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  The New CCO: Delivering Customer Care   The New CCO: Delivering Customer Care  Dale Buss  
         
 
The New CCO: Delivering Customer Care Campbell Soup, Coca-Cola Enterprises, Hershey, Intel and Hewlett-Packard all have CCOs now. So do career managers Monster.com and software makers J.D. Edwards and Kintana. At the high end, as many as 40 percent of major companies globally now have a “board-level champion responsible for [customer-relationship management] and the customer experience,” according to estimates by Gartner Inc.

“It’s a trend that’s real and is going to continue,” says Jeffrey Christian, chief executive officer of Christian & Timbers, the Ohio-based executive-research firm. Credit the recession, which has prompted businesses to pay closer attention to their existing customers, as well as the rush to implement customer-relationship management (CRM) technology systems at thousands of companies around the world.

Because CRM is the number one area of information-technology spending these days, its prominence is generating much of the critical mass behind the creation of CCO positions; that’s also why technology-oriented concerns are tending to be in the forefront of the CCO phenomenon.

Simply put, the CCO’s job is to serve as the company’s chief liaison with and primary advocate for customers within the organization. The title isn’t always CCO, but the primary marker of the position is that the executive has not only access to the very top of the company but also the clout to advocate effectively for customers, across corporate functions and down through the organization.

 
“I’m one of only seven people reporting to the CEO, and when I take an issue regarding a customer to the executive staff, it’s listened to and dealt with and appreciated,” says Keith Carlson, vice president of customer value for California-based Kintana.

Diana Bell is the first vice president of total customer experience for HP – a position created in the wake of the company’s takeover of Compaq Corp. She says that, while HP historically has communicated with customers on a continuing basis through customer-advisory councils and user groups, “all of that was still happening in vertical silos” organized around particular kinds of products.

“My role is being looked at as a horizontal role, so I report through worldwide operations,” says the 27-year veteran with the California-based technology concern. “Customers choose us for a reason, and I have to make sure that we deliver on that brand promise and measure ourselves accordingly.”

Among the tools Bell is using in her job is what she calls a “balance score card,” which reflects how well HP is doing in keeping its “brand promise” as perceived by the customer and HP employees. Delivering the brand promise has been a primary concern of HP management about the merger. “What I’m really doing is making sure that the structure and the system works, so that it can’t be that one rep owns a customer and no one else has to worry about it,” she says. “I have to make sure that everyone is doing what they need to do on behalf of our customers.”

Public-relations firm Golin Harris International created its Chief Client Officer position in January and filled it with Fred Cook, who had been managing the western US for the Illinois-based company. As CCO, he’s focusing on the agency’s largest clients – including Toyota, Nintendo, Lowes and Sprint – which involves interaction in several cities and across more than one practice area.

“I make sure they’re getting the highest level of client service from our resources, and also develop new client-service products that will help us better serve them and better understand where their business is headed; and I evaluate and measure our results,” Cook says. His new job not only is a recognition of the increasingly complex needs that can be presented by a single important client but also “of how important our current clients are in this type of an economic environment,” he says.

Jeff Lewis had been working with Massachusetts-based Monster.com as a consultant for six months before joining the company last year as CCO. Among other strategies, he has constructed a system by which the company will be measuring its performance with customers each quarter. The system is based on criteria such as whether Monster.com is adding customers and how loyal those customers are. To determine the latter, Lewis finds out whether customers “are behaving in any way that we can interpret as loyal, such as referring other people to us, buying other products with us, just trusting us to do more than one thing well.”

Lewis also is redesigning the company’s customer-relations unit “so that we can deliver the right levels of service to customers.” For example, he already has figured out that customers weren’t satisfied with Monster.com’s standard of delivering an online set up within a business day. “It was inconsistent with most customers’ requirements: Either they wanted to be set up immediately, like within two hours, or it was OK to do it within a couple of days,” he says. “We had been doing it exactly wrong.”

Of course, the creation of a CCO position alone doesn’t signify that companies truly are more effectively focusing on their customers. “The big issue is changing the culture of an organization and business processes, so it needs to be something the whole organization embraces,” says Charles Chung, vice president of information intelligence for Experian Information Solutions Inc., a California-based consulting firm. “It helps to have a CCO, but how he or she executes a strategy makes the difference.”

 
At the same time, the arrival of a new CCO can tend to upset pre-existing hierarchies, especially in long-established organizations where heads of sales and marketing traditionally have been in the primary handholding roles with customers. CCOs also can run into trouble with their superiors – chief operating officers and chief executive officers – who in many companies have had the most crucial relationships with customers.

“There can be a lot of competition with the CCO even in companies that have identified their role as important,” says Wendy Close, CRM research director for Connecticut-based Gartner. “And if they aren’t given enough power, they won’t be successful.” In fact, Close says, CCO positions actually have disappeared at a good number of companies already because of “misfires, where they couldn’t quite figure out what the role was. There have been a lot of false starts.”

That’s why, in the triage of new executive titles that naturally occurs within organizations and within business culture generally, it’s too soon to tell what will happen to the CCO designation over the long haul. For now, it seems to be in positional purgatory along with other relatively new concepts such as CBO and Chief Diversity Officer. Eventually, it may gain the popularity and permanence of the Chief Information Officer position, which proved its usefulness in the Nineties. Or it could joint those short-lived “C”-level additions that didn’t make it to the new millennium, such as Chief Knowledge Officer and Chief Quality Officer.

“The best thing might be that, once CCOs put programs and metrics in place, the customer-care concept and dynamic end up getting absorbed into everyone’s job – and the new title goes away,” says Christian. “That’s not initially how it’s planned, but this function really needs to be imbedded somewhere in the profiles of all of a company’s leaders.”    

[3-Jun-2002]

 
  
  

Dale Buss is a journalist and editorial consultant in Rochester Hills, Michigan. He's a former reporter for The Wall Street Journal and a former contributing editor of Brand Marketing.

     
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