Over the past two decades, enterprises have invested billions in digital transformation. They have hired talented engineers and designers, built sophisticated platforms, and deployed cutting-edge technology. The result is impressive: well-designed products, fast-loading websites, and intuitive mobile applications. Yet, despite these investments, a striking paradox remains. Customers still struggle with inconsistent experiences across channels, data fails to sync between systems, and when digital journeys break, they are forced to revert to expensive phone calls and emails.
This is not a design problem. It is not a technology problem. It is a structural problem.
To understand why customer experience remains fragmented, we must recognize that most enterprises are battling on two fronts simultaneously. This fragmentation is driven by two distinct types of organizational structures that often coexist, creating what our new research report, The Journey-First Enterprise, calls the Double Bind.
Traditionally, enterprises have operated in functional silos. Marketing owns customer acquisition, Sales owns the sales process, and Product owns the digital product. Each function has its own budget, its own team, and its own success metrics. This structure made sense in an earlier era when a customer's experience was largely shaped by a single touchpoint. However, the digital age changed the nature of customer interaction, as customers now engage with the entire organization through a complex ecosystem of digital and analog touchpoints.
In response to the digital age, enterprises modernized. They adopted product-centric operating models, creating dedicated teams for specific domains like the Mobile App, Web Platform, or Support Portal. This approach was necessary and, in many ways, successful. It enabled rapid innovation. But it also created a new problem: digital silos. These product teams were bolted onto the existing functional silos, creating a matrix of complexity.
The core issue is that the customer's reality is a journey, but the organization's reality is a matrix of silos. These two realities are fundamentally misaligned. Each handoff between silos introduces friction, and each team optimizes for its own success, not for the customer's goal.
This misalignment is a measurable business problem that leads to significant value leakage. When customer journeys break, customers are forced into high-effort experiences, which research has shown is a primary driver of churn(1).
For example, our research found that in a single "I'm moving" journey for a utilities company, 63% of all support calls were generated because customers failed to find the correct document in the digital journey. This resulted in thousands of preventable, costly phone calls. The same organization found that churn rates were 43% higher among customers who struggled with this fragmented journey compared to those who completed it smoothly.
Better collaboration is not the answer. The problem is not that people do not want to work together; the problem is that the organization is not structured to enable journey-level collaboration.
The solution is a shift in the unit of management. For decades, enterprises have managed products and functions. In a journey-first operating model, the primary unit of management shifts to the journey itself. This forces the organization to wire its existing silos together rather than asking them to compete for resources.
This article is a brief introduction to the concepts detailed in our 71-page research report, The Journey-First Enterprise. The report provides a comprehensive framework for operationalizing journey management, including the four-level journey framework, the role of journey teams, and a practical guide to building this capability in your organization.
Get the full report to learn more about the journey-first operating model and how to solve the Double Bind.
(1) Dixon, M., Freeman, K., & Toman, N. (2010). Stop trying to delight your customers. Harvard Business Review, 88(7/8), 116-122.