Organizations have realized that the value they provide to customers is critical to their relevance and, ultimately, survival. Hence most organizations have incorporated the driving value creation into their mission statements and overall strategy. Some, however, struggle to create an environment where employees focus on executing this strategy and on delivering, and continuously innovating how they provide, customer value.
This is becoming increasingly important as organizations face a rapidly changing business environment where technological advancements and digital devices allow customers to compare pricing and service delivery with ease. This results in increased expectations from customers that mean companies and organizations must constantly improve the value they deliver in order to remain competitive.
Companies are responding to these challenges by redesigning strategies and undertaking transformation programs to improve the value they deliver. Working methods are changing to enable rapid responses to customer feedback and changes in demand. Client experiences are defined through customer journey mapping which identifies each phase of the sales process and seek to improve customer experiences and delight at each step of the journey. Customer-central attitudes and customer value delivery are now at the center of company mission and vision statements which are then translated into strategies that include specific goals and objectives.
Some companies, however, struggle to make changes and make progress in the execution of these goals – especially those with rigid legacies that can struggle to become more agile in changing to meet customer expectations. Increasingly there is an awareness that employees are critical for driving value creation. The human factor is crucial for achieving the quality and functionality that is required for products and services to be competitive. Customer value creation hinges on the attitude and behaviour of company employees that are central its realization. Insights from psychology also show that to create a responsive and high performing company that delivers for its customers requires addressing the psychological needs of people. Until these are fulfilled in some meaningful way companies cannot truly achieve the goals that are defined to create customer centered products and services that, in turn, drive customer value creation.
What is required is to set-up a framework of goal realization that can be used by to improve customer value creation and the speed of its delivery. This approach requires attention to defining the framework appropriately so that it creates drive in the organization and to nurture critical aspects such as psychological trust, autonomy, a sense of purpose and feeling that the work performed has impact.