Coming soon · Book Profile
Designing the Customer-Centric Organization
A guide to how companies can truly organize around the customer by aligning strategy, structure, processes, rewards, and people to deliver integrated solutions rather than stand-alone products.
A profile of this book is on the way.
What it’s about
In an era where products commoditize rapidly and profits collapse, the customer relationship has become the new foundation of profitability. Jay Galbraith argues that most companies that believe they are 'customer-focused' are still fundamentally product-centric, and that true customer-centricity requires literally organizing around the customer—not merely placing customers prominently on the radar screen. Using his Star Model (strategy, structure, processes, rewards, people) and a practical 'strategy locator' that scores companies on the scale/scope and integration of their solutions, Galbraith shows how to determine exactly how much customer-centricity a firm needs and how to build the requisite lateral networking capability. Through detailed case studies of Degussa, an investment bank, IBM, Nokia, Procter & Gamble, Citibank, and a semiconductor company, the book demonstrates the low-, medium-, and high-level applications of customer-centric design, culminating in the front-back hybrid organization. It is a comprehensive, evidence-grounded handbook for executives navigating the customer revolution.
The through-line
- Who it’s for
- An executive or organization designer at a product-centric company who wants to build lasting, profitable customer relationships and compete in a customer-driven marketplace.
- The problem
- Products and services commoditize rapidly, collapsing profit margins, while customers demand integrated solutions and consistent relationships across all touch points. The reader feels they are already customer-focused yet senses they are leaving money on the table and losing to more integrated competitors, and is anxious about the scale of reorganization required.
- The plan
- Understand the true difference between product-centric and customer-centric organization.
- Use the strategy locator to score your scale/scope and integration and determine your required level.
- Select the matching lateral networking capability (informal, teams, integrator, matrix, or line unit).
- Align all five Star Model dimensions—strategy, structure, processes, rewards, people—with the chosen level.
- Drive the change incrementally and lead through management processes that resolve front-back conflicts.
- The payoff
- The company forms long-term relationships with its most valuable customers and captures the value of integrated solutions. · It presents a single, consistent face to the customer across all touch points. · It builds a durable competitive advantage that competitors find hard to match.
See our guide
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Additional reading
- The Organism · Kurt Goldstein
Maslow sources the term 'self-actualization' from Goldstein and builds upon his holistic view of the organism.
- Explorations in Personality · H. A. Murray, et al.
Cited as providing an 'excellent discussion' on the basic principle of centering motivation theory on goals rather than instigation or behavior.
- Social Interest · Alfred Adler
Maslow credits Adler and his followers for stressing the importance of the 'esteem needs,' which he felt were neglected by Freudian psychoanalysts.
- Wisdom of the Body · W. B. Cannon
Provides the foundational concept of 'homeostasis,' which Maslow uses as the starting point for his discussion of physiological needs.
- Multipliers · Liz Wiseman
Explores how leaders can either amplify ('multiply') or diminish ('diminish') the intelligence and capabilities of their teams, a key concept for creating a positive, low-anxiety environment.
- The Fearless Organization · Amy Edmondson
Provides the foundational research and practical steps for creating psychological safety, which the book identifies as crucial for reducing interpersonal anxiety and encouraging people to speak up.
- Mindset · Carol Dweck
Explains the difference between a 'growth mindset' and a 'fixed mindset,' which is presented as a key tool for helping employees manage perfectionism and see failures as learning opportunities.
- Crucial Conversations · Kerry Patterson, Joseph Grenny, et al.
Recommended as a resource for employees to learn how to navigate difficult, high-stakes conversations, directly addressing the book's theme of moving from conflict avoidance to healthy debate.
- Better Allies · Karen Catlin
The author is quoted on specific, actionable steps for allyship, making her book a practical guide for implementing the principles in Chapter 7.
- Blindspot: Hidden Biases of Good People · Mahzarin R. Banaji and Anthony G. Greenwald
Explains the science of implicit bias, which is central to the book's argument that leaders need to be proactive allies because 'not being racist/sexist' isn't enough.