In 1994 Peter Drucker proposed a universal Theory of Business[1]. He argued that Assumptions were the philosophical base of the business, the fundamental hypothesis of the enterprise that shape its behavior, decisions, how they identify their customers’ and competitors.
Assumptions[2] are defined as something we accept as true without question or proof.
In our roles as CX Professionals we use assumptions to test and learn quickly, to identify innovative solutions that align to the evolving expectations and desires of customers’. It is these assumptions that demand careful attention that could otherwise lead to an unmanageable crisis where products services and experiences no longer fit reality and in turn impact business results.
What to Re-think? As we head towards the last quarter of 2022 it is time to re-think or test some common pre-digital and pre-covid assumptions, Professor George Westermann of MIT Sloan offers a list of 15 assumptions and questions to ask:[3]:
Customers’ Assumptions to re-think:
- Our customers’ really values the human touch Covid19 changed this view, is it human touch or personalisation they value?
- In-person is better than digital – How can the digital and physical arrangements be optimised for Customers’ and the organisation?
- Customers’ won’t pay full price for a digital version of our product and service – How do preferences vary by segment? When is digital better?
- Pandemic era service restrictions are only temporarily – How much do customers’ really need the services dropped during the pandemic?
- The old Way was the right Way – When is digital better for the Customers’?
Employee Assumptions to re-think[4]
- If people aren’t in the office, they are not productive – Some may be more productive than others Is it the environment or design of the job?
- We need to locate where the talent is – Where is the right talent? Hybrid has changed this view.
- The same rules should apply to everybody – Employees have different needs, provide a combination
- When they are working for me, they are not working for anyone else (e.g. side- gig)? When is the employee becoming less productive? Are jobs designed for what they want to do?
- Employees will work the way we tell them to – Be aware of the “Zone of Indifference”
Digital Innovation assumptions to re-think[5]
- First Mover Wins OR Fast Follower Wins OR Slow and Steady Wins – If someone in our organisation is thinking any of these approaches – Ask under what conditions are these strategies true?
- Digital Transformation is a technical challenge –The hard part is changing your company to make things work not just technology
- Our IT unit can’t keep up – we need a separate digital group– is it all IT or some, can they learn new skills?
- The Regulators will never let us do that – Understand Regulators, bring them in early and collaborate
- I can differentiate between stupid ideas and good ones – Pay attention to what employees and customers’ are saying as a sign of what they need
How to actively manage assumptions:
- Talk about your assumptions so everyone knows they are there
- Make it Safe to ask why
- Look for anomalies in your experiences and outcomes
- Invite new perspectives into your group
- Pay attention to stupid questions
- Use your competitors ‘assumptions to your advantage
ManagingCX Training is customised to suit your needs with very small classes and 1:1 coaching the course extends our students to think Strategically and go beyond the typical CX learning . Our past students have excelled in their careers, hear is what past students had to say. Enrol in our final 2022 class and be empowered with the knowledge and skills you need to make an impact in 2023.
[1] Theory of Business Peter F. Drucker, Harvard Business Review Classic May 2017
[3]https://sloanreview.mit.edu/article/developing-strategy-for-new-customer-expectations/
[4] https://sloanreview.mit.edu/article/rethinking-assumptions-about-how-employees-work/
[5] https://sloanreview.mit.edu/article/the-questions-leaders-should-ask-in-the-new-era-of-digital-transformation/
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