CHIEF CUSTOMER OFFICER COUNCIL www.ccocouncil.org | (978) 226-8675 Page 1 The Bi ngham CCO Authori ty Model
by Curtis N. Bingham
2013 Predictive Consulting Group, Inc. All rights reserved. Reproduction prohibited. CHIEF CUSTOMER OFFICER COUNCIL www.ccocouncil.org | (978) 226-8675 Page 2 The Bi ngham CCO Authori ty Model
Curti s N. Bi ngham Founder and Executi ve Di rector Chi ef Customer Offi cer Counci l cottls 8loqbom ls tbe wotlJs fotemost ootbotlty oo tbe costomet-ceottlc otqoolzotloo. ne wos tbe fltst to ptomote tbe tole of cblef costomet offlcet os o cotolyst fot competltlve oJvootoqe. ne ls tbe cteotot of tbe fltst ccO kooJmop ooJ tbe costomet ceottlclty Mototlty MoJel. ne ls tbe foooJet of tbe cblef costomet Offlcet cooocll, o powetfol ooJ lotlmote qotbetloq of tbe wotlJs leoJloq costomet execotlves. As oo lotetootloool speoket, ootbot, ooJ coosoltoot, cottls ls posslooote oboot cteotloq costomet sttoteqy to sostoloobly qtow teveooe, ptoflt, ooJ loyolty. AuLhorlLy ls Lhe currency of Lhe C-SulLe. CreaLer AuLhorlLy means greaLer ablllLy Lo lnfluence Lhe organlzaLlon Lo Lake a deslred acLlon. Lven as dlrecL reporLs Lo Lhe CLC, cusLomer loyalLy execuLlves may be challenged Lo obLaln Lhe AuLhorlLy needed Lo geL Lhe [ob done. 8ecause Lhey Lyplcally do noL own oll cusLomer-faclng resources Lhey musL lead by lnfluence Lo effecLlvely resolve cusLomer lssues or enhance Lhe end-Lo-end cusLomer experlence and ulLlmaLely lncrease revenue and proflLs. 1he chlef cusLomer offlcer ls wldely recognlzed as Lhe organlzaLlon's ulLlmaLe cusLomer AuLhorlLy, Lasked wlLh drlvlng cusLomer sLraLegy aL Lhe hlghesL levels of Lhe company. Powever, LlLles for Lhls poslLlon have numerous varlaLlons. lor Lhe purpose of Lhls arLlcle, we wlll refer Lo Lhe CCC, alLhough an execuLlve's acLual LlLle may be dlfferenL. THREE TYPES OF CCO AUTHORI TY 1here are Lhree Lypes of AuLhorlLy for Lhe CCC or oLher cusLomer execuLlve: oslLlonal, Larned, and 8orrowed AuLhorlLy. Positional Authority Lvery CCC or loyalLy execuLlve has some AuLhorlLy derlved from Lhe poslLlon and LlLle Lhey hold wlLhln Lhe organlzaLlonal hlerarchy. CCCs relylng upon oslLlonal AuLhorlLy may own many cusLomer-faclng personnel such as servlce, supporL, consulLlng, and someLlmes markeLlng and sales. uslng oslLlonal AuLhorlLy Lhe CCC can polnL Lo hls or her dlrecL reporLs and say, make lL so" ln order Lo address speclflc cusLomer lssues. 1here ls an lnlLlal bump ln lnfluence when Lhe CCC ls flrsL appolnLed and caLches people's aLLenLlon as someLhlng new and unexpecLed ln Lhe organlzaLlon. SufflclenL oslLlonal AuLhorlLy ls mandaLory for Lhe success of Lhe CCC or loyalLy execuLlve. ConsequenLly, lL ls lmperaLlve LhaL Lhe CCC be poslLloned ldeally as a dlrecL reporL Lo Lhe CLC or perhaps one level below wlLh a sLrong doLLed llne
2013 Predictive Consulting Group, Inc. All rights reserved. Reproduction prohibited. CHIEF CUSTOMER OFFICER COUNCIL www.ccocouncil.org | (978) 226-8675 Page 3 Lo Lhe CLC. 1lLle ls cruclal ln granLlng AuLhorlLy, lnvlLlng respecL, and openlng doors Lo lnfluence oLher execuLlves and deparLmenLs Lo solve cross-boundary cusLomer challenges (descrlbed along wlLh oLher crlLlcal success facLors ln 1be 8loqbom AJvlsoty. 8 5ttoteqlc lmpetotlves fot tbe ccO avallable aL Lhe CCC Councll webslLe). AfLer Lhe lnlLlal bump ln lnfluence followlng Lhe appolnLmenL Lo Lhe role, oslLlonal AuLhorlLy Lends Lo be sLaLlc and lL may even wane over Llme unless lncreased Lhrough a promoLlon. Powever, poslLlon and LlLle alone may noL enable one Lo slngle-handedly resolve cusLomer lssues LhaL span organlzaLlonal boundarles. 1hus oslLlonal AuLhorlLy Lyplcally does noL carry Lhe welghL of elLher 8orrowed or Larned AuLhorlLy. Borrowed Authority 8orrowed AuLhorlLy ls LhaL whlch ls borrowed from oLhers wlLh greaLer lnfluence. lL ls besL galned Lhrough Lhe sLrong, vocal, and very vlslble supporL of Lhe CLC. 1he appolnLmenL of a loyalLy execuLlve Lells Lhe organlzaLlon, lncludlng peers wlLhln Lhe C-SulLe: costomet ceottlclty ls oot sttoteqlc lmpetotlve. 1he more promlnenLly Lhe CLC advocaLes for Lhe CCC and relnforces cusLomer-cenLrlc lmperaLlves, Lhe sLronger Lhe halo-effecL and Lhe greaLer Lhe lnfluence Lhe CCC has over Lhe organlzaLlon. As Lhe CLC of naLlonwlde sald when he lnLroduced newly appolnLed Chlef CusLomer AdvocaLe, !asmlne Creen, Lo hls organlzaLlon, 1bls ls Iosmloe. 5be speoks fot me. LxecuLlves wlLhouL sLrong 8orrowed AuLhorlLy reporL spendlng nearly 30 of Lhelr Llme [usLlfylng Lhelr exlsLence and sollclLlng supporL lnsLead of servlng cusLomers. 8orrowed AuLhorlLy ls lmperaLlve ln Lhe early days of Lhe CCC's Lenure as any culLure naLurally reslsLs change. 1he volce and AuLhorlLy of Lhe CLC ls ofLen necessary Lo overcome organlzaLlonal lnerLla and Fi gure 1
2013 Predictive Consulting Group, Inc. All rights reserved. Reproduction prohibited. CHIEF CUSTOMER OFFICER COUNCIL www.ccocouncil.org | (978) 226-8675 Page 4 enable a more compleLe cusLomer-cenLrlc LransformaLlon. Leveraged correcLly, Lhls halo effecL can be used Lo galn slgnlflcanL early momenLum. As can be seen ln llgure 1 above, 8orrowed AuLhorlLy ls sLrong ln Lhe early days buL Lends Lo wane as Lhe aLLenLlon of Lhe CLC Lurns Lo oLher lnlLlaLlves. lf Lhe drop ls preclplLous, Lhe CCC can be rendered lneffecLlve. 1hus, whlle leveraglng boLh oslLlonal and 8orrowed AuLhorlLy, lL ls crlLlcal Lo develop Larned AuLhorlLy. Earned Authority Larned AuLhorlLy ls Lhe mosL powerful and susLalnable AuLhorlLy LhaL can be wlelded wlLhln Lhe C-SulLe and Lhe organlzaLlon, buL lL ls Lhe hardesL won and Lyplcally ln Lhe shorLesL supply ln Lhe earllesL days of CCC Lenure. 1hls ls Lhe Lype of AuLhorlLy LhaL comes wlLh resulLs, lL ls earned as Lhe CCC leads peers, execuLlves, and employees Lo recognlze how cusLomer lnslghL and cusLomer cenLrlclLy can be valuable alds ln achlevlng Lhelr own buslness, deparLmenL, and personal goals. lL ls earned as CCC-led lnlLlaLlves are seen Lo be successful boLh lnLernally and exLernally. 1he mosL successful execuLlves wlLh Lhe longesL Lenure qulckly earn Lhls Lype of AuLhorlLy. 8ecognlzlng Lhe lmporLance of Larned AuLhorlLy, one senlor cusLomer execuLlve delayed accepLance of an offered CCC promoLlon unLll he had compleLe supporL LhroughouL Lhe organlzaLlon. 8y dolng so, he obvlaLed Lhe need Lo beg for resources, prove 8Cl of cusLomer-cenLrlc acLlons, or campalgn for supporL. Pls peers know LhaL he has Lhe besL cusLomer daLa, Lhe lssues he ralses are real, and mosL lmporLanLly, Lhey know LhaL he ls balanclng buslness goals wlLh cusLomer deslres. Slnce Larned AuLhorlLy can grow over Llme, lL ecllpses all oLher forms of AuLhorlLy. lL ls Lhe sLrongesL and mosL powerful form of AuLhorlLy, and wlelded correcLly, can also enhance oslLlonal and 8orrowed AuLhorlLy ln a vlrLuous upwards cycle. CONCLUSI ON lncreaslng AuLhorlLy Lo solve cusLomer lssues, drlve cusLomer cenLrlclLy, and Lhereby creaLe susLalnable buslness growLh needs Lo be a core sLraLegy of every CCC who doesn'L wlsh Lo relegaLe Lhe Lenure of hls/her role Lo chance. uslng Lhe 8lngham CCC AuLhorlLy Model, you can galn, lncrease, and leverage your power and lnfluence over your organlzaLlon on Lhree fronLs aL once. *1
* CopyrlghL noLlce: All conLenL conLalned ln Lhls arLlcle ls copyrlghL proLecLed maLerlal. 8eproducLlon, ln whole or ln parL, ln any form or medlum, wlLhouL Lhe express wrlLLen permlsslon of Lhe Chlef CusLomer Cfflcer Councll ls sLrlcLly prohlblLed. 1 1hls arLlcle ls excerpLed from 1he 8lngham Advlsory: owerful lnfluence on CusLomer CenLrlclLy, avallable for free download from Lhe CCC Councll webslLe aL: hLLp://www.ccocouncll.org/Lheblnghamadvlsory/.
2013 Predictive Consulting Group, Inc. All rights reserved. Reproduction prohibited. CHIEF CUSTOMER OFFICER COUNCIL www.ccocouncil.org | (978) 226-8675 Page 5 About CURTIS N. BINGHAM 1he flrsL Lo promoLe Lhe role of chlef cusLomer offlcer (CCC) as caLalysL for compeLlLlve advanLage, CurLls ls recognlzed as Lhe world's foremosL auLhorlLy on CCCs. Pe ls founder and LxecuLlve ulrecLor of Lhe Chlef CusLomer Cfflcer Councll` and creaLor of Lhe CCC 8oadmap and Lhe CusLomer CenLrlclLy MaLurlLy Model: groundbreaklng, proprleLary works LhaL asslsL companles achleve cusLomer cenLrlc culLure and revenue growLh. CurLls ls a champlon of cusLomer engagemenL as a crlLlcal growLh englne and flrsL Lo ldenLlfy engagemenL as Lhe nexL evoluLlonary sLep beyond loyalLy. An lnLernaLlonal speaker, auLhor, and consulLanL, CurLls ls passlonaLe abouL creaLlng powerful cusLomer sLraLegles and LrusLed for hls buslness acumen, acLlonable lnslghLs, and commlLmenL Lo measurable buslness resulLs. About THE CHIEF CUSTOMER OFFICER COUNCIL 1he CCC Councll ls a powerful and lnLlmaLe gaLherlng of Lhe world's leadlng cusLomer execuLlves from wldely dlverse lndusLrles. 1he Councll helps execuLlves achleve ob[ecLlves fasLer and more easlly by leveraglng besL pracLlces. lL helps valldaLe and reflne sLraLegles and lnlLlaLlves Lo avold experlmenLlng aL cusLomer expense. Membershlp ls by lnvlLaLlon only, and purposefully cross-polllnaLed wlLh Lhe mosL forward-Lhlnklng companles, large and small, so as Lo help cusLomer execuLlves dellver solld, cusLomer-cenLrlc buslness resulLs. lor more lnformaLlon, emall lnfo[ccocouncll.org or call 978-226-8673.
"#$% &'( )#%*(+,-&$#% www.ccocouncll.org ./012 341/ 05467 869743/1 /2:0:/3/27 !"# %&'()*#+ ,-./.#*#-( !+/0#1()+2 - ln Lhls 34-."/* 5674')+2 CurLls provldes a framework for undersLandlng where engagemenL emerges ln Lhe buslness-cusLomer relaLlonshlp Lo provlde lLs greaLesL value. ln addlLlon, you'll also learn how real world companles such as MeLLlfe, Cracle, and 8loL Cames are engaglng Lhelr cusLomers and en[oylng boLLom llne lmprovemenLs Lo revenue and shareholder value as a resulL. uowolooJ yoot ftee copy toJoy ot www.ccocouncll.org/Lheblnghamadvlsory/ 7'#;<'&=>(-?$%< @$?(#, ccocouncll.org/vldeo
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