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Thinking Ahead of the Agency Curve

Thinking Ahead of the Agency Curve

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Many years ago I was setting up a digital team within an agency and a great brief came across my desk. It was a make or break opportunity. It came from our largest client and it took quite a deal of negotiation to even be included – and all eyes turned towards what was then, a fledgling capability.

The brief asked clearly and simply – “should we build our own site or should we just advertise on other sites?”

My response at the time continues to be my mantra for digital (or even business) strategy:

Share the message, own the destination

What I was arguing for was the creation of a platform where the brand and its customers could co-create value. It did take some time to flesh this out in practice, but it proved to be a winning strategy for that client – and for many which followed.

These days, as technology not only invades – but becomes an essential part of our business and brand strategy – this guiding principle “share the message, own the destination” resonates even more strongly. And it does so, because our work as marketers and as business leaders, happens well beyond the bounds of our enterprises. We are always on. Always connected. And always running.

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Running towards brand infrastructure

Because we are always running – always seeking new value (or should be) – we also need to be thinking ahead for our own businesses and clients. We need to not only out-run competitors but to out-think them. And to do so, we need to look for accelerators. Which is why I am excited about this presentation from Zeus Jones’ Adrian Ho. They have been consistently ahead of the agency curve for many years – taking an innovative approach to solving clients problems with new approaches to strategy AND execution.

Pay particular attention to slides 19-28 where Adrian explains the three different kinds of platforms that connect brand infrastructure:

  • Growth platforms – operations as marketing and marketing as operations
  • Loyalty platforms – for managing relationships with current users
  • Mass platforms – earned media at scale

Now, platforms are challenging – but they can deliver massive upside. They also provide a way to truly differentiate from your competitors while also creating new market (and marketing) opportunities.

So the question we need to ask ourselves is – “how am I out-thinking and out-executing” my competitors, my industry, my disruptors?

 

Marketing Transformation Chief Marketing Officer

Gainsight Profile: Customer Success Management for a Post-Sale, On-Demand, Attention Economy

Gainsight Profile: Customer Success Management for a Post-Sale, On-Demand, Attention Economy

Buyer’s Guide for Customer Success Management: Gainsight I’m in the process of writing profiles of vendors in the customer success management industry. These vendor profiles are a tool for buyers to evaluate their customer success management options before selecting a vendor. In addition to an overview of the vendor, these documents identify key differentiators, product offerings, and provide a number of features that should help a client create short list when determining which vendor to put on out an RFI or RFP.  So far, I have also covered ServiceSource® and Totango

This post is about Gainsight. If you’d like a peek at the table of contents for this report and an excerpt, along with the full report, you can find it here.

What Does Gainsight Do? Gainsight is one of the leading vendors of Customer Success Management (CSM) software. Founded in St. Louis, Missouri in 2009, Gainsight’s headquarters are now in Redwood City, California. Nick Mehta is the chief executive officer (CEO). As a customer success technology company, Gainsight helps companies manage their customer relationships while driving retention, upsell opportunities and organizational efficiency. The company has nearly $6 million in annual revenue and has raised $54 million in venture funding.

How Does Gainsight Help Companies? Gainsight helps businesses grow faster by reducing customer churn, increasing upsell opportunities, and driving customer advocacy. Gainsight’s cloud-based product helps its clients track customers effectively throughout the customer lifecycle, monitors customer health consistently and makes companies truly customer-centric. Gainsight does this by providing a 360-degree view of customers to people in customer success, sales, marketing, product management and executive offices.

Today, cloud businesses have unprecedented visibility and data on customers that can be harnessed with a customer success management platform. This opens up new opportunities and smarter ways to connect and engage with customers to maximize revenue and to determine what customers need and want so they remain loyal and provide high customer lifetime values.

Why has Customer Success Management Become So Important?

Before the opt-in economy, many businesses were focused on the initial sale. A great deal of money was spent advertising and marketing to potential prospects, enticing them to convert from a lead to a sale. However, little attention was paid to the after-sale experience and financial longevity of the client, even though poor customer experiences and churn still exist today after decades of research showing that after-sales service directly affects the financial stability of a company. In fact, it never made sense for companies to spend millions, or in some cases, billions of dollars in advertising, marketing and sales to then drive the customer to a competitor when the after-sales service experience is horrible. Yet poor after-sales service occurs every single day in many, many companies.

How Does Customer Success Management Affect the Customer Experience? Customer Success Management (CSM) is based on the ability to deliver a consistent customer experience process – before, during, and in particular, after the sale – which results in maximized customer lifetime value and enhanced revenue that leads to increased margins and profits.

A shift to CSM happened because we live in a continuous, opt-in economy, where the value of customers is determined by how long they stay customers and if they continue to increase their purchase amounts over time. Because of our opt-in economy, companies must prepare themselves to deliver great, continuous and consistent customer experiences. Here’s five things to consider when looking at master Customer Success Management:

5 Areas for Customer Success Management

This seismic shift to a post-sale, on demand, attention economy transforms the value exchange among customers, partners, suppliers, and brands. And as organizations move to digital business models, CSM plays a critical role in enabling brands and organizations to keep and deliver their brand promise as well as enhance their bottom line.

My POV: How To Know When Vendor To Choose for Customer Success Management? When choosing the best option for CSM software for your organization, the choice will depend on the business goals of CSM initiatives, the degree to which CSM has been integrated into your culture and how well employees have adopted this mindset. It may be that some organizations will be further along the adoption cycle, while others will need internal champions to encourage and enforce the use of customer success software, processes and best practices.

Are you considering customer success management? It’s time to make sure the customer is happy with the product they buy, after the sales process.

@DrNatalie, VP and Principal Analyst, Constellation Research

Next-Generation Customer Experience Chief Customer Officer

5 Social Business Trends Influencing the Future of Work

5 Social Business Trends Influencing the Future of Work

A confluence of trends is influencing the way we work today. Just take a look around you: advances in cloud tech, analytics, and UX translate to advances in the social workplace by improving collaboration, time and task management, and productivity tools. Welcome to the Future of Work.

In the short video below, Alan Lepofsky identifies five major technology trends influencing the social workplace. 

5 Major Trends Influencing the Future of Work - social

  1. Moving to the cloud
  2. The intersection of productivity and analytics
  3. Digital assistants
  4. Micro apps, 'lighter-weight' apps
  5. Aggregation of content and people from multiple sources onto digital canvases

Download the slides

?5 Major Trends Influencing the Future of Work - social

Five Future of Work Trends - Social Business from Constellation Research on Vimeo.

Download the slides

 

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Totango: Customer Success Management for a Post-Sale, On-Demand, Attention Economy (Part 1)

Totango: Customer Success Management for a Post-Sale, On-Demand, Attention Economy (Part 1)

Buyer’s Guide for Customer Success Management: Totango I’m in the process of writing profiles of vendors in the customer success management industry. These vendor profiles are a tool for buyers to evaluate their customer success management options before selecting a vendor. In addition to an overview of the vendor, these documents identify key differentiators, product offerings, and provide a number of features that should help a client create short list when determining which vendor to put on out an RFI or RFP.  The first vendor I profiled is ServiceSource®.

totango logoThis post is about Totango. If you’d like a peek at the table of contents for this report and an excerpt, along with the full report, you can find it here.

Executive Overview: Totango Customer Success Management
Totango, a vendor of cloud software for Customer Success Management (CSM), was founded in Israel and later moved its headquarters to Silicon Valley. Today, it maintains two offices, one in San Mateo, California and one in Tel Aviv, Israel. Guy Nirpaz leads the company as CEO and co-founder. Prior to starting Totango, he worked in the area of real-time Big Data as executive vice president of engineering at GigaSpaces Technologies, a middleware provider. He also worked as chief architect at Mercury Interactive, part of the Hewlett Packard software division.

What Does Totango Do? With subscription and recurring revenue models on the rise in software, Totango helps clients improve product adoption and advocacy, reduce customer churn, and maximize customer lifetime revenue. Today’s cloud businesses have unprecedented data and visibility into user behavior and the business results achieved by their customers. Totango monitors this data to eliminate the guesswork when it comes to understanding customer health and engagement.

What Are the Benefits of Using Totango? Using Totango, companies can pinpoint at-risk accounts that need attention; spot opportunities to increase user engagement and boost revenue; and then formalize and implement customer success best practices to scale up customer success operations across a growing customer base.

What Companies Currently Use Totango? Totango is used by some of the fastest-growing technology companies, including public companies like Zendesk and Autodesk; mid-stage companies like BigCommerce and Jobvite; and innovative startups like Optimizely and Mixpanel.

Category Overview of Customer Success Management

Before the opt-in economy, many businesses focused on the initial sale. Organizations spent a significant amount of money on advertising and marketing to potential prospects. The goal – enticing them to convert from a lead to a sale. Despite decades of research showing that after-sales service directly affects the financial stability of a company, organizations paid little attention to the after-sale experience and financial longevity of the client. Consequently, organizations never should have spent millions, or in some cases, billions of dollars in advertising, marketing and sales to then drive the customer to a competitor when the after-sales service experience was horrible. Yet, poor after-sales service occurs every single day in many, many companies.

What is Customer Success Management? Customer Success Management (CSM) is based on the ability to deliver a consistent customer experience process – before, during, and in particular, after the sale – which results in maximized customer lifetime value and enhanced revenue that leads to increased margins and profits. A shift to CSM happened because we live in a continuous, opt-in economy, where the value of customers is determined by how long they stay customers and if they continue to increase their purchase amounts over time. Because of our opt-in economy, companies must prepare themselves to deliver great, continuous and consistent customer experiences.

Why Has Customer Success Management Become Such a Big Deal? This seismic shift to a post-sale, on demand, attention economy transforms the value exchange among customers, partners, suppliers, and brands. And as organizations move to digital business models, CSM plays a critical role in enabling brands and organizations to keep and deliver their brand promise as well as enhance their bottom line.

My POV: How to Choose a Customer Success Management Vendor: When choosing the best option for CSM software for your organization, the choice will depend on the business goals of CSM initiatives, the degree to which CSM has been integrated into your culture and how well employees have adopted this mindset. It may be that some organizations will be further along the adoption cycle, while others will need internal champions to encourage and enforce the use of customer success software, processes and best practices. It’s never been more important make sure that customers are happy not only when they buy the software, but also after they have bought it. Otherwise, in this opt-in economy, clients may opt out of using a vendor, to look for a vendor that can deliver on their promise of great customer experience, increased revenue and decreased costs.

@DrNatalie, VP and Analyst Principal Analyst

Next-Generation Customer Experience Chief Customer Officer

Mintigo: Advanced Predictive Analytics for Marketers

Mintigo: Advanced Predictive Analytics for Marketers

Being able to make better use of your MarketinMintigog leads is the difference between closing deals and not. One of the most important aspects of  marketing is to be able to have better discernment around the leads. And one way to understand which leads are really important and which would lead to more realistic conversion requires more than traditional lead scoring. And that’s where Mintigo comes in.

Not Your Grandfather’s Predictive Analytics: Using the power of predictive analytics, Mintigo discovers your ideal customer profile, targets the prospects with the highest propensity to buy, and engages them with the right message through the right channels. Mintigo predictively scores and segments all potential prospects, even the ones a company hasn’t engaged yet. There’s no faster way to prioritize a company’s leads, tackle new markets, and cross-sell new products.

What’s the Difference Between Regular Lead Scoring and Mintigo? Mintigo provides predictive analytics for both Marketo and Eloqua. So that leads one to question, “What is different between traditional lead scoring and the lead scoring that Montigo provides?” The difference? Mintigo improves lead scoring and enriching lead records with insightful intelligence derived from the public web, social networks, and third-party databases.

Data includes thousands of attributes such as technologies in use, social influences, department sizes, and firmographic data. Most traditional lead scoring is just based on firmographic data. But with Mintigo, each lead is scored using predictive lead scoring to identify prospects with the highest propensity to buy. Companies need to know what is the profile of their ideal buyer? Who are the prospects most likely to buy? Which messages will get their attention?

Knowing More Accurately Who Will Buy: Mintigo Predictive Lead Scores and the attributes that make up your CustomerDNA flow seamlessly into your marketing automation and CRM software such as Eloqua, Marketo and Salesforce.com. As a result, a company’s sales team will always know which leads are most likely to buy and why.

Mintigo’s Predictive Marketing Platform analyzes a company’s marketing automation and CRM data to discover a distinct customer profile for each product. Mintigo then assigns a predictive lead score to each prospect in that business’s marketing funnel for each product. As a result, the company knows which products fit which customers and so they can provide the most relevant offers and messages in their campaigns. Here’s what Mintigo’s customers are saying.

What type of lead scoring does your company use? Traditional? Or one that brings more than firmographic data to the sales team? For more resources from Mintigo, check these out.

@DrNatalie, VP and Principal Analyst, Constellation Research

Marketing Transformation Next-Generation Customer Experience Chief Customer Officer Chief Marketing Officer

The Cloud. Next Gen Apps. The Future.

The Cloud. Next Gen Apps. The Future.

If you’re like most executives who play some type of role in technology selection as an influencer or as a buyer, what keeps you awake at night, aside from the current free fall of stock prices, is trying to make the right choices in regards to technology that are going to help you build momentum quarter over quarter, but also ensure that your business is well positioned for the long haul. According to the New York Times, “keep calm and carry on” seems to be the prevailing sentiment in their latest article covering stock market advice, but it’s still early, so time will tell. 

Disruptive technologies provide just as much opportunity as it provides headaches to those of you who don’t know which are the right ones to leverage for your business. The mindset for a newly minted startup varies so much from an established business that needs to make complex decisions in terms of whether or not to keep certain legacy systems in place, acquire hybrid solutions, or brave the idea of starting fresh, by implementing entirely new systems and still focus on keeping the lights running at night. 

"What’s important to know is how businesses are changing, how they’re affected by technology, and where they will be in 2020” states Holger Mueller, our resident expert on the cloud and next generation applications. If you want to know what you can take advantage of in the near future, find out more about what Holger believes and see if you agree from this webinar replay - The Cloud: 2015 & Beyond. 
 

*Special note: Access to this webinar is reserved for Constellation Executive Network and Research Unlimited members. If you're not already a member, just click on one of those links for the next step.

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CEN Member Chat: The State of Cloud in 2015 & Beyond

CEN Member Chat: The State of Cloud in 2015 & Beyond

Holger Mueller, Constellation Research VP & Principal Analyst, prepares leaders on how to to take full advantage of the cloud and next generation applications. 

Tech Optimization Chief Executive Officer Chief Information Officer On <iframe src="https://player.vimeo.com/video/137199177" width="500" height="380" frameborder="0" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>
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Mapping Organizational Design: Part One

Mapping Organizational Design: Part One

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When I first starting teaching the MBA course, “Organizational Analysis and Design,” I went in search of a tool to offer the students as they learn to describe organizations and think about organizational redesign. I’ve generally had the students read some version of Jay Galbraith’s work (Galbraith Star Model) and pieces of Nadler and Tushman’s “Mapping organizational Terrain.” One of the first things we do is look at the two models and think about how they fit in the students’ organizations. Quickly it’s clear that these models were written when technology was considered more like plumbing and less like a strategic opportunity for organizational design (or possible ways to augment or fully-substitute for human work).

Adding Technology to Traditional Organizational Design Frameworks

Organization design’s goal is to support the strategy of the organization. Give me a strategy and we can work out a design. Galbraith and Nadler and Tushman are foundations, but we need something that matches modern organizations, while is still basic enough to have top of mind for evaluating or creating thoughtful proposals, making sure you don’t let a particular dimension get dropped from discussion, or getting your thoughts together for an unexpected job interview.

My students and I end up drawing this image almost every class session. For shorter courses, like my sessions in the 21st Century Management program, I give them a stack of templates. At some point I break out one of my Skwish toys to demonstrate interconnections across different organizational design dimensions.

I’m now going to turn this post over to past student, Shandon Fernandes, for the real story:

From a Student’s Perspective

On the first day of class, Terri divided us into groups and sent us to nearby restaurants. The goal was to come back with an assessment of the organization -- without doing any interviews. 
Our six member team was assigned to a nearby Starbucks. When we arrived at the store, we started to think about organization from the point of view of the business owners and made customer service and satisfaction a primary focus. 
 
This assumption, that the most important thing for a business entity is the end result of what your customers get, led us to make shallow and casual observations, like how the two baristas rotated between counter and coffee making. We assumed this was to the benefit of the customers. At no point did we stop to think about the corporation’s policies and how other organizational dimensions could be interacting with each other. In retrospect, our observations were missing vital elements and the connected nature of the various dimensions of the star framework Terri would help us develop when we got back to class.

Star Framework Dimensions

  • People – Psych 101 material. How do people behave (whether or not they are in an organizational setting)? People generally like rewards and don’t like punishments. Different generations may have different preferences.
  • Process – This dimension allows for an evaluation of organizational policies. Hiring, performance, pay, training, any policy or procedure, big or small.
  • Technology – Technology forms a crucial and inevitable part of the STAR Model. Technology has not only transformed the nature of and specializations of jobs but offers organizations an effective tool to evaluate and transform their operations when used appropriately. Ranges from the kind of office furniture you have to electronic communication to robots and artificial intelligence.
  • Structure – Structure lays out the location of decision-making and authority. This is where team-based strategies and org charts are considered.
  • Context -- Context is the linking point to many other MBA courses. Is this an international business or a local one? Is the market trending up or down? 
 
Soon after that field trip experience we had our first Harvard case analysis. Many found it difficult to put the complexities of the case in perspective. Terri then reminded use to use the star framework as a tool to sort things out. This approach proved useful as we were better able to understand the underlying design of the organization based on the five star dimensions. 

Don’t Change Everything All At Once

Terri adds: You also want to avoid trying to change everything all at once, either when playing with a Skwish or implementing all encompassing enterprise software -- I use FoxMeyer’s failure an example.

End of Part One

In Part Two, Shandon applies the star framework to a recent customer experience. Terri and Shandon work out some possible improvements and demonstrate using the template.


Shandon Fernandes is a currently pursuing an MBA at Santa Clara University and is specializing in Leading Innovative Organizations. A Political Science graduate, Shandon has always had an interest in the structure and functioning of government organizations. She has previously served as a Research Officer for a Diplomatic Mission in Mumbai.

My Mistakes: Awareness of Your Surroundings

My Mistakes: Awareness of Your Surroundings

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Learn-from-Mistakes-500x290Sometimes the greatest lessons can come from our mistakes. The only problem with this is that most people aren’t comfortable talking about their mistakes, which minimizes the opportunity for others to learn. With this in mind, I am going to occasionally write a column called “My Mistakes” where I will share an experience from my career where I failed in the hope that others can avoid similar mistakes. If anyone else is interested in sharing a mistake in a future column, please let me know.

For today’s mistake, I am going to revisit a situation where there was a sales contest going on among one of our ticket sales teams, and I was running some revenue reports to check on the department’s progress. I overheard a sales manager tell their team members that they had hit the group’s revenue goal and as such, everyone was going to receive a bonus on their next check. However, in the process of running my reports, I knew that this wasn’t true.

I was head-down in the middle of my work, when I decided to shout across the room, “Actually, that’s not true” in a matter-of-fact tone. I wasn’t trying to be critical or negative, I was merely trying to correct a mistake, which as a numbers-oriented person is my natural instinct. When the sales manager walked over to my desk to ask about my comment, I calmly went into the reports, showed them the sales numbers, and explained why they the numbers they had pulled from the ticketing system weren’t correct (essentially there was a price code included that should not have been). It was a fairly short conversation, and I didn’t think much of it. The manager walked away and I kept working on my reports.

However, a couple of hours later as I was driving home, I got a pretty upset call from that manager. What I had failed to realize in my effort to provide accurate information was that I had completely undercut the manager’s chain of communication right in front of their staff. I publicly called them out for a mistake, which could impact their credibility with staff in the future, especially around a topic as important as achieving a team sales goal and performance bonuses.

We spent the next half hour talking about the situation and identified that the issue wasn’t about correcting the mistake, but about not being aware of how correcting it in front of the staff could be received. Some of you may think this seems like nothing to get upset about, but the dynamic between a manager and their staff is very important. We decided that if this situation arises in the future that a better option would be to step into a side room, review the numbers, and them decide the proper communication with staff.

Additionally, I think this is an important lesson for those of you that are very data and numbers oriented. Sometimes the biggest challenge you will face isn’t in “running the numbers” but in how you present your analysis with other staff members. Remember that being right isn’t always enough.

Don Tapscott Speaking at Constellation's Connected Enterprise

Don Tapscott Speaking at Constellation's Connected Enterprise

Don Tapscott Don Tapscott is a leading authority on the impact of technology on society is speaking at Connected Enterprise! Tapscott was an early proponent of the digitally-enabled collaborative workplace (1978), and among the first to write about the digital revolution. Tapscott's presentation at TEDglobal, "Four principles for the open world", identifies four principles that can transform our increasingly 'open' world into a better place.     

Peer into our digital future as Don Tapscott reveals what lies ahead for our digital society. 

About Don Tapscott

Don is one of the world’s leading authorities on innovation, media, and the economic and social impact of technology and advises business and government leaders around the world. In 2013,Thinkers50 ranked Don fourth among the world’s most influential management thinkers and was awarded the Global Solutions Award for launching and leading the Global Solution Networks program based at the Rotman School of Management, University of Toronto.

He has authored or co-authored 15 widely read books including the 1992 best seller Paradigm Shift. His 1995 hit The Digital Economy changed thinking around the world about the transformational nature of the Internet and two years later he defined the Net Generation and the “digital divide” in Growing Up Digital. His 2000 work, Digital Capital, introduced seminal ideas like “the business web” and was described by BusinessWeek as “pure enlightenment.” Wikinomics: How Mass Collaboration Changes Everything was the best selling management book in 2007 and translated into over 25 languages.

In his forward to Don’s newest book, The Digital Economy: 20th Anniversary Edition, Eric Schmidt (Executive Chairman, Google) wrote: “Don remains one of the most perceptive thinkers about the way technology is transforming business and society. Several of his predictions—from networked intelligence to the demands on leaders to embrace technology — have taken permanent hold.” Over 30 years he has introduced many ground-breaking concepts that are part of contemporary understanding. His work continues as CEO of The Tapscott Group, a member of World Economic Forum, Chancellor of Trent University, Adjunct Professor of Management for the Rotman School of Management at the University of Toronto and Martin Prosperity Institute Fellow.

Session Information

November 4, 2015 1:30 - 2:30 p.m.

Looking Back at Twenty Years of the Digital Economy to Predict the Future of Digital
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