August 2025 | VOL. 37

"The measure of intelligence is the ability to change."

-Albert Einstein

From Insight to Impact:

Why Governance Drives Transformation

Welcome to the August Verde Edition newsletter. Each month, we aim to bring you practical, forward-thinking insights to help you navigate the ever-evolving world of customer experience. This month, we’re spotlighting the power of governance and change management in driving lasting CX impact.


In previous newsletters, we’ve explored the challenge of bridging the “insight-to-action gap” and the challenges of omni-channel success. Both topics share a common thread; they are dependent on effective governance and change management practices. The reality is that insights, on their own, don’t create impact. Structure does. Consider a leading retailer that spent over a decade tracking and rewarding leadership based on NPS scores only to find that there was little to no relationship between improved scores and financial return. Action based on this legacy measurement approach was limited due to a lack of faith that investing in the customer experience would yield improved financial outcomes.


Then things changed. The company adopted a new methodology (Revenue@Risk®) that specifically identifies and financially prioritizes the experiences representing the greatest economic risk and opportunity. This change in approach led to executives establishing a cross-functional governance model, bringing together operations, marketing, IT, and customer service leaders, and action was taken. Investments in staffing models and technology followed, reducing experience friction and restoring customer trust and purchase frequency. And while the insight method changed, it was an improved governance model that resulted in business transformation.


In this Verde Edition, we take a closer look at governance and why every component of an effective governance model is critical to helping businesses transform. We also share 5 facts on the benefits of successful change management practices and provide a deep-dive on eliminating strategic blind spots in Paula Courtney's interview on Industrial Talk.


As always, we thank you for your support and welcome your input.


Cheers!

The Verde Group

Industrial Talk Podcast:

Eliminating Strategic Blind Spots

What Really Drives Customer Loyalty—And What Doesn’t?

On the Industrial Talk podcast, Paula Courtney, CEO of The Verde Group, joins host Scott MacKenzie to discuss how businesses can uncover hidden friction points that negatively impact customer experience—and ultimately, revenue. Their conversation explores how eliminating strategic blind spots can lead to more informed decision-making and measurable business growth.

From Friction to Focus:

Why CX Governance Matters

Many organizations are investing heavily in customer experience (CX), yet struggle to see consistent, measurable results. The problem isn’t a lack of ambition—it’s often a lack of governance. Without the right structure, CX efforts can become fragmented, with different teams chasing different goals and customers left with inconsistent experiences.

In our latest blog, we explore how CX governance—powered by friction analysis—helps organizations cut through the noise, prioritize what matters most, and create the alignment needed to turn customer insights into real business outcomes. Strong governance doesn’t just provide structure—it gives companies the agility to adapt, innovate, and stay ahead.

August 2025 FAST FIVE

The Real Returns of Governance and Change Excellence

Governance provides structure and accountability, while effective change management ensures execution and adoption. The combination drives stronger financial performance, faster execution, and greater organizational resilience.

  1. Governance Strengthens Profitability and Resilience: Organizations with robust governance structures deliver up to twice the returns of peers with weaker governance and generate 3–4x more operating cash flow. Continuous enhancement of governance practices is linked to up to 44% improvement in operating cash flow over time (Grant Thornton / CCG).
  2. Governance Drives Short-Term and Long-Term Performance: Comparative research shows that internal corporate governance mechanisms have a significantly positive short-term effect on firm performance, across both emerging and developed markets. This suggests governance not only protects long-term sustainability but also accelerates near-term results (Springer Nature).
  3. Effective Change Management Increases Success Rates: Projects with excellent change management are about 7 times more likely to achieve their stated objectives and 1.5 times more likely to stay on or under budget than projects with poor practices. This demonstrates that structured change management directly translates to measurable ROI (Prosci).
  4. Change Leadership Fuels Revenue Growth: “Change accelerator” organizations—those rated highly effective at managing change—report 264% higher revenue growth compared to their less effective counterparts. This indicates that adaptability and structured transformation are not just operational strengths but strategic growth drivers (Flair HR).
  5. Employee Engagement and Retention Improve Under Strong Governance and Change Practices: McKinsey research shows that companies that combine strong governance with disciplined change management report 30% higher employee engagement and significantly better talent retention during transformations. Employees who feel informed, included, and supported are more likely to stay and more likely to contribute to change success (McKinsey).

Ask Us Anything

August 2025's Question:


Question: Dear Verde Group, I understand the importance of investing in customer experience initiatives, but my biggest challenge is getting our leadership team consistently onboard. Too often, enthusiasm is high at the start of a project, but oversight and accountability fade over time. Without senior leaders championing these efforts, CX initiatives lose momentum and results stall. How can I encourage stronger, more consistent executive engagement and governance in my organization?


Answer: Great question! The good news... you’re not alone! Many organizations face the exact challenge of sustaining leadership engagement. At The Verde Group, we’ve seen that CX initiatives struggle most when oversight is treated as an ad hoc activity rather than as part of a defined governance structure. Senior leaders are busy, and unless accountability is built into the operating model, even well-intentioned initiatives can drift.


The first step is to frame CX not just as a customer imperative but as a financial and strategic one. Speaking the language (economic business terms) of the C-Suite is imperative for gaining and sustaining traction internally. And a well-designed CX scorecard, linked to business outcomes, provides leaders with a clear line of sight between their sponsorship and measurable performance improvements.


Equally important is creating formal organizational structures, executive sponsors, steering committees, or cross-functional councils that meet regularly with defined accountabilities and decision rights. This moves leadership oversight from being optional to being institutionalized. The result is shared ownership, consistent prioritization, and visible accountability.


In short, the key is to transform leadership involvement from “checking in” to “leading from the front.” By connecting insights to revenue impact, embedding governance into the organizational rhythm, and using scorecards to maintain focus, you’ll not only strengthen executive engagement but also ensure that CX initiatives deliver lasting business value.


Sincerely,

The Verde Group

READY TO TALK? Book an intro session with Dennis Armbruster, Verde Group Executive VP, to discover how you can enhance the impact of your CX program. We want to help you find methods to anchor your customer insights firmly within your business framework, driving stronger ROI and increasing executive buy-in. We want to learn more about your current challenges.

Send us your questions and stay tuned for the September 2025 newsletter to see your questions answered by one of our CX specialists.


QUESTIONS?

Visit Our CX Strategy Toolbox

From quick-hit blogs and insight-rich newsletters to in-depth white papers and proprietary research (including our Revenue@Risk® framework), there’s something for every CX leader in our growing resource library.


We’re passionate about helping organizations rethink customer experience through data, strategy, and decades of real-world insight. Dive in, explore, and see what ideas rise to the surface when you challenge the status quo.

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