a freelance writer who reports on technology.
He was formerly editor in chief of Electronic Buyers' News
and GamePower.