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?
…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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Normative Controls
Instrumental Controls
The Challenge of Customer Compatibility!
Strategy 3: Motivate Customers
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
Segmenting Operational Models!
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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
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
Creating a Culture of Ownership!
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To the entrepreneurial gap…
Narrow Wide
Few Resources
Many Resources
Span of Control
Span of Accountability
Measures Allow Few Tradeoffs
Measures Allow Many Tradeoffs
Entrepreneurs: Individuals who pursue opportunities —either on their own or inside organizations—without regard to the resources they currently control
Stevenson and Jarillo
Creating a Culture of Ownership!
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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
© 2014 Dennis Campbell
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
Span of Accountability
Narrow Wide
Few Resources
Many Resources
Measures Allow Few Tradeoffs
Measures Allow Many Tradeoffs
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Span of Control
Span of Accountability
Narrow Wide
Few Resources
Many Resources
Span of Influence
Span of Support
Interactions Within Unit
Interactions Across Units
Measures Allow Few Tradeoffs
Measures Allow Many Tradeoffs
Strong Commitment Of Help From Others
No Commitment Of Help From Others
Managing the Entrepreneurial Gap!
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Span of Control
Span of Accountability
Narrow Wide
Few Resources
Many Resources
Span of Influence
Span of Support
Interactions Within Unit
Interactions Across Units
Measures Allow Few Tradeoffs
Measures Allow Many Tradeoffs
Strong Commitment Of Help From Others
No Commitment Of Help From Others
Managing the Entrepreneurial Gap!
Connect Supply of Resources!
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Span of Control
Span of Accountability
Narrow Wide
Few Resources
Many Resources
Span of Influence
Span of Support
Interactions Within Unit
Interactions Across Units
Measures Allow Few Tradeoffs
Measures Allow Many Tradeoffs
Strong Commitment Of Help From Others
No Commitment Of Help From Others
Connect Demand for Resources!
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Span of Control
Span of Accountability
Narrow Wide
Few Resources
Many Resources
Span of Influence
Span of Support
Interactions Within Unit
Interactions Across Units
Measures Allow Few Tradeoffs
Measures Allow Many Tradeoffs
Strong Commitment Of Help From Others
No Commitment Of Help From Others
What Happens When Supply and Demand are Out of Balance?!
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Span of Control
Span of Accountability
Narrow Wide
Few Resources
Many Resources
Span of Influence
Span of Support
Interactions Within Unit
Interactions Across Units
Measures Allow Few Tradeoffs
Measures Allow Many Tradeoffs
Strong Commitment Of Help From Others
No Commitment Of Help From Others
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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