"Why Nations Fail?" A Source of Inspiration for CSMs and Their Organizations

Customer Success Managers (CSMs) often act as intermediaries between the interests of their organizations and their clients. For instance, while a client might benefit from a specific feature, stakeholders within the organization may perceive more costs than revenue. In the long term, this tension can strain relationships between the provider and its clients, ranging from deep process inclusion between both parties to an exploitative dynamic where clients are treated as "cash cows."

Why Nations Fail by Daron Acemoglu and James A. Robinson argues that the key determinant of a nation's success or failure lies in its institutions. Nations thrive when they have inclusive institutions that foster participation, innovation, and equitable economic opportunities. Conversely, extractive institutions—those that concentrate power and wealth in the hands of a few—lead to stagnation and decline.

Business organizations are inherently designed to generate profits for their shareholders and are therefore, by nature, extractive. However, the rise of the CSM role demonstrates that inclusivity can reward these organizations in the long term. This brings us to the most significant value of CSMs: managing the tension between the naturally extractive tendencies of businesses and the need to cultivate inclusive relationships with clients.

How can CSMs develop inclusivity in business relationships? For example, they can promote a communication platform where clients can engage anonymously, ensure an efficient escalation process, and be hierarchically empowered with robust technical support. Moreover, the key point lies in the leadership's attitude towards clients: do they genuinely aim to build partnerships by investing resources, or are they simply using CSMs as a means to "skin the cat"? A straightforward way to answer this is to determine who leads the CSM organization: a Head of Sales or someone else?

Reference: Acemoglu, Daron, and James A. Robinson. Why Nations Fail: The Origins of Power, Prosperity, and Poverty. Crown Publishers, 2012.