Inﬂuencing Member and Employee Behavior · Inﬂuencing Member and Employee Behavior! ... Stevenson and Jarillo . ... • Detection vs. prevention “controls”

Influencing Member and Employee Behavior!

Dennis Campbell Optimizing Channels Workshop II

April 14, 2014

© 2014 Dennis Campbell

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Consumers or developers?

DIY customers or contractors?

Retailers or end-users?

Does everyone know what your primary customer values?

Are the majority of your resources devoted to providing

what your primary customer values?

The Foundation of Strategy: Who is your Primary Customer?!

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Consumers or developers?

DIY customers or contractors?

Does everyone know what your primary customer values?

Are the majority of your resources devoted to providing

what your primary customer values?

Customers are different. They are not all compatible with a given service model.

Intelligent tradeoffs must be made to align experience and financial goals.

The experience must be well-defined for different customer segments and within different channels.

Why Things are Not so Easy When Competing on Customer Experience…!

Retailers or end-users?

Customers are Different…!

1% 2% <1% 1% 96%

…and They Are Not All Compatible!

1% 2% <1% 1% 96%

Redesign service model(s) to fit customers or manage customers to fit the existing service model

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The Challenge of Customer Compatibility!

Original Customers High-End Products

Low-End Products New Customers

Strategy 1: Select Customers

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Strategy 2: Train Customers

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Normative Controls

Instrumental Controls


Strategy 3: Motivate Customers

Clarity and Credibility through Design!

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JD P

ower

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ervi

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atin

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1 2 3 4 5

®

®

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1 2 3 4 5

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versus

What if you Can’t Say No?!

1.  Always question this assumption.

2.  Look for opportunities to segment operational models

3.  Create and support a culture of employee ownership

Segmenting Operational Models!

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Act

ual I

mpo

rtan

ce

High

Low

Stated Importance Low High

•  Makes You Feel Comfortable

•  Quick & Flexible Banking

•  Keeps You Informed & Up to

Date

•  Convenient Banking Locations •  Best Mortgage and

Loan Rates

•  Helps Maximize Your Financial

Returns

•  Leadership in Electronic Banking

•  Investment Tools & Advice

•  Flexible Payment Options

Table Stakes Low Yield

Key Drivers


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Act

ual I

mpo

rtan

ce

High

Low

Stated Importance Low High

•  People who Instill Trust

•  Gives You Peace of Mind

•  Gets Back to You Quickly

•  Lets You Know How You Are Doing

•  Reasonable Fees •  Enables You to

Manage Your Portfolio

•  Convenient Access to Advisor

•  Convenient Locations

Table Stakes Low Yield

Key Drivers

Customer Experience Attributes at TD-Waterhouse


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Channels and Segments

… … … …

Creating a Culture of Ownership!

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From the controllability principle…

Narrow Wide

Few Resources

Many Resources

Span of Control

Span of Accountability

Measures Allow Few Tradeoffs

Measures Allow Many Tradeoffs


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To the entrepreneurial gap…

Narrow Wide

Few Resources

Many Resources

Span of Control




Entrepreneurs: Individuals who pursue opportunities —either on their own or inside organizations—without regard to the resources they currently control

Stevenson and Jarillo


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• Old Affinity Plus

• New Affinity Plus

Span of Control in Customer Facing Operations

Risk (default rates) < Peers

Productivity, growth, and profitability > Peers


Where does “control” come from?

•  Explicit prioritization of the customer

•  Detection vs. prevention

“controls” •  Organizational vs.

individual incentives

•  Employee Selection

Use of Decision-Making Authority!

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-

0.5

1.0

1.5

2.0

2.5

"Old System" "New System" "New System and Referred"

Outcomes of Decisions!

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-

0.5

1.0

1.5

2.0

2.5

"Old System" "New System" "New System and Referred"

Charge Off Rate

Managing the Entrepreneurial Gap!

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Span of Control


Narrow Wide

Few Resources

Many Resources



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Span of Control


Narrow Wide

Few Resources

Many Resources

Span of Influence

Span of Support

Interactions Within Unit

Interactions Across Units



Strong Commitment Of Help From Others

No Commitment Of Help From Others


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Span of Control


Narrow Wide

Few Resources

Many Resources

Span of Influence

Span of Support








Connect Supply of Resources!

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Span of Control


Narrow Wide

Few Resources

Many Resources

Span of Influence

Span of Support







Connect Demand for Resources!

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Span of Control


Narrow Wide

Few Resources

Many Resources

Span of Influence

Span of Support







What Happens When Supply and Demand are Out of Balance?!

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Span of Control


Narrow Wide

Few Resources

Many Resources

Span of Influence

Span of Support







Logistics!

Consider applying to: •  Yourself

•  A position you are trying to improve

•  An important member-facing role

Work in teams of 2 to 4 (or with others in the same organization)

Each team should use an easel to draw their chosen job design using the slider methodology

4/21/14

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Thank You!!

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Documents

Inﬂuencing Member and Employee Behavior · Inﬂuencing Member and Employee Behavior! ... Stevenson and Jarillo . ... • Detection vs. prevention “controls”