For years, I’ve gotten the same question fairly regularly: “Where should my CX function sit?” And for years, I’ve given the same answer: “It depends.” Between my own experience leading a CX function and working with literally hundreds of CX leaders around the world, I had yet to encounter one cookie-cutter template that made sense as THE place to put a CX function. Now, roughly two years after kicking off a project to answer this question more definitively, I’m happy to say that our report, “Where Your CX Function Should Sit,” has confirmed that “It depends” is the right answer.
So that begs the question: “What does it depend on?”
The answer to that question has even more nuance than the one for the first question. We identified multiple factors and variables that influence the best possible home for the CX function. For example:
- The express train to the C-suite may derail the CX function. Reporting directly to the CEO sounds great in theory, particularly when the CEO understands that improving CX leads to better business benefits (regardless of whether the organization is in the private sector or the public sector). But if the CEO doesn’t have bandwidth for another direct report – or if the CEO isn’t on board with CX – then the increased visibility without sufficient executive support will lead to failure.
- The CX leader is a big part of the equation. Since not every CX function can (or should) be at the top of the org chart, the CX leader’s ability to build advocates and allies is a critical success factor. While this may seem like “soft” power, having friends willing to provide information, funding, or project staffing can lead to very real outcomes.
- The CX function may not stay in the same place forever. Businesses are dynamic: Strategies change, executives leave and get replaced, and org charts get shuffled. So while it may make sense for the CX function to report to {executive A} today, some change may make it more logical for it to report to {executive B} tomorrow.
We reviewed data from multiple global surveys and interviewed dozens of CX leaders and strategy consultancies in order to identify key variables that led to higher performing and more successful CX functions. Using that as a base, we developed a workshop-in-a-box to enable Forrester clients’ own voyage of discovery. This decision support tool asks the client to consider the organization’s level of customer obsession, what matters most to their organization’s customers, and the traits of leaders best positioned to align CX with that which matters the most. This is not a calculator that will spit out a single, perfect answer after checking a few boxes. Its output is a prioritized list of potential executive sponsors that can be approached to gauge their interest in providing a home for the CX function. Because things can change, this workshop-in-a-box is designed for leaders looking to establish a new or rebooted CX function as well as those aiming to validate an existing CX function’s home.
Where do you go from here? If you’re a Forrester client, start by reading the report; then, either reach out for a guidance session to discuss your specific questions or jump straight to the workshop-in-a-box. We can also do the workshop side-by-side with clients through a strategy session (VIP seat holders only), initiative workshop, or Forrester Consulting. If you’re not yet a client, please reach out to our Sales team!
This was a highly collaborative research project, involving analysts and researchers from across many of Forrester’s Research teams. I’d like to thank the following individuals for their contributions: Alex Schanne, Dipanjan Chatterjee, Su Doyle, Shar VanBoskirk, Katy Tynan, Dave Frankland, David Johnson, Colleen Fazio, Fiona Mark, Christina McAllister, Shari Srebnick, and Camille Floyd.