an EXECUTIVE SUMMARY of our industry
guide to thinking forward for the year ahead
Financial Services
MEDIA, ENTERTAINMENT, AND COMMUNICATIONS
HEALTHCARE
RETAIL
WHO WE TALKED TO: 717 leaders across industries
Customer experience (CX) is rapidly catalyzing change for financial services in 2020, yet only about one quarter of leaders in the industry feel very prepared to address this top priority. Overcoming barriers to preparedness and operationalizing the experience will require financial services firms to cast aside functional silos and embrace matrixed, horizontal ways of working. In this new organizational paradigm, financial services leaders must move their attention to aligning people, organizational design, and culture to deliver the ideal experience.
Click ahead to see who we talked to >
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Accelerated momentum around CX
The workforce: the forgotten enabler of continuous, customer-led transformation
The attainability of always-on, customer-led transformation hinges on employees
CX demands top the list of external factors catalyzing change for business leaders in 2020.
Year after year, organizations strive to align on an outside-in, customer-led perspective.
Attaining always-on, customer-led transformation starts with the workforce. The way that organizations organize, develop, and engage their employees will better position them to address the strategic imperatives surrounding continuous, customer-led transformation.
70% of business leaders report that people are a top barrier to addressing strategic priorities.
Taking Action
How business leaders can empower their workforce to drive continuous, customer-led change:
1. Prime the organization with
People-Centric Change.
People-centric change ensures that CX-led continuous improvement becomes an embedded way of working, as opposed to a point-in-time event. Invite employees to identify the right problems to solve and develop a change solution that addresses real needs and barriers. Then, empower the workforce to bring the future state CX vision to life.
2. Identify activities at the convergence of business and customer value with Experience Economics.
Experience Economics aligns employees around making decisions that drive CX improvement alongside positive business outcomes. D&A plays an especially important role in powering Experience Economics. Organizations should zero in on data sources across qualitative and quantitative channels to build models that highlight the specific drivers of customer satisfaction.
3. Activate continuous transformation with Accelerated Service Design.
Design a service blueprint that connects back/front stage systems and processes, aligning all data and activities to optimize the customer journey. This approach builds continuous transformation into ways of working by outlining how teams across functions will work together, and organizes them around customer needs for maximum efficiency.
Download the 2020 Beacon White paper
For additional information and to download the 2020 Beacon white paper.
Functions:
22% Operations
22% IT
15% Marketing
14% Sales
13% Finance/Accounting
8% HR
6% Research & Development
Levels:
30% President/C-suite
28% EVP/SVP/VP
13% Sr. Director
18% Director
11% Sr. Manager
2018 Revenue:
$1B-$5B: 41%
$5B-$10B: 23%
$10B-$20B: 19%
$20B+:17%
Increasing demands for customer experience (CX) command always-on, customer-led transformation. Year after year, CX is the coveted brass ring for organizations across industries: for the past three years of North Highland’s annual Beacon research, CX has been a top-three strategic priority. Yet as we enter 2020, only about one-third of business leaders feel very prepared to address it. Continued challenges around CX stem, in large part, from missed workforce opportunities. By zeroing in on insights, ways of working, and employee development, and more, business leaders can enable their employees to power continuous, customer-led transformation.
Click ahead to see who we talked to >
Top priorities for the year
Customer-Centricity/Experience:
87% cite as a strategic priority; 31% feel very prepared to address
1
2
Operational Efficiency:
85% cite as a strategic priority; 20% feel very prepared to address
3
Data & Analytics:
81% cite as a strategic priority; 28% feel very prepared to address
Keeping up commands change in business-as-usual fashion.
The customer is fueling an accelerated rate of change
Nearly 9 out of 10 business leaders accept that the rate of change has accelerated in the past two years.
Our research underscores a movement towards smaller-scale, functional transformation to keep pace in this evolving landscape.
71% of business leaders are more likely to undertake transformation at the functional level.
Despite sustained focus, only 31% of business leaders feel very prepared to address CX.
Continued challenges around CX largely stem from missed workforce opportunities.
Emphasis on employee experience (EX) lags CX. 65% of business leaders cite EX as a priority. 87% cite CX as a priority.
Our research illuminates opportunities to achieve an outside-in perspective by starting with an inside-out focus, anchored in workforce considerations.
Knowledge/skills (65%), is the top internal factor affecting financial services leaders’ preparedness to address strategic priorities.
Employee and team development: Enabling the workforce to effect always-on, customer-led transformation requires the talent and skills to power continuous improvement.
Leaders cite knowledge/skills as their most prevalent barrier to addressing top strategic priorities.
Equally important to workforce-powered transformation is the design of teams. A cross-functional focus is critical to enabling responsiveness and adaptation through fluid cross-team data-sharing and collaboration around solutions, customer outcomes, and customer-oriented KPIs.
Cross-functional integration/collaboration is the most important factor when configuring teams for transformation.
Employee experience (EX): EX plays a critical role in driving experiences for customers, yet our research suggests it may be a blind spot for leaders seeking to address the experience challenges.
Leaders recognize the importance of developing the right talent to address transformation imperatives. 24% of business leaders report that talent management and development is a much higher priority than last year.
Insights: Harnessing the value of data & analytics (D&A) for customer-led transformation starts with the workforce. Equipping all employees—not just IT—with a single source of data truth and with visualization tools can deliver insights to inform more efficient decisions that amplify customer and business value.
81% of business leaders cite D&A as a strategic priority. Only 28% feel very prepared to address D&A today.
The customer is fueling an
accelerated rate of change
28% are more likely to undertake transformation at the enterprise level.
2019 report: 82% of business leaders cite CX as a strategic priority.
2020 report: 87% of business leaders cite CX as a strategic priority.
33% of business leaders consider employee experience (EX) a transformation area for 2020. 50% of business leaders consider CX a transformation area.
The attainability of always-on, customer-led transformation hinges on employees
Attaining always-on, customer-led transformation starts with the workforce. The way that organizations organize, develop, and engage their employees will better position them to address the strategic imperatives surrounding continuous, customer-led transformation.
Employee and team development: Enabling the workforce to effect always-on, customer-led transformation requires the talent and skills to power continuous improvement.
72% of business leaders cite knowledge/skills as their most prevalent barrier to addressing top strategic priorities.
Employee experience (EX): EX plays a critical role in driving experiences for customers, yet our research suggests it may be a blind spot for leaders seeking to address the experience challenges.
Leaders recognize the importance of developing the right talent to address transformation imperatives. 24% of business leaders report that talent management and development is a much higher priority than last year.
Alignment: To drive always-on, customer-led transformation through the workforce, it’s critical to start with a clear CX vision and strategy that’s effectively communicated to employees.
Organizational purpose, mission, and vision decreased 3% year over year, suggesting that business leaders may be missing important opportunities to align the workforce around a shared vision and strategy for CX.
Ways of working: Operational efficiency is the second highest strategic priority, yet ways of working are a blind spot.
29% of business leaders consider ways of working to be a catalyst driving change in strategic priorities.
38% cite digital adoption as a catalyst driving change in strategic priorities.
This discrepancy that suggests leaders may be more focused on driving usage of solutions than on the underlying shifts required of their workforce.
28% are more likely to undertake transformation at the enterprise level.
2019 report: 82% of business leaders cite CX as a strategic priority.
2020 report: 87% of business leaders cite CX as a strategic priority.
33% of business leaders consider employee experience (EX) a transformation area for 2020. 50% of business leaders consider CX a transformation area.
Alignment: To drive always-on, customer-led transformation through the workforce, it’s critical to start with a clear CX vision and strategy that’s effectively communicated to employees.
Organizational purpose, mission, and vision decreased 3% year over year, suggesting that business leaders may be missing important opportunities to align the workforce around a shared vision and strategy for CX.
Insights: Harnessing the value of data & analytics (D&A) for customer-led transformation starts with the workforce. Equipping all employees—not just IT—with a single source of data truth and with visualization tools can deliver insights to inform more efficient decisions that amplify customer and business value.
81% of business leaders cite D&A as a strategic priority. Only 28% feel very prepared to address D&A today.
Ways of working: Operational efficiency is the second highest strategic priority, yet ways of working are a blind spot.
29% of business leaders consider ways of working to be a catalyst driving change in strategic priorities.
38% cite digital adoption as a catalyst driving change in strategic priorities.
This discrepancy that suggests leaders may be more focused on driving usage of solutions than on the underlying shifts required of their workforce.
of business
leaders
of business
leaders
Transformation Areas
Strategic Priorities
Cross-functional integration/
collaboration is the most important factor when configuring teams for transformation.
of business leaders
Of Business Leaders
Of Business Leaders
Strategic Priorities
Transformation Areas
Of Business Leaders
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Download the 2020 Beacon White paper
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For additional information and to download the 2020 Beacon white paper.
Download the 2020 Beacon White paper
Download the 2020 Beacon White paper
Customer experience (CX) is rapidly catalyzing change for financial services in 2020, yet only about one quarter of leaders in the industry feel very prepared to address this top priority. Overcoming barriers to preparedness and operationalizing the experience will require financial services firms to cast aside functional silos and embrace matrixed, horizontal ways of working. In this new organizational paradigm, financial services leaders must move their attention to aligning people, organizational design, and culture to deliver the ideal experience.
Click ahead to see who we talked to >
Top priorities for the year
1
Customer-Centricity/Experience:
87% cite as a strategic priority; 31% feel very prepared to address
2
Operational Efficiency:
85% cite as a strategic priority; 20% feel very prepared to address
3
Data & Analytics:
81% cite as a strategic priority; 28% feel very prepared to address
WHO WE TALKED TO: 717 leaders across industries
Functions:
22% Operations
22% IT
15% Marketing
14% Sales
13% Finance/Accounting
8% HR
6% Research & Development
Levels:
30% President/C-suite
28% EVP/SVP/VP
13% Sr. Director
18% Director
11% Sr. Manager
2018 Revenue:
$1B-$5B: 41%
$5B-$10B: 23%
$10B-$20B: 19%
$20B+:17%
Increasing demands for customer experience (CX) command always-on, customer-led transformation. Year after year, CX is the coveted brass ring for organizations across industries: for the past three years of North Highland’s annual Beacon research, CX has been a top-three strategic priority. Yet as we enter 2020, only about one-third of business leaders feel very prepared to address it. Continued challenges around CX stem, in large part, from missed workforce opportunities. By zeroing in on insights, ways of working, and employee development, and more, business leaders can enable their employees to power continuous, customer-led transformation.
Beacon 2020: Insights for the Year Ahead
Increasing demands for customer experience (CX) command always-on, customer-led transformation. Year after year, CX is the coveted brass ring for organizations across industries: for the past three years of North Highland’s annual Beacon research, CX has been a top-three strategic priority. Yet as we enter 2020, only about one-third of business leaders feel very prepared to address it. Continued challenges around CX stem, in large part, from missed workforce opportunities. By zeroing in on insights, ways of working, and employee development, and more, business leaders can enable their employees to power continuous, customer-led transformation.
Click ahead to Learn more and see who we talked to >
Customer experience (CX) is rapidly catalyzing change for financial services in 2020, yet only about one quarter of leaders in the industry feel very prepared to address this top priority. Overcoming barriers to preparedness and operationalizing the experience will require financial services firms to cast aside functional silos and embrace matrixed, horizontal ways of working. In this new organizational paradigm, financial services leaders must move their attention to aligning people, organizational design, and culture to deliver the ideal experience.
Click ahead to see who we talked to >
Top priorities for the year
1
Customer-Centricity/
Experience:
87% cite as a strategic priority; 31% feel very prepared to address
2
Operational Efficiency:
85% cite as a strategic priority; 20% feel very prepared to address
3
Data & Analytics:
81% cite as a strategic priority; 28% feel very prepared to address
Functions:
22% Operations
22% IT
15% Marketing
14% Sales
13% Finance/Accounting
8% HR
6% Research & Development
Levels:
30% President/C-suite
28% EVP/SVP/VP
13% Sr. Director
18% Director
11% Sr. Manager
2018 Revenue:
$1B-$5B: 41%
$5B-$10B: 23%
$10B-$20B: 19%
$20B+:17%
WHO WE TALKED TO:
717 leaders across industries
Increasing demands for customer experience (CX) command always-on, customer-led transformation. Year after year, CX is the coveted brass ring for organizations across industries: for the past three years of North Highland’s annual Beacon research, CX has been a top-three strategic priority. Yet as we enter 2020, only about one-third of business leaders feel very prepared to address it. Continued challenges around CX stem, in large part, from missed workforce opportunities. By zeroing in on insights, ways of working, and employee development, and more, business leaders can enable their employees to power continuous, customer-led transformation.
Beacon 2020: Insights for the Year Ahead
https://www.northhighland.com/insights/white-papers/beacon-2020-driving-workforce-powered-customer-led-transformation