Delivering Customer Outcomes: The Ultimate Goal of any Organization

Business is the science of making money by providing outcomes to customers and achieving your own Purpose in the process

Pavan Kishore Kota Subramanya, Global CEO, KINDUZ

Life is all about choices

Each waking moment we choose between black coffee or espresso, black tie or blue, meeting or family time, work on our passion or sticking to a job. When we pick one choice we have automatically chosen not to pick the other unless we have figured a way of wearing two ties at the same time. Every choice we make, takes us down a certain path which contributes to defining us as an individual. Right from a two-year-old child to a CEO of a billion-dollar organization, everyone has choices/decisions to make in life. As a CEO we decide to focus on profitable products/services, letting go of others which are not profitable. We focus on better customer satisfaction and market share growth over pleasing internal bureaucrats.

Sustained Success needs Continuous Realignment with Customer Outcomes

Each business is defined by the outcomes that it provides to its customers. At the highest level, some of the common outcomes that businesses focus on delivering to their customers include health, wealth, social acceptance and self-actualization. History is testament that even though multiple organizations start at the same time offering the same set of outcomes, only one organization emerges as a leader. Take the example of Search Engines, Social Media, Pharma or Aerospace. What differentiates a leader from any other player in the market is the focus that the leader maintains on delivering specific customer outcomes. This is easier said than done because customer perspectives, needs, wants, and desired outcomes change frequently. CEOs who can leverage this shift in customer needs evolve along with their customers, and lead their organizations to be market leaders. In order to stay focused on delivering customer outcomes, each CEO needs to ask the following questions:

  1. Which Outcomes should it continue to deliver?
  2. Which new Outcomes should be added because they add value to its customers?
  3. Which Outcomes to drop as they are no longer adding value to the customers?

Strategy is about making decisions on ‘Outcomes to continue to deliver ‘, ‘Outcomes to create’ and ‘Outcomes not to create’ in the Short-term, Mid-term and Long-term”

Pavan Kishore Kota Subramanya, Global CEO, KINDUZ

This simple two by two matrix is one way to identify the answer to these questions.

Outcomes your customer expects from you
Outcomes you DeliverOutcomes you do not Deliver
Outcomes your competitor       
      Delivers      

1
Read Ocean

Innovate for better Outcomes, or be ready to let go!


2
The Expansion Quadrant

Jump in if we innovate for better outcomes

Does not deliver

3
The Capitalization Quadrant

Continue to Innovate and deliver Outcomes


4
Blue Ocean Quadrant

Innovate and be the first to offer these outcomes

Figure 1: KINDUZ Customer Outcomes Matrix (KCOM)

a) Quadrant – 1: The Red Ocean
You and your competitor deliver similar outcomes

This quadrant is the Red Ocean as you and your competitors provide similar outcomes to the same set of customers. All players fight with each other for customer retention and color the market red. If you find yourself in this quadrant, you must:

  1. Innovate to deliver better on these outcomes
  2. Stop delivering on some of these outcomes if they don’t matter any more

b) Quadrant – 2: The Expansion Quadrant
Your competitor delivers the outcomes, but you do not

The expansion quadrant allows you to expand your customer base by adding products and services that you are not delivering right now. The key factor to be considered for this quadrant is innovation. Since your competitor is already present in this quadrant, you need to use innovative strategies to introduce yourself in this market space.

c) Quadrant – 3: The Capitalization Quadrant
Your competitor does not deliver the outcomes, but you do

This market space is your oyster. You deliver the outcomes that your competitor does not. It is your space to innovate and keep delivering these outcomes that your customers seek. You are already ahead of your competitors in this space. The key factor to consider in this quadrant is to keep moving faster than the competition to innovate and deliver more value to your customers.

d) Quadrant – 4: The Blue Ocean
Neither you nor your competitor deliver the required outcomes

This quadrant is the blue ocean and indicates that the market is still uncharted territory. Neither you nor your competitor have entered this space. You can capitalize this situation by introducing products and services that offer customers outcomes that they want but are not being provided. In this quadrant, speed of research, innovation and execution are key factors required for growth and sustenance.

Each organization needs to assess themselves of their standing in this matrix and take decisions to move from the red ocean towards the blue ocean.

KINDUZ helps customers assess their as-is state and define/execute strategies to achieve their to-be state. We have delivered a collective of over US$ 670+ million to our customers by helping them achieve their desired set of outcomes through effective business decisions.

To know more about our industry frameworks and outcomes we deliver reach out to us at outcomes@kinduz.com

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