Category Archives: Strategy

Customer experience without competition

Water skiers on the OzarksThe only sustainable competitive advantage

If our business has to compete in the long-term, there are (with apologies to Michael Porter and his chums in the business theory business) really only three ways to do so – and just one that endures.

There’s no point in competing solely on price because that kills margins and can’t be sustained.  And there’s no point in competing just on innovation because sooner or later everyone catches up and no-one, no matter how good, can churn out new technologies on a treadmill forever.

Which is why so many companies now choose to compete on customer experience.  It’s one of the few ways an organisation can offer genuinely sustainable differentiation and protect margins; it makes for more enduring, loyal customers; and it is very effective in building a strong, sustainable brand.

The purpose of customer experience

But most government departments don’t have competitors.  Their customers typically have to use them, whether they want to or not. So does this mean that public sector organisations can ignore customer experience? Or should they, if they want to minimise costs? After all, it’s just another management fad, right?

Quite the opposite. Competitive advantage is not the goal of customer experience – it is merely an excellent side-effect.  Let’s not forget that the main purpose of any organisation is usually to offer a product or (more usually for public sector organisations) a service that their customers value.  If an organisation can offer a good customer experience, this enables that organisation to do what it exists to do – but better.

This applies just as much whether an organisation is selling cars, building houses, collecting taxes or handling planning applications. The only difference is that in the public sector, value to the taxpayer is paramount and the purpose is service, not profit.

The return on customer experience

The benefits of offering a good customer experience have particular resonance for the public sector.  Benefits such as these:

  • Fewer people complain, so an organisation saves on resources it would otherwise spend on handling exceptions and resolving issues.
  • A good customer experience relies on consistent service delivery (how else does an organisation keep its promises?), enabling organisations to benefit from reduced variation, lower complexity and more economical  service delivery.
  • Better and more fundamental understanding of the customer, so organisations learn how to adapt and learn faster and more flexibly.
  • And organisations that offer a good customer experience are usually good places to work, so they keep good people and help them to stay motivated.

The public sector payoff

Any organisation would value such returns. So would their customers.  And for public sector organisations, these translate into two other, distinctive benefits.

First: any public sector organisation that delivers services well, efficiently and in ways which its users value – this  immediately reflects well on the elected officials responsible for it. This political dividend has unique value in the public sector.

And second: we are all invested in public services, as taxpayers and users – so when a public service delivers an excellent customer experience with all the return that we see here, we all benefit.

And that has to be a good thing.

This is slightly revised version of a blog I originally posted at Business Value Exchange; a site well worth a visit.

(Image credit: Ralph Walker, Commerce and Industrial Development Collection, Missouri State Archive, Public Domain).

 

There’s an elephant in the meeting room, and it has many names.

Elephant in the Room - BanksyFor every complex problem, there is a simple solution –

– and it’s wrong.

(H.L. Mencken)

 

Elephants with many names

Let’s stipulate that most businesses aren’t charities.  They exist to make money.

With that in mind, what do the following have in common?

Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Balanced Scorecard, Management by Objectives (MBO), Lean, Cloud Computing, Total Quality Management (TQM), Human Capital Management (HCM), One-Minute Management, Bring Your Own Device (BYOD), Management By Walking About (MBWA), Matrix Management, Activity-Based Costing (ABC), Core Competencies, The Learning Organisation (TLO), Competitive Advantage, Benchmarking, Social Media, Organisation Development (OD), Net Promoter Score (NPS), Scenario Planning, Corporate Social Responsibility (CSR), Web 2.0, Business Process Re-engineering (BPR), Situational Leadership, Management of Change (MoC), Theory of Constraints (ToC), Just-in-Time (JIT), Single Minute Exchange of Dies (SMED), Statistical Process Control (SPC),  Data Warehousing, Projects in Controlled Environments (PRINCE), Big Data, Six Sigma, IT Infrastructure Library (ITIL), Myers-Briggs, Total Productive Maintenance (TPM) and – even – Customer Experience?

That’s right.

They are all management fads: labels for bundles of fashionable ideas, or processes, or technologies all sold on the promise that they will improve the business.

Most are based on some nuggets of common sense.  Some can point to businesses that will testify that they adopted the idea / technology / process / philosophy and things got better.

And yet, and yet…

The money problem

If you remember, we stipulated that businesses exist to make money.  If so, then the rationale for these silver bullets has to be that, in the end, the businesses which adopt them make more money.

In my experience, for most companies, these fads almost always end up being things which businesses do instead of making money.

If you add up the cost of the investment in technology, consultancy fees, corporate effort, time and disruption of attention associated with each fad listed above, across all the companies which have tried them, then I wouldn’t be surprised if the total spend per fad was some way north of billion dollars.

Each.

In some cases, much more.

I would be also be very surprised if the return per fad was anything like as big, even if we only look at those which have succeeded.

And this is before we take into account that most such management initiatives fail.

We need to do something different, to make things better. We adopt one of these labels, dress it up as an initiative and believe that it will give us a solid business return – but most of the time, it won’t.

This is the elephant in the meeting room. We think that doing these things will make our business better.  It’s the other way round: if we need to make our business better we should do whatever helps us get there best, and not just assume that management fashion will be the simple silver bullet we need.

I’m not saying that any of these initiatives are bad things. They almost always are are based on some nuggets of common sense or insight and a few can point to some companies that will testify to the results they achieved.

A hidden law of business

So what is wrong?  I think that what these good ideas into money pits, that they fall foul of one of the hidden laws of business.   Managing a business of any size is so complex, demanding and fluid that  success requires significant intellectual effort.  But this is where the law comes in:

Most people will do anything – including sustained hard work – rather than think.

Thinking about something – trying to work out the right thing to do, or solving a persistent problem, or trying to determine the best way to proceed, or working out what needs to be done if we are to succeed – all of these are very difficult.

This thinking is just hard.  So hard that most companies and most people find it easier to lose sight of the bottom-line returns they are seeking, and focus instead on successfully completing the big tangible milestones which each fad entails.

  • CRM system installed? Check.
    More sales as a result?  …err…
  • BYOD policy in place?  Check.
    Staff working more productively as a result?  Whoops.
  • Net promoter score programme installed?  Check.
    Customers staying with us longer and spending more as a result? Who knows?

It is just so much easier to focus on the deliverable, rather than the outcome.

Outcome-based thinking

How can we beat this problem?

Begin with the outcomes.  Before committing to any of these things – or any other change, we need to list the three to ten things which fit under this heading:

By the end of this activity / initiative / project, we will have..

For example:

  • By the end of this CRM implementation, we will be using it to increase sales revenues by 15%.
  • By the end of this Lean project, we will have applied it to reduce unit costs by 20% .
  • By the end of this customer experience programme, we will have increased customer lifetime revenue by 50%.

Not systems installed but systems used.

Not stakeholders trained, but stakeholders doing.

Not stuff delivered but value achieved.

Once our outcomes are clear, then we can by all means adopt the initiative we like; we just have to make sure that the focus is on the outcome, not the groovy new jargon / framework / system that the consultants are proposing or the technologists are selling.  And if our focus is on the outcome,  we can pay attention to other work we have to do if our project is give us the value we want.

Of course, I may barking up the wrong tree.   So please:  prove me wrong.  Are you implementing one of these fads (or some other)?  Do you recognise this problem?  If so, how have you overcome it? If not, what are you doing to ensure that real value is delivered?

Please do let me know – and good luck.

(Image credit: Elephant in the Room by Banksy, taken by Jdcollins13 and licensed under Creative Commons Attribution 2.0 Generic license)

 

Buccaneers, banks and the customer experience.

A new market

Imagine for a moment that we make swords for a living.  We need a market for our  product.  Where are the opportunities?  After extensive market research (in our local cinema and some classic books) we find our target customer segment.

641px-Pyle_pirate_captain

Pirates.

A dynamic and exciting market.

Needs? Simple enough: a blade to carry between their teeth as they swing onboard a victim’s ship and something to parry other swords during spectacular duels.

But a standard cutlass already does this job pretty well.  If we try to compete just by selling these, then pirates will just choose the cheapest ones.  And we can’t compete on price with low-cost blacksmiths working on the Barbary Coast.

We need pirates to see our swords as better than those of our competitors. Do we need to offer a better sword?  Perhaps something incorporating the latest technology?

Perhaps a multifunctional sword?

Swiss Army Sword

We don’t know.

We need to know what matters to these buccaneers. What are their problems?  Their aspirations?  How can our swords can help them address these?  And how can they do so do so in ways which pirates value and our competitors find hard to copy?

Market insight

So we blow the rest of our market research on more movie tickets and popcorn.

What do we find? Pirates are fundamentally conservative and don’t want radical new sword designs.  They don’t want the equivalent of a sword iPad or a swiss army sword.

Other pirates would laugh at them.

Robert Newton as Long John Silver

Worse, so would their victims.

Is our venture doomed?

Not in the least.  For this finding shows us a real customer need that we can meet.

Pirates don’t just want a sword which slashes through the air;  they want to look good. A pirate has to look…dashing.

Errol Flynn as Captain Blood

They want others to tell stories about their exploits.  Sea voyages, even for pirates, are long, and stories told during endless night watches become legends told in taverns on shore.

And every pirate wants to be a legend.

A unique customer experience

And so we see that our swords have to be special.  Sharper than anyone else’s, with blades black as midnight, maybe, with handles encrusted with cabuchons and rubies and trimmed with gold.

Each as unique as its dashing and charismatic owner. Each a sword fit for a legend.

And each sword has to be challenging to get, so that each owner not only gets their sword, but a tale as well.

In short, we need to offer our pirates not only a distinctive product, but a unique customer experience.

So we select our distribution channels very carefully.   Caves on obscure islands, perhaps, or at the top of distant mountains. Then we throw in some traps, some quicksand and some fire swamps for good measure.

We prepare to go to market with a below-the-line PR budget to plant rumours of mysterious and wondrous swords in taverns, and above-the-line marketing through publication of obscure and blood-stained treasure maps (strictly limited edition).

Treasure map

And we make sure that the price for each sword is at least a treasure chest full of gold doubloons.

So now we know how we are going to get rich.

A time for thinking of risks

And it is at this point that we begin to think about the risks.

What kinds of risks? Pirates aren’t particularly trustworthy, so we’ll need to make it hard for them to double-cross us. We’ll need the ability to check treasure chests for poison needles among the doubloons. We’ll need good protection for our supply lines.

We will do all these things and more, but we do so knowing that the thing that matters is the customer experience we offer and how it meets their needs.

And while we act to address these risks, we don’t lose sight of what we are in business to do, or what our customers want, or the business model we have designed around meeting the needs of our customers by giving them a unique customer experience.

We think about our customers and how we will do business – and then we seek to manage the risks.

…And this is why banks will never get the customer experience right.

Banks begin with risk

Most businesses succeed by thinking about customers and the opportunities which these customers represent.  They look for ways to help customers overcome their problems and achieve their aspirations. They try to align what their businesses do with what their customers want.

When businesses do this well, they become customer-centric businesses; when they do this badly, they find it hard to keep customers and grow.

Most businesses – except banks.

Banks begin, not by understanding customer needs and aspirations, but by considering customers as risks.  They begin by assuming that customers will lose the money that banks make available to them, either through fraud or theft or poor money management or bad investment.

So when they consider the services they offer or the customer needs they will meet, banks start by seeking to minimise the risk which their customers pose.

So they make it hard for customers to become customers, because each new customer is a risk.  They make it difficult to change between products as changing products carries a risk that something will go wrong.

Where possible, they try to offset such risks, usually through fees or charges.  In effect, they ask customers to pay to cover the risk of their own untrustworthiness.

And they love being in the middle of deals as this enables them to offset risk at one end against risk at the other (and doubles their fees).

Bankers are proud of this. Speak to them and they tell you that a bank’s core competency is the quantification and management of risk. A key element of this is customer risk.

And so banks are hard-wired against innovation, because innovation requires both leaps of faith and a willingness to consider new ways of working with customers. These are, by definition, risky.

And, unlike the customer-centric businesses to which we refer to earlier, banks, because of this mindset, cannot align their businesses with their customers; instead they require that customers align their businesses with the bank.

A matter of trust

Banks can’t help being like this.

It’s not their fault.

It’s just that no matter what they do, they can never become customer-centric.

This is the effect of beginning with such risk thinking.  It means that banks, unlike every other business, start thinking about what they do from a different first principle:

Do not trust the customer.

This is why, for example, banks find it so hard to offer good customer service when things go wrong. As their business is predicated on pushing risk and liability onto the customer if something has gone wrong, the working assumption is that it is the customer’s fault.

And when things go systemically wrong (LIBOR, PPI, money-laundering, credit card insurance) it is only after huge fines and new laws that banks  accept that maybe it was their fault and that the customer might have been right after all. (Although they don’t really believe it).

Banks aren’t bad.  (Most) bankers aren’t evil people. They are trying to do the right thing, most of the time.

Pushing uphill

But when your business is designed from the ground up on the assumption that you can’t trust customers, making your business better by aligning yourselves better to customers is going to be difficult.

And so while there are now many people all over the World in banks doing great work to try to make the customer experience better, their prospects for long-term success are limited.

Because no matter what they do, the customer experiences they create can only be an overlay on a business designed not to trust customers.

Any successes they have can only be maintained by rigorous and sustained attention to the customer experience.  And when cost-cutting, new regulations, new systems or some other stress hits (as routinely happens in banks), their eye will leave the ball and the fundamental customer attitudes which underpin the banking model will kick back in and all their good progress will inevitably unwind.

Because, under stress, we all revert to the behaviours where we feel most in control and have greatest comfort. For banks, this is thinking about the customer as a source of risk.

A choice of experience

As far as I am concerned, I want to make things better for customers.  So, in the main,  I think I’d prefer to be in the sword business, selling to pirates.

And, thinking of the customer experience, wasn’t it a pirate who made famous the line: “As you wish*” ? – which is as perfect a customer experience philosophy as is possible in three words.

Yet for the life of me, I can’t think of any famous quotes from bankers about customers at all…

For a video of our target market, see here:

or here:

* Dread Pirate Roberts, in The Princess Bride.

(Image credit: Swiss Army Sword by Glenn Roberts, http://dribbble.com/shots/1207517-Swiss-Army-Sword?list=users)

Clocks. Not Calendars.

F18 breaking sound barrierThe Need for Speed, my latest guest post for HP Value Exchange, has just been published.  Read it to find out why I think that the speed of the technology organisation is a key factor in setting the competitive advantage of a business.

For customers, for colleagues, for growth: faster is better.

About the Business Value Exchange

The Business Value Exchange is an editorial Web site that focuses on presenting different perspectives on challenges faced by senior business and IT leaders, to help them drive more successful business outcomes.

How to do customer experience: 3 ways to beat the grumps

Grump Street

Beware of the Grumps

When we want to change anything in an organisation, we will meet the Grumps. Grumps are colleagues who appear to support the project (and who may actually believe that they are acting in the project’s best interests) but whose presence is toxic to success.

The most telling sign that someone is a Grump is to note their effect on the energy of others.

If their presence adds to the energy of the team – if they are ‘radiators’* – then they are probably not Grumps.

If, however, their presence sucks the energy from the room – if they are ‘drains’ – we need to be careful.

How they speak is often a giveaway. Grumps are people on the ground who reveal themselves in meetings and emails and water-cooler conversations when they say things like:

“…I’m not saying this is a bad idea, but…”

“…We’ve tried this already and…”

“Let’s be realistic, here…”

“…we have to be careful not to throw the baby out with the bathwater…”

Or (as I have genuinely heard in more than one company):

“…we have to be careful not to trust customers too much…”

…and similar statements which have the facade of reason but really reflect fundamental antipathy.

Grump damage

Grumps slowly strangle customer experience projects.

They raise seemingly legitimate objections which are never about the intent of the project, always about the implementation.  Before long, the team is spending more time and energy managing concerns raised by Grumps and less in delivering the project.  Slowly, imperceptibly, Grumps force us to move our focus away from making things better for customers to trying to keep the Grumps happy.

And so the project fails – or more typically, fades away, as the effort needed to deliver something good gets brought down by the drag of managing the Grumps.

How to beat the Grumps

These three steps can help us beat the Grumps:

  1. Get them off the bus**  We don’t let a Grump be a member of our project team. It doesn’t matter how technically or managerially skilled they are, the drain on energy and time will not be worth it.  Much better to work with less-skilled colleagues who are radiators with the energy to succeed than let Grumps drain everyone’s momentum.
  2. Don’t give them a veto  It is a mistake to seek a buy-in from a Grump (or anyone else for that matter) unless their approval really matters to the success of the project.  For if they object, as a Grump will, we now either (a) divert resources and time to overcome their objections or (b) ignore their objections and go ahead, alienating them even more.  And if their approval is not needed, why did we seek it?  (Sigh: So many companies get this one wrong).
  3. Surround them with success  When we change to make things better for customers, the Grumps come last.  We begin by making the changes work with colleagues who are prepared to give them a go, ignoring the Grumps.  Once we have proven that the changes make a difference, then we make it work with the Grumps.  Grumps seek support for their belief that the project won’t succeed.  Proven success defuses such support.

Delivery de-Grumped

Good customer experience projects are all about leverage. They seek the places and strategies which yield maximum results in the fastest time. Grumps kill leverage, by forcing us to consider their objections instead of the customers, slow us down by distracting our attention and diverting our resources, and kill our projects by slowly sucking out our energy and momentum.

But if we can identify Grumps early and adopt the right practical strategies to prevent the damage they can cause, we remove one of the biggest barriers to customer experience project success.

Have you had the misfortune of working with Grumps?  What Grump warning signs have you seen? Let us know in the comments below.

*The idea of ‘Radiators’ and ‘Drains’ comes from Julian Fellowes in his book, Past Imperfect. I came across it cited in an article in Gretchen Rubin‘s blog, The Happiness Project.

**’Getting them off the bus’ is a CEO strategy recommended in Jim Collins’ excellent book, From Good to Great (p.56)

Image credit: David Stowell, licensed for reuse under the Creative Commons Attribution-ShareAlike 2.0 license.

Radiator image courtesy of Dan / FreeDigitalPhotos.net

Drain image courtesy of Winond / FreeDigitalPhotos.net

4 pillars of customer experience

PIllars of Creation, Large Magellanic Cloud, NASA

Four pillars

I set up MikeAndTheCustomer to help companies to make things better for customers.

Four principles which would drive what we do here.  I consider these to be the most important factors in shaping the customer experience.

To me, they pretty much describe the whole customer experience ball game.

  • Do what matters.
  • Do it right.
  • Do it fast.
  • Do it honourably.

Let me explain why I chose these principles to guide what we do.

Do what matters

In my view, no matter what business any of us are in, the customer experience we offer is determined by what our customers value and how we choose to address these.  These are the things that matter. Some examples:

  • If customers value getting in and out of a grocery store fast, then this speed of purchase matters to the customer experience
  • If customers value having a chiropractor talking with them to understand their issues, then perhaps understanding the customer matters more to the customer than speed.
  • And if hungover customers are buying their first coffee of the day, then maybe a quiet transaction with minimal conversation matters more to them than a cheery shop assistant who loudly wants them to have a great day with a bright smile.

This principle means not trying to make every customer experience brilliant, or memorable. It means instead paying attention to those that make a difference and figuring out how make these good for the customer.  And, after all, isn’t this what motivates many of us – to make a difference?

Do it right  

Whatever we do – buy, sell, deliver, support – we have to do it right.  Who determines what is  right? The customer.  Our customers are the arbiters of what we do, and if we do it right, we deliver the value which they expect.

This means that when our customers change, or evolve, or want new things, we take the trouble to learn with them so that we continue to do it right.

To do so, we have to be with our customers, learning with them, and about them, as much as we can.

Doing it right also means doing it as efficiently, consistently and systematically as possible.  That way we minimise error, we minimise costs, we maximise speed and we maximise the ability, as we grow, to have colleagues do it right as well.

Do it fast

I honestly believe that speed is the single most important factor in turning customer experience into a competitive advantage.

If we can deliver what the customer wants, instantly, then that means we can impress the customer with our service, we can find out from them straightaway if we are on the money and if we are not, we can fix it immediately.

The speed with which we deliver is the speed at which we learn.  The faster we do both, the better we will be, and the better will be the customer’s experience.

Do it honourably

This one needs a little more explanation..

I wanted a way a capture the spirit of good customer experience that did not involve telling stories about the virtues of  Zappos or Nordstrom or John Lewis.  Unless we work for one of these paragons of customer service (or, sometimes, even if we do) the effect of such stories is just to make the reader feel guilty that they aren’t doing better

The more I thought about it, and the more I recalled the companies I knew who really try to make a difference for their customers, the more I realised that the essence of good customer experience is about one thing. It is about being honourable.

What do I mean by honourable?  I mean this:

  • Honourable is about good manners and courtesy.
  • Honourable is about only making promises we can keep, and keeping them – as people used to say, it is about keeping our word.
  • Honourable is about doing our best for our customers (and our colleagues, and our suppliers).
  • Honourable is about being honest about what we will, and what we won’t, do.
  • Honourable is about respecting our customers, our colleagues, our suppliers and our competitors.
  • Honourable is about being proud of what we do, about what our colleagues do, about what our company does and the experience our customers receive.
  • Honourable is about caring when things don’t go well and doing our absolute best to put things right.
  • Honourable is about admitting we got it wrong and saying sorry – and making sure that it won’t happen again.
  • Honourable is about celebrating when our customers, our colleagues or our suppliers succeed.
  • Honourable is about selling honestly and pricing fairly.
  • Honourable is about helping.
  • Honorable is about holding ourselves to high standards because they are the right things to do.
  • Honourable is about aspiring to be better, all the time.

Honourable offers the key test when we think about doing a new thing: is what we are thinking of doing, and the way we are thinking of doing it, honourable?  Unless it is, then the answer is simple: we should not do it.

I believe that an organisation which follows these principles cannot help but offer a great, trusted, customer experience. What is more, they will continue to do so as customers, markets, technology and people change.

But this is just me.

What do you think?  Do you agree with me?  Or is there something I’ve missed, or with which you disagree?  Let me know.

This is important to me, and I would really value your comments or thoughts.

Thanks.

Mike

Image credit: The Pillars of Creation in the Large Magellanic Cloud, NASA

Sports Direct: the Ryanair of the High Street?

Sports Direct store in Crown PointPile ’em high, sell ’em cheap

Ian Golding, the customer experience consultant has an enviable CV and an excellent blog (which I strongly commend). Last month, he posted a great article about the customer experience offered by Sports Direct, a UK budget sporting goods store.

The point of his post was that Sports Direct offer a poor customer experience because, in effect, their goods are so cheap the customer experience doesn’t matter.

Ian also suggests that Sports Direct are effectively playing the same role in high street retail as Ryanair play in air travel.

A conscious choice

As regular readers of this blog will know, I have written about the Ryanair customer experience here and here.  I think that there may some significant differences in the ways in which they think about the customer experience when compared with Sports Direct.

I suspect that the biggest difference is that Ryanair understand the things which make the biggest difference for their customers.  As a result, they manage their customer experience to be good along a very few dimensions (on time, seen to be low-cost) and explicitly limited in others (no refunds) in order to to support its business model.

Sports Direct, however, appear not to manage the customer experience, but instead to allow it to be an unconscious side-effect of their low-cost operation.

Is simply cheap sustainable?

Because they seem to compete solely on cost, Sports Direct may be vulnerable to another company offering a similar cost proposition with a better customer experience.  Ian muses if Sports Direct’s low-customer-experience is sustainable in the face of new competition such as that offered by French sports shed operator Decathlon.

Ryanair, on the other hand, I don’t think are so vulnerable to attack on this front.  Two factors argue for this.

The first is that Ryanair actively manage their customer experience and know which aspects of the experience make the biggest difference to their customers.  As a result, if they needed to dial elements of the key parts of the customer experience up or down, I am sure they could.

The second factor is more pragmatic. As I mentioned in my post, Ryanair: Kings of the Customer Experience, Ryanair compete as a low-cost airline because their business model is ruthlessly designed round the limited customer experience they choose to offer. Other operators do not seem to have the single-minded strategic will to make similar choices – and so they live with business models which are intrinsically more expensive to run.

What you pay attention to, you get

The takeaway, I think, is this:  every business, whether it thinks about it or not, offers their customers an experience which reflects the things to which the company pays attention.  If a company focuses solely on least cost supply and appears to pay little attention to the customer experience, then customers get an experience akin to the ‘dark cave’ which Ian describes as being offered by Sports Direct.

Such companies are vulnerable to competition from others which do pay attention to the customer experience and design their low-cost operation around the experience they actively choose to offer.

In short, if we don’t pay attention to customer experience in the boardroom, we shouldn’t surprised if, in return, customers stop paying attention to us.

Image credit: Betty Longbottom under a Creative Commons Attribution-Share Alike 2.0 Generic license.