Think Customers: The 1to1 Blog

Companies are naturally challenged to connect their actions across the silos. This is because each separate operating area has their own priorities, metrics and recognition systems. And this approach to 'management' is exactly what gets in the way of delivering a unified and meaningful experience to customers. Even when CEOs commit to 'customer focus' - it may not be achieved because everyone goes off and focuses on the customer in their own way.

I am not advocating a CCO as an automatic solution. But I do believe there is value to the role in the right situations. What companies do need to understand and manage for is this: Who will be the human duct tape to ensure that the silos talk to one another and begin with a unified experience? How will leaders work together to establish shared metrics? And where will the constant accountability be prodded from to ensure that this 'focus' doesn't live for one or two months of hoopla and then peter out.

The CCO does NOT create the customer focus -the CCO role - when successful should act as a unifying force for businesses who want to do the right thing but are constrained because of the natural tendencies of the silo-ed corporation to get in the way of delivering great customer experiences.

Having reported to CEO's for 25 years in this role of driving customer focus, I know and understand the pitfalls and joys of this role. If you're interested in more information, take a look at my book which explores the pros and cons of the CCO. It's called Chief Customer Officer: Getting Past Lip Service to Passionate Action.

Mark, John

I think we must be careful in placing too much emphasis on the CCustomerO in any particular organisation. Perhaps this is my European sensibilities, but many Americans seem to place too much emphasis on the "heroic leader", rather than the combined efforts of the whole organisation.

Expecting the appointment of a CCustomerO to make a company customer-centric is obviously nonsense.

Ultimately, it is up to all staff in the company to behave in a customer-centric way, whether serving them directly on the front-line or supporting those who do. This is the stuff of High Performance Works Systems, that have been shown to deliver superior results to staff, customers and shareholders alike. The CCustomerO's role is to create the environment in which a High Performance Works System can take root and flourish.

Graham Hill

I think that identifying a basis or business drivers which would require a resource (CCO) is an interesting discussion. However, I think this falls short as it is an exercise primarily rooted in metrics that have little to do with the customer.

It is my belief that the required result is clearly providing customers an advocate / responsible party who is the caretaker for all strategic operations involving customer relationships. For some companies this is ultimately “the throat to choke,” but I find this to be an overly negative presentation. A better analogy might be borrowing the sales funnel and setting a responsibility chain called the customer funnel. As people flow through, depending on the interaction, various parties and resources are engaged.

The incumbent party (maybe even a group, though these dynamics usually require a leader) would set the strategy and direction for all customer relationships, KPI’s metrics, policies, procedures, etc. Let the master data people “own” the data, it’s our interactions that drive success or failure.

In smaller organizations the responsibility for execution of the strategy would fall to this role as well. Regardless of organization size, the tactics and execution steps would likely require collaboration across the organization.

As the role grows beyond the capabilities of a single person, I believe the role would elevate within the organization. Regardless of size, in my view the successful implementation of this role requires the capability to span organizational lines, i.e. a Cxx level employ in many firms.

John, Walter

I think Walter is right; you don't need a CCustomerO when your company only has 25 employees. In fact, you probably don't need one when your company has 250 employees, maybe not even when it has 2,500!

Plenty of research has shown that historically, companies start to need formal organisation and hierarchy once they pass the point where everyone knows everyone else. Historically, that was about 100-150 employees. With modern communications, a bit of organisational specialisation and a pinch of hierarchy, that probably extends to 2,500 employees.

But what if the company has 25,000 or even 250,000 employees. Organisations this large do need a powerful C-level exec who can organise all aspects of the company to deliver the many promises that it makes to employees, customers, partners and in an equally hard-nosed way, to society in which it operates. As John points out, it is delivering against these promises, day in, day out, that really gives a company credibility.

Graham Hill

While having a Chief Customer Officer is a likely need in a larger organization; I find that in our business 25 employees that we all need to be Chief Customer Officers. Our focus as a company must thrive around the needs of our customers. It is a message that we continually discuss because if we can’t be there for our customers helping them grow their business successfully; I am quite confident that someone else will be.