Category Archives: Customer Centric Culture

The MRI: Your Business Framework for AI Leadership and Acceleration

Most businesses know they need an AI strategy. Few have the framework to make it stick or the insight to understand why the human side of implementation is where it all succeeds or fails.

We are at an inflection point. AI is no longer a future consideration, it is a present-tense competitive reality. The leaders who will define the next decade are not those who simply adopt AI tools, but those who deploy them with strategic precision: in the right places, at the right time, driven by the right priorities.

The question is no longer whether to implement AI. The question is how to implement it in a way that is coherent, motivated, and tied directly to what drives your business forward. That is precisely what the MRI is designed to answer.

“AI applied without strategic anchoring is just technology spending. The MRI changes that, it gives leaders the clarity to act, and the logic to bring their people with them.”

THE FRAMEWORK

What Is the MRI?

The MRI is a business strategy framework, methodology and measurement tool, one that organisations have used to uncover blindspots, align leadership, and unlock the drivers of sustainable growth. It did not begin as an AI tool. But in practice, it has become indispensable to AI strategy, because it answers the question that most AI frameworks never ask: where does AI actually need to go in this specific business, and why?

It sits at the intersection of business performance and AI implementation, giving leaders not just a plan, but a logic and a motivation. That distinction matters more than it might appear. In a landscape littered with AI roadmaps that stall on execution, the MRI’s power lies in its ability to connect technology deployment to the priorities that already drive the business forward.

Think of it as a diagnostic and a compass in one. Most strategy reviews will tell you what is underperforming. The MRI tells you why it matters , surfacing the specific gaps most consequential to your revenue, productivity, and profitability, and giving leadership the understanding to know exactly where AI should go and why. The result is something genuinely rare: not a sprawling digital transformation wish list, but a focused, prioritised strategy with a clear line of sight from AI implementation to business outcomes that actually move the needle.

THE STRATEGIC LOGIC

AI Applied Where It Counts

One of the most common and costly mistakes in AI implementation is treating it as a technology project rather than a business strategy. Tools get deployed. Pilots get launched. And yet, months later, leaders find themselves unable to draw a clear line between their AI investment and their bottom line.

The MRI eliminates this disconnect by anchoring AI implementation to business priorities from the outset. The framework identifies with precision which operational gaps and performance levers matter most. AI tools are then selected and deployed specifically to address those areas. This is not AI for AI’s sake. This is AI as a performance accelerator targeted, measurable, and tied to what your business actually needs to grow.

FIELD PERSPECTIVE

What the Human Side of AI Looks Like in Practice

Technology alone does not transform organisations. People do. This is a principle that resonates deeply with leaders who have worked across diverse markets and nowhere is this more evident than in the insurance sector across South Florida and Latin America, where SP&E Consultants work with the MRI has been extensive.

We have run around 15 pilots across the Insurance and Reinsurance industry in multiple regions, working with leading organisations such as Chubb, Reaseguradora Patria, Summa RE, and La Meridional.

What becomes clear very quickly through the MRI is that the difference between success and failure always comes down to PEOPLE and TRUST. After interviewing our clients’ customers, the message is consistent, they want more time, more attention, and stronger long-term relationships. These are things AI will never replace.

The MRI gives leadership teams the language to have this conversation. It bridges what AI is capable of with what the business truly needs, and most importantly, it gives employees a reason to believe in the change.”

ALEJANDRO CERÓN – SP&E Consultants

With his extensive experience in professional services, particularly across insurance, reinsurance, and technology where regulatory complexity, underwriting discipline, and client trust are paramount, Alejandro has seen the MRI reveal something that traditional technology frameworks often overlook: the human layer.

When teams understand why AI is being introduced in a specific area and can clearly see its connection to both their own goals and those of the organisation, engagement follows naturally.

LEADERSHIP & ENGAGEMENT

A Framework Built for Both Leaders and Their Teams

Successful AI implementation is not a mandate handed down from the executive level. It is a shared endeavour. It is one that requires genuine engagement from leaders and employees alike. The MRI creates a shared language and a shared understanding of priorities across the organisation.

Executive alignment on where AI creates the greatest strategic value

Cross-functional engagement built around shared business priorities

A coherent AI implementation programme, not a disconnected collection of tools

Measurable performance outcomes linked directly to AI-enabled improvements“The MRI guides your AI strategy: application of AI where it counts, to drive growth, revenue, productivity, and profit drivers.”

FROM STRATEGY TO ACCELERATION

Building an Organisation Ready to Lead

The businesses that will lead in the AI era are not those with the most tools. They are those with the clearest strategy, the most engaged teams, and the most disciplined focus on performance outcomes. 

The MRI is the framework that makes this possible, turning the overwhelming complexity of AI adoption into a structured, prioritised, human-centred programme that leaders can drive with confidence and employees can embrace with conviction.

Start with the right diagnosis. Drive AI where it matters. Build an organisation that is ready to lead.

For more information on the MRI visit www.marketculture.com or email info@marketculture.com 

Your Strategy Is NOT the Problem

Your CULTURE is. And if you’re a senior leader right now, that’s either the most uncomfortable truth you’ve read today or the most liberating.

OFFER: If you make it to the end of this article, I’ll give you a free digital copy of The Human Culture Imperative. Not as a gimmick, but because if this message resonates, the book will matter to you.

Now, here’s the uncomfortable truth most leaders avoid:

Your strategy is probably not the problem.
Your culture is. The ability to execute.

And right now, in boardrooms everywhere, leaders are doubling down on these solutions.

They’re investing in AI.
In automation.
In transformation programs.

All while the one system that determines whether any of that works, the human system, is quietly breaking down.

And if you’re a senior leader, that’s either confronting or incredibly freeing.

The Data Leaders Can’t Ignore

Let’s start with what we know, not what we feel:

  • Companies with highly engaged workforces are 23% more profitable and 18% more productive than those with disengaged staff
  • According to Forrester’s Total Experience Score research, brands that align customer experience and brand experience can unlock up to 3.5× revenue growth
  • Over 1,000 organisations have used the Market Responsiveness Index (MRI) to transform and drive growth by uncovering blindspots hindering performance

So why, in 2026, are we still seeing:

  • Declining employee engagement
  • Falling role clarity
  • Eroding trust inside organisations

Because most leaders are solving the wrong problem.

AI Won’t Save a Broken Culture

Every executive conversation right now seems to orbit around AI.

Automation. Efficiency. Digital transformation.

And yet, beneath the surface, something more fundamental is breaking.

You cannot automate trust.
You cannot digitise clarity.
You cannot scale disconnection and expect performance.

You can layer world-class technology on top of a dysfunctional culture but all you’ll do is accelerate the dysfunction.

At its core, every organisation runs on a human system:

  • Relationships
  • Belief
  • Clarity
  • Listening

When those fail, everything fails.

“The greatest technological advancement in business history would be for leaders to truly listen to their people.”

That’s not a soft idea.

It’s a commercial one.

Three Perspectives. One Conclusion

The Human Culture Imperative wasn’t written from theory. It was discovered through three very different lived experiences:

  • Dr Linden Brown – The Researcher & Academic saw companies unable to execute what business schools taught
  • Dr Chris Brown – The Technologist watched brilliant strategies collapse inside misaligned cultures
  • Sean Crichton-Browne – The Sales Veteran learned that trust, not product, wins every time

Different paths. Same conclusion:

Culture is not a side conversation.


It is the system that determines whether anything works.

Culture Isn’t a Poster. It’s a System

One of the biggest misconceptions in business is that culture is intangible.

It’s not.

It’s observable. Measurable. Manageable.

The book introduces a practical system built on three core levers:

  1. Leadership Engagement
    If leaders aren’t aligned, nothing else will be.
  2. Employee Engagement
    If people don’t feel heard or clear, execution collapses.
  3. Customer Engagement
    If customers don’t feel it, growth stalls.

Miss one and the system leaks.

What Actually Drives Culture

Not values on a wall.


Not mission statements.

Behaviour.

Specifically, what your people do:

  • On a Tuesday afternoon
  • Under pressure
  • When no one is watching

That’s why the model focuses on eight behavioural disciplines, turning culture from an idea into a daily practice.

To make it real, it introduces the Market Responsiveness Index (MRI):

A diagnostic tool that visually maps your culture showing where you’re strong and where performance is quietly bleeding.

This Isn’t Theory. It Works.

When leaders treat culture as a performance system, not HR theatre, results follow:

  • A global medical company unified post-merger and saw a 41% share price increase
  • A household brand grew from $250M to $2.5B market cap through deep employee engagement
  • A luxury hotel prioritised people during crisis and achieved 80% occupancy with 20% repeat guests
  • A regional bank moved from niche player to top-tier competitor by pairing digital with human culture

Different industries. Same pattern.

Human culture drives commercial outcomes.

Five Questions Every Leader Should Sit With

No frameworks. No buzzwords. Just honesty.

  1. When did you last ask your frontline team what’s getting in their way—and act on it?
  2. What would your people really say about your culture if you weren’t in the room?
  3. Are you investing in technology to avoid fixing a people problem?
  4. Do your people clearly understand how their work connects to purpose?
  5. Are you equipped for the emotional demands of leadership or avoiding them?

If any of these sting, that’s not a problem.

That’s the signal.

The Shift: From Strategy to Humanity

Most leaders are trying to optimise systems.

The best leaders are rebuilding human connection inside those systems.

Because in the end:

  • Strategy sets direction
  • Technology accelerates execution
  • Culture determines whether anything actually happens

Be Human First

The Human Culture Imperative isn’t asking you to restructure your business.

It’s asking you to rethink how you lead.

Because the companies that win in the next decade won’t just be the most advanced.

They’ll be the most human.

And that starts with a simple shift:

Listen better.
Lead clearer.
Act on what matters.

One Last Thing

At the start, I said I’d give you a free digital copy of The Human Culture Imperative if you made it this far.

You did.

Which means something here likely resonated, maybe uncomfortably, maybe clearly, maybe urgently.

Because deep down, most leaders already know:

  • The strategy deck isn’t the issue
  • The tech stack isn’t the issue
  • The real constraint is what’s happening between people, every day

The book goes deeper into everything you’ve just read:

  • The full Market Responsiveness Index (MRI)
  • The eight behavioural disciplines in detail
  • Practical ways to measure, diagnose, and shift culture in real terms

No theory. No fluff. Just a system you can actually use.

Get the Book

Download your free digital copy of The Human Culture Imperative below by clicking on the link below. The coupon code is: beinghumanfirst

DOWNLOAD HERE

Read it with your leadership team.
Challenge it.
Debate it.

But most importantly, act on it.

Because the organisations that win from here won’t be the ones with the best strategy on paper.

They’ll be the ones whose people actually bring it to life.

The CEO’s Fog: Why Great Companies Fail to See the Iceberg

In the history of business, companies rarely fail because they lacked data.

They fail because of  The Fog.

As a senior leader, you’re expected to see the future. Yet many executives spend their days driving strategy through a windshield covered in mist.

That fog usually comes from two places:

1. External Blindness – not clearly seeing what customers and competitors are doing.
2. Internal Friction – the execution gap inside the organisation.

When those two forces combine, even the biggest companies can miss the iceberg right in front of them.

The Ghosts of Innovation Past

We often talk about companies like Kodak, Nokia, and BlackBerry as if they were unlucky.

They weren’t.

They simply turned inward.

  • Kodak actually invented digital photography. The problem wasn’t technology — it was failing to see that customers wanted memories, not film. They lacked Customer Foresight.
  • Nokia and BlackBerry focused heavily on engineering excellence while missing a critical shift: the phone was becoming a computer in your pocket. They lacked Competitor Foresight.

More recently, many traditional car manufacturers ignored the shift to software-driven electric vehicles, allowing companies like Tesla and fast-moving Chinese manufacturers, like BYD, to surge ahead.

The pattern is always the same.

Companies protect the past instead of seeing the future.

Then they say: “We didn’t see it coming.”

Clearing the Fog: A Real Example

A powerful example of clearing both the internal and external fog comes from Bank al Etihad in Jordan.

In conversations with the leadership team — including Chairman Isam Salfiti and senior executives across customer experience and leadership development — one theme stood out:

They built growth by creating clarity.

Instead of guessing about the future, they used data, leadership alignment, and customer insight to guide their strategy.

Seeing the Digital Shift Early

While many competitors focused on expanding physical branches, Bank al Etihad recognised something important, customer foresight:

Customers were beginning to expect digital experiences similar to those provided by global fintech companies.

They shifted toward a digital-first acquisition strategy.

The result?

Their Net Promoter Score (NPS) reached 60, one of the strongest in their market.

They cleared the external fog.

Fixing the Internal Execution Gap

Leadership also knew that digital strategy alone wasn’t enough.

If the organisation wasn’t aligned internally, execution would fail.

So they focused on three key changes:

1. Institutionalised Alignment

Customer-centric values became part of the company’s formal competency model.

Promotions are now based two-thirds on how leaders live the company’s values.

2. Eliminated Silos

A cross-functional Culture Committee was established to ensure HR, marketing and business units were working together instead of operating in isolation.

3. Radical Transparency

Everything — from office spaces to digital interfaces — was redesigned to reinforce a customer-first culture.

The signal was clear: the old product-centric mindset was gone.

The Result: High-Definition Growth

By clearing both internal and external fog, the impact was dramatic:

  • Employee NPS increased from the mid-40s to 74
  • Customer Experience Index reached 80%

They didn’t just survive digital disruption.

They designed their organisation to win in it.

As Customer Experience Director Ledi Lapaj put it:

“We don’t want to walk in the dark.”

The MRI: Your Strategic Radar

To remove the fog, leaders need more than opinions.

They need a diagnostic.

The Market Responsiveness Index (MRI) from MarketCulture measures the three dimensions that determine whether organisations succeed or stall.

1. Customer Foresight – The Forward View

Are you anticipating customer needs before they are articulated?

If your team is only responding to complaints from last month, you’re driving strategy while looking in the rear-view mirror.

2. Competitor Foresight – The Side View

Disruption rarely comes from the competitors you already know.

It usually comes from unexpected startups or new technologies that change the rules of the game.

3. Strategic Alignment – The Engine Room

Even with a clear strategy, companies fail when the organisation isn’t aligned to execute it.

MarketCulture research shows that misalignment is one of the biggest hidden barriers to growth.

Don’t Manage in the Dark

The MRI has been used by more than 1,000 organisations to identify blind spots and measure the eight key drivers of market responsiveness.

In a single day, leadership teams can see where the fog exists — and where action is needed.

It moves organisations from:

Guessing → Knowing
Assumptions → Evidence
Fog → Clarity

Is Your Strategy Flying Blind?

Bank al Etihad proved that clarity followed by action creates competitive advantage.

But clarity doesn’t happen by accident.

It requires measurement.

f you want to see where the fog exists in your organisation, request a Market Responsiveness Index (MRI) briefing and identify the blind spots before they become icebergs.

Book HERE

In 15 minutes, you will gain a clear understanding of how the MRI works, what insights it provides, and how leaders are using it to bring clarity to their organisations. As a bonus you will receive a copy of our latest book “The Human Culture Imperative”

No obligation.

No cost.

Just clarity.

“‘You Can’t Handle the Truth’: Why Most Leaders Say They Want Clarity — But Won’t Take the First Step”

In A Few Good Men, Jack Nicholson delivers the iconic line: “You can’t handle the truth.” In the end, though, the truth always prevails.

Building a business that succeeds in its early years is challenging. Sustaining that success as the organization grows is even harder and it starts with leaders being willing to face the truth, however uncomfortable it may be.

In the early stages, companies tend to share a common trait: a deep focus on customers. Teams are close to the market, leaders listen carefully, and the organisation is highly responsive to customer needs. Every customer matters.

That focus is often the source of early growth.

But as organisations scale, something begins to change.

Structures emerge. Processes multiply. Leaders spend more time managing internal systems than understanding customers. Attention gradually shifts from the market to internal metrics forecasts, budgets, targets, and quarterly results.

None of this is inherently wrong. It is a natural consequence of growth.

The challenge is that organisations can slowly lose visibility of the very thing that drives long-term performance: their ability to respond to customers and the market.

When this happens, the symptoms appear gradually. Growth becomes less predictable. New initiatives underperform. Customer loyalty weakens. Leaders sense that something is not quite right, yet the existing data rarely explains why.

Paradoxically, organisations often have more data than ever before, yet less clarity.

At MarketCulture, the problem we solve for organisations is clarity for leaders.

Clarity about how well their organisation is responding to the market.
Clarity about how aligned their teams are around customers and strategy.
And clarity about the cultural dynamics that either enable or limit growth.

This clarity is delivered through the Market Responsiveness Index (MRI), an organisational assessment completed anonymously by employees that measures how customer-centric, market-responsive and aligned a company truly is across leadership, teams and departments.

But gaining this clarity requires something that is sometimes in short supply in organisations:

Leaders willing to handle the truth.

Many organisations say they want feedback. Fewer are truly ready to hear it.

The MRI works because it surfaces what employees actually experience inside the organisation, not what leaders assume is happening.

One CEO we worked with in a mid-sized services company believed his organisation was highly customer focused and aligned. Revenue had grown consistently for several years, and customer complaints were relatively low.

However, when the MRI results and employee feedback came back, the picture was different.

Employees reported that decision-making had become slow, departments were working in silos, and frontline teams felt the organisation was becoming more internally focused. The biggest gap was not strategy, it was responsiveness.

To his credit, the CEO did something many leaders struggle to do.

He accepted the results.

Rather than challenging the data, he used it as a starting point for change. Over the following year, leadership simplified decision processes, increased cross-department collaboration, and re-focused teams around customer outcomes.

The result was not just cultural improvement.

Customer retention improved, product adoption increased, and the organisation regained momentum in the market.

What made the difference was not the data itself.

It was the leader’s willingness to see the organisation as it really was.

For leaders, this is often the hardest step.

Organisations rarely fail because leaders lack intelligence or effort. More often they struggle because they lack clear visibility of what is actually happening inside the business.

Every meaningful improvement begins with the same step:

seeing reality clearly.

The Market Responsiveness Index (MRI) gives leaders that visibility. It provides a clear, evidence-based view of how responsive the organisation truly is to customers and the market and where the greatest growth opportunities exist.

But insight alone is not the goal.

The goal is better decisions, stronger alignment, and sustainable growth.

The first step is simply understanding where your organisation really stands.

The MRI has been implemented by over 1,000 companies worldwide. Case studies and videos are available on our website.

If you would like to see how the MRI works and what it could reveal about your organisation, you can book a short introductory conversation with Sean Crichton-Browne.

Book HERE

In 15 minutes, you will gain a clear understanding of how the MRI works, what insights it provides, and how leaders are using it to bring clarity to their organisations. As a bonus you will receive a copy of our latest book “The Human Culture Imperative”

No obligation.

No cost.

Just clarity.

What do customer-centric CEOs do to build customer-centric cultures?

Customer-centric leadership is a management approach that places the customer at the center of an organization’s strategy, operations, and decision-making processes. It involves creating a culture where every employee, from the frontline staff to the top executives, is focused on delivering exceptional customer experiences and maximizing customer satisfaction. Here’s an example of customer-centric leadership:

Imagine a telecommunications company called “TelcoFlow,” which specializes in mobile phone plans for businesses. The CEO, Sarah, embraces customer-centric leadership and instills this mindset throughout the organization. Here’s how she demonstrates customer-centric leadership:

1. Setting the vision and tone: Sarah communicates a clear vision that puts customers first. She emphasizes that the company’s success depends on understanding and exceeding customer expectations. This vision is reinforced in company meetings, training sessions, and internal communications.

2. Empowering employees: Sarah empowers employees at all levels to make decisions that benefit customers. She encourages frontline staff to go the extra mile in resolving customer issues and providing personalized service. Employees are trained to anticipate customer needs and proactively address them.

3. Gathering customer insights: Sarah ensures that the company consistently gathers customer feedback through surveys, social media monitoring, and direct interactions. She personally reviews customer feedback and shares insights with her leadership team and employees, using this information to drive product development, customer service improvements, and strategic decisions.

4. Fostering collaboration: Sarah fosters cross-functional collaboration between departments to deliver seamless customer experiences. Regular meetings are held where marketing, sales, operations, and customer service teams discuss customer pain points, feedback, and ways to enhance the overall customer journey.

5. Leading by example: Sarah sets an example by regularly interacting with customers, whether visiting retail stores, attending customer events, or responding to customer inquiries personally. She actively listens to customer feedback and takes personal responsibility for addressing any significant issues or concerns.

6. Celebrating customer success: Sarah celebrates customer success stories and shares them across the organization. Employees who go above and beyond in serving customers are recognized and rewarded, reinforcing the customer-centric culture.

Through Sarah’s customer-centric leadership, TelcoFlow has developed a reputation for exceptional customer experiences, resulting in high customer loyalty, positive word-of-mouth, and strong financial performance.

Employees feel empowered and motivated to contribute to the company’s customer-centric mission, fostering a cycle of continuous improvement and customer satisfaction.

While much of this is well known today, the question is how do you know whether your company is truly customer-centric? And what areas you should focus on to improve.

The MRI Benchmark is the tool leaders use to assess and improve their customer-centric culture and you can now try it for free: www.mribenchmark.com

How do you persuade others to help you create a customer-centric culture?

Daniel H. Pink, author of the 2012 best-selling book “To Sell Is Human” provides a great example of how to persuade others with the right questions. The example he gives is related to parenting however the method applies equally to influencing others to consider new approaches or changes such as building customer-centric cultures.

In this 4-minute video, Dan explains the concept of motivational interviewing. Specifically, this involves asking someone to rate their own readiness to start doing something you think is important. This will lead them to articulate their honest reasons for not doing it currently. From there, you can influence them to adhere to desired behavior more easily.

How does this relate to our customer culture tool? The business MRI? 

Well, this is exactly how the MRI Benchmark assessment works. It prompts self-reflection on the 8 disciplines of customer culture, where do I rate the organization high, where are we low? And what do others in the organization think about where we stand?

The MRI Benchmark asks leaders the right questions, it gets them to think about what they are doing and whether it truly is customer-centric behavior.

This creates a tension that requires action, if scores are lower than expected a natural drive kicks in to want to improve. The journey towards a more customer-centric better performing business has begun!

Importantly once a benchmark is established you can focus on what obstacles need to be overcome to build a truly customer-centric culture.

It is actually not that hard.

Check out the MRI Benchmark today for just $US1…

You can’t handle the truth – why most leaders say they want their businesses to be customer-centric but aren’t willing to take the first step

Feel fear and do it anyway - text on napkin

Creating a new business that endures over a long time is hard. We all know the statistics; 80 % of companies fail within the first 2-3 years.

What separates the businesses that sustain from those that wither away? Customer obsession. These companies have found a problem worth solving, a need that must be filled, and customers willing to pay. It all sounds simple.

What happens when these businesses grow up?

Over time their success breeds complacency. They no longer have to fight to win every customer; customers come to them; life is good. Leaders become managers and get paid to manage things already in place. The focus becomes the numbers, and the tail begins to wag the dog.

In markets where growth is turbocharged, mistakes are brushed under the rug. “So we stuffed up for that customer. There will be another one to replace them….”

It all goes well until the music stops; the tide goes out, and companies are exposed. Suddenly new products or services start failing not because they are bad products or services but because customers have lost trust. Managers have not been paying attention to the real source of revenue and profits – loyal customers.

Things have changed, growth has stalled, reputations decline, and customers are walking away.

Time for some customer-centricity.

The time has come to take a hard look at the business, how we are operating, what needs to change. We need to shift to a more customer-centric way of doing business!

Where do we start? How do we make it happen?

Like any and every major accomplishment in human history, everything great begins with one step forward.

In this case, that step is to take a realistic view of exactly how customer-centric you are as a business. For many that small step maybe a step too far: they don’t want to know.

Feedback hurts – it can feel like a knife twisting, gauging a hole in our being. It instills fear, even panic in us. And yet it is the truth, the way we perceive things is the way they are no matter what stories we want to tell ourselves.

So why do leaders say they want their businesses to be customer-centric but are not willing to take the first step?

Fear.

Fear of failure.

Fear of exposure.

Fear that it will distract.

Fear that it cannot be sustained.

Fear that they cannot do anything to change.

So what is the antidote to all this fear?

Just do it. Find out where you stand with a quick assessment of just how customer-centric your organization is and then take some simple steps to begin your improvement journey.

A funny thing happens when you face your fears – you grow.

If you think it is time to face your fears and improve your business find out more about our unique customer-centric culture assessment here

What we can learn from how Amazon deals with poor customer experiences

amazon_innovation_coe_process

A true test of any company is what happens when things go wrong. Does the leadership step up to fix a problem? Is it a bandaid fix? or is it something permanent, that involves going to the root cause of a problem.

The world’s most customer centric company, Amazon has a great methodology called “Correction of Error” or COE. As Scott Brinker outlines in his article on innovating like Amazon: It has been baked into their culture and requires all leaders to ask the following questions:

  • What happened?
  • What was the impact on customers and your business?
  • What was the root cause?
  • What data do you have to support this?
  • What were the critical implications, especially security?
  • What lessons did you learn?
  • What corrective actions are you taking to prevent this from happening again?

This is a great way to ensure that Amazon continues to learn and minimizes the chance that the same problem will happen for multiple customers.

Now for a fun 60 second example from the movie “Meet the Parents” with Ben Stiller

While this is obviously a made-up example, I am sure many of us have had similar experiences of over zealous staff taking policies and procedures a little too seriously.

If you were the responsible manager, or a colleague, what would you do?

 

Why intensity and metrics matter when reshaping an organization’s culture: Lessons from Wells Fargo

tim_sloan_in_front_of_congress

Wells Fargo’s challenges over the past few years have been well documented. It took a turn for the worse when it created an aggressive sales culture based on unrealistic targets.

To meet sales targets, employees opened accounts customers did not need, ordered credit cards without their permission and even forged customer signatures on paperwork.

The result was the creation of 3.5 million fake customer accounts many of which were then billed fees. Further investigations produced evidence that 570,000 customers had been sold car insurance they didn’t need.

These were failures of culture, leadership and ultimately risk management practices, something the bank had prided itself on during the mortgage crisis of 2008.

In 2017, the Institutional Shareholder Services (ISS), an influential shareholder advisory group released the following statement:

“The board failed to implement an effective risk-management oversight process in a timely way and that could have mitigated the harm to its customers, its employees and the bank’s reputation.”

It also suggested shareholders vote against the re-election of 12 of the 15 directors.

Most of the board was replaced over the next 12 months and Tim Sloan, the new CEO was tasked with cleaning up the mess.

To his credit, he did a lot of work with his top team to reshape the vision, values, and goals around the core idea of “helping customers succeed financially”. He also began to signal a shift in leadership focus away from shareholders:

“When you put your shareholders first—I hope Warren Buffett isn’t listening by the way—but when you put them first, then you’re going to make mistakes because you’re going to make short-term decisions that aren’t focused on creating a long-term, successful company.”

Sloan began dismantling the sales incentives that created the bad behavior and stopped paying employees on how many products they sell. Instead, they shifted the metrics to how often customers used their accounts and a range of customer experience metrics.

However, as with all changes, the devil is in the detail and employees had begun raising concerns again about customer-unfriendly practices emerging. A report by the Committee for Better Banks highlighted a continued culture of fear in which front line employees were not engaged in the change process but instead had it imposed on them.

“Honestly, it’s perceived as a joke — ‘Oh yeah, they’ve changed things,’ ” said Meggan Halvorson, 35, who works in Wells Fargo’s private mortgage banking division in Minneapolis. “I haven’t met anybody, personally, who believes what they’re saying or that it’s the case.”

Unfortunately, this has all been too little too late at least for Tim Sloan who was pressured into early retirement in early 2019.

In his final statement as CEO to the House Financial Services Committee he stated:

“We have more work to do, and that is an ongoing commitment by all of Wells Fargo’s 260,000 team members — starting with me — to put our customers’ needs first, to act with honesty, integrity, and accountability; and to strive to be the best bank in America.”

Within a month he would be gone.

What are the lessons?

Intensity and Velocity Matters

Changes need to be led with intensity and purpose from the top team throughout the organization. One of the reasons Tim Sloan was pressured into early retirement was that changes were not happening fast enough. There is a level of intensity and engagement required by the CEO to shift culture, and this is particularly important when the culture has gone bad.

Personally, “seeing the front.”

This term comes from the military and is based on the idea that leaders must see what is happening at the front lines themselves before making crucial decisions. The front line must be engaged in the process, the people doing the work matter and the daily interactions customers have with those people determine how the brand is perceived over time.

If change is imposed from the top, it is naturally resisted. The result is that employee initiative gets squashed, ownership is destroyed, and people keep their heads down out of fear of losing their job. In short, you get compliance, the bare minimum out of people.

If more direct attention had been paid to the front lines at Wells Fargo it would have been clearer what needed to happen to improve the customer and employee experience. If done correctly this will result in better business performance.

Metrics can help or hurt.

How people are measured can result in behavior that improves the customer experience or works against it. Clearly, the unrealistic sales targets at Wells Fargo resulted in the wrong behavior, that does not mean sales targets are bad; they are a necessary part of driving business performance. However, the way in which they are implemented matters.

Likewise, measures of customer experiences can be used in the right way or the wrong way. If they are used to performance manage, as a “stick,” they result in fear and resentment. Ironically, this works against the very thing they were designed to do which is to improve the customer’s experience. These metrics must be designed as learning tools that help employees develop and grow. This creates an environment that unleashes most people’s natural desire to deliver great experiences for their customers.

Transforming a company’s culture begins with a genuine desire by the top leadership to make things better. However, it then must be followed with concrete action by leaders at all levels.

If you want to catalyze customer-centric change across your organization, start by measuring how customer-centric you are today with the world’s only customer-centric culture benchmark, the Market Responsiveness Index.

Is it possible to compete with Amazon and win?

hurbert_joly_fired_up

For businesses everywhere, this is becoming an increasingly relevant question.

Not long ago most business could just ignore Amazon and say to themselves that’s fine for them in retail they are not operating in our industry.

Well, times are changing, and Amazon is competing in not only retail but consumer electronics, entertainment, enterprise cloud services and is eyeing opportunities in healthcare and payments.

The question for all businesses to ask themselves is how would we respond if Amazon entered my marketplace?

Well, one company did not have to wonder for too long, in fact, they have been competing with them for the past 10 plus years. With the rise of Amazon, many analysts predicted the demise of Best Buy, the US brick and mortar retailer.

So how to Best Buy fight back? They applied the same approach as Amazon – customer obsession.

In fact, under the new CEO, Hubert Joly, they undertook a transformation from a transactional retailer focused on store traffic and closing sales to one focused on building customer relationships for life.

Where does a customer-obsessed transformation start?

It begins with your customers and employees when a business is under attack as Best Buy was around 2009, a new vision and purpose for the business’s future needs to be articulated.

Joly launched a turnaround plan called “Renew Blue” in 2012 that was designed to address all critical stakeholders in the business beginning with customers.

To gain insights on what was happening at the frontlines, Joly spent a week working in a store and talking with employees. They told him the website sucked, it was slow and difficult to navigate, and the employee discount had been reduced recently by previous management. They also described how customers were “showrooming” coming in to see products then buy them somewhere else online.

Joly began with some quick wins, restoring the employee discount and taking price off the table by guaranteeing to match online prices.

This showed he was listening and more importantly acting on feedback, a critical trait for a customer-obsessed leader.

He then focused on customer experience, redoing the website, investing in search and matching Amazon on free fast shipping.

By focusing on their unique strengths, the in-store personal experience, they have been able to focus and start winning again.

Joly shifted the employee mindset by instilling a new purpose. In his words “we’re not in the business of selling products or doing transactions, we have our purpose, which is to enrich lives with the help of technology.”

“We don’t see ourselves as a bricks-and-mortar retailer. We are company obsessed about the customer and in serving them in a way that truly solves their unique problems.”

What does this mean in practice?

For Best Buy that means introducing new service offerings such as the “in-home Advisor” which involves best buy employees going to people’s homes for free and providing expert advice on how to better select, buy and install technology to enhance their lives.

A second example is “Total tech support” which involved Best buy taking ownership of any technical problem in the home and fixing it, all for $200 a year.

The third example of their innovation is a focus on aging seniors with an emphasis on helping them stay in their homes independently for longer. Through the smart deployment of technology they can detect if something is wrong and people need help, they can then intervene to make sure people get the help they need.

Customer-obsessed Leadership

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Customer-obsessed leaders don’t just say they are focused on customers they act on it and make decisions with a customer lens every day.

A great example is Best Buy’s relationship with Amazon, although fierce competitors on many fronts, they also see opportunities to collaborate and work together because it is the right thing for their customers.

“A lot of other retailers have been reluctant to sell their products. The reason we’ve sold their products is because we’re customer-driven.” says Joly.

In fact, recently Amazon chose to launch its Fire TV Smart TVs exclusively through Best Buy.

“Every management meeting we have, we don’t start with the financial results. We start with people. Then we talk about the customers, and last we talk about the financial results”

 “I don’t believe that the purpose of a company is to make money. It’s an imperative. It’s a necessity. But it’s not the purpose”

Hubert Joly

 

The turnaround strategy with its reinvigorated purpose and customer obsession around enriching people’s lives through technology are paying off. The ship has turned, and the future looks bright for this retailer once thought to be following Circuit City into bankruptcy.

How can you instill a customer-obsessed culture in your business? It starts by understanding your current culture and charting a path based on purpose, people and delivering great customer experiences.

Sources:

http://tcbmag.com/honors/articles/2018/2018-person-of-the-year-hubert-joly

https://www.cmo.com.au/article/659314/how-best-buy-shifted-from-being-retail-led-customer-relationship-driven/