Tag Archives: market responsiveness index

“‘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.

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

Product Centric Versus Customer Centric – Does it matter?

Product Focused Companies

A product-centric organization is one that is focused on the products it brings to market rather than the customers that buy those products.

It looks to develop new products by leveraging technology or specialized skills that exist in the company. It starts by looking internally at its capabilities rather than externally at what needs are not being met.

The chart below is a simple comparison of the two approaches:

product versus customer centric companies

In large complex organizations, a product focus provides management with a direct line of sight into which products are selling well, at what profit and clear product owner accountability. While it does simplify the management of a firm it does come at a cost. It tends to create siloed organizations that compete for customers and often lacks a coordinated approach. In fact, many of the poor customer experiences happen as a result of this internal/product focus. The other downside is a myopic vision of the market that blindsides companies to key changes.

What business are you in?

Product-focused companies define themselves by their products. For example, Kodak originally defined its self as being in the photo processing business. This definition impacts the culture of the company in a way that hamstrings thinking and creates impediments to action. When the shift to digital came Kodak resisted this because of the impact on its “products – photo processing”.

The classic example of this is the “Last buggy whip company” the company that made the best buggy whips in America! It just failed to see the car was coming to obliterate its market.

The future for companies is to balance this product focus with a customer focus so that customers feed directly into decision making and are not an afterthought.

What trends are affecting the way your customers solve their problems?

Does your organization suffer from excessive product focus?

Learn more in the MarketCulture Academy

Why most companies don’t deliver great customer experiences

Poor Customer ExperiencesWe are all customers and we know what a great customer experiences feels like. We also know that a great customer experience influences our behavior, we want to talk about it with friends and we feel good about doing business with the company that provided it.

We know all this and yet we see time and again examples of poor experiences, just like this Range Rover customer above taking revenge on the company that clearly did not create the right car ownership experience. Why does this happen?

In our work with clients we have found a number of key reasons:

1. Culture – culture drives everything in an organization.  It creates the expectations for how employees behave. It can be left to chance or actively managed. The culture develops not from what people say is important and valued but by what is visibly shown to be important through the way people behave.

For example many companies say that customers are important but then will make decisions that will directly disadvantage the customer in the interests of the business. Bank fee increases, hidden charges, confusing pricing models are great examples of companies trying increase profits without providing customers with any more value.

This is usually the result of short term profit pressures. The message: customers are important until we need to make our numbers – then all bets are off!

2. Goaling – what’s measured gets done. The metrics a business uses will drive behavior, if none of those metrics include measures that are important to customers, people will not focus on the impact they are having on customers.

3. Hiring – hire people that buy into the company’s mission and actually want to add value and contribute to delivering on it. Specifically put hiring practices in place that filter out those that can’t connect their work with customers. Test potential employee’s mindsets, do they have customer friendly skills like the ability to listen, accept feedback, empathize with other people’s positions.

4. Silos – silos can be great, they drive efficiency and specialize expertise but when they become too competitive and an “us and them” mentally develops collaboration is crushed and customers will suffer.

So what do companies with strong customer experiences do right?

Improving the customer experience is about changing a company’s culture.

Companies that can achieve a customer culture take improving the customer experience as seriously as improving financial outcomes.

Our studies of organizations around the globe that have built strong customer cultures have revealed some major themes:

Strong and visible leadership

Leaders are not only committed to the customer experience but also able to instill that commitment in the rest of the organization. There are usually two primary  leaders involved in the process – a CEO or business unit leader who sets the vision and a head of strategy or customer experience who helps execute the strategy. In addition a guiding coalition or customer engagement council that brings in representatives of the broader leadership team it established to oversee progress.

These leaders commit to changing the way they do things in a way that sends the right message to the organization – that customers are important.

A clear mission, vision, and values

A clear purpose beyond “profitable growth”, one that actually does inspire and connect with people emotionally and is contextualized in a customer frame is crucial. This should drive a clear set of behavior standards that capture the intent of the organization and create accountability for customer service and the customer experience among staff members. Amazon’s mantra is “save customers money” and it drives everything (more on this here)

These are not just words on a page. Rather, companies must reinforce these beliefs and behaviors at employee inductions, coffee talks  and the regular team meetings. Companies should use real customer examples to ensure that the mission, vision, and standards resonate throughout the organization.

Customer Immersion

In larger organizations people get disconnected from customers, they lose site of the value being created and what its actually like to be a customer. A process of regular customer immersion sessions helps executives and employees regain that connection. This may include call center sessions, customer visits, bringing customers into internal planning sessions and so on.

Consistent Communication

All messages should incorporate customer focused elements so that managers and staff see the customer experience as a strategic objective that is as important as other financial outcomes. It’s essential that companies consistently communicate what constitutes the right customer experience not only in the strategic plan but also in job descriptions and performance evaluations.

Buy-in from all staff

Defining the reasons for the change and the personal value of being involved in a customer culture change initiative is crucially important. All staff need to understand the reason for the shift in focus and how it will benefit both customers and the business. Staff then ultimately need to see it is in their own self interest to change the way they go about their work.

A way to measure culture change

External and internal measures can be used to assess whether a company is actually changing, the image below shows the relationship between the internal measure of “Customer Culture” relates to the external measure of customer satisfaction and ultimately profit growth.

Customer Culture Foundation Pyramid

A customer culture can be measured using the Market Responsiveness Index which allows companies to see the progress they are making against a benchmark of companies around the world.

A message to leaders

Improving the customer experience is about changing a company’s culture. This change is the most powerful, legacy-defining step a leader can take to improve the performance of a business and the engagement of employees. Senior executives must not only take responsibility to make the customer experience a priority but also must allocate the necessary time and resources to make it a reality.

While there is work involved, it does not necessarily need to be expensive and the payoffs are enormous.  Show me any massively successful company in almost any industry and 8 out of 10 times they have a strong foundation based on a customer culture.