Webinar Customer Experience Governance What Why And How

Webinar Customer Experience Governance: What, Why, And How Megan Burns, Principal Analyst Ron Rogowski II, Vice President, Principal Analyst April 25, 2013. Call in at 12: 55 p. m. Eastern time @mbcxp @ronrogowski

Constraints Restrictions Bureaucracy Micromanagement © 2013 Forrester Research, Inc. Reproduction Prohibited 2

Checks and balances

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› Regulations › Testing › Review › Approval

“O-rings” © 2013 Forrester Research, Inc. Reproduction Prohibited 7

Governance can deserve its bad name › Rigid › Arbitrary › Misdirected › Siloed

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Agenda › What is customer experience governance? › Why do companies need it? › How can you build a systematic customer experience governance process? © 2013 Forrester Research, Inc. Reproduction Prohibited 11

Agenda › What is customer experience governance? › Why do companies need it? › How can you build a systematic customer experience governance process? © 2013 Forrester Research, Inc. Reproduction Prohibited 12

What is CX governance? › The way in which a company directs and controls

Reactive Proactive © 2013 Forrester Research, Inc. Reproduction Prohibited 14

Reactive CX governance: find and fix Measure CX quality. Implement changes. © 2013 Forrester

CX metrics and feedback Ideas Approval process Projects © 2013 Forrester Research, Inc. Reproduction

Steering committee

Marketing Business process management Finance Support Customer advocacy council Product dev Business unit No. 1 Business unit No. 2

Customer advocacy council Business process improvement council

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Maersk governs globally Enterprise CX council (13 members, cross-functional) Country council . . .

Multilevel structures are common Executive steering committee Working-level steering committee © 2013 Forrester Research,

A large insurer’s digital structure CX group (some members embedded within business units) Business

Many digital CX orgs look like this Source: February 12, 2013, “Digital Customer Experience

CX steering committees must have: › Clear business priorities. › Decision-making responsibility. › Alignment with core planning processes. › Dedicated funding to allocate. © 2013 Forrester Research, Inc. Reproduction Prohibited 26

Customer feedback Ideas Approval “Customer lens” process Projects © 2013 Forrester Research, Inc. Reproduction

Existing governance processes don’t go away; they just change › Annual planning › Product development › IT planning and development › Channel management › Communications › Partner/vendor management © 2013 Forrester Research, Inc. Reproduction Prohibited 29

Customer feedback Ideas › › › Approval How will this project affect the customer experience? process Is the change in line with our customer experience strategy? How does the CX change affect the project’s financial/risk profile? © 2013 Forrester Research, Inc. Reproduction Prohibited 30

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Product launch criteria © 2012 Forrester Research, Inc. Reproduction Prohibited 33

KPMG International Cooperative Internet-enabled TVs Laptops and large screen computers © 2013 Forrester Research,

Mercedes-Benz USA

Agenda › What is customer experience governance? › Why do companies need it? › How can you build a systematic customer experience governance process? © 2013 Forrester Research, Inc. Reproduction Prohibited 36

Poor CX governance is costly Category Cost Customer consequence Systems redundancies › › Increased support costs › › Increased publishing and maintenance costs › › Content redundancies Poor decisionmaking Uncoordinated marketing efforts › › › › Excess licensing costs Inefficient reuse across business units and channels Lost productivity Slower time-to-market Focus on low-impact projects Increased spend on creative Increased search marketing costs › › › Poor handoffs Multiple layers of authentication Content errors Unmet cross-channel expectations Unmet expectations Degraded brand value Lowered switching costs Disjointed messaging Mismanaged expectations Scattered brand image Source: February 12, 2013, “Digital Customer Experience Governance Demystified” Forrester report © 2013 Forrester Research, Inc. Reproduction Prohibited 37

Agenda › What is customer experience governance? › Why do companies need it? › How can you build a systematic customer experience governance process? © 2013 Forrester Research, Inc. Reproduction Prohibited 38

Start with a reactive “find and fix” process Measure CX quality. Implement changes. ©

Define the four parts of the reactive CX governance system Component People Processes Tools Policies © 2013 Forrester Research, Inc. Reproduction Prohibited Description › › › › › Who needs to be on our steering committee(s)? How many do we need? At what level? How often should they meet? What are their roles and responsibilities? How do they interface with the rest of the organization? What inputs will members need to perform their tasks? If those don’t exist, who is going to create them? What level of participation is required? What prioritization criteria will we use? 40

Use other disciplines to create a strong foundation for governance Strategy Customer understanding Experience vision and design Design Measurement Indicators of successful delivery Governance Culture © 2013 Forrester Research, Inc. Reproduction Prohibited Desire to change behavior 41

If the steering committee needs. . . The centralized CX team must: Customer experience strategy. . . Kick off a project to define one. Customer experience measurement. . . Define the measurement framework. Cross-organizational coordination. . . Convene regular committee meetings. Program management. . . Track the master list of CX projects. Aggregated customer insight. . . Keep a centralized insight repository. © 2013 Forrester Research, Inc. Reproduction Prohibited 42

Evolve from reaction to prevention over time. 43

Embed a “customer lens” into existing governance processes one at a time › Pick a few “CX-friendly” governing bodies to start. › Conduct CX impact assessments alongside project sponsors. › Package the tools and methodology for reuse. › Train others to adopt them in their processes. › Make a list of mistakes avoided to build your case for adoption in other parts of the business. © 2013 Forrester Research, Inc. Reproduction Prohibited

Thank you Megan Burns mburns@forrester. com Twitter: @mbcxp Ron Rogowski rrogowski@forrester. com Twitter: @ronrogowski