Lisa Pratt, VP of Customer Engagement Marketing at Kronos, discusses transitioning to a subscription model, the significance of cross-functional collaboration, embracing customer-centricity, and the power of communication in organizational transformation in the enterprise segment.
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Quick takeaways
Transitioning to a cloud-based model helped Chronos adapt to market trends effectively.
Establishing a Transformation Management Office facilitated coordination and communication during the shift.
Cultural shift towards being customer-centric empowered all employees to focus on enhancing customer outcomes.
Effective communication strategy was crucial in fostering understanding and buy-in from employees at all levels.
Emphasizing skill development, cross-functional collaboration, and mindset shifts were important in driving transformation goals.
Deep dives
Chronos' Transformation to Cloud and Subscription Services
Chronos, a human capital management platform company, transitioned from perpetual licensed on-premise technology to cloud and subscription services over eight years. This change was driven by the realization of market trends moving towards the cloud. Chronos initially offered a SaaS version of their traditional product and simultaneously developed a new enterprise cloud-only product to secure their future.
Revenue Shift to Subscription Model and Going Private
Transitioning from a perpetual license model to a subscription model presented revenue challenges due to the change in revenue recognition. Chronos navigated this by going private before the transition, which allowed them to manage revenue fluctuations effectively. Their strong customer base and revenue from maintenance contracts helped stabilize their finances during the shift.
Establishing a Transformation Management Office (TMO)
Chronos set up a Transformation Management Office to oversee the shift comprehensively, focusing on coordinating various initiatives into a cohesive transformation program. The TMO played a crucial role in communicating the company's strategic shift, obtaining resources, and elevating the visibility of transformation initiatives across the organization.
Cultural Shift to Customer-Centricity
Chronos emphasized a cultural shift towards being customer-centric, aiming to embed a customer-focused approach throughout the organization. While always valuing customers, the company drove a change where all employees, not just customer-facing teams, considered the impact of their work on customer value and ease of doing business. The shift empowered employees to think beyond their functional areas and focus on enhancing customer outcomes.
Communication Strategies for Organizational Change
Effective communication was central to Chronos' transformation journey, with a structured approach to disseminating information and engaging employees across the company. The communication plan leveraged various channels like executive meetings, internal blogs, videos, and company-wide chats to ensure consistent messaging and alignment. The focus on alignment, repetition, and clear branding of the transformation initiative contributed to fostering understanding and buy-in from employees at all levels.
Challenges and Lessons Learned in Transformation
In navigating the transformation process, Chronos faced challenges in orchestrating skill set changes, managing global communication, and addressing diverse employee responses. The company learned valuable lessons about the importance of dedicated resources, consistent communication, alignment, and adapting strategies for different organizational levels. Despite facing resistance and misconceptions, the company emphasized continuous communication and education to drive successful cultural and operational changes.
Addressing Resistance and Implementing Organizational Change
Chronos encountered resistance and gaps in implementing organizational change, highlighting the need for tailored approaches and managerial support. The company prioritized skill development, cross-functional collaboration, and mindset shifts to align employees with the transformation goals effectively. Emphasizing the importance of effective leadership, clear expectations, and ongoing training, Chronos aimed to navigate challenges and optimize the impact of its transformation initiatives.
Impact of Customer-Centric Processes on Operational Efficiency
By emphasizing customer-centric processes and refining service delivery strategies, Chronos aimed to streamline operations and enhance customer experiences. The company sought to align internal processes with customer outcomes, driving efficiency and value creation. Through continuous feedback loops and a focus on customer success, Chronos intended to optimize its service offerings and ensure sustainable growth in the competitive market landscape.
Maintaining Consistency and Engagement Across Global Teams
Chronos focused on maintaining consistency across global teams and engaging employees effectively amidst organizational changes. The company leveraged digital platforms, video communications, and interactive tools to foster engagement and alignment worldwide. By prioritizing open communication, collaboration, and sharing success stories, Chronos sought to cultivate a unified company culture and drive innovation and competitiveness in the evolving industry landscape.
Jay is joined by Lisa Pratt, Vice President of Customer Engagement Marketing at Kronos. She’s spent years helping companies capitalize on the benefits of mining customer data and quantifying the value of marketing investments.
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This podcast is brought to you by Jay Nathan and Jeff Breunsbach of Customer Imperative, where we help B2B SaaS organizations build growth & retention strategies. Learn more at https://customerimperative.com/
