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Designing the Customer-Centric Organization: A guide to Strategy, Structure and Process
DIAMOND
RATING
RATING
Jay R. Galbraith, Jossey-Bass, 2005
Senteo’s Review 
This book looks at the customer-centric vs. product-centric organization from the perspective of an organizational design expert.
The premise is that the firm must be organized around the customer. The author begins by analyzing the differences between a product- and customer-centric organization from the standpoint of strategy, structure, processes, rewards and people, or “The Star Model.” He then describes various organizational components which should be used to implement the customer-centric organization, such as informal networks, formal teams and integrators. A large portion of the book describes three levels/strategies of customer-centricity that will best serve the reader’s organization (Light Level, Medium Level, Complete Level), with detailed case studies describing successful examples (IBM, Nokia, Proctor & Gamble, Citibank).
This book is quite narrow in its scope, focusing on the organizational design aspects associated with a customer-centric company. Aside from giving examples of positions or structures in the organization which can be utilized to implement this change (informal networks, formal teams, integrators), the author provides very good case studies to illustrate his three constructs of the three levels for implementing a customer-centric organization.
The book is written from the perspective of an organizational design specialist. It is lacking in implementation or development guidance vs. understanding the customer-centric organization. His three constructs of levels of implementation from light to intensive seem to be an oversimplification of structures. The narrow focus on the organizational structure aspects of customer-centricity may also leave some readers searching for more perspectives on the topic, however this book’s unique focus sets it apart from more general books on the topic of customer-centric firms.
Designing the Customer-Centric Organization offers today’s business leaders a comprehensive customer-centric organizational model that clearly shows how to put in place an infrastructure that is organized around the demands of the customer. Written by Jay Galbraith (the foremost expert in the field of organizational design), this important book includes a tool that will help determine how customer-centric an organization is- light-level, medium-level, complete-level, or high-level- and it shows how to ascertain the appropriate level for a particular institution. Once the groundwork has been established, the author offers guidance for the process of implementing a customer-centric system throughout an organization. Designing the Customer-Centric Organization includes vital information about structure, management processes, reward and management systems, and people practices.
The book contains useful information for companies seeking to understand organizational change to foster customer-centric structures. The book includes useful organizational charts and case studies from different corporate examples, including some step-by-step examples of transforming the organization. See also Customer Experience Strategy (Senteo review).
Senteo Subject Category
While this book offers guidance and a structured approach to presenting the information, this book lacks in practical methodologies or frameworks that can be used for tactical planning and implementation. The title indicates that it is about designing a customer-centric organization, however it would be better categorized as understanding a customer-centric organization.
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