RSM Conference Oct 2020

BUSINESS AS (UN)USUAL: TRANSFORMING TOWARDS CUSTOMER OBSESSION Speaker: Katja Forbes, Managing Director, Designit Moderator: Arlene Kristianto, Director – Business Advisory, RSM Australia Webinar reminders

• This webinar is being recorded and will be made available to all participants along with the presentation slides and other related materials. • The webinar will run for approximately 1 hour. • All participant/attendee lines will be muted. • There will be a Q&A session at the end of the presentation. • Enter your questions in the Q&A box located at the bottom of your screen. • For further information about our speakers, the topics or about RSM, visit rsm.com.au. Meet the speakers

Katja Forbes Arlene Kristianto Managing Director, Director, Business Advisory, Designit RSM Australia Speaker Moderator Business as Unusual Transforming Towards Customer Obsession

Katja Forbes, Designit AU & NZ October, 2020 Intro 2

Covid-19 has shown us how vulnerable we are 3

The biggest threat of COVID-19 is zero visibility

Zero visibility of virus itself which causes threat to life Zero visibility when it will be stamped out Zero visibility to foresee the future even next week

Designit Tokyo 2020 4 Even in zero visibility, the company looking forward and taking action for the future has power to make decisions and prioritise investment based on human perspective.

2020 5

How could this crisis change the world by accelerating existing trends and making humanity face hard choices?

- - 2019 Consumer Experience 6

Underlying Transition to remote working Urbanization trend

- WFH is common place and people have come to - Social norms have changed to radically extend expect to be able to be with their families personal space

Moderate - Companies that can establish a standard in remote collaboration experience (how tos, scenarios norms, rituals) have a significant competitive edge in the beginning - Physical spaces will be redesigned with much more space per person

- In the services industry, country price premiums are eliminated. There remains a slight premium for Extreme certain timezones scenarios - Urbanization is slowing down in parts of the world, people are moving back to suburbs and the countryside - Teams work on projects from different countries; team members agree on a “local” timezone to live in

- Thanks: James Buchanan- 2019 Consumer Experience 7

Underlying Personal Monitoring Shift in employment relationships trend

- Radical acceleration of quantified self applications and devices for early illness detection - Companies will compete on a UVP for their employees Moderate children - eg. Remote education scenarios

- In a world where the shortages at supermarkets eliminate - Governments thorough monitoring of citizens has class barriers, companies will compete to keep their become commonplace, and we accept it because it employees and clients safe and stocked with saves lives goods Extreme scenarios - In order to travel, work and even socialize we’ll have - A big premium will be given to employees without to disclose our health-tracking data children, whose productivity is substantially higher

- Thanks: James Buchanan- 2019 Consumer Experience 8

Underlying New business models trend

- The delivery model is not sustainable as it is, and shipping and return fees are reintroduced, causing major shortages Moderate scenarios - In a world where everything is delivered, the last barrier to disintermediation, i.e. personal local acquaintance is eliminated in many services (eg. Local stores, insurance brokers, etc.)

Extreme - The delivery system collapses and we go back to scenarios shopping locally

- Delivery bots and drones are rushed through tests and finally become a reality

- Thanks: James Buchanan- 2019 How can your businesses respond to your challenges? It depends a lot on your mindset Mindsets 11

the ideas and attitudes with What is a which a person approaches a mindset? situation.

source: Harvard Human Resources Mindsets 12

Design thinking is a deeply human Design process that taps into abilities we all have but get over-looked by more thinking & conventional problem-solving practices. Design thinking requires an Mindsets experimental, collaborative, and optimistic mindset.

source: Harvard Human Resources Mindsets 13 Experiments needed.

With increased uncertainty, the past cannot predict the future. Although we all yearn for assurances, prescriptive strategies are likely to fail. Experimentation will be necessary.

https://jackpjohnson.com/miniature-london-tilt-shift-photography Mindsets 14 Better by collaboration.

COVID-economics impacts demand, supply and ways of work across systems of health, education, work & government. It demands collaboration for creating sustainable inclusive solutions. Mindsets 15 Optimism is real.

While COVID epidemiology is scientific, The economics is driven by human subjectivity and is affected by mindset. Optimism by design will play a tangible role in rebuilding after this crisis. Mindsets 16 The future is human. COVID-19 is challenging humanity to go beyond profit-driven transactions, to value driven relationships.

From the reactive persistence of healthcare workers, to the responsive supply of missing medical equipment. As we rethink the future, design fuses values and value. Transformation is about people, not technology

CHANNELS TOUCHPOINT TOUCHPOINT HOTEL RECEPTION 3 CHECK-IN 5 CHECK-OUT

WEBSITE TOUCHPOINT 1 EXPLORE

TOUCHPOINT TOUCHPOINT ENTER ROOM MOBILE APP 2 BOOK A 4 WITH A MOBILE ROOM KEY

ARRIVE AT CUSTOMER ACTIONS DESTINATION PURCHASE ON DEMAND BOOK A CHECK IN ENTER ROOM CHECK OUT HOTEL ROOM MOVIE LINE OF INTERACTION

EMPLOYEE ACTIONS / PROMOTE CLEAN AND SET WELCOME ASK FOR BOOKING & CREDIT ASK WHETHER CUSTOMER SEND OR PRINT FRONT STAGE HOTEL UP ROOM CUSTOMER CARD DETAILS ENJOYED STAY INVOICE

LINE OF VISIBILITY

SUPPORT PROCESSES / MARKETING BOOKING TRANSPORTATION STAFF RESERVATION SECURITY/ACCESS SYSTEMS & ON DEMAND TV CUSTOMER FEEDBACK & BACK STAGE PLANS SYSTEMS ALLIANCES ALLOCATION SYSTEMS PROTOCOLS SYSTEM BILLING SYSTEMS

The vision & path to become Customer Obsessed is unique for each organisation.

We believe in creating a step by step process for a holistic and cohesive transformation journey.

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Setting the foundations.

A Customer Obsessed This insight will help us ensure transformation requires that the transformation is being understanding both front and formulated for the right backend dimensions of the outcomes and based on the organisation to unveil potential right context. opportunities, possibilities, risks and ambitions.

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Based on real customer insight.

Mapping the organisation’s To maximise outcomes and current customer experience, we minimise risks, this will require can create a foundational insights based on real and picture the current value actionable customer data, proposition and its response to beyond initial assumptions and customer needs and realities. conventions.

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Projected from organisational realities.

To set the organisation up for Through this exploration we will success, we must develop a gain insight into the robust understanding of organisations readiness the current setup, building a for change, informing the blueprint of the organisation creation and execution of a across people, processes and tailored transformation plan. technology for the key areas.

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Setting the destination.

A clearly deﬁned vision is the A Customer Obsessed vision cornerstone of a must contain all the elements to transformation process. It keep the organisation ensures that the organisation aligned –from top to bottom– navigates through the process and provide guidance with cohesion and a clear through its deﬁning attributes, direction. principles and value proposition for the customer.

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More than aligned, its co-designed.

A design-led approach brings all Alignment becomes an key stakeholders together to intrinsic characteristic of participate in the relevant design the transformation program considerations and decisions when it is co-designed by all through a facilitated process. stakeholders.

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A workforce that boosts transformation.

Employees are essential actors To embrace the new vision they during the transformation. For its will require full transparency, and success, we’ll need to ensure the space to generate that they have the means to opportunities, and contribute be active participants along to deﬁne and align on the the process. future state.

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A new way of operating.

Upon an ever evolving landscape, A Customer Obsessed we need to be able to respond organisation requires a fully quickly and quicker to responsive and adaptable changing customer operating model, that can enable expectations. Conventional the current business model but models are not that able to allow to rapidly create and handle this context and are adopt new strategies. quickly stressed to the limit.

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People first.

Understanding the cultural Prioritising people empowers and “soft” realities of employees to drive the employees is an essential factor transformation, and to get your teams’ buy-in, grow accelerate the adoption new capabilities and bring in of a new culture and new talent. operating model.

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Processes that empower teams.

Organisations that have their This means addressing the customer at the core of their relationships between operations create an employee processes and employees, experience that empowers and shaping them to enable their teams to go the extra mile cross-functional for the customer. collaboration around the customer experience.

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Systems to enable real customer value.

Technology systems are not the The system architecture will cornerstone of a differential need to be composed to value proposition, but are the deliver a seamless key enablers for teams to customer experience, focus on producing real independently of being an off- value for customers. the-shelf solution or an ecosystem of applications.

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Steady, staged transformation.

A Customer Obsessed The rollout of the new transformation requires careful processes, systems and cultural planning and change values demands the creation of management for the new vision controlled environments to to be implemented without start small and scale disrupting the organisation’s consistently. activity, and enhance the customer experience.

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Starting small to learn fast.

Designating a small part of the Through initial pilots, we are organisation to pilot the able to iterate and reﬁne the transformation is key to transformation program, evaluate outcomes while maximising positive bounding potential risks. outcomes while managing potential risks for the organisation and the customer experience.

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Scaling up, down to the detail.

For the transformation to scale Clear communication and well consistently, it is essential to established feedback channels ensure that teams and business are essential to understand the units have the needed support particularities of each area and guidance throughout of the organisation, and the process. adjust the new operating model accordingly.

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So what are the human questions you need to be asking? 37

Look outwards as well as inwards 38

Do you know which customer journeys matter most? 39

What are the new consumer behaviours and expectations? 40

What do my colleagues need to do differently? 41

What do I need to do differently? 42

Are teams collaborating across boundaries? 43

Who could create additional value if they were working together more closely? 44

Is technology the right replacement for human activity? 45

Are your people actually empowered to take action? 46

All great transformations need a leader. Who will lead in your organisation? 47

CX & Digital transformation is not just about the technology, it is about what that technology enables. Intro 48

Ask me how! [email protected] Thank You.

Please reach out with any questions. [email protected] Questions and answers? Thank you for your time and attention.

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