Tuesday

Basic Business Organization

Organizing Around the Customer’s Process

Since the primary purpose of a successful business is to help customers with their problems it stands to reason that a business would be organized around the way customers look at problems.

The Customers Perspective
The typical problem solving cycle of any customer can be broken down into four stages, each with a trigger that starts it off. Identifying a problem triggers the customer to start looking or shopping for solutions. Identifying a viable solution triggers the customer to sort out the details and place an order. Reaching an agreement on options and payment details triggers the customer to let someone start working on delivering the solution. Accepting the final solution triggers the customer to use the solution.


Organizing Around the Customer’s Process
To keep everyone happy, you want the customer to progress through these stages as quickly and smoothly as possible. As a result most businesses are set up with four main teams, each one specializing in helping the customer through one of the primary stages of solving his or her problem.

The sales team is there to help the customer understand the available solutions, the solutions your company offers, and the benefits of each solution.

The orders team is there to help the customer choose the right details and options, and agree on payment and delivery methods. The orders team must be able to answer detailed questions and offer intelligent advice to ensure the customer gets a good solution. The customer should not have to learn any more than they want to about the details of your company and its products and services. The orders teams is there to make sure all the necessary details are covered.

After an agreement is reached with the orders team, the delivery team takes over to build and deliver the solution to the customer. In a products business this would include a factory and commissioning team. In a services business this team would include the people who provide the actual service. The delivery team is often referred to as the fulfillment team since their role is to fill the order.

After the order has been delivered and accepted by the customer, it is important to have a support team there to ensure the customer has as pleasant experience using the solution. This includes addressing any problems that arise after the customer has taken delivery of the solution, and answering general questions to make life as easy for the customer as possible.

All four teams are there to help the customer through the process.

Ensuring the Business Side
Now let’s look at this from the businesses perspective. Remember the solution needs to be advantageous for both the customer and the business. We call this a win-win scenario, and it is crucial to building successful long term relationships.

From this perspective, the sales team’s goal is to get the customer to decide that they want to buy from this business. The goal is not a purchase; the goal is a decision in their minds that they want to make a purchase. It follows that the sales team needs to understand the value of your solutions, and where they fit in the marketplace. It is not critical that they understand every detail, but they had better know where to get the answers.

The orders team’s goal is to get the purchase order. If the sales team has done its job, the customer already wants to buy. The orders team must sit down with the customer and understand the details of the problem they are trying to solve. They must then explain the available options, answer any questions, and work with the customer to find a mutually agreeable solution that helps both the customer and the business. A win-win philosophy is at the heart of all successful orders team.

From a business perspective, the delivery team’s goal is to get the customer to pay for the solution. They do this by providing a quality solution that the customer accepts. Managing delivery can be very complex, but it is critical that this complexity is not transferred onto the customer. The customer wants a quality product or service, delivered on time, and on budget. How the details are handled is not their problem. They are not that interested in how you do it. They are interested in the end result. The delivery team must deliver the end result.

So once a business has been paid for delivering a solution why continue to serve the customer? The support team’s goal is to deliver a happy customer back to the sales team so their job will be easier the next time around. This function is often under-rated by people who do not understand how much easier (and less costly) it is to sell to a customer something a second time, compared to getting a new customer. Post-delivery customer support is crucial to all successful long-term businesses. When a happy customer goes looking to solve his or her next problem, they will come to you first. An unhappy customer will go to everyone else first. The support team is there to ensure the next sale.

Summary
Healthy businesses are organized around the way customers pursue solutions to their problems.

The sales team helps the customer understand the available solutions and their benefits. The sales team helps the business get the customer to decide they want to buy.

The orders team helps the customer understand the details and place an order. The orders team helps the business understand the customer’s details and get the contract signed.

The delivery, or fulfillment team helps the customer by providing the agreed upon solution. The delivery team helps the business get the customer to pay for the solution.

The support team helps the customer by taking care of them even after they have paid their bill. The support team helps the business by delivering happy, ready to buy customers to the sales team.

Each team needs to have a strong relationship with the teams that precede and follow them in the business cycle in order to serve the customer well. Each team needs to look for the win-win balance of helping the customer and helping the business because helping the customer the right way is the same as helping the business.
Boundless Thinking

Monday

How People Find Solutions

The 4 Steps to Problem Solving

We know why people want things:
1. to meet basic needs,
2. to save time or effort,
3. to get peace of mind,
4. it appeals to their image or ego,
5. fun or enjoyment,

We also know why people go looking for help with these things:
1. physically can’t do something
2. don’t know how to do something,
3. don’t have the time
4. don’t have the tools
5. don’t’ like doing it
6. more efficient to have someone else do it

Understanding why people want things is step one. Step two is understanding what people do when once they decide to find a solution to their problem.

Let’s assume for the moment that someone knows they have a problem, and they’ve decided they want to solve it. There are 4 steps to finding a solution that people generally follow:
1. Search for things that could address the need or want
2. Decide on a solution and set out to get it
3. Take it and get it ready to use
4. Use it

All problem solving can be broken down into these four basic stages. Here’s a more familiar way to look at it:
1. Go shopping
2. Place an order
3. Take delivery
4. Start using it

Let’s look at the four stages in a little more detail.

Go Shopping
Think about the last time you needed something. What did you do first? I was fixing the brakes on my son’s bicycle the other day, and needed an extra hand to pull the brake handle. “Hey Logan, can you come pull the brake handle?” I asked someone around me for help. I wanted a new cell phone plan because I learned that my bill was regularly twice as high as my fiancés. “Honey, what company do you use again?” Her response: “I think I have a pretty good plan, but why don’t we go the mall and ask someone who actually knows. There are at least 4 cell phone stores there”. So we did.

Searching for solutions generally starts with asking your friends, family or co-workers. If you’re still not sure you seek out an expert for more advice. You may even test-drive, or try on a few things to see what you like best. Finally you pick something you either like, trust or recognize from the suggestions offered.

Place an Order
Placing an order can be as simple as “I’ll take this one”. It can also be a complex series of decisions on options, delivery methods and payment options. When I placed an order for my new cell phone, they wanted to know if I would like to add a case, how I wanted to pay, and if I would like them to transfer my contacts over from my old phone to my new phone.

When I worked with equipment for utilities and industrial plants there were dozens of ordering options for different voltage levels, cabinet types, communications equipment options, system configurations or configuration services, wiring harnesses, the list goes on. The sales people didn’t even know all of the available options. There was a separate orders team to take them through the ordering process and ensure they got a solution that fit their needs correctly.

Take Delivery
So after the order has been placed, someone needs to fill your order. With my recent cell phone purchase the same person who sold it to me and took the order then took my old phone, went to the back room, and came out a few minutes later with my new phone. It was all set up complete with all the contacts from my old copied onto it. I have no idea whether he did it himself or handed it to a technician to do. Frankly, I don’t care. I just know my salesman took care of it.

In the industrial world, taking delivery is a little more complicated, but it follows the same basic steps. Instead of going into the back room, the equipment is ordered from a factory, and team of people are engaged in building and configuring the equipment. Shipping is then arranged with the customer including transport and cross-border customs clearing. On first deliveries the customer often comes to the factory to do some tests and provide formal acceptance. Some changes are almost always made at this point. After shipping the first ones to the installation site, an engineer is often deployed to help set it up and ensure everything is working correctly. All part of the delivery process.

Use It
And finally you get to use it. But the story doesn’t end here, there’s more. Remember when you got that brand new PC home? You got it set up, you started using it, and then you tryed to print out that first piece of paper and nothing happened. You tried everything you could think of and still nothing happened. Enter Customer Service.

Even after things are delivered and paid for, people still need help. If you get good help you are happy, and you go back to that store and recommend them to your friends. If you get bad help, or no help, you may never go back there. You will also probably make sure everyone you ever meet looking for something similar knows to stay away from that company because they will cause them nothing but pain. After all, that’s what happened to you.

A pleasant experience with the Customer Service team after you buy something is often the difference between loving and hating the people that sold it to you.

Summary
Whether we realize it or not there are 4 steps we all go through every time we purchase a product or service.
1. Shop for potential solutions
2. Decide and order something
3. Get it
4. Use itBoundless Thinking