Achieving effectiveness (part 1): Building what you need to, not want to
In this article we talk about how to set company Goals that are true to your customer's needs, and the three benefits to company effectiveness
It is hardly the first 33% through 2023, and we have been dancing on the edge of a recession crevice. I have read countless blogs, advising start ups on what to focus on - revenue and cash now, NRR, “sustainable growth”, “be a stallion, not a unicorn”, and so on.
The big issues with those blog posts is that they focus on an outcome, not on a methodology. There is, at least one approach to get you through the tough times - and this approach keeps you effective by creating laser focus for what you build, and how you go to market. I have already spoken about building operational effectiveness through defining your ICP/Personas. It is time to build on this, a larger picture.
Here I will talk about a methodology for company level effectives, not an outcome.
How do you shift your focus from Net New Logos to NRR? What does that look like across your teams - product, sales, CX? We at TheyDo have employed now a methodology that keeps us effective in what we build, and how we go to market. The key is to listen.
The methodology is called Journey Management. Its unique strength is that it continuously feeds fresh customer feedback into the company, and keeps it focused on developing what current, and potential customers value most (more on this in Part 2).
The original methodology of Journey Management focuses on each project, product, or feature. It makes you think from the ground up, what is important to your customer (the Insights), what is the Opportunity for the business to grow, and what Solution you can develop to move the project in the right direction. What if we could do this for the whole company? Not project by project. I developed a methodology for setting company level Goals, based on the customer Journey Management approach.
Working from the JM lenses has convinced me that Journey Management infuses first principles into the company. It keeps you honest. It keeps you grounded. And most importantly, it forces you to be effective. There are three distinct benefits:
you know what’s relevant to your customer now
your teams know how their role evolves along the customer journey context
your teams align on what they need to prioritise
Let’s dive in!
In the below overview, our TheyDo.com CEO Jochem, you will see how Journey-led company Goals are developed. You can download the summary slides here.
Additionally, I will focus on the three benefits below.
How to set Journey-led company Goals
You can download the summary slides here.
1. You know what’s relevant to your customer now
How often do you talk to your customers? Did you do research 6 months ago and now operate based on what you believe you know? The most competitive companies I have worked for had one thing in common - they kept their ear to the ground when it comes to understanding the needs of their customers, and how those evolved over time. We are talking about companies operating in hot markets, crafting emerging categories. If this sounds familiar, if you spoke to your customers more than 6 months ago, it is time to roll up your sleeves. Uber used to do it 1x month; 1/3 of the office employees; globally. Yes, that’s right. Everyone talks to drivers and/or riders at least once a quarter. They never assumed they knew it all. Never assumed the work on ICP/Personas was "done."
2. Your teams know how their role evolves along the customer journey context
Let’s take marketing for example. If you have mapped out the various journeys your customers go through to find you; to engage with you and learn about you; to sign up to the product for the first time; you will be able to identify the different types of questions they ask themselves along the way. A lot of start ups I have advised create content which they end up throwing at prospective customers in hope that “something sticks.” You need to have done your ICP/Persona research, and then you can test against each stage of the journey, and understand why something “sticks.” Knowing who you target, and when, will help you understand why out of the 5-6 messages you have about your company, two bringing the people; and why another 2 get your through the senior executive sale.
3. Your teams align on what they need to prioritise
This is my favourite of the three benefits. Notice that I say “team align” not “you align your teams.” While the first two arguably can be hacked, or could be one offs, this one naturally forces teams to align on what needs to be done, because they understand what is relevant now, and their role in the holistic customer journey looks like. In Journey Management this happens through the power of the Opportunity Matrix. A simple visualisation, a 2x2 type of grid that shows you what business Opportunities would have the most impact on both customer and business outcomes. You no longer have a situation in which your VP of Product dictates building vanity features. You no longer have a situation in which your VP of Sales works in isolation “closing deals” but is actively engaged with Marketing, CX, and Operations.
And voila! The bottom line of this is - listen, and listen carefully and often, to your customers, and potential customers (should you want to expand into specific markets). The more volatile the market you operate in is, or the more you find yourself in a “category creation” situation, the more you need to keep your ear to the ground. Don’t let the ground slip from underneath your feet.
In Part 2 I will talk about the systems you can put in place to constantly feed Insights into the business to keep yourself effective.
To continue the conversation, connect with me here: https://www.linkedin.com/in/ignatova/