to create a customer value team — and why

Companies are organized into departments that each have a specific function. They work together…until it doesn’t. Growth becomes more difficult when you reach this point. Marketing strategist Kathleen Schaub recognizes this and offers a human solution: The customer value squad.

There are many names for the concept: tiger team SWAT team, pods and task force, skunkworks. The general feature set is remarkable similar — it’s a small group of people from different backgrounds working together to solve problems. The customer value team must have the ability to make decisions and hold them accountable for their results.

These elements were described last year in two parts, ” Return of investment is missing action” and ” Static ROI metrics, meet dynamic market situation.”

Schaub’s customer-value squad will go against the grain of the organizational structure, which is hierarchical. Traditional companies view each department as a fiefdom. It guards its power and data with jealousy. CVSs must be able draw information from its well to evaluate situations and take action in real-time, cutting through silos.

The legacy that refuses not to die

Schaub explained to us that the industrial age left behind silos that marketers today struggle to break. In the early 20 ^th century scientific management and organizational structure overtook the “chaotic, bespoke” way of doing things. She said that the idea of bringing together specialists was a new concept. Professionalization was a key to efficiency optimized processes and professionalized management.

Schaub explained that specialists have become silos over time. “Once you combine people who are similar, they create their own cultures.” Information travels vertically and not laterally. Data is trapped in the “need to know”. This is a way of doing things that can be difficult to change.

Only here is the “VUCA” symbol for volatility, uncertainty and complexity. Schaub noted that silos’ vertical and hierarchical structure makes them unsuitable for operating in such a dynamic, changing business environment.

What mission should a team be focused on? Schaub stated that it all depends on the area of value that you are delivering. It could be geographical, as companies try to increase sales in certain regions. It could also be account-based. It could also be about revenue operations. Or product support. Or design support. The team could also address marketing across all channels.

The size of the team is important. Schaub suggested that a team of six to ten people is the ideal size. She said, “Getting beyond that, it’s time to formalize and coordinate.” Also, companies will need to fill skill gaps that become apparent when customer value teams start operations. There may be a need for product people, communication specialists or account managers. Schaub stated that there is no checklist.

Not unique to marketing

This idea of a small team is not a new one. This concept has been developed out of necessity in many other industries and professions.

Schaub discovered her inspiration for the customer service squad in an unlikely location: the hospital operating rooms. There are many specialists in that area: a surgeon and an anesthesiologist as well as several operating room nurses. Each one has a different skill set. They all share the same mission: to care for the patient.

Although human bodies are very similar, Schaub stated that “every situation for the team is a little bit different.” She said that “they are empowered in the moment” and are accountable for the results.

To form the team, specialists are drawn from various departments. Schaub noted that there is still a head for nursing and a surgeon. “But, does the surgeon request the boss to intervene when the patient is bleeding?”

This is a good example of a point: silos with a horizontal hierarchy will hinder agility and make it difficult to react quickly when situations change on the edge or along the line.

This type of organization isn’t unique to the OR. Schaub pointed out that sports teams work in this manner. The military is also affected by this phenomenon. VUCA environments are too fast for top-down organizations to manage. A small networked group, however, can manage it because it is closer to what’s happening.

Yes, but how?

A customer value squad is a project that can bring about change. You can do it in one of two ways.

This is where the top managers recognize the need for customer service squads or something similar. They will retain consultants and then spend many years changing the corporate culture to embrace agility. Schaub said that this eventually leads to exceptional results. She added that this approach is rare.

This second option is more likely. This is where a company takes a portion of its business and makes small, incremental changes, Schaub explained. She said that it could be customer success management, account-based marketing, or customer service management, but must be customer-focused.

Start by creating one customer value team. Schaub stated, “Put the most talented people there and push it forward.” Keep fixing things until you succeed. These “break-fix” cycles are brief but they are very iterative. The team learns from failure, adapts, and then tries again until they find the perfect solution. This is more a method than a recipe.

After the team has sorted out their problems, the process can be repeated throughout the company. Schaub compared this to opening a chain candy shops. Start small, make it a success, and then increase your scale.

Although customer value squads may vary in composition, they will all share three fundamental components. Schaub stated that the “people” part is network organization. Agile operations is the method piece. The brain piece is intelligence/analysis. As they learn how the pieces fit together, people will be able to find their way to “complexity-wise market.”

This will take time. This learning process will require that a company is willing to accept small mistakes. The results will be more valuable than the costs if all efforts are directed towards the same goal.

MarTech first published the post Building a Customer Value Squad — and Why.