Category Archives: Digital Transformation

Top 10 Human-Centered Change & Innovation Articles of March 2025

Top 10 Human-Centered Change & Innovation Articles of March 2025Drum roll please…

At the beginning of each month, we will profile the ten articles from the previous month that generated the most traffic to Human-Centered Change & Innovation. Did your favorite make the cut?

But enough delay, here are March’s ten most popular innovation posts:

  1. Turning Bold Ideas into Tangible Results — by Robyn Bolton
  2. Leading Through Complexity and Uncertainty — by Greg Satell
  3. Empathy is a Vital Tool for Stronger Teams — by Stefan Lindegaard
  4. The Role Platforms Play in Business Networks — by Geoffrey A. Moore
  5. Inspiring Innovation — by John Bessant
  6. Six Keys to Effective Teamwork — by David Burkus
  7. Product-Lifecycle Management 2.0 — by Dr. Matthew Heim
  8. 5 Business Myths You Cannot Afford to Believe — by Shep Hyken
  9. What Great Ideas Feel Like — by Mike Shipulski
  10. Better Decision Making at Speed — by Mike Shipulski

BONUS – Here are five more strong articles published in February that continue to resonate with people:

If you’re not familiar with Human-Centered Change & Innovation, we publish 4-7 new articles every week built around innovation and transformation insights from our roster of contributing authors and ad hoc submissions from community members. Get the articles right in your Facebook, Twitter or Linkedin feeds too!

SPECIAL BONUS: While supplies last, you can get the hardcover version of my first bestselling book Stoking Your Innovation Bonfire for 44% OFF until Amazon runs out of stock or changes the price. This deal won’t last long, so grab your copy while it lasts!

Build a Common Language of Innovation on your team

Have something to contribute?

Human-Centered Change & Innovation is open to contributions from any and all innovation and transformation professionals out there (practitioners, professors, researchers, consultants, authors, etc.) who have valuable human-centered change and innovation insights to share with everyone for the greater good. If you’d like to contribute, please contact me.

P.S. Here are our Top 40 Innovation Bloggers lists from the last four years:

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

The Role Platforms Play in Business Networks

The Role Platforms Play in Business Networks

GUEST POST from Geoffrey A. Moore

A decade and a half ago, my colleague at TCG Advisors, Philip Lay, led a body of work with SAP around the topic of business network transformation. It was spurred by the unfolding transition from client-server architecture to a cloud-first, mobile-first world, and it explored the implications for managing both high-volume transactions as well as high-complexity relationships. Our hypothesis was that high-volume networks would be dominated by a small number of very powerful concentrators whereas the high-complexity networks would be orchestrated by a small number of very influential orchestrators.

The concentrator model has played out pretty much as expected, although the astounding success of Amazon in dominating retail is in itself a story for the ages. The key has been how IT platforms anchored in cloud and mobile, now supplemented with AI, have enabled transactional enterprises in multiple sectors of the economy to scale to levels previously unimaginable. And these same platforms, when opened to third parties, have proved equally valuable to the long tail of small entrepreneurial businesses, garnering them access to a mass-market distribution channel for their offerings, something well beyond their reach in the prior era.

The impact on the orchestrator model, by contrast, is harder to see, in part because so much of it plays out behind closed doors “in the room where it happens.” Enterprises like JP Morgan Chase, Accenture, Salesforce, Cisco, and SAP clearly extend their influence well beyond their borders. Their ability to orchestrate their value chains, however, has historically been grounded primarily in a network of personal relationships maintained through trustworthiness, experience, and intelligence, not technology. So, where does an IT platform fit into that kind of ecosystem?

Here it helps to bring in a distinction between core and context. Core is what differentiates your business; context is everything else you do. Unless you are yourself a major platform provider, the platform per se is always context, never core. So, all the talk about what is your platform strategy is frankly a bit overblown. Nonetheless, in both the business models under discussion, platforms can impinge upon the core, and that is where your attention does need to be focused.

In the case of the high-volume transaction model, where commoditization is an everyday fact of life, many vendors have sought to differentiate the customer experience, both during the buying process and over the useful life of the offer. This calls for deep engagement with the digital resources available, including accessing and managing multiple sources of data, applying sophisticated analytics, and programming real-time interactions. That said, such data-driven personalization is a tactic that has been pursued for well over a decade now, and the opportunities to differentiate have diminished considerably. The best of those remaining are in industries dominated by an oligopoly of Old Guard enterprises that are so encumbered with legacy systems that they cannot field a credible digital game. If you are playing elsewhere, you will likely fare better if you get back to innovating on the offering itself.

In the case of managing context in a high-complexity relationship model, it is friction that is the everyday fact of life worth worrying about. Most of it lies in the domain of transaction processing, the “paperwork” that tags along with every complex sale. Anything vendors can do to simplify transactional processes will pay off not only in higher customer satisfaction but also in faster order processing, better retention, and improved cross-sell and up-sell. It is not core, it does not differentiate, but it does make everyone breathe easier, including your own workforce. Here, given the remarkable recent advances in data management, machine learning, and generative AI, there is enormous opportunity to change the game, and very little downside risk for so doing. The challenge is to prioritize this effort, especially in established enterprises where the inertia of budget entitlement keeps resources trapped in the coffers of the prior era’s winning teams.

The key takeaway from all this is that for most of us platforms are not strategic so much as they are operational. That is, the risk is less that you might choose an unsuitable platform and more that you may insufficiently invest in exploiting whatever one you do choose. So, the sooner you get this issue off the board’s agenda and into your OKRs, the better.

That’s what I think. What do you think?

Image Credit: Pexels

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Top 10 Human-Centered Change & Innovation Articles of February 2025

Top 10 Human-Centered Change & Innovation Articles of February 2025Drum roll please…

At the beginning of each month, we will profile the ten articles from the previous month that generated the most traffic to Human-Centered Change & Innovation. Did your favorite make the cut?

But enough delay, here are February’s ten most popular innovation posts:

  1. Innovation is Dead. Now What? — by Robyn Bolton
  2. When Best Practices Become Old Practices — by Mike Shipulski
  3. 3 Keys to Improving Leadership Skills — by David Burkus
  4. Audacious – How Humans Win in an AI Marketing World — Exclusive Interview with Mark Schaefer
  5. Which Go to Market Playbook Should You Choose? — by Geoffrey A. Moore
  6. Turns Out the Tin Foil Hat People Were Right — by Braden Kelley
  7. Are You a Leader? — by Mike Shipulski
  8. Time to Stop These Ten Bad Customer Experience Habits — by Shep Hyken
  9. Beyond the AI Customer Experience Hype — by Shep Hyken
  10. A Tumultuous Decade of Generational Strife — by Greg Satell

BONUS – Here are five more strong articles published in January that continue to resonate with people:

If you’re not familiar with Human-Centered Change & Innovation, we publish 4-7 new articles every week built around innovation and transformation insights from our roster of contributing authors and ad hoc submissions from community members. Get the articles right in your Facebook, Twitter or Linkedin feeds too!

SPECIAL BONUS: While supplies last, you can get the hardcover version of my first bestselling book Stoking Your Innovation Bonfire for 44% OFF until Amazon runs out of stock or changes the price. This deal won’t last long, so grab your copy while it lasts!

Build a Common Language of Innovation on your team

Have something to contribute?

Human-Centered Change & Innovation is open to contributions from any and all innovation and transformation professionals out there (practitioners, professors, researchers, consultants, authors, etc.) who have valuable human-centered change and innovation insights to share with everyone for the greater good. If you’d like to contribute, please contact me.

P.S. Here are our Top 40 Innovation Bloggers lists from the last four years:

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

Digital Customer Experience Drives Bottom Line Results

Digital Customer Experience Drives Bottom Line Results

GUEST POST from Howard Tiersky

Several years ago, Jake Sorofman, from Gartner, Inc. wrote that “Customer Experience is the new battleground.”

This has been requoted numerous times by companies including Forbes, Altimeter and, McKinsey, etc. And now it looks like FROM.

Not to beat a dead horse, but are CEO’s convinced? In our experience, clients whose leadership is on board with investing in a great experience report greater financial advantages vs. those companies who are not focused on Customer Experience (CX) or are dabbling in it.

In fact, the Aberdeen Group conducted a detailed study on Aligning the Business Around a Customer. In the report, the Best in Class (BIC: defined as the top 20% of participants by reported performance) reported significant financial advantages. For example, the Year over Year (YoY) change in Company revenue is 35.4% for the BIC and 7.7% for all rest.

Other interesting findings include Customer Retention Rate: BIC 85% the rest 40%. YoY change in Customer profitability: BIC 18.2% the rest 2.9%.

Aberdeen Group Aligning Around the Customer

How do companies get results like these? Our clients don’t just fix touchpoints but use Journey Management to Innovate Exceptional Experiences that Customers Love. A simple 6 step process works:

  1. Know your customers and their behaviors
  2. Map their journey and identify friction points, gaps and enabling systems
  3. Establish metrics and analytics based on your business strategy
  4. Ideate and innovate based on new technologies, analytics, and trends
  5. Blueprint the new experiences using a service design based method
  6. Deploy new capabilities and implement the new journeys

6 Step Customer Journey Map Process

Of course, measurement against the metrics set up in step 3 allows us to optimize over time and keep the journey fresh. It also allows us to see potential new friction points that should be resolved. Many companies are looking at personalizing the experience, really understanding their customer behavior and building an environment for co-creation. Powered by ethnographic research, user-centered design can help to focus on what the customer wants to accomplish and how best to get the desired outcome.

So, this works for the rest of the companies, but what about the Best in Class group? Yep, the true innovation to deliver exceptional experiences is never really done. There will always be new tech, and of course, competitors and other companies are investing in their experiences and creating the next big thing.

Need more detail on the benefits of implementing a CX Operating Model and using journey management to deliver Exceptional Experiences? Here is another study that is about 15 months old, also by the Aberdeen group, that details some of the most common areas of value companies are reporting.

The Employee Engagement comparison is staggering. Companies that use Journey Management get almost 15% more employees engaged than companies who work on their journeys, but do not have a cross-silo mature management program. As you may know, engaged employees have a profound impact on the Customer experience. ROMI, Referrals and Sales Cycle Times are also areas that carry large financial rewards.

This article originally appeared on the Howard Tiersky blog

Image Credits: Pexels

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Unlocking Trapped Value with AI

Unlocking Trapped Value with AI

GUEST POST from Geoffrey A. Moore

Anyone who has used Chat GPT or any of its cousins will testify to its astonishing ability to provide valuable responses to virtually any query. This is hardly a threat—indeed, it is a boon. So, what are we worrying about?

Well, there is the issue of veracity, of course, and it is true, GPT-enabled assistants can indeed make mistakes. But, come on—humans don’t? We are not looking for gospel truth here. We want highly probable, highly informed answers to questions where we need guidance, and it is clear that GPT-enabled applications are outstanding at meeting this need, for at least three reasons. They are remarkably well-informed. They are available 24/7 on demand with no hold time. And they have infinite patience. So, let’s not kid ourselves. We are massively better off for their emergence on the scene.

What we should be worrying about, on the other hand, is their impact on jobs to be done, employment, and career development. A simple way to think about this is that for any of us to earn money, we have to release some form of trapped value. A bank clerk helps a customer get access to the trapped value in their savings account. A bus driver helps a passenger cope with their trapped value by transporting them to the location where they need to be. A lawyer helps a client get access to trapped value by constructing a contract that meets their needs while protecting against risk. A teacher helps a student access trapped value by helping her solve problems she couldn’t handle before. The principle applies to every job. All systems have points of trapped value, and all jobs are organized around releasing and capturing that value.

Now, let’s introduce generative AI. All of a sudden, a whole lot of trapped value that funded a whole lot of jobs can now be released for free (or virtually for free). Those jobs can be protected in the short term but not forever. In other words, the environment really has changed, and we must assess our new circumstances or fall behind. This is Darwinism at work. Evolution never stops. It can’t. As long as there is change, there will be dislocation, which in turn will stimulate innovation. That’s life.

But here’s the good news. The universe can never eliminate trapped value, it can only move it from place to place. That is, there are always emergent problems to solve, always new opportunities to capitalize on, because every system always traps value somewhere. What Darwinism requires is that we detect the new value traps and redirect our activity to engage with them.

Publicly funded agencies sometimes interpret this as a mandate for training programs, but we have to be careful here. Training works well for disseminating established skills that address known problems. It does not work well, however, where the problems are still being determined and the skills are as yet undeveloped. Novelty, in other words, demands creativity. It is simply not negotiable.

Getting back to the impact of generative AI, we should understand that it is an advisory technology. It is not automation. That is, it is not eliminating the need for human beings to make judgment calls. Rather, it is accelerating the preparation for so doing and framing the options in ways that make decision-making more straightforward. By solving for the old value traps, it is giving us the opportunity to up our game. It’s our job to step up to add net new value to the equation.

The best way to do this is to ferret out the emerging new value traps. Who is the customer now? What is the bottleneck that is holding them back? How could that bottleneck be broken open? What is the reward for so doing? These are the fundamental questions that drive any business model. We know how to do this. It’s just that we have been riding on the inertia of the past set of solutions for so long we may have atrophied in some of the muscles we need now. One thing we need not worry about is the universe running out of trapped value. If you are ever in doubt, just read the day’s headlines and be reassured. The world needs our help. Any tool that helps us do our part better is a blessing.

That’s what I think. What do you think?

Image Credit: Pexels

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The Changemaker Mindset

The Changemaker Mindset

GUEST POST from Greg Satell

Every time I speak to a group of executives, they complain that their organizations desperately need to change, but that the bosses are hostile to it. And every time I speak to a group of leaders, they say that change is their highest priority, but can’t seem to align the rank-and-file behind transformational initiatives.

The truth is that everybody loves their own brand of change, it’s other people’s ideas and initiatives that they don’t like. We all have things that we want to be different. But the status quo has inertia on its side and never yields its power gracefully. To want change is one thing, but to change ourselves, well… that’s another story.

What I’ve found in both my research and my practice is that people who bring about transformational, even historic, change start out no differently than anyone else. In fact, early versions of them are often decidedly unimpressive. The difference between them and everyone else is that somewhere along the way they learn to adopt a changemaker mindset.

A Problem They Couldn’t Look Away From

As a young man, Mohandis Gandhi wasn’t the type of person anyone would notice. Impulsive and undisciplined, he was also so shy as a young lawyer that he could hardly bring himself to speak in open court. With his law career failing, he accepted an offer to represent the cousin of a wealthy muslim merchant in South Africa.

Upon his arrival, Gandhi was subjected to humiliation on a train and it changed him. His sense of dignity offended, he decided to fight back. He found his voice, built the almost superhuman discipline he became famous for and successfully campaigned for the rights of Indians in South Africa. He returned to India 21 years later as the “Mahatma,” or “holy man.”

The truth is that revolutions don’t begin with a slogan, they begin with a cause. Martin Luther King Jr., as eloquent as he was, didn’t start with words. It was his personal experiences with racism that helped him find his words. It was his devotion to the cause that gave those words meaning, not the other way around.

Steve Jobs didn’t look for ideas, he looked for products that sucked. Computers sucked. Music players sucked. Mobile phones sucked. His passion was to make them “insanely great.” Every breakthrough product or invention, a laser printer, a quantum computer or even a life-saving cure like cancer immunotherapy, always starts out with a problem someone couldn’t look away from.

Identifying A Keystone Change

Every change effort, if it is to be successful, needs to identify a Keystone Change to bridge the gap between the initial grievance about the world as it is and the vision for how the world could be. You can’t get there in a single step. This is a lesson that even a legendary changemaker like Gandhi had to learn the hard way.

In 1919, five years after his return to India, Gandhi called for a nationwide series of strikes and boycotts in response to the Rowlatt Acts, which restricted Indian rights. These protests were successful at first, but soon spun wildly out of control and eventually led to the massacre at Amritsar, in which British soldiers left hundreds dead and more than a thousand wounded.

A decade later, when the Indian National Congress asked Gandhi to design a campaign of civil disobedience in support of independence, he proceeded more cautiously. Rather than rashly calling for national action, he set out with 70 or 80 of his closest disciples to protest unjust salt laws. Their nonviolent discipline inspired the nation and the world.

Today, the Salt March is known as Gandhi’s greatest triumph. It was the first time that the British was forced to negotiate with the Indians and, because it demonstrated that the Raj could be defied, helped lead to Indian independence in 1947. Yet without that earlier failure, which Gandhi would call his Himalayan miscalculation, it would not have been possible.

Gandhi is, of course, a legendary historical figure. But other, more pedestrian, changemakers learned the same thing. A lean manufacturing transformation at Wyeth Pharmaceutical started with a single change with a single team, but quickly spread to 17,000 employees. A healthcare revolution began with just six quality practices. When the CIO of Experian set out to move his organization to the cloud, he began with internal API’s and just a few teams.

To make change real, you need to get out of the business of selling an idea and into the business of selling a success. You do that with a Keystone Change.

Empowering A Movement

We revere legendary change leaders like Gandhi, Martin Luther King Jr, Nelson Mandela and others not just for their ideas, but because of how they empowered others to take ownership of their cause. Those who followed them did so not in their names, but for themselves. The struggle was collective, not one of subservience.

That’s what makes building a movement different from traditional change models they often teach in business schools. A snazzy internal communication program and a training regimen may help an organization adopt new software or gear up to support a new product line, but it won’t change how people fundamentally think or act.

Movement leaders focus on empowerment, not persuasion. Gandhi didn’t need to convince his countrymen about the daily humiliations and injustices suffered under the British Raj. King did not have to explain to black Americans that racism was wrong. Mandela did not have to persuade black South Africans about the evils of Apartheid. They empowered them to make a difference. That’s what makes movements so compelling and effective.

Changemakers of all kinds can do the same. At Experian, the CIO set up an “API Center of Excellence” to help product managers who wanted to build out cloud-based features. To power the quality movement in healthcare, activists created “change kits” to guide hospital staff who were on board and wanted to bring their colleagues along. Change can only succeed if you equip those who believe in it to drive it forward.

Building Empathy, Even For Your Enemies

People who believe in change want to believe that if everyone understood it, they’d want it to happen. That’s why “change management” gurus focus on communication and persuasion. They think that if you explain your idea for change in just the right way, others will see the light. For many change consultants, transformation is primarily a messaging problem.

Yet anyone who has ever been married or had kids knows how hard it can be to convince even a single person of something. Persuading hundreds, if not thousands—or even an entire society—that they should drop what they’re thinking and doing to adopt your idea and help drive it forward is a tall order. The simple truth is that no one is really that charming.

Make no mistake. If your idea is important, if it has real potential to affect how people think and how they act, there will always be those who will hate it and they will work to undermine it in ways that are dishonest, underhanded and deceptive. That’s just a simple fact of life that every potential changemaker needs to learn to internalize and accept.

Yet adopting a changemaker mindset means that you understand that change is always built on common ground and that you need to build empathy, even for your most ardent adversaries, because that is how you identify shared values and move things forward. It is by listening to your opposition and internalizing its logic that you can learn how to discredit it, or even better, inspire those hostile to change to discredit themselves.

That is the changemaker mindset: To understand that change is hard, even unlikely, but to remain clear-eyed, hard-nosed and opportunity focused. To know that through shared values and shared purpose, radical, transformational change is not only possible, but ultimately inevitable.

— Article courtesy of the Digital Tonto blog
— Image credits: Unsplash

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Harnessing Human-Centered Change for Lasting Impact

Harnessing Human-Centered Change for Lasting Impact

GUEST POST from Art Inteligencia

Greetings on this Global Change Management Day! Today I would like to highlight the work of Braden Kelley, an internationally-recognized thought leader and best-selling author passionately committed to advancing human-centered change and innovation. Today, I want to share insights that emphasize the importance of placing people at the heart of transformation efforts and how this approach fosters sustainable change.

Change management, at its core, is about guiding human behavior and perception. While organizational strategies, structures, and systems are critical, they mean little without addressing the human side of change. This is where human-centered change comes into play, an approach Braden Kelley has dedicated much of his career to developing and promoting.

The Essence of Human-Centered Change

Human-centered change is more than a methodology; it is a philosophy that reclaims the importance of empathy, communication, and collaboration in organizational transformation. It’s about understanding the human experience and designing change initiatives that align with the intrinsic motivations and needs of individuals.

When people feel heard and understood, they become genuine advocates of change. This approach leads to not just short-term success but long-lasting impact, turning change-resistant cultures into adaptable ecosystems thriving on innovation.

Insights from Braden’s Journey

Throughout his career, Braden has created frameworks and tools that encapsulate the essence of human-centered change. One such resource is the Change Planning Toolkit. It provides a unique visual framework to help change managers plan, implement, and sustain change initiatives with meticulous precision and empathy for those involved.

The toolkit is grounded in the principle that every change journey is unique, yet structured guidance can illuminate paths to common goals. This is reviewed in various workshops and talks where he emphasizes iteration and engagement over top-down mandates. This toolkit — and many others he has developed — aims to demystify change management by involving stakeholders from the ground up and serves to get everyone literally all on the same page for change.

Empowering Change Agents

One of Braden’s objectives with creating tools and resources is to empower change agents—those individuals within an organization who understand the importance of human-centric transformation. By equipping them with comprehensive tools, such as canvases and diagnostics, these change leaders can effectively convey and execute change efforts.

For those interested in exploring these resources, be sure and get the 10 free human-centered change tools that Braden makes available here on this web site – including a visualization of the ACMP Standard for Change Management®.

These tools serve as a starting point for embedding human-centered practices in change management projects. They are crafted to encourage dialogue, understanding, and alignment among all stakeholders.

Celebrating Progress and Looking Forward

Global Change Management Day provides an opportunity to reflect on our progress and set aspirations for the future. As we acknowledge the evolving challenges facing businesses and societies, it becomes imperative that change management professionals continue to evolve, embracing approaches that prioritize humanity.

Moving forward, the objective is to foster communities of practice where change professionals can share insights, challenges, and successes. Through collaboration and shared learning, we can enhance our understanding and implementation of change practices that honor the human spirit while achieving our organizational objectives.

In closing, I encourage all change leaders and enthusiasts to continuously pursue learning and adaptation. Engage with new methodologies, share your stories, and remain open to experimentation. The future of change management rests in our ability to be both innovative and empathetic facilitators of transformation. One great place to start is to get a copy of Braden’s best-selling book Charting Change, which is now in its Second Edition with several new chapters!

Image credit: ACMP, Braden Kelley

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Top 10 Human-Centered Change & Innovation Articles of January 2025

Top 10 Human-Centered Change & Innovation Articles of January 2025Drum roll please…

At the beginning of each month, we will profile the ten articles from the previous month that generated the most traffic to Human-Centered Change & Innovation. Did your favorite make the cut?

But enough delay, here are January’s ten most popular innovation posts:

  1. A Toolbox for High-Performance Teams — by Stefan Lindegaard
  2. Top 100 Innovation and Transformation Articles of 2024 — Curated by Braden Kelley
  3. The Twelve Killers of Innovation — by Robyn Bolton
  4. Building Trust for High Performing Teams — by David Burkus
  5. Be Ridiculously Easy to Do Business With — by Shep Hyken
  6. Uncertainty Isn’t Always Bad — by Mike Shipulski
  7. The Real Winners of Mega Events — by Shep Hyken
  8. Five Must Reads for 2025 — by Robyn Bolton
  9. Don’t Slow Roll Your Transformation — by Geoffrey A. Moore
  10. Is it Time to ReLearn to Work? — by Geoffrey A. Moore

BONUS – Here are five more strong articles published in December that continue to resonate with people:

If you’re not familiar with Human-Centered Change & Innovation, we publish 4-7 new articles every week built around innovation and transformation insights from our roster of contributing authors and ad hoc submissions from community members. Get the articles right in your Facebook, Twitter or Linkedin feeds too!

SPECIAL BONUS: While supplies last, you can get the hardcover version of my first bestselling book Stoking Your Innovation Bonfire for 44% OFF until Amazon runs out of stock or changes the price. This deal won’t last long, so grab your copy while it lasts!

Build a Common Language of Innovation on your team

Have something to contribute?

Human-Centered Change & Innovation is open to contributions from any and all innovation and transformation professionals out there (practitioners, professors, researchers, consultants, authors, etc.) who have valuable human-centered change and innovation insights to share with everyone for the greater good. If you’d like to contribute, please contact me.

P.S. Here are our Top 40 Innovation Bloggers lists from the last four years:

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

99% of Companies Failed to Do This Last Year

99% of Companies Failed to Do This Last Year

GUEST POST from Art Inteligencia

In today’s rapidly changing business landscape, one essential activity that 99% of companies failed to prioritize last year is conducting regular independent customer and employee experience audits. These audits are critical for understanding the current state and potential improvements needed to enhance engagement, loyalty, and satisfaction among customers and employees.

For most companies, customer and employee experiences are the backbone of their success. A business can’t thrive without satisfied customers buying their products or services, and employees are the driving force behind delivering these experiences. Despite this understanding, many businesses neglect the proactive steps necessary to evaluate and enrich these experiences systematically utilizing unbiased external third parties to walk the experiences and document friction points and opportunities.

Is your company part of the 99% that failed to conduct both an independent customer experience audit and an independent employee experience audit last year?

If you are part of the 1%, please be sure and leave some thoughts about the experience (no pun intended) in the comments!

Why Independent Experience Audits Matter

Independent experience audits are comprehensive reviews of interactions customers and employees have with a company performed by an unbiased external resource. They help identify pain points and opportunities for improvement. These audits should be performed regularly as they can reveal insights into:

  • The alignment between company offerings and customer needs.
  • The effectiveness of internal processes in promoting a positive work environment.
  • The coherence of brand values with actual customer and employee experiences.
  • Emerging trends and preferences that might impact future strategies.

“73% of customers are willing to pay more for a great customer experience.” – Temkin Group

Despite the apparent value proposition of these independent audits, why are so many companies still overlooking them? The constraints are often a mix of perceived complexity, lack of in-house expertise, or prioritization of immediate financial metrics over strategic insights. However, history has shown that organizations that adapt ahead of changes in expectations are better positioned to succeed over those that react out of necessity.

Case Study 1: An Overlooked Opportunity – Company X

Company X, a well-established retail brand, faced declining sales figures and employee turnover. Their product line remained strong, and pay scales were competitive. However, deeper insights revealed that customer experiences were inconsistent, and employees often felt disengaged due to a lack of communication and growth opportunities.

Recognizing the signs, Company X engaged in a comprehensive independent experience audit. The audit discovered two key issues:

  • Customer Experience: Customers reported a lack of personalization in their shopping journey, expressing frustration over disconnected in-store and online experiences.
  • Employee Experience: Employees felt unappreciated, with inadequate feedback channels and professional development options.

Armed with these insights, Company X implemented a strategy that enhanced personalized shopping experiences using AI-driven recommendations and integrated both digital and physical stores for seamless customer journeys. Simultaneously, they developed a robust internal communication framework that empowered employees through regular feedback and offered career progression pathways.

Within six months post-intervention, Company X witnessed a 15% increase in customer satisfaction scores and a 20% decrease in employee turnover—solidifying the importance of independent experience audits.

Case Study 2: A Success Story – Company Y

Company Y, on the other hand, already valued independent customer and employee experience audits as a vital component of their corporate strategy. As a result, they experienced steady growth and minimal churn rates despite operating in the highly competitive tech industry.

Company Y conducts bi-annual audits using a company like HCLTech, reviewing user interactions with their software products and collecting feedback through employee surveys intertwined with one-on-one interviews. They discovered that:

  • Customer Experience: The need for improved user interface intuitiveness was prevalent, prompting a user-centered design overhaul that optimized performance and usability.
  • Employee Experience: Although engagement levels were high, team collaboration across departments showed potential for enhancement.

By proactively addressing these issues, Company Y not only improved its software product, which increased customer retention by 25%, but also invested in team-building exercises and diversified project teams, leading to more innovative solutions and a dynamic organizational culture.

How to Implement Experience Audits in Your Organization

To avoid the common pitfalls highlighted, businesses need to incorporate independent experience audits into their regular strategic evaluations. Here’s a simplified approach to getting started:

  1. Define Objectives: Clearly identify what you aim to discover with the audit. Are you focusing on loyalty, satisfaction, efficiency, or a combination?
  2. Select a Partner: Choose an independent resource that is experienced, trustworthy and thorough in their activities to assess and document their findings as they walk the critical components of your customer and employee experiences.
  3. Gather Data: Utilize surveys, interviews, focus groups, and data analytics to collect comprehensive insights.
  4. Analyze Findings: Categorize feedback to identify consistent patterns, pain points, and potential areas for improvement.
  5. Develop an Action Plan: Prioritize issues by impact and feasibility, then devise a strategy that aligns with your company’s goals.
  6. Implement Changes: Address the identified opportunities with targeted interventions, ensuring stakeholders are engaged and informed.
  7. Measure Impact: Continuously track the effectiveness of changes and refine strategies as necessary.

Conclusion

Independent experience audits are not just a ‘nice to have’ but a strategic necessity. Companies can no longer afford to be complacent; they must take actionable insights from these audits to craft memorable and meaningful experiences for their customers and employees. Companies like Y that put independent experience audits at the heart of their strategy invariably found themselves robust against industry challenges, offering lessons that the broader business community should heed.

“Companies that excel at customer experience are 60% more profitable than their peers.” – Gartner

If you would like to engage an unbiased external person like Braden Kelley to conduct a customer experience and/or employee audit for you this year to join the 1% leapfrogging their competition, contact us!

Bottom line: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pixabay

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Top 10 Human-Centered Change & Innovation Articles of December 2024

Top 10 Human-Centered Change & Innovation Articles of December 2024Drum roll please…

At the beginning of each month, we will profile the ten articles from the previous month that generated the most traffic to Human-Centered Change & Innovation. Did your favorite make the cut?

But enough delay, here are December’s ten most popular innovation posts:

  1. Top Six Trends for Innovation Management in 2025 — by Jesse Nieminen
  2. Best Team Building Exercise Around — by David Burkus
  3. You Are Doing Strategic Planning Wrong (According to Seth Godin) — by Robyn Bolton
  4. Why Annual Employee Experience Audits Are Important — by Braden Kelley and Art Inteligencia
  5. Don’t ‘Follow the Science’, Follow the Scientific Method — by Pete Foley
  6. Artificial Innovation — by Braden Kelley
  7. Dynamic Thinking — by Mike Shipulski
  8. The State of Customer Experience and the Contact Center — by Shep Hyken
  9. The Duality of High-Performing Teams — by David Burkus
  10. Uber Economy is Killing Innovation, Prosperity and Entrepreneurship — by Greg Satell

BONUS – Here are five more strong articles published in November that continue to resonate with people:

If you’re not familiar with Human-Centered Change & Innovation, we publish 4-7 new articles every week built around innovation and transformation insights from our roster of contributing authors and ad hoc submissions from community members. Get the articles right in your Facebook, Twitter or Linkedin feeds too!

SPECIAL BONUS: While supplies last, you can get the hardcover version of my first bestselling book Stoking Your Innovation Bonfire for 44% OFF until Amazon runs out of stock or changes the price. This deal won’t last long, so grab your copy while it lasts!

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Have something to contribute?

Human-Centered Change & Innovation is open to contributions from any and all innovation and transformation professionals out there (practitioners, professors, researchers, consultants, authors, etc.) who have valuable human-centered change and innovation insights to share with everyone for the greater good. If you’d like to contribute, please contact me.

P.S. Here are our Top 40 Innovation Bloggers lists from the last four years:

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