McKinsey Framework
for Three Horizons of
Growth
Image Credit: Blake Morgan at: https://www.forbes.com/sites/blakemorgan/2015/01/19/moving-
from-transactional-to-meaningful-customer-relationships/#2c64b94e3261
Many companies begin with a
traditional division of resources:
Horizon 1: 70%
Horizon 2: 20%
Horizon 3: 10%
More recently, transformational
companies are allocating more
resources towards the second
and third levels.
“Most companies don’t spend
enough time on transformative
growth because they aren’t good
at transformative and it’s scary
for them.
- Michael Docherty, Collective Disruption: How Corporations &
Startups Can Co-Create Transformative New Businesses
“
We are at a point where
companies need to aggressively
innovate their customer
experience.
– Blake Morgan, Customer Experience Futurist
Transactional
Customer Service
Based on units of work
Transactions = Individual
events
Little focus on context
Performance benchmarking
Creating successful
conversions
Risk averse
Task focus
Short term view
Transformational
Customer Service
Based on Meaningful
experiences
Interactions interconnected
Total experience considered
Motivation from shared vision
and high standards
Creating brand advocates
Risk necessary but
calculated
People focus
Long term view
“
Simply being polite and
helpful is not enough.
– Dr. John R. Miller, Is the Customer Service
Experience You Create Typical or
Transformational?
Assessing
Transformational
Potential
1. A more personalized product or
service
2. A closed-loop process
3. Asset sharing
4. Usage-based pricing
5. A more collaborative ecosystem
6. An agile and adaptive
organization
Based on:
Kavadias, Stelios, et al. “The 6 Elements of Truly
Transformative Business Models.” Harvard Business
Review, Oct. 2016
Step 1:
Reexamining the library’s
strategic plan and
priorities
From a WHY perspective
What values are the elements
based on specifically
How does each relate back to the
needs of specific segments of our
service population
How do the elements of the
plan/priorities/directions relate to
furthering community aspirations
How does this dictate the way we
approach customer servicehttp://www.varchannelmarketing.com/wp-content/uploads/2014/02/The-golden-circle-
e1391717108503.gif
Step 2:
Create mechanisms for
customers to define
needs and expectations
For services
For modes of delivery
For communication channels
For interactions
From all segments of the
community
From direct and indirect sources
Asking the right questions
Step 3:
Build Collaborative teams
to find innovative
solutions to meeting
customer needs
Cross disciplinary
Interdepartmental
Including different stakeholders
Including customers
Proactively identify outside
partners to work with
Need to identify, refine, and define
goals as well as work to find
solutions
Step 4:
Streamline internal
processes to allow these
collaborative teams to
work
Identify and remove internal
barriers to collaboration
Unify communication channels as
much as possible
Step 5:
Integrate technology and
data
From all channels and touchpoints
To create richer customer profiles
To define customer needs/wants
more fully
To examine the customer
relationship over time
Use to personalize experiences
Address technical issues
Address ethical issues
Address organizational issues
Personalization
of Services
Elements of the customer
experience are tailored to the
individual as much as possible.
Based on data
Relationship builds over time
Individual transactions help
inform the long term
relationship and total
experience
Attention To
Experience At All
Touchpoints
Anything that is part of the
customer experience of the
library deserves attention
Onsite/remote
Service related or not
Convenience For
The Customer
Bottom line, the product
that customers perceive
as cool will have a big
advantage, but the
product that customers
find easy to use will keep
their attention.
–Pete Seer, Why Innovation must build
from Customer Experience
Proactive
Customer Service
Actively seek out opportunities to
solve customer problems before
they even notice there’s an issue.
Anticipate needs
Base this on data
Avoid pitfalls of assumptions
Offer solutions to problems
they didn’t know they had
Internal
Motivation
Cultivating a Culture of Customer
Service
Values and objectives clearly
established & communicated
Strong internal communication
Cultivate a customer service
culture
Support for developing skills
Celebration of success
CREDITS
Special thanks to all the people
who made and released these
awesome resources for free:
▫ Presentation template by
SlidesCarnival
▫ Photographs by Unsplash
Additional images used with permission
Notas do Editor
Educators in general and libraries in particular are specifically in the world changing business.
We are agents of transformation. We have the power to do this.
Guided by the core values of our profession, libraries and library workers ideally base their activities on the goals and aspirations of the communities we serve.
Ours is a “people profession”. Whatever our daily tasks center around, whatever jobs we must perform along the way, ultimately our responsibility is to the people we serve, and the community they make up.
The Harwood Institute recommends a strategy of “turning outward” to determine what is important to our communities, and then using these findings to build library services aimed at helping community members reach these goals and transform their communities in the ways they have envisioned and hope for.
But we do not do this work in a vacuum. The context libraries operate in is impacted by an almost innumerable set of internal and external factors, and we need to pay close attention to these influences.
The work being done by the Center for the Future of Libraries stresses this point, encouraging libraries to extend their view far beyond our four walls, beyond our larger organizations, partnerships and individual service communities.
They’re asking us to look towards the larger cultural context we’re operating within, and closely examine the bigger trends that our patrons are experiencing in their general lives, of which the library experience is only a small part.
Trend cards – a helpful tool for seeing our services through the lens of emerging cultural trends
Read for Later – broadens our view of the context we’re operating within
One of the areas we should be taking notice of outside of the world of libraries and education that is directly impacting our larger context is the emergence of many new business models that are focused on transforming markets and tailoring solutions, products, and services to speak to these newly emerging markets.
And the primary way they’re finding to do this is to focus on enhancing customer experience.
Innovating around customer service goals is emerging as one of the most effective ways 21st companies are leveraging to expand opportunities within their industries, and this trend is transforming the expectations surrounding customer service relationships in a much larger context.
New business models are emerging
Companies are increasingly looking to grow by moving a significant amount of their resources and effort away from maintaining and defending the business’s core (the existing services and solutions aimed at their existing customers).
They are diverting resources towards a second level of service designed to expand that core, offering new to the company solutions to pre-existing markets that are new to the company, and increasingly towards a third level of service aimed at reaching new markets that never existed before with new solutions that have never been seen before. (MCKinsey Framework)
At this point the three horizons are generally allocated resources in a 70-20-10 split, but more and more companies are shifting a more significant portion of resources outwards as a way to move towards truly transformative growth that changes not only the organization but the industry itself.
For companies moving in this direction within other industries, it is apparent that a primary way in which this shift is being enacted is through a new focus on innovations in customer service – in fact, a move away from customer service as we traditionally think of it and towards new models based on the enhancement of customer experience.
Recent research has revealed that 75% of the most successful companies in the US identify “improving the customer experience” as a top objective, with one survey measuring 89% as planning to develop their business model in the next few years that centers on customer experience as the primary basis of their competitive strategy.
There are many good things about this and nobody is abandoning this completely.
We still need to cultivate successful individual transactions
The main difference is setting these individual interactions within a larger context.
Experience based or Transformational Customer Service – fitting in with the transformational business models emerging
This is part of the baseline expectation. CS based on enhanced experience recognizes that customer expectations have been raised by external CS interactions in the context of their daily lives, which have conditioned them (us) to have little patience for CS that does not extend beyond the basics.
We need to extend service that meets both the practical and emotional needs of our customers and fulfills (or exceeds!) those needs with as little effort as possible on the part of the customer.
Libraries absolutely have the potential to make this transformation in customer service
In fact, there are good number of indications that say libraries are better positioned than many traditional companies to make this leap… if we lay a little groundwork
A more personalized product or service.
A closed-loop process. (used product recycled)
Asset sharing
Usage-based pricing.
A more collaborative ecosystem. (reducing resource costs, reducing risk)
An agile and adaptive organization. (move away from traditional hierarchical models of decision making – decisions that reflect rapidly changing market needs and allow for real-time adaptation to those needs)
Based on my own experiences, most libraries I’ve dealt with score a solid 2/6 on this test. Strictly speaking, this is a fail.
HOWEVER, I think there are an additional 3 that many libraries are rapidly improving on, and could reach with a little strategic effort. (The last on, I don’t have an answer for)
So I actually think that many libraries are on the path already to readiness for some really transformative change. And looking at ways to beef up these three elements can help get a library closer to the point where they are ready to make that leap with a good degree of confidence in their success potential.
So I actually think that many libraries are on the path already to readiness for some really transformative change. And looking at ways to beef up these three elements can help get a library closer to the point where they are ready to make that leap with a good degree of confidence in their success potential.
I think of it as 5 steps a library can take to get ready.
Why perspective – Simon Sinek and his Golden Circle – Start with the reasons why your organization has set these strategic goals – What are the specific values these reflect, etc.
Primary source of input re: needs and expectations: the patrons themselves
WE need ways to facilitate meaningful conversations with them – HARWOOD TECHNIQUES are great!
Signals this is happening:
Feedback and input mechanisms
Two way communication across all channels
Organizational transparency
Collaboration between departments - introducing differing perspectives into the process
As a project manager, this is something I do all the time – create collaborative teams drawn from different parts of the organization and from outside as well
It is hard to break free of traditional hierarchies to do this
Committee work taken to a new level
ID and Define problems - “Your customer has 99 problems… and is so used to them that they don’t know it.” Pete Sena, founder of Digital Surgeons (experience design firm)
Gotta have a clear definition of the problem before trying to get to a solution (also PM!)
Removing barriers
Internal politics must be navigated
Functional vs Project Manager roles defined and reconciled
Questions of habitual processes
Interpersonal relations
Workplace contraints
Etc
Communication OY VEY
With this kind of thoughtful framework in place, we can get to specific features that characterize innovative, transformative customer service based on experience.
Common threads throughout literature on building towards experience based customer service:
Things that are embedded into the overall experience
Markers or signals that tell you you’re on the right track
It is about the patron, and that is the message we want to send, we are here for YOU
You, personally.
Tech = A big factor in enabling early 21st century CS innovations – in conjuction with other things
Innovation occurs at the intersection of “what technology enables and what the marketplace wants” - Stelios Kavadias, The 6 Elements of Truly Transformative Business Models – Harvard Business Review
Text, chat, video, mobile, kiosks – phones not so much (but watch your phone tree)
Self service opportunities – empowering customers
Interfaces that add value – not just shiny things. Real benefits
AI as an aid to those assisting the customer
ALL Communication channels are for two-way communication
Customers expect responses.
Customers expect service via these channels if you offer them (I expect a seat upgrade or a free drink voucher if I tweet a complaint to @jetblue – why wouldn’t I expect an effective response when tweeting @mylibrary???)
Responses – quick and helpful
Consistent tone – part of developing a customer service culture in the organization DOES NOT MEAN STUFFY AND BORING
If it’s part of what the customer experiences when interacting with the library, it’s worth attention.
You can have the best services in the world , but if the bathroom is dirty, the experience is destroyed
If it’s hard, it loses value
“Free” has not been enough of an incentive for a long time. It HAS to be easy
LOOK FOR PAIN POINTS
Where can we reduce friction
Where can we take on some of the burden for the customers
Where can we integrate new tech or CS approaches to make the experience easier and more pleasant
Anticipate needs
Base this on data
Avoid pitfalls of assumptions
Offer solutions to problems they didn’t know they had (Nest thermostats)
All of these factors indicate a move towards focusing in experience and ultimate, customer success, whatever that means for an individual organization and their community
Using enhanced and innovative approaches to achieving customer success isn’t just the introduction of new services, or making adjustments to the ways libraries offer and maintain the services they already provide.
Enacting truly innovative customer service is a way of modifying our existence and redefining our place within the community we serve.
And with that kind of transformation, we can change our organizations, our communities, and maybe even the world.