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A X I O M C O N S U L T I N G P A R T N E R S 1
AXIOM CASE STUDY
Transforming an Industry Leader
Into a Customer‐Focused Organization
By Aaron Sorensen, Partner, and Donncha Carroll, Principal
One of the world’s largest financial services firms is transforming
its 1,000‐person Product Technology Organization from a
collection of legacy product silos into a customer‐focused
provider of high‐value integrated solutions.
The firm markets more than 100 products and serves tens of
thousands of customers, from Fortune 500 companies and
investment banks to individual investors. The company’s Product
Technology Organization (PTO) had traditionally been organized
into product silos comprised of product management, developers,
salespeople and sales support. That organization design had
served the company well in the past but over time problems
emerged. Competitors started cutting prices on similar products.
The cost to serve clients kept creeping up even as clients
expressed frustration about knowing where to turn to get
answers to their questions. Too many resources were getting
bogged down in maintaining less profitable products and too
few of the right resources focused on producing innovative
new products.
A X I O M C O N S U L T I N G P A R T N E R S 2
Ax iom’s Approach
From past experience and with a deep
understanding of the organization’s
culture, the Axiom team recognized the
importance of building consensus and
basing recommendations on a solid set
of facts. Similar to many organizations,
leaders were comfortable with the
formal and informal norms and “ways of
working” that had built up over time.
Many had a vested interest in
maintaining the status quo. To keep the
transformation manageable, the project
team and client leadership decided to
focus on fundamental deliverables,
including:
1. A New Vision for the PTO – The
Axiom team helped the firm define the
organizational capabilities and priorities
necessary to support the firm’s strategy,
and identify the gaps that need to be
closed to achieve the vision. Forty‐five
interviews with decision‐makers from
across the firm, focus groups and offsite
discussions all contributed to a shared
understanding of how the firm created
value for its customers and how to reach
the goal of a customer‐focused
organizational design.
Detailed data analysis, such as how costs
were allocated across the company’s
product portfolio, produced eye‐opening
results (Figures 1 and 2). For example,
the company discovered that they were
spending 33% more in support of non‐
core products than they were on the two
products that generated 80% of the
company’s revenue. This insight revealed
an opportunity to migrate customers to
core products and redeploy support
resources to drive product innovation.
FIGURE 1
“ THE COMPANY
DISCOVERED THAT THEY
WERE SPENDING 33%
MORE IN SUPPORT OF
NON‐CORE PRODUCTS
THAN THEY WERE ON THE
TWO PRODUCTS THAT
GENERATED 80% OF THE
COMPANY’S REVENUE”
Analyzing the time and costs associated with activities devoted to various products illustrated opportunities to deploy resources to more strategic products.
A X I O M C O N S U L T I N G P A R T N E R S 3
2. Organizational Design and
Operating Model – The Axiom team
recommended detailed alternative
organizational designs (e.g., work
processes, roles, governance, structure
and metrics) and an operating model
(e.g., management structures, meeting
cadence and communication forums) for
the PTO. To help the client make a
decision that was right for that particular
organization, the Axiom team also
provided an objective analysis of the
advantages and disadvantages of the
various designs.
Every alternative was designed to foster
cross‐product implementation, service
and support. For example, the company
was not organized to meet client
demand for multi‐product or customized
solutions. Clients expected seamless
handoffs between various activities but
because roles within the Solutions and
Products groups were unclear, there was
a lot of redundant effort and confusion
about responsibilities. In a new
organizational design, a dedicated
implementation function with cross‐
product expertise could deliver the
solutions clients expected while a similar
operations and maintenance function
could keep installed solutions running
smoothly. Easier handoffs equal happier
clients.
The organizational alternatives also
addressed the problem of emergencies
diverting some developers from
delivering innovative new products. With
a new Innovation Management team in
place, dedicated resources could focus
on the task of developing and
prototyping new ideas that were
essential to future growth. But rather
than being a new R&D silo, the
innovation management team was also
charged with driving greater
collaboration with counterparts across
the company.
The new organizational design also
included more discipline around
minimizing investments in non‐core
products by establishing new processes
to sunset old products and migrate
clients to better and more profitable
solutions.
Understanding how resources are deployed across the product portfolio (FTE Investments by product and activity) helps the company reset priorities.
FIGURE 2
“ THE AXIOM TEAM ALSO
PROVIDED AN OBJECTIVE
ANALYSIS OF THE
ADVANTAGES AND
DISADVANTAGES OF
THE VARIOUS DESIGNS”
A X I O M C O N S U L T I N G P A R T N E R S 4
3. Workforce Plan – The team
identified the specific capabilities and
resources the Product Technology
organization needed to achieve its vision
and developed an implementation plan to
establish a more productive workforce.
Critical to that effort was a detailed
workforce activity assessment. Axiom
utilized a proprietary web‐based data‐
gathering tool that benchmarked how
much time more than 1,000 PTO
employees worldwide spent on various
activities. A similar skills assessment tool
(Figure 3) enabled self‐assessments and
manager‐reported ratings on the skills
and capabilities associated with each role.
Managers rated direct reports on the most important skills and capabilities associated with various roles. These data could then be used to confirm that the best talent was deployed against the most important work. Additionally, the company now had information needed to aggregate an array of job titles into fewer, better‐defined roles, and drive consistency around expectations among those roles across the organization. This would ensure greater accountability, simplify interactions, and support career development.
FIGURE 3
A X I O M C O N S U L T I N G P A R T N E R S 5
4. A Vision for Client Service – With a
significant proportion of income coming
from recurring revenues it was important
to establish clear accountabilities for
account management, service, support
and training. A network analysis (Figure 4)
revealed that resources were not being
utilized in the most effective manner,
particularly among larger clients. The
organization needed a shared vision of
what “customer service” really means
and an organizational design that
delivered on that vision. By integrating
all the after‐sale functions that touched
clients – service, support and training –
into one organization, the company could
ensure that clients had consistent, high‐
quality experiences with the company
and its products. Salespeople in
particular, who had been pulled into
service and support roles outside their
comfort zone, were freed up to focus on
what they did best, with the comfort of
knowing that a dedicated team was there
after the sale.
Using sales transaction data, network analysis allowed the company to visualize and understand the diffusion of account responsibility across various sales resources that had resulted from a decentralized service and support organization.
FIGURE 4
A X I O M C O N S U L T I N G P A R T N E R S 6
Resu l t s :
The firm’s leadership is confident that the transformation from a product‐oriented
company to one that is organized to satisfy customer needs will deliver a variety of
important benefits, including:
Better talent deployment and a more efficient organization design and operating
model – The right people will be in the right roles. Innovation initiatives will be
staffed appropriately. Scarce resources won’t be distracted by low‐value activities.
The company can actually do more to counter competitive threats without adding
headcount.
Higher customer satisfaction – Higher levels of satisfaction are expected as
customers see that the firm has a Product Technology Organization team dedicated
to delivering an exceptional client experience. Questions will get answered more
quickly and accurately. After‐sales support will become a source of competitive
advantage by channeling important client feedback back to the Product
Development teams.
Less management friction – There are already fewer internal struggles about PTO
resource allocation because the project drove consensus about the relative
importance of conflicting priorities. There is clear visibility into how employees are
contributing towards the execution of the customer‐focused strategy.
Increased employee engagement and satisfaction – The workforce strategy work
will help employees better understand their roles and what is expected of them.
Jobs are now well defined, which will provide the workforce with greater clarity and
confidence about how they can progress in their careers. With higher quality, more
specialized talent in critical roles, the firm will reliably design and deliver its next
generation of innovative products.
Austin Brussels Chicago Dublin New York Washington, D.C.
© 2014 Axiom Consulting Partners, LLC. All rights reserved
About Ax iom Consu l t ing Par tners
For senior leaders who want to improve execution and deliver
results, Axiom Consulting Partners is a trusted advisor that
helps them understand their situation more deeply, make
choices with wisdom and take action more decisively.
We help clients create and maintain better linkages among
their strategy, organization design and talent. They value
working with us because we listen more than tell, act rather
than just recommend and deliver solutions that leave a
lasting impact.
To learn more, visit www.axiomcp.com.
About the Authors
AARON SORENSEN, a partner with the firm, is a psychologist with a background in statistics and advanced analytics
who brings unique insight to organization, leadership and workforce issues that impact profitability and constrain
growth. He is known for his ability to develop innovative yet pragmatic solutions that blend quantitative rigor with
practical business savvy to help leaders cultivate the capabilities in their people and business.
To reach Aaron by phone call 312.202.3010 or via email to [email protected].
DONNCHA CARROLL serves as Axiom’s bridge between consulting and technology. He has over 15 years of
experience helping organizations implement strategy and better align organization and talent to achieve key
company goals and objectives. His work is very data‐driven, ensuring a solid fact base for key business decisions.
Donncha leverages Internet technologies, data visualization techniques and Business Intelligence solutions to
improve the efficiency at which work gets done, and to enhance the quality of the information and insights
generated from data gathering and analyses.
To reach Donncha by phone call 312.202.3003 or via email to [email protected].
Axiom Alignment Model