Business Imperative
For over a decade, this Financial Services Institution pursued an aggressive strategy based on growth through acquisition. The success of this strategy hinged not only on identifying and buying appropriate businesses, but quickly integrating them into their own operations, with a clear and unequivocal emphasis on optimizing efficiencies while minimizing costs.

This strategy was brilliantly executed. As a result, the organization enlarged its operational footprint and gained market share in chunks. This was great in terms of fulfilling the strategy - but not so good in terms of the impact on customer - and community - good will. It was only natural that in the process of execution, much of the acquired base felt steamrolled by a big, impersonal machine.

Especially in markets where they had been most aggressive, their favorability numbers took a substantial hit. They recognized the need to develop a new strategy specifically targeting the customer experience. Furthermore, if they wanted to fully leverage the gains of acquisition and deliver the most shareholder value possible, they would need to be just as focused and aggressive in accomplishing this new strategy as they had been with the old.

This business unit had responsibility for the branch banks as well as many of the home- and community-focused franchises, and was a high-profile, high-impact leverage point for this critical shift. In the new strategy, this unit would be a major force in shaping employee satisfaction, customer loyalty and the creation of real shareholder value.

Leadership Response
The unit engaged Stratton Consulting Group (Stratton) to help its leadership team understand the full scope of the challenge and create the changes needed for quickly transforming their business. Stratton began by assessing their current state. Following a review of relevant internal data, implementation of the Denison Culture Survey, and completion of several executive level interviews, Stratton debriefed executives on key findings, then helped them to examine the implications and plan for effective actions.

The client recognized that the institution's shift in strategy would require a corresponding shift in people's fundamental beliefs about and approach to the business. The senior leadership team needed to create a new strategic context within which people defined reality and made decisions about how best to create value for the business. They needed to articulate a compelling new direction that would not only redirect people's attention, but actively encourage and engage their commitment in making the necessary changes. In short order, they needed to establish a new operating culture that could promote organic growth, re-establish customer favorability as a competitive advantage, and provide optimal value to shareholders, customers, and employees.

Interrupting the Skepticism
Because of people's long-term experience of the "acquisition and efficiency" strategy, there was a deeply instilled skepticism about the change. Leaders therefore faced the paradoxical challenge of having to overcome the powerful legacy of past success. People were predisposed to believe that, regardless of what leaders might say about change, the company's old operating style was the one that would ultimately be encouraged, reinforced, and valued. This meant that leaders would have to be particularly rigorous - not only in articulating a compelling case for change, but also in demonstrating their unshakeable commitment to those changes. They would have to lead by example, demonstrating new behaviors while openly declaring and displaying a personal passion for the new mission and strategy.

In a watershed offsite visioning session, Stratton's facilitative approach, processes, and focus enabled senior leaders to fully appreciate the scope of personal and organizational changes involved. They collaboratively crafted leadership messages and identified key actions to promote their new strategic direction, while simultaneously creating breakthroughs in their team outlooks and relationships. Follow-up coaching helped individuals manage the sometimes difficult transitions required of them as leaders in the newly customer-centric organization.

Accelerating Toward Success
Given the erosion of the company's favorability and the abundance of fast-paced, opportunistic competitors, leaders knew that they had to move quickly - the customers wouldn't wait. Stratton designed and facilitated a series of two-day leadership forums to extend ownership of the mandate and help mobilize the wider leadership team in tackling the challenges and implications involved.

To create the necessary speed and agility, there was a real need to break down old barriers and strengthen relationships throughout the organization. Many behaviors and operational habits that had been rewarded in the past were now unacceptable. Top organizational leaders were encouraged, therefore, to focus on critical elements in the plan to achieve major breakthroughs in the "whats" and "hows" of their performance.

These sessions also provided an opportunity to develop key measurements and indicators of success organized along four key criteria:

• Accuracy and Reliability of Service
• Ease of Doing Business
• Problem Resolution
• Caring for Customers

Mid-level managers were identified as being key pivot points in the organization, instrumental in shifting behaviors, influencing attitudes, and managing the direct customer interface. By providing a newly defined leadership context for their work, combined with new tools and training in their use, these managers were enlisted in the work of transforming the customer experience on the front lines.

Results
This company had a strong record of successful execution, so the business unit's underlying ability to change was never really in question. The core issue was whether the people who needed to execute on the new strategy would accept the logic, legitimacy, and leadership commitment behind it. By taking the time to consider this aspect of the challenge and to thoughtfully "manage the meaning" of the leadership messages concerning a more customer-centric approach, they made swift strides.

An organization that was initially reticent and skeptical about such sweeping changes has now embraced the need for customer favorability as a strategic imperative.

• Customer favorability is embraced as a key measure to be monitored closely by the Board of Directors
• The entire marketing strategy has shifted its message to the new mission: "Easy to do business"
• A new organization structure is being re-designed to enable more effective leadership and governance specific to customer centricity
• Customer favorability in key markets has begun to shift positively