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I believe that companies should be organized around maximizing customer value and that typical org structures today hamper value delivery. But what would the ideal organization look like? Facebook seems to have created one of the best cultures for value delivery and growth. Here is what their org looks like: https://research-methodology.net/wp-content/uploads/2017/01/Facebook-Inc.-Organizational-Structure.png

  • AG

    Ashley Greene

    about 2 years ago #

    Hey Sean. I saw this the other day, and have been thinking about it since. I completely agree that typical org structures get in the way of maximizing customer value. :( I do like how Eric Ries lays out the Entrepreneurial Layer in his new book for traditional companies. Assuming early stage B2C company with network effects (although applies to any company I think)... my thoughts are that if everyone is responsible for customer value maximization, then no one actually is, which is a big problem. How to fix it is the question...

    I don't like adding in more teams and layers necessarily, but I feel that there must be ideally a CV function… whether a separate growth team (say CX/Customer Value) in addition to the performance & activation sub-teams or a separate function entirely.

    What probably makes more sense is a separate Chief Customer Officer-ish (I say “ish”, because early stage) function that is responsible for maximizing customer value, owns CX/Customer Insights/Satisfaction/Brand, who reports directly to CEO. To be effective, would have to be the most cross-functional team even in a cross-functional environment.

    This is all based on my thinking that customer value maximization is a function of customer insight optimization…. the better you understand the customer, the more effective you are at maximizing value and satisfaction.

    I know there’s a better way… exactly what that way is… I’m not sure.

    I’ve also heard about a company who organizes sales/product/marketing/customer success/growth entirely around each point in the customer journey (e.g. first web visit was a touchpoint) with VPs for each function still, although I can’t remember who. I think this is an interesting test, but worry about effectiveness and messiness, especially once scaling.

    Which team (if any) would you assign to focus specifically on maximizing WOM/networks effects?

  • SE

    Sean Ellis

    about 2 years ago #

    I've been thinking about this for a day now and was hoping someone else would offer up a response first… Of course, it largely depends on the type and stage of the business. Let's assume a relatively early stage B2C company with a network effect. I would probably have a product team and a growth team that each report to the CEO (in addition to other teams like finance).

    The growth team would be divided into performance marketing subteam and onboarding/engagement subteam. The onboarding/engagement subteam would be responsible for delivering new prospective customers to the point of activation or maybe even habitual usage. They would have their own dedicated engineering and design resources (about the same size as the core product team engineering/design resources).

    Haven’t really thought beyond that yet.

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