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2013 Predictive Consulting Group, Inc.

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CHIEF CUSTOMER OFFICER COUNCIL
www.ccocouncil.org | (978) 226-8675 Page 1
Fi ve Strategi es for
Increasi ng Borrowed
Authori ty

by Curtis N. Bingham

2013 Predictive Consulting Group, Inc.
All rights reserved. Reproduction prohibited.
CHIEF CUSTOMER OFFICER COUNCIL
www.ccocouncil.org | (978) 226-8675 Page 2
Fi ve Strategi es for I ncreasi ng Borrowed
Authori ty

Curtis N. Bingham
Founder and Executive Director
Chief Customer Officer Council
cottls 8loqbom ls tbe wotlJs fotemost ootbotlty oo tbe costomet-ceottlc otqoolzotloo. ne wos tbe fltst to ptomote
tbe tole of cblef costomet offlcet os o cotolyst fot competltlve oJvootoqe. ne ls tbe cteotot of tbe fltst ccO
kooJmop ooJ tbe costomet ceottlclty Mototlty MoJel. ne ls tbe foooJet of tbe cblef costomet Offlcet cooocll, o
powetfol ooJ lotlmote qotbetloq of tbe wotlJs leoJloq costomet execotlves. As oo lotetootloool speoket, ootbot,
ooJ coosoltoot, cottls ls posslooote oboot cteotloq costomet sttoteqy to sostoloobly qtow teveooe, ptoflt, ooJ
loyolty.
1here are Lhree Lypes of execuLlve AuLhorlLy: oslLlonal, 8orrowed, and Larned (Lhe 8lngham CCC
AuLhorlLy Model ls fully dlscussed ln 1be 8loqbom AJvlsoty. lowetfol lofloeoce oo costomet ceottlclty,
see below). ln Lhls arLlcle, l focus on 8orrowed AuLhorlLy and some of Lhe sLraLegles CCCs can employ Lo
lncrease lL.


2013 Predictive Consulting Group, Inc.
All rights reserved. Reproduction prohibited.
CHIEF CUSTOMER OFFICER COUNCIL
www.ccocouncil.org | (978) 226-8675 Page 3
8orrowed AuLhorlLy ls LhaL whlch ls borrowed from oLhers wlLh greaLer lnfluence. lL ls besL galned
Lhrough Lhe sLrong, vocal, and very vlslble supporL of Lhe CLC. 1he more promlnenLly Lhe CLC advocaLes
for Lhe CCC and relnforces cusLomer-cenLrlc lmperaLlves, Lhe sLronger Lhe halo-effecL and Lhe greaLer
Lhe lnfluence Lhe CCC has over Lhe organlzaLlon. 8orrowed AuLhorlLy ls lmperaLlve ln Lhe early days of
Lhe CCC's Lenure as any culLure naLurally reslsLs change. 1he volce and AuLhorlLy of Lhe CLC ls ofLen
necessary Lo overcome organlzaLlonal lnerLla and enable a more compleLe cusLomer-cenLrlc
LransformaLlon. Leveraged correcLly, Lhls halo effecL can be used Lo galn slgnlflcanL early momenLum.
Pere follow flve sLraLegles Lo lncrease your 8orrowed AuLhorlLy.
Align Priorities
AllgnmenL wlLh CLC and board prlorlLles ls one key Lo 8orrowed AuLhorlLy. 1hls geLs and keeps your seaL
aL Lhe CLC's Lable. 1he successful CCC shows a clear llne of slghL" beLween cusLomer acLlvlLles and CLC
prlorlLles, demonsLraLlng how cusLomer cenLrlclLy wlll enable success ln meeLlng CLC ob[ecLlves.
lnlLlaLlves so allgned are more easlly supporLed and promoLed by Lhe CLC.
CbLaln clear dlrecLlon (parLlcularly aL Lhe ouLseL) as Lo Lhe ob[ecLlves and measures Lhe board and CLC
are applylng Lo Lhe CCC role. ln so dolng, CCCs noL only deslgn Lhelr own agenda Lo besL lmpacL Lhe
company's evaluaLlon of Lhelr performance, buL also lnform Lhe board, CLC, and peers of Lhe shared
purpose and need for collaboraLlon.
1o ensure allgnmenL:
SelecL/adapL lnlLlaLlves mosL closely allgned wlLh CLC prlorlLles
rovlde regular cusLomer relaLlonshlp healLh updaLes Lo Lhe CLC and Lhe board
CulLlvaLe a cusLomer champlon on Lhe board
use cusLomer lnslghL Lo shorLen sales cycles
Engage Executives
Successful CCCs recognlze LhaL Lhey cannoL be Lhe only ones champlonlng Lhe cusLomer cause and
refuse Lo allow Lhe CLC or oLher execuLlves Lo abdlcaLe responslblllLy for undersLandlng, servlng, and
acLlvely engaglng cusLomers ln growlng Lhe buslness. 1he mosL lmporLanL way Lo engage execuLlves ls Lo
make Lhe volce of Lhe cusLomer roar Lhrough Lhe C-sulLe. Lvery sLraLeglc declslon should lnclude Lhe
dlscusslon, WhaL ls Lhe lmpacL on Lhe cusLomer?" lf Lhe lmpacL ls poslLlve, Lhe sLraLeglc lnlLlaLlve should
be promoLed heavlly. lf lL ls negaLlve, ways Lo mlLlgaLe Lhe negaLlve lmpacL should be examlned.
1o effecLlvely engage execuLlves:
lncorporaLe cusLomer meLrlcs lnLo M8Cs

2013 Predictive Consulting Group, Inc.
All rights reserved. Reproduction prohibited.
CHIEF CUSTOMER OFFICER COUNCIL
www.ccocouncil.org | (978) 226-8675 Page 4
CreaLe execuLlve cusLomer advlsory boards where company and cusLomer execuLlves meeL
regularly
CreaLe an execuLlve sponsorshlp program where execuLlves are Lasked Lo vlslL key cusLomers on
a regular basls
ueslgn and faclllLaLe Lhe execuLlve escalaLlon and cusLomer response process
Lnable execuLlves Lo model deslred behavlor for Lhe organlzaLlon
8rlng cusLomers Lo Lhe execuLlve Leam
Speak the Language of Business
An lmporLanL way Lo borrow AuLhorlLy ls Lo speak Lhe language of buslness. 1he CLC deals ln revenue
opporLunlLy, 8Cl, hard cosL, opporLunlLy cosL-buL ofLen flnds loyalLy or saLlsfacLlon scores as a sLraLeglc
measure Lo be unfamlllar. AL a mlnlmum, Lhe CCC should show how cusLomer cenLrlclLy can faclllLaLe or
acceleraLe execuLlve goals. 8eLLer yeL, Lhe CCC should correlaLe cusLomer value and Lhe dollar cosL of
changes ln loyalLy scores wlLh hard daLa such as revenue opporLunlLles, cosL savlngs, markeL
peneLraLlon, share of walleL, and rlsk measures LhaL Lhe CLC, ClC and oLher fellow execuLlves use Lo
measure success.
1here are a many ways of quanLlfylng Lhe 8Cl of cusLomer cenLrlclLy:
CuanLlfy Lhe cosL of losL cusLomers
Conslder eppers' & 8ogers' 8eLurn on CusLomer" meLrlc Lo esLlmaLe 8Cl of an lnvesLmenL
CompuLe Lhe cosL savlngs ln decreaslng Lhe cosL Lo serve cusLomers
CorrelaLe purchase behavlor wlLh loyalLy, engagemenL, or oLher meLrlcs
Measure Lhe revenue and proflL opporLunlLy for shlfLlng a percenLage of cusLomers from one
loyalLy level Lo anoLher
Measure Lhe lmpacL on loyalLy scores and proflLablllLy for prlmary cusLomer Louch polnLs
Measure and opLlmlze Lhe wln-back efforL Lo focus on hlghesL-value wln-back cusLomers and
acLlvlLles and Lo mlnlmlze Lhose efforLs and cusLomers wlLh lower expecLed reLurn
1he mosL successful CCCs are effecLlve ln champlonlng hard meLrlcs over Lhe lnLanglble, creaLlng Lhe
buslness case for cusLomer loyalLy ln Lerms of revenue opporLunlLles and hard cosLs LhaL are easlly
compared wlLh compeLlng prlorlLles.
Create and Leverage Opportunities for CEO Support
lL ls ln Lhe CLC's besL lnLeresL for Lhe CCC Lo be successful. ?eL, many CLCs and oLher execuLlves are
unaware of Lhe besL ways Lo demonsLraLe supporL for CCC acLlvlLles. CCCs musL creaLe opporLunlLles for

2013 Predictive Consulting Group, Inc.
All rights reserved. Reproduction prohibited.
CHIEF CUSTOMER OFFICER COUNCIL
www.ccocouncil.org | (978) 226-8675 Page 5
CLCs and oLher execuLlves Lo show supporL and leverage Lhese acLlvlLles fully. 1o sollclL and leverage
CLC supporL:
Share cusLomer success sLorles
Clve execuLlves someLhlng Lo brag abouL-and leL Lhem brag abouL you
CreaLe CLC and board recognlLlon awards where Lhe CLC and board members can recognlze
cusLomer-cenLrlc conLrlbuLlons and behavlors of ouLsLandlng employees
CreaLe a cusLomer meLrlc or Lool Lhe CLC can use Lo hold dlrecL reporLs accounLable Lo
cusLomers
CreaLe cusLomer awards Lo help recognlze ouLsLandlng cusLomers aL annual meeLlngs
Use the CEO to Blow Up Obstacles
When dlplomacy falls ln Lhe face of noL lnvenLed here" or oLher lrraLlonal reslsLance Lo cusLomer
success, lL may slmply be necessary Lo leverage Lhe CLC Lo blow up such obsLacles. Cne CCC sald LhaL lL
Look Lhree years Lo consolldaLe employees wlLh Lhe same funcLlon from dlsparaLe deparLmenLs. A CLC
mandaLe would have resolved Lhese roadblocks wlLhln weeks, savlng cusLomers Lhree years of
frusLraLlon. CLCs occaslonally need Lo clarlfy or reseL execuLlve prlorlLles around cusLomer cenLrlclLy,
elLher dlrecLly Lhrough a mandaLe and personal charge or lndlrecLly Lhrough M8Cs and bonus plans.
Conclusion
LxecuLlves wlLhouL sLrong 8orrowed AuLhorlLy reporL spendlng nearly 30 of Lhelr Llme [usLlfylng Lhelr
exlsLence and sollclLlng supporL, lnsLead of servlng cusLomers. lncreaslng AuLhorlLy Lo solve cusLomer
lssues, drlve cusLomer cenLrlclLy, and Lhereby creaLe susLalnable buslness growLh needs Lo be a core
sLraLegy of every CCC who doesn'L wlsh Lo relegaLe Lhe Lenure of hls/her role Lo chance.
1he 8lngham CCC AuLhorlLy Model ls a powerful Lool for guldlng your sLraLegy Lo galn and lncrease
power and lnfluence wlLhln your organlzaLlon. lor more lnformaLlon on Lhls Loplc or Lo dlscuss your
goals Lo lncrease your AuLhorlLy, conLacL CurLls 8lngham aL Lhe address below.
*1



*
Copyright Notice: All content contained in this article is copyright protected material. Reproduction, in whole or in
part, in any form or medium, without the express written permission of the Chief Customer Officer Council is strictly
prohibited.
1
This article is excerpted from The Bingham Advisory: Powerful Influence on Customer Centricity, available for free
download from the CCO Council website at: http://www.ccocouncil.org/thebinghamadvisory/.

2013 Predictive Consulting Group, Inc.
All rights reserved. Reproduction prohibited.
CHIEF CUSTOMER OFFICER COUNCIL
www.ccocouncil.org | (978) 226-8675 Page 6
About CURTIS N. BINGHAM
1he flrsL Lo promoLe Lhe role of chlef cusLomer offlcer (CCC) as caLalysL for
compeLlLlve advanLage, CurLls ls recognlzed as Lhe world's foremosL auLhorlLy on
CCCs. Pe ls founder and LxecuLlve ulrecLor of Lhe Chlef CusLomer Cfflcer
Councll` and creaLor of Lhe CCC 8oadmap and Lhe CusLomer CenLrlclLy MaLurlLy
Model: groundbreaklng, proprleLary works LhaL asslsL companles achleve
cusLomer cenLrlc culLure and revenue growLh. CurLls ls a champlon of cusLomer
engagemenL as a crlLlcal growLh englne and flrsL Lo ldenLlfy engagemenL as Lhe
nexL evoluLlonary sLep beyond loyalLy. An lnLernaLlonal speaker, auLhor, and
consulLanL, CurLls ls passlonaLe abouL creaLlng powerful cusLomer sLraLegles and
LrusLed for hls buslness acumen, acLlonable lnslghLs, and commlLmenL Lo
measurable buslness resulLs.
About THE CHIEF CUSTOMER OFFICER COUNCIL
1he CCC Councll ls a powerful and lnLlmaLe gaLherlng of Lhe world's
leadlng cusLomer execuLlves from wldely dlverse lndusLrles. 1he
Councll helps execuLlves achleve ob[ecLlves fasLer and more easlly by
leveraglng besL pracLlces. lL helps valldaLe and reflne sLraLegles and
lnlLlaLlves Lo avold experlmenLlng aL cusLomer expense. Membershlp
ls by lnvlLaLlon only, and purposefully cross-polllnaLed wlLh Lhe mosL
forward-Lhlnklng companles, large and small, so as Lo help cusLomer
execuLlves dellver solld, cusLomer-cenLrlc buslness resulLs. lor more
lnformaLlon, emall lnfo[ccocouncll.org or call 978-226-8673.


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%&'()*+, ./*,+(/0( &/ 1+23&4() 1(/3)50536 - ln addlLlon Lo Lhree Lypes of
auLhorlLy, Lhls 75/89:4 ;<=52&)6 provldes you wlLh:
llve ways Lo borrow greaLer auLhorlLy
lour ways Lo earn greaLer auLhorlLy
Speclflc examples of each meLhod
Learn Lhe Llme-LesLed besL pracLlces of leadlng senlor cusLomer execuLlves
LhaL you can begln Lo lmplemenL and apply Loday!
uowolooJ yoot ftee copy toJoy ot www.ccocouncll.org/Lheblnghamadvlsory/
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ccocouncll.org/vldeo

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CCC Councll neLwork

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