Disciplined Agile Principle: Delight Customers
From the Disciplined Agile Applied Blog
by Scott Ambler
This blog explores pragmatic agile and lean strategies for enterprise-class contexts.
Recent Posts
Data Technical Debt: 2022 Data Quality Survey Results
Is Technical Debt A Management Problem? Survey Says...
You Think Your Staff Wants to Go Back to the Office? Think Again.
Contracts, Procurement, Vendors, and Agile
Disciplined Agile 5.4 Released
Categories
#AgileBeyondIT,
#ChoiceIsGood,
ACP,
agile,
Agile Alliance,
agile-manifesto,
book,
Business Agility,
Certification,
Choose your WoW,
Conference,
Context,
Continuous Improvement,
contracts,
COVID-19,
Data Management,
database,
DDJ,
Disciplined Agile,
Enterprise Agile,
estimation,
Fundamentals,
Governance,
GQM,
guesstimation,
http://disciplinedagiledelivery.com/principles/be-awesome/,
India,
information technology,
Introduction,
Kanban,
lean,
MANAGEIndia,
math,
MENA,
Metrics,
mindset,
News,
OKRs,
Organization,
People Management,
Planning,
PMO,
Portfolio Management,
Principle,
Project Management,
Quality,
Ranged Estimates,
Remote Work,
Scrum,
Security,
skill,
software,
Surveys,
Technical Debt,
Technical debt,
Terminology,
Transformation,
value stream,
vendor management,
VMO
Date
One of the seven principles behind Disciplined Agile (DA) is Delight Customers. For a value stream to succeed the delight of your customers must be your key priority. In 2001 the writers of the Agile Manifesto told us that “Our highest priority is to satisfy the customer through early and continuous delivery of valuable software," which is clearly a good start. Disciplined agilists, however, prefer the lean philosophy that to succeed it isn’t sufficient to simply satisfy the customer but instead we must regularly delight them if we wish to keep them as a customer.
We delight our customers when our products and services surpass their needs and expectations. Consider the last time you checked into a hotel. If you’re lucky there was no line, your room was available, and there was nothing wrong with it when you got there. You were likely satisfied with the service but that’s about it. Now imagine that you were greeted by name by the concierge when you arrived, that your favorite snack was waiting for you in the room, and that you received a complimentary upgrade to a room with a magnificent view – all without asking. This would be more than satisfying and would very likely delight you. Although the upgrade won’t happen every time you check in, it’s a nice touch when it does and you’re likely to stick with that hotel chain because they treat you well.
Successful organizations offer great products and services that delight their customers. Systems design tells us to build with the customer in mind, to work with them closely, to build in small increments and then seek feedback, so that we better understand what will actually delight them. As disciplined agilists we embrace change because we know that our stakeholders will change their minds as they learn what they truly want as the solution evolves.
Based on the great comments and questions that I've received about this blog posting (thank you!) I thought I would clarify a few points:
- There's a cost to delight customers. Delightful offerings (products or services) are usually more costly to provide and to develop.
- There's a cost to not do this. If you don't delight your customers someone else will. It's much less expensive to keep a good customer than it is to attract a new one.
- Focus on return, not cost. Effective organizations know that when it comes to financial issues it's about the return on investment that you're able to generate, rather than the overall cost to do so. X costs $1 and generates $1.10 in revenue. Y costs $2 and generates $2.50 in revenue. Z costs $3 and generates $2.60 in revenue. Assuming all other issues (risk, morale, ...) are equal, which is the better offering for your organization?
- Know your customers. At the individual level we are delighted by different things. Being greeted by first name at the hotel, or even being greeted at all, may be delightful for some people and spectacularly annoying for others. As another DA principle advises, context counts.
- You want to target your efforts. It's really about delighting the customers that you care about and do so in a way that they actually value. Consider the hotel example. It's probably more important to them to delight an existing "gold" customer in a manner that they value than it is to delight someone who is staying at this hotel for the first time. It's likely more important for them to try to delight a customer who is "gold" at another chain, hoping to lure them to this chain, than someone who is not a frequent hotel user.
- You need to vary the way that you delight a customer. If you delight people the same way over and over, it sets their expectations highly. If the hotel described above was to provide that level of service to me every time I checked in that would be great, but it would soon stop delighting me because I would come to expect it.
SOURCE
This article is excerpted from Chapter 2 of the book An Executive’s Guide to Disciplined Agile: Winning the Race to Business Agility.
Posted on: October 02, 2019 12:00 AM |
Permalink
Comments (13)
Please login or join to subscribe to this item
Luis Branco
CEO| Business Insight, Consultores de Gestão, Ldª
Carcavelos, Lisboa, Portugal
Interesting prospect to yours.
Thanks for sharing.
In your hotel example, delighting the customer comes at an added cost.
Is the "service increment versus cost" ratio profitable?
In my opinion we should always keep this question in mind.
Scott Ambler
Consulting Methodologist| Ambysoft Inc.
Toronto, Ontario, Canada
Yes, it comes at a cost. And there is a significant cost to losing an existing customer.
The hotel business is effectively a commodity industry where there is significant competition. Hotels can choose to compete on price, on service, or location (or combinations thereof).
Very interesting., thanks for sharing
Rami Kaibni
Community Champion
Senior Projects Manager | Field & Marten Associates
New Westminster, British Columbia, Canada
Scott, this is a very interesting point of view about delighting customers which reminds me with the Kano Model. However, there is a fine line between delighting your customer by exceeding their expectations and a Gold Plating.
Delighting your customers by surpassing their needs in a hotel stay has a totally different formula than delighting your customers in the manufacturing of a product. When you introduce add ons in a product that the customer did not ask for just to delight them, this might come at a huge cost that is not covered and it is classified as Gold Plating. Instead, you can still delight the customer by delivering exactly what they want and within the expected quality.
Just to be clear, I am not saying that it is wrong to do so or saying do not do this at all as sometimes you have to especially when you want to retain a client or you are in high competition and that goes under the “Cost of Business” but what I am trying to say is sometimes delighting your client works by just delivery exactly what the client want within the cost, schedule and quality parameters.
For example, in the construction industry, how are we expected to delight the client by surpassing their needs and expectations ? We can’t upgrade flooring or add features to the building because thsi comes at a huge cost but what we can do is make sure we communicate regularly and transparently with the client, deliver on time / within budget and within the expected quality. One way I can think of where we might be able to exceed the clients expectation is if they ask for some minor extra work here and there to do it free of charge, which again is classified as the cost of doing business / client retention.
I hope I was able to clearly convey my opinion in this regards but happy to discuss further.
Aaron Porter
Community Champion
IT Director| Blade HQ
Payson, UT, United States
How is "Delight" defined in this approach? Do you want ALL customers to be delighted, or just targeted customers to be delighted? Do you segment your customers and attempt to delight them in different ways, taking the segments interests into account?
As a customer, I think of "Delighted" as being excited about a product, service, or experience. I don't expect to be delighted by every single product, service, or experience, but there are areas where I expect a high quality product, great service, and have high expectations for the experience. If my expectations aren't met, it may affect my choices in the future.
Likewise, not all customers of the product, service, or experience that you offer want to be delighted in the sense of being enthusiastically excited. Some may want to be left alone. Some may want to control your overall direction. Some may need to understand what is going on before committing to anything. The challenge is in you figuring out the interests of your customers and meeting, or exceeding their needs. Can you really delight all of your customers?
Now, replace the word "customer" with "stakeholder." Stakeholder Analysis, anyone?
Alexandre Costa
Scrum Master| Integer Consulting - Pictet technologies
Loures, Portugal
Deligth customers can be understand in different ways by the customer, could be a product that exced the expectations in terms of quality and functionalities, or could be a product whose cost was under expected and this also deligth the customer, or could be a project that was completed before the schedule time , I think this depends also from the customer profile. So @Scott what is the precise meaning of deligth customer is only about the product or depends of the customer priorities?
Scott Hayward
IS Solutions Lead| Insurance Corporation of BC
British Columbia, Canada
Thank you for the article.
I understand the concern people have raised about the additional cost in the discussion. If you really get to know your customers, you may figure out how to delight them without a lot of added cost. And merely demonstrating that you know them is often enough. It shows you're paying attention, you care about them as individuals and invites them to deepen the relationship.
Thank you for the article Scott, it was an insightful read.
Scott Ambler
Consulting Methodologist| Ambysoft Inc.
Toronto, Ontario, Canada
Alexandre, delighting customers depends on the product, how people interact with the product, and what their preferences are.
Tim Wachtel
Senior Project Manager| BRIGHT HEALTH GROUP
Austin, Tx, United States
Thought provoking, Scott. Moved me to think of how I am 'wowing' or delighting my customers. Numerous times throughout my career I've encountered situations where the customer is simply not knowledgeable enough to determine what requirements to ask for prior to the implementation of a new system. They are industry experts, yet not software experts. These become excellent opportunities to delight a customer. Offering sounds advice on better business practices, practical use of the new tool, efficiency gains, cost savings, etc can all become delighting opportunities.
Scott Ambler
Consulting Methodologist| Ambysoft Inc.
Toronto, Ontario, Canada
Tim, it's always difficult to determine what customers need, let alone delight them. This is one of the many reasons why "predictive" approaches are problematic, particularly in the dynamic problem spaces that are typically faced by software teams (and other types of teams for that matter). People don't know what they want, they don't know how to explore their needs well, the situation changes on them, and they often change their minds when they see what your team has produced. Someone with analysis and modelling skills will help to reduce some of these problems. But, due to the dynamic nature of the modern business environment we've found that an evolutionary approach to the work is better in many cases, and more predictable in practice, than "predictive" traditional strategies.
But as always, context counts. Do the best you can in the situation that you face. Sometimes that's a more traditional strategy, sometimes that's more agile/lean.
Tim Wachtel
Senior Project Manager| BRIGHT HEALTH GROUP
Austin, Tx, United States
Agreed Scott. Predictive (or prescriptive) approaches don't always work. More collaborative, learn as you go, approaches can be surprisingly successful for both teams yet, as you mentioned, it depends on the context.
Please Login/Register to leave a comment.
|
"Bad artists copy. Good artists steal."
- Pablo Picasso
|