The Effective Executive – Who Creates Value for the Customer in Your Organization?

 

Veteran, new and aspiring executives need methods to be successful in their organization. There are 1000s of leadership podcasts, videos, blogs, and articles but few authors address what to do or how to do it.

We have witnessed many executives who are efficient (doing things right), but few executives are effective (doing the right things). We believe this is misguided and aim to remedy the shortfall with executives.

This is the 30th episode of the Effective Executive podcast. In this episode, Tripp Babbitt discusses the importance of executives identifying the roles creating value fo customers.  Download our Effective Executive Starter Kit.

Show Notes

[00:00:08]
The Effective Executive – Episode 30 – Who Creates Value for the Customer in Your Organization?

[00:00:40]
3 Categories of Roles

[00:01:22]
Software Organization

[00:04:08]
Telecommunications Industry

[00:05:26]
Hospital Industry

[00:06:53]
Roles Faciltating the Creation of Value for Customers

[00:08:24]
Roles Creating No Value for the Customer

 

Transcript

[00:00:08] In this video, I’ll discuss who creates value for your customers, who creates value to the customer in their organization. And so this is one of the one of the early questions that I ask executives and listen to what their answer is, and most of the time it’s the same answer, which is everyone which you’d like to think that. But from a customer perspective, it’s not.

 

[00:00:40] There are actually three categories of. Employees in your organization, and the first one is those that create value for the customer. The second are those that facilitate those that create value, and then the third are those that do not create value. And I think it’s important to kind of go through the exercise if you’re an executive of identifying who’s who within your system. So who creates value? Well, it’s going to be different by different industries. So let me just go through three different ones here.

 

[00:01:22] If you’re in software, if you’re a software organization, the person to that or the role that creates value for the customer are the developers. You know, I know you have business analysts and you got project managers and sometimes the project manager, you paid more than developers, but the developers are the ones that create the value if you’re a software company.

 

[00:01:45] Now, there are others that create value for the customer. Kind of and let me go through those, a contact center customer service rep that you have, but they can only create value if you allow them. And this is one of the problems I run into. Most organizations as a customer calls up has a problem. The contact center person or customer service person can’t help them. They don’t have the knowledge. They don’t have the ability to get into the systems that they need to get into because, you know, they’re the front line. And I think this is a huge mistake. And many organizations, this is a big opportunity to have people that you’re building up their ability and knowledge to be able to actually help someone on the phone, because otherwise you have to send them back to the developer, something each system has to work out in software. And I’ve worked with many software companies over the years. But this this context and a problem is not just for software companies. It’s this is universal. That’s not where you have a contact center, customer service person not able to get into certain systems and they aren’t able to actually solve a problem for a customer. Training that could be viewed as creating value for the customer if it’s not the developer, in some cases it is for smaller company typically. Otherwise you have a training component where you training the customer how to use the software sales. It can be, but often is not.

 

[00:03:27] And the reason it isn’t is because salespeople are often making the sale and they build this trust up with the customer and then they’re off to the next deal. And so they don’t stick with the customer. And the attitude in most organizations is, well, they’re supposed to do sales. You know, it’s very departmentally focused. But I’ll tell you what, building that trust can go a long way and getting future customers or future items into that organization when the salesperson just kind of washes our hands and moves on, that sometimes is not very, very helpful from a customer perspective.

 

[00:04:08] The another industry is telecom. And telecom, the people who create value are again, it can be sales and trying to work through what what you want to order, you know, those types of things. But are the technicians, the people come out and actually install the, you know, whether it’s cable or your Internet or whatever it might be. So that’s those are the what I would consider to be the primary roles that. Customers value from telecoms are the technicians, the contact center, again, same situation we talked about with software a lot of times, you know, if you’re having a problem, if you can actually get a contact center person to help you solve it over the phone, that saves a lot of time for the customer and things that sort of might be just something they just don’t understand how to use something like, you know, how to set up their channels and things of that sort so that you have to look at what they’re actually doing at the contact center.

 

[00:05:26] Another area are hospitals, the primary role for hospitals are physicians. That’s the one overriding one is they are the ones that create the value for patients now. Close second hour nurses, because they’re the ones that have to kind of keep with the patient as they recover and get well. But how well the physician does typically how much work the nurse is going to have to do. In many cases, that’s not always true. And sometimes it’s only nurse contact, but it depends on what the patient is coming in for. But if there’s a physician involved, they’re the one that create the most value from a patient perspective or customer perspective. And I’m not trying to devalue what nurses do because they are left with everything that happens, how well or how poorly or whatever the physician does, which is one of the reasons why you need to make sure that the physician has everything that they need so that quality work can be done and the nurses don’t have to be, you know, reacting to things that are happening.

 

[00:06:45] So those are three industries. I could go through a few more, but those are the people that create the value.

 

[00:06:53] Now, there are those that help enable, those that create value. And a lot of organizations, you know, it is, you know, things like I.T. I’m not talking about developers in this case, but, you know, you have an I.T. and it help desk and things of that sort, but they only help facilitate all these other activities that are going on. So in a telecom, you’ve got different people in I.T. with all bunch of different systems. And so but they’re not the focus. They’re often paid a lot more than, let’s say, a customer service rep, which. Sometimes I agree and sometimes disagree with but but but but the people are there to enable same with accounting and finance. So it’s all these ancillary types of areas are not the ones that create value for the customer. And they their aim should be to and to facilitate or enable those that do create value. And they need to understand that role. And a lot of the some of the videos that I’ve talked about, the importance of all departments having some knowledge about what the customer needs out of the organization, but they also need to understand who creates value for the customer in their eyes. So it’s a good exercise to go through.

 

[00:08:24] Now, this last category of no value. Well, that’s things like compliance. Now you have to do it.

 

[00:08:32] But if push came to shove and you know and you know, if we were really looking at, you know, things like government regulations, yeah, you have to do it. But it doesn’t really create any value from a customer perspective. You’re being compliant to some government regulation or maybe complaint to things that you’ve put out within your organization. You see this a lot and and obviously in banking, both from government and internal controls that are done. And those are things to look at within your organization because you don’t want too many people in roles that don’t create value from a customer perspective. But this is all part of the executive education program that I’ve put together where you go through look through the customer lens, you start these things start to come out about who does create the actual value in the organization. So in order to become an effective executive, this is a good thing to kind of go through. You know, who creates the value for your customer? Are your customers in your organization? I wouldn’t cover that in this episode. And I believe this is the end of the 30th episode for the Effective Executive podcast. And also this will be going into the YouTube channel. Hi, I’m Tripp Babbitt, you can now download the effective executive starter kit, it’s free at the 95 method dotcom fortgang starter kit.

 

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