operating model - Innovative Service Management Consulting and Training: Tedder Consulting

Few CEOs will disagree that customer experience (CX) matters. Leading CEOs increasingly treat customer experience as a strategic differentiator, not just another service function. Research from BCG identifies CX as the highest-priority investment area, while IDC’s global CEO survey highlights customer experience as a core executive priority for growth and innovation.

Yet unlike CX, service management rarely appears as a CEO-level strategic priority.

But here’s the disconnect. Most CEOs don’t recognize good service management as one of the principal mechanisms for delivering good CX. The more effectively service management becomes at improving the customer experience, the more strategically relevant it becomes.

What’s Missing?

There are two critical factors why companies are missing the link between service management and CX.

Service management has an image problem – For decades, service management has been associated only with IT service desks, tickets, approvals, and IT process compliance. When executives hear “service management”, they think about service desk metrics, change approvals and change advisory boards (CAB), and system outages. They don’t think about customer loyalty, revenue growth, or competitive differentiation – even though those outcomes depend on how well services are managed end-to-end.

IT doesn’t help itself either, as many service management environments are limited to IT operations and infrastructure. Measures and reports from IT only reflect operational outputs, not business outcomes. As a result, service management is viewed as operational overhead rather than a strategic capability.

CX is diluted – In many organizations, CX is owned by different parts of the business. Most organizations place CX under Marketing, Sales, Customer Success, or other departments. Each of these departments focuses on and optimizes different metrics. Marketing measures brand perception. Sales measures revenue growth. Customer Success measures customer retention.

Meanwhile, service management lives in IT, operations, or a shared services function. IT measures SLA compliance. Operations measures cost. Shared Services measure cost per employee.

None of these groups discuss business or customer outcomes. And no one is accountable for connecting these metrics to a coherent view of CX.

Why This Disconnect Hurts CX

Why is this a problem? The biggest issue is that while customers experience services end-to-end, organizations providing services do not. Customers don’t experience departments; customers experience journeys. For example, ordering a product involves several departments within the organization, including Marketing, Sales, Finance, Inventory, Shipping, Customer Support, and IT. To the customer, it’s one experience. Inside the organization, it is eight different organizations, eight leaders, eight budgets, and (likely) eight different sets of priorities. Compounding the situation, service management often stops at the boundaries of the IT department instead of orchestrating the end-to-end service and experience.

Secondly, the relationship between service management and CX is indirect. Unlike a marketing campaign, which is expected to directly drive business outcomes like increased sales, the connection between service management and business results is less obvious. For example, a well-defined and executed problem management practice should result in fewer incidents. Fewer incidents mean more reliable services. More reliable services result in lower customer effort, higher satisfaction, and greater customer retention – factors that are considered as part of CX.

While each link is logical, the effects accumulate over time and across organizational boundaries, so business leaders rarely trace the outcome back to improvements in service management.

The Shift: Service Management As A Strategic CX Enabler

The core issue isn’t that service management exists – it’s how it is defined. Many organizations still treat service management as an IT capability when it is really an organizational capability for consistently delivering value. When service management is reduced to “running the service desk,” its connection to CX looks narrow and tactical. When service management is understood as “the discipline that coordinates people, processes, technology, suppliers, and information to reliably deliver outcomes customers value,” CX becomes one of its most important measures of success.

That suggests the challenge isn’t simply to improve service management—it is to reframe it.

Organizations need to stop viewing it as a collection of IT operational processes and start viewing it as the operating model that enables consistent customer value across the whole enterprise. CX then becomes not a separate initiative, but evidence that the service management system is functioning effectively.

This shift also has implications for how service management professionals communicate. Rather than leading with process maturity or operational metrics, they should begin with customer outcomes and business value, showing how practices like incident management, problem management, knowledge management, and continual improvement reduce customer effort, increase reliability, and strengthen trust. When framed this way, service management becomes a strategic enabler of CX rather than a back-office function that supports it.

Make The Link Real: Your Next Steps

Bridging the gap between CX and service management doesn’t start with new tools; it starts with how you design, measure, and talk about services. The following actions give service management leaders practical ways to connect their work directly to customer journeys, outcomes, and executive priorities, so service management is seen as a driver of CX – not just operational overhead.

Use journey mapping to drive defining the operating model – Journey mapping provides the “outside in” perspective that many service management implementations lack. By using journey mapping, the IT organization can understand the customer experience. Colleagues working in other areas can understand the critical role of technology in delivering that customer experience and why an operating model must be viewed from an end-to-end perspective.
Measure and report customer outcomes and business value – Many IT organizations only measure and report operational metrics, which have no meaning or relevance to anyone working outside of the IT organization. For example, report on customer effort scores, renewal rates, or time-to-value alongside traditional service performance measures.
Drop the “geek speak” with non-IT colleagues – Translate incidents, requests, CMDBs, and changes into the language of customer retention, revenue, and risk so that executives can see the strategic impact of service management.
Define IT services – Defining the services provided by IT in terms of business value and business results is a critical first step in shifting the perception of service management from processes and tickets to business needs and strategy.

If CX Matters, Service Management Must Be Strategic

When organizations recognize service management as a strategic operating model for delivering customer value – not just an IT function – the gap between CX rhetoric and CX reality begins to close. The work is not about more tickets or more tools; it is about aligning journeys, outcomes, and governance so that customers experience services the way leaders say they should.

There is a tendency within many organizations to take a “technology first” approach to solve every business challenge. In more cases than not, this approach simply creates more challenges and friction within organizations; it is a very short-sighted view.

Organizations do need technology – without it, organizations cannot compete in the digital economy.

But there is a lot of FOMO in today’s business technology environment, valuing speed over strategy.

The often-ignored aspects of rapid technology implementation

When an organization prioritizes speed of implementing technology, it usually results in some significant issues being ignored. Issues such as:

Changes to the organizational operating model. Technology changes the enterprise operating model by reshaping how the whole business creates, delivers, and captures value across structure, processes, people, and governance—not just how IT runs.
Impact of change on people. Organizations often underestimate, if not ignore, the impact of technology implementation on the people the technology was intended to help.
The weight of technical debt. Unless governance keeps pace with technology introduction, rapid introductions of technology can introduce new technical debt in system architectures, data, and model lifecycle. At the same time, many organizations ignore the impact of existing technical debt from legacy systems, customizations, and integrations.

Experience enablement ensures successful technology implementations

Think about it – in the digital economy, all companies have some level of technology enablement. But this ever-increasing rush to implement technology out of the fear of being left behind will have negative consequences – unless the fundamental challenges noted above are addressed.

But I believe that success with technology implementation depends on a single critical factor – the people that use that technology. This highlights the need for a good human experience, both between organizations and their external stakeholders as well as the stakeholders within those organizations.

I am convinced that the experience – the total end‑to‑end journey and feelings of a person interacting with a company or product – is the differentiating factor for organizations in the digital economy. But if technology implementations do not enable that differentiating experience, those organizations will not realize their full potential in the digital economy.

Can an organization achieve its strategy, the demand for speed and agility in the marketspace, and address the need for a good experience for those that interact with technology? The answer is yes – but organizations first must slow down to go fast.

Four Steps to Slow Down and Accelerate Success

How can an organization meet the demands for speed and agility in the market space, yet ensure that technology implementations enable the right experience? It can be done – if organizations first slow down to go fast. Here are the four steps organizations must take to slow down to accelerate success.

Digital business strategy – A well-defined digital business strategy is a critical first step for organizations wanting to leverage technology to deliver business outcomes and value. A digital business strategy ensures that the appropriate technologies are identified for achieving those business results.
Mapping value streams – A value stream map shows how value flows through an organization – and the systems and technology that enables the flow of value. When organizations understand their value streams, they can identify and address any areas of friction resulting from the use of technology.
Define proto personas – Proto personas help organizations understand the goals, needs, and behaviors of the consumers that will be using their products and services.
Journey mapping – Whether it’s a customer or an employee, it’s critical to understand the experience of people’s interactions with an organization. Use those proto personas to produce journey maps. Journey maps depict the touchpoints and experiences – and the impact of technology (good or bad) – humans have while interacting with an organization.

Technology without delivering the right experience is a recipe for failure

As I’ve written before, if technology implementations do not enable that differentiating experience, those organizations will be left behind in the digital economy. But admittedly, organizations taking a “tools first” approach to business challenges is nothing new.

But, delivering that right experience should not be left to chance. A “tools first” approach may address one area of concern but typically will miss other areas of concerns. Different consumers have different expectations of the experience they have with organizations. Implementation of technology without a well thought and integrated business strategy results in wasted time, money, and resources. Such an approach usually results in needless complexity. The different value streams within an organization have different requirements for velocity. Technology solutions must accommodate those requirements.

These are leadership issues, not technology issues. And it takes courage to stand in the face of well-intentioned but misguided demands for rapid technology implementations.

The best way to ensure success in the digital future is to plan for that future. Defining the digital business strategy, mapping value streams, understanding who will be interacting with your organization using proto personas, and journey mapping provides a clear path to success in the digital age.

Tag Archives: operating model

Why Are Companies Missing the Critical Link Between Service Management and Customer Experience?