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Thank you Syed. I think you answered the question within your question. An internal dispute between functions should not impact on the customer experiences. Both departments need to focus on what is the best solution for the customer/company. This is quiet common in many companies and can happen when departments focus more on their own achievement of goals rather than the big picture (company goals). It also shows that there is a conflict between departmental goals that can damage a companies result.
Whilst I agree with Peter Gruben, the issues is a common occurrence in the business envirnment, eg; Finance department worry about affordability, marketing will look at competitive reaction and sales will worry about the price and positioning, the balance between these constraints is key without compromising customer experience and loyalty.