Tag Archives: performance management

Identifying and measuring the value of customer-centricity

Customer-centricityWhat makes a customer loyal? This high-stakes question resonates from the boardroom to the call center. Finding the right answer is more difficult—and important—than ever. Keeping customers satisfied, without unnecessarily driving up sales or services costs, is a direct path to profitable growth, especially in the face of a challenging economic environment.

“In 2009, (Forrester expects) enterprises to turn their attention from an emphasis on customer acquisition to customer retention. In a recent CustomerThink survey of more than 350 CRM professionals, ‘improving customer loyalty’ was rated as a ‘top five’ business priority by 57 percent of respondents. This was second only to ‘improving the customer experience,’ picked by 62 percent. During an economic recession, sustaining revenue growth—or forestalling revenue erosion—becomes even more critical. Customer management improvement initiatives, supported by advanced business technologies, will continue to be critical to achieving this goal.”1

Industry-leading organizations make customers’ priorities their priorities. When managing performance, they continually measure, monitor and improve what matters most to customers. As companies align their value proposition to meet customer needs, they must periodically evaluate their strategies and processes to present customers with a consistently exceptional experience.

An enterprise that embraces customer-centricity defines its processes around its customer requirements at key interaction points. In essence, the company views itself as a portfolio of customers, rather than as discrete groups of products, services, territories and/or functions. This change in orientation allows companies to effect change necessary for their business processes, organizational structures and corporate cultures so that they can achieve the benefits of customer-centricity.

So, is your company customer-centric? Tell us what makes your customer loyal. If you would like to learn more about customer loyalty, read BearingPoint’s customer loyalty white paper.

1 Forrester, Trends 2009: Customer Relationship Management, Dec. 11, 2008

A New Perspective on C-Level Cooperation

Partners in information managementChief Financial Officers and Chief Marketing Officers are not traditionally thought of as best friends. It might have something to do with the juxtaposition of left and right brain thinking, or differing views on how to measure the performance of marketing programs and their impact on the bottom line that keeps these two executives from sitting next to each other at the lunch table.

Yet this relationship is becoming more important as both executives realize the value of more specific marketing and customer information to help drive strategic decisions; a merger of the creative and analytical minds can clearly help improve performance and fuel growth.

Many clients of BearingPoint’s World-Class Finance practice were asking about this, so we decided to partner with APQC, conduct a survey, and report our findings on the topic. You’re invited to read the resulting report: “CFOs and CMOs: partners in information management”.

One of the disconnects highlighted in the report is around the availability of data for customer segmentation and profitability analysis: while 80% of CFOs said they are providing sufficient data, less than 40% of CMOs said they are getting the data they need to make good decisions.

We hope these findings are helpful. Please feel free to share your comments and ideas here once you’ve read the research.

Author: Monica Huber

Effective Change Management: Building your internal change capability

Change managementSeventy percent of all large-scale change initiatives fail to achieve their anticipated business benefit 1. That is an alarming rate of unsuccessful projects. This failure rate translates into billions of dollars in lost productivity, wasted resources, opportunity costs and rework—not to mention the human cost of lost jobs.

Companies that learn to manage change and consistently deliver expected returns from their large-scale change programs can gain competitive advantage. One survey revealed that 80 percent of CEOs called the ability to change a competitive advantage, and 82 percent identified change management as a business priority2.

This recognition of the importance of effective change management is prompting many companies to build an internal change management capability. Such capabilities can help managers change their businesses as effectively and efficiently as they’re expected to run them.

Here is a paper that presents insights and guidelines to help implement change programs.

1 – Kotter, John P., A Sense of Urgency, Harvard Business School Press, 2008.
2 – Guy, G., & Beaman, K., Effecting change in business enterprises: Current trends in change management, The Conference Board, 2005.

Surviving the Credit Crisis: Best Practices Around Risk and Performance Management

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Join BearingPoint Managing Director, Brian Hart, as he explores the importance of an adequate risk and performance platform and how it can help companies deal with the credit crisis. Given the scope, depth, and length of this crisis, our clients are clearly being forced to re-examine how they conduct business. The issues that we see are the most prevalent are the need to access capital, how to fund a balance sheet, earnings, acquisitions and dispositions, government intervention, and most importantly- the speculation around change. When an organization deals with these issues on a day-to-day basis, like we see happening now, we know we’ve entered crisis mode. This has many companies wondering what went wrong and how can we better equip ourselves for the future?

The single most important thing that needs to be addressed is the realization of how much capital is being used at a given time. Most people don’t realize how much capital they’re using because of their lack of transparency, and when they finally realize it, it’s too late. To come out of this, we’re asking people to watch very closely how much capital they are spending and to cut any unnecessary costs. This can be done by acknowledging the need for better data management and risk capabilities. BearingPoint has addressed this with a seven point analytical strategy that can assist clients with understanding what changes they need to make. In the podcast, you will hear important points, such as how to manage data, estimate risk, change current business processes and how to implement an integrated risk and performance framework.

Clearly this crisis has exposed a number of weaknesses in risk management across the sector. Most organizations still have basic issues around risk and transparency. This podcast addresses key areas that are lacking in the risk management sector; such as understanding your risks, what risks are making you money and how effectively your trading machine is working? There are many changes that need to be made across the entire financial services sector, and the key points that are addressed in the podcast can help you itemize an action plan to take the appropriate measures to ensure future success.

Information Management: the importance of Business Intelligence (BI) and Performance Management

Information Management is focused on identifying the best way to get information to the proper channels. In many instances, this involves looking at three keys areas; analytics, sharing and storage.

Analytics focuses on deciding who should get what type of information to make better decisions that will impact the company’s performance. Sharing determines how to increase the effectiveness and efficiency of a solution and storage is needed to decide what to do with the information once it’s received.

Many businesses are looking for Business Intelligence and Performance Management (BI/PM) which goes beyond traditional management reporting. In this podcast join BearingPoint Senior Manager John Gill as he explores Information Management, but more specifically, the importance of BI and Performance Management.

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Cost cutting performance improvement

A podcast with Sekou Kaalund from JPMorgan – Series 1 of 4

In our never ending search for new thinking we have gone on the road with our EPI thought leaders to their recent event hosted by the Financial Times in New York City called Reducing Operational Costs in Financial Services: How to cut costs and boost performance in a tough market.

In this podcast, the first of 4 from our FT event, we have for you Sekou Kaalund, Global Head of JPMorgan Private Equity Fund Services Business Development. Sekou explores some of the things executives can do to best leverage their resources and get the most efficiency. He also gives insight into the key questions that we need to be asking about outsourcing before we engage a provider with business.

(Financial Times 2008 – Sekou Kaalund, Global Head of JPMorgan Private Equity Fund Services Business Development)

About Sekou
Sekou is a Managing Director and global head of JPMorgan Private Equity Fund Services (PEFS) Business Development. He manages a global team responsible for new business development of outsourced administration solutions to private equity financial sponsors and institutional investors with portfolios of alternative investments.

Effectively manage your risk and performance

With the recent market turmoil, the question has been raised: “Are traditional risk mitigation systems inadequate in times of crisis?”

Here are some steps organizations should consider to address risk management:

1. Push analytics to the limit. How you measure risk impacts how you address it.

2. Be strategic. Drive a comprehensive data strategy.

3. Examine your business processes. Change them if necessary.

4. Put better information and tools in the hands of deal makers. Empower CEOs with information on the risk environment.

5. Pursue capital arbitrage and compliance opportunities.

6. Jump start the incentive structure. Mobilize your workforce and address the human factor.

7. Implement a comprehensive, integrated performance and risk management framework.

This new thinking on risk management is explained in more detail in this paper. Find out what helps organizations address these issues and position themselves to deliver superior results.