Progressive Insights & The CHIP BELL Group 1 Crafting a Service Strategy for Customer Advocacy Progressive Insights, Inc. & The CHIP BELL Group

2 Progressive Insights & The CHIP BELL Group What is a Customer Centric Culture? What is a Customer Centric Culture? Customer Centric Culture Compelling Focus Magnetic Values Dynamic Alignment Targeted Affirmation Field-Ready Talent Partnering Structures Integrated Discipline Service Leadership

Progressive Insights & The CHIP BELL Group 3 Characteristics of Customer- Centric Cultures They have a Compelling Focus… Their motivation for a strong and enduring customer focus comes from more than simply an economic, financial or marketplace advantage. Their motivation for a strong and enduring customer focus comes from more than simply an economic, financial or marketplace advantage. They have a clear service vision that permeates the organization and is used as a touchstone for all their plans and practices. They have a clear service vision that permeates the organization and is used as a touchstone for all their plans and practices.

Progressive Insights & The CHIP BELL Group 4 They have Magnetic Values… They honor a few key values that draw out the very best is people and hold them to proper conduct. Customer focus is one of those key values. They honor a few key values that draw out the very best is people and hold them to proper conduct. Customer focus is one of those key values. They craft a distinctive brandable customer experience that flows out of their vision and values and is in sync with their total offering (across all customer touch points). They craft a distinctive brandable customer experience that flows out of their vision and values and is in sync with their total offering (across all customer touch points). Characteristics of Customer-Centric Cultures

Progressive Insights & The CHIP BELL Group 5 They insure Dynamic Alignment… They use broad based employee participation and over-communication as vital tools to learn, early warn, improve, and implement as well as to foster employee commitment. They use broad based employee participation and over-communication as vital tools to learn, early warn, improve, and implement as well as to foster employee commitment. They have clear corporate-wide standards and norms designed to promote consistency both in service to customers and lateral service to colleagues. They have clear corporate-wide standards and norms designed to promote consistency both in service to customers and lateral service to colleagues. Characteristics of Customer- Centric Cultures

Progressive Insights & The CHIP BELL Group 6 Characteristics of Customer- Centric Cultures They use Targeted Affirmation… They create a work environment that is positive and affirming, knowing that happy employees create happy customers. They create a work environment that is positive and affirming, knowing that happy employees create happy customers. They use a host of ways to provide recognition for individuals and teams that excel in promoting customer loyalty. Recognition is precise, not vague, leaving little doubt as to the behaviors valued. They use a host of ways to provide recognition for individuals and teams that excel in promoting customer loyalty. Recognition is precise, not vague, leaving little doubt as to the behaviors valued.

Progressive Insights & The CHIP BELL Group 7 Characteristics of Customer- Centric Cultures They have Field-Ready Talent… They have selection, on-boarding and continuous training that reflect a strong customer focus. They have selection, on-boarding and continuous training that reflect a strong customer focus. They insure employees are given the responsible freedom (empowerment) to solve most customer issues, recognizing that any time an issue is elevated, likely reduces the customers perception of service. They insure employees are given the responsible freedom (empowerment) to solve most customer issues, recognizing that any time an issue is elevated, likely reduces the customers perception of service.

Progressive Insights & The CHIP BELL Group 8 Characteristics of Customer- Centric Cultures They nurture Partnering Structures… Systems, procedures, policies are crafted with a goal of fostering seamless service unencumbered by bureaucracy and delay. Great teamwork and partnership are supported and resourced. Systems, procedures, policies are crafted with a goal of fostering seamless service unencumbered by bureaucracy and delay. Great teamwork and partnership are supported and resourced. They use well-practiced service recovery for customer intelligence and process improvement (root cause analysis), not just for damage control at the front line. They use well-practiced service recovery for customer intelligence and process improvement (root cause analysis), not just for damage control at the front line.

Progressive Insights & The CHIP BELL Group 9 Characteristics of Customer- Centric Cultures They have an Integrated Discipline… Customer metrics (based on loyalty- drivers) are integrated into performance management, leadership accountabilities and incentives. Balanced scorecards promote responsible company management. Customer metrics (based on loyalty- drivers) are integrated into performance management, leadership accountabilities and incentives. Balanced scorecards promote responsible company management. They thrive on continuous customer feedback and customer intelligence used to drive continuous improvement. They thrive on continuous customer feedback and customer intelligence used to drive continuous improvement.

Progressive Insights & The CHIP BELL Group 10 Characteristics of Customer- Centric Cultures They rely on Service Leadership… Leadership demonstrates through their daily actions that a customer focus is crucial to the success of the organization. Leadership demonstrates through their daily actions that a customer focus is crucial to the success of the organization. Leaders are selected for the potential to inspire and influence service excellence; their training includes skill development in effective service leadership. Leaders are selected for the potential to inspire and influence service excellence; their training includes skill development in effective service leadership.

Progressive Insights & The CHIP BELL Group 11 Crafting a Service Strategy Crafting a Service Strategy Service Vision Leadership Plan Communication Plan Selection & Tools & Communications Customer Recognition Orientation Training Feedback/Intelligence & Incentives Mgt. Vision SWOT Customer Value Employee Value Values Standards Norms Metrics BPI Quick Wins Key Loyalty Drivers Alignment Process

12 Progressive Insights & The CHIP BELL Group What Does a Service Vision Do? It communicates your precise customer focus. It communicates your precise customer focus. It identifies how you will be unique and distinguished in the eyes of customers. It identifies how you will be unique and distinguished in the eyes of customers. It provides a tool for aligning energy and effort so customers enjoy consistency and reliability…no matter the type of customer. It provides a tool for aligning energy and effort so customers enjoy consistency and reliability…no matter the type of customer. It serves as a grounding for standards, norms, metrics, and practices. It serves as a grounding for standards, norms, metrics, and practices. It becomes the lens through which every decision or action impacting the customer is examined. It becomes the lens through which every decision or action impacting the customer is examined.

13 Progressive Insights & The CHIP BELL Group The C HIP B ELL Group The C HIP B ELL Group The service vision of The C HIP B ELL Group is to provide selected clients with relevant service wisdom they experience as incredibly empowering and surprisingly simple that is delivered through a valued partnership. The service vision of The C HIP B ELL Group is to provide selected clients with relevant service wisdom they experience as incredibly empowering and surprisingly simple that is delivered through a valued partnership.

14 Progressive Insights & The CHIP BELL Group The CHIP BELL Group Experience The CHIP BELL Group Experience Access that is easy, quick and perpetual; response that is stunning Access that is easy, quick and perpetual; response that is stunning A consulting style that is generous, approachable, professional and slightly wild A consulting style that is generous, approachable, professional and slightly wild Practice methods that are creative, practical and low maintenance Practice methods that are creative, practical and low maintenance Contributions that are cutting edge and focused on client replication for success Contributions that are cutting edge and focused on client replication for success Client and associate dealings that would make even our mamas smile Client and associate dealings that would make even our mamas smile

15 Progressive Insights & The CHIP BELL Group A Service Vision Checklist Is it memorable? Is it in sync with the corporate mission, the organizations SWOT, and what customers will value? Does it have a jump start quality? Does it describe a service experience? Will it likely be helpful in keeping the organization aligned? Will it likely engender pride among employees?

16 Progressive Insights & The CHIP BELL Group Standards and Norms A CORPORATE STANDARD is a set of written instructions to ensure performance occurs consistently across the organization in those incidents or outcomes where consistency is a virtue. A CORPORATE STANDARD is a set of written instructions to ensure performance occurs consistently across the organization in those incidents or outcomes where consistency is a virtue. A BEHAVIORAL NORM is an observable way of behaving or a predictable performance pattern that is aligned with the service vision, in sync with a corporate standard, yet unique to a particular unit. A BEHAVIORAL NORM is an observable way of behaving or a predictable performance pattern that is aligned with the service vision, in sync with a corporate standard, yet unique to a particular unit.

17 Progressive Insights & The CHIP BELL Group Standards and Norms A CORPORATE STANDARD communicates what you strive to BE, every time, in a similar fashion, across the organization so your customers get a consistent style, attitude, or manner. A CORPORATE STANDARD communicates what you strive to BE, every time, in a similar fashion, across the organization so your customers get a consistent style, attitude, or manner. A BEHAVIORAL NORM describes what you strive to DO, every time, in the same fashion, across a unit, so your customers get consistent action, effort, or execution. A BEHAVIORAL NORM describes what you strive to DO, every time, in the same fashion, across a unit, so your customers get consistent action, effort, or execution.

18 Progressive Insights & The CHIP BELL Group Corporate Standards: The Chip Bell Group Service Vision: (Why we exist and the experience we seek to create) To provide selected clients with relevant service wisdom they experience as incredibly empowering delivered through a valued partnership which clients perceive as incredibly empowering and surprisingly simple. To provide selected clients with relevant service wisdom they experience as incredibly empowering delivered through a valued partnership which clients perceive as incredibly empowering and surprisingly simple. Corporate Standard: (What we strive to BE) Access to CBG will be perpetual and easy; our response will be stunning. Access to CBG will be perpetual and easy; our response will be stunning. Behavioral Norm: (What we strive to DO) All associates will be reachable by phone 24/7 unless in flight or directly engaged with a client; all phone calls are returned hourly; all s are answered within three hours of receipt. All associates will be reachable by phone 24/7 unless in flight or directly engaged with a client; all phone calls are returned hourly; all s are answered within three hours of receipt.

19 Progressive Insights & The CHIP BELL Group Service Strategy Implementation Plan Overview of the Steps Phase I – 1 st and 2 nd Quarter Conduct an Initial Service Strategy Assessment Conduct an Initial Service Strategy Assessment Develop a service strategy, including a draft service vision. Develop a service strategy, including a draft service vision. Determine the key drivers of customer loyalty. Determine the key drivers of customer loyalty. Finalize the service vision by the Leadership Team (the Group of 26) Finalize the service vision by the Leadership Team (the Group of 26) Devise a Leadership and communication plan (On-Going) Devise a Leadership and communication plan (On-Going) Reaffirm Corporate Values, Craft Corporate Standards & Norms for a Service Culture Reaffirm Corporate Values, Craft Corporate Standards & Norms for a Service Culture

20 Progressive Insights & The CHIP BELL Group Phase II – 3 rd Quarter Roll out the final service vision to all employees and get their input/help with key barriers to great service. Roll out the final service vision to all employees and get their input/help with key barriers to great service. Implement Several Small Service Vision-Aligned Actions (Quick Wins) Implement Several Small Service Vision-Aligned Actions (Quick Wins) Focus on improving responsible freedom (empowerment) throughout the organization (On-Going) Focus on improving responsible freedom (empowerment) throughout the organization (On-Going) Educate all employees on the importance of great service, as well as the service vision and standards and solicit their input. Educate all employees on the importance of great service, as well as the service vision and standards and solicit their input. Service Strategy Implementation Plan Overview of the Steps

21 Progressive Insights & The CHIP BELL Group Phase III – 4th Quarter Develop system wide and major unit customer service metrics based on the service vision and key drivers of customer loyalty. Develop system wide and major unit customer service metrics based on the service vision and key drivers of customer loyalty. Develop behavioral norms for both the entire organization as well as specific units aligned with the Service Vision and Corporate Standards Develop behavioral norms for both the entire organization as well as specific units aligned with the Service Vision and Corporate Standards Review key processes, practices, policies, and procedures for alignment with the service vision, standard and norms. Review key processes, practices, policies, and procedures for alignment with the service vision, standard and norms. Begin Employee Service Improvement Teams Begin Employee Service Improvement Teams Service Strategy Implementation Plan Overview of the Steps

22 Progressive Insights & The CHIP BELL Group Phase IV – 1 st Quarter Next Year Align the Employee Selection Criteria with the Service Vision, Values Standards and Norms (On-Going) Align the Employee Selection Criteria with the Service Vision, Values Standards and Norms (On-Going) Insure the Recognition/Affirmation Process affirms great customer service (On-Going) Insure the Recognition/Affirmation Process affirms great customer service (On-Going) Provide orientation, training, and tools that promote customer service competence and confidence. (On-Going) Provide orientation, training, and tools that promote customer service competence and confidence. (On-Going) Implement new processes to improve lateral service to eliminate silos Implement new processes to improve lateral service to eliminate silos Service Strategy Implementation Plan Overview of the Steps

23 Progressive Insights & The CHIP BELL Group Service Strategy Implementation Plan Overview of the Steps Phase V – 2 nd Quarter Next Year Design periodic customer feedback and customer intelligence devices for service improvement and to update the understanding of customer expectations. (On-Going) Design periodic customer feedback and customer intelligence devices for service improvement and to update the understanding of customer expectations. (On-Going) Reinforce the vision, standards and norms in performance management processes. (On-going) Reinforce the vision, standards and norms in performance management processes. (On-going)

24 Progressive Insights & The CHIP BELL Group Phase VI – 3 rd Quarter Next Year Improve partnership between units and teamwork within units to promote a seamless customer experience (On- Going) Improve partnership between units and teamwork within units to promote a seamless customer experience (On- Going) Develop a balanced score card for accountability including consideration of incentive compensation awards. Develop a balanced score card for accountability including consideration of incentive compensation awards. Implement methods for service problem (not symptom) resolution and prevention, including a system wide service quality philosophy Implement methods for service problem (not symptom) resolution and prevention, including a system wide service quality philosophy Service Strategy Implementation Plan Overview of the Steps

25 Progressive Insights & The CHIP BELL Group Service Strategy Implementation Plan Overview of the Steps Phase VII – 4 th Quarter Next Year Launch on-going service training for leaders, suppliers, and vendors including certification processes (e.g., ISO type designations). (On- Going) Launch on-going service training for leaders, suppliers, and vendors including certification processes (e.g., ISO type designations). (On- Going) Develop a service recovery evaluation, redesign and education plan Develop a service recovery evaluation, redesign and education plan

26 Progressive Insights & The CHIP BELL Group Service Success is a Journey, Not a Destination