Using the CMMI-SVC to Transform an Organization into a High-Functioning, Customer-Driven Profit Center


Published on

As a company grows and matures from a startup entrepreneurial venture to a sustainable corporation, the departments and company services that begin as good ideas expand and evolve to support the company’s growing business. Many times these services simply develop without any strategic vision resulting in institutionalized behaviors that are incompatible with the company’s business goals and objectives. Consequently, the transition to a larger corporation becomes a challenge. A notable example is a company’s Engineering Services Department.
When people think of Engineering Services, the Customer Support or Help Desk team is what first comes to mind. However, other services such as Product Training, Field Services (product installation and troubleshooting), and Engineering Sales Support may be provided as well.
As a product development company begins selling product, the Customer Support function becomes one of its first service offerings whether or not it recognizes it as such. In addition, it is natural for the focus of the Customer Support function to be on pleasing their customer base, as many sales are contingent upon repeat business and word of mouth until the company and its product line become established in the marketplace. Nevertheless, without a clear idea of its charter and strategic direction to support business growth and identify new markets and service offerings, the Customer Support Specialists focus instead on supporting their customer base on non-company and non-product issues and questions that consume internal resources without any tangible benefit to the company. Once a company starts banging its head on the “glass ceiling” as it attempts to grow, the leadership may recognize that its current Engineering Services approach does not support its strategic business goals and objectives.
In these circumstances, the company is not necessarily interested in implementing the CMMI for Services (CMMI-SVC) and becoming appraised to either Maturity Level 2 or Maturity Level 3. However, by using the Continuous Representation, the CMMI-SVC can provide the needed guidance to help a company restructure and reorganize its Engineering Services approach in order to become a profit center or revenue generating function.
In this presentation, we will present a case study for OMNI Flow Computers, Inc., a company that specializes in the design, development, and manufacture of panel-mount multi-run, multi-tasking liquid and gas flow computers, and field-mount, hazardous area controllers/RTUs for liquid and gas custody transfer metering systems. The challenge facing OMNI was to develop its Engineering Services Department into a high-functioning, customer-driven profit center. OMNI’s Engineering Services Department consists of three groups: Customer Support, Training, and Engineering Field Services. Customer Support handles customer questions, concerns, and issues. The Training group provides training on the OMNI product line to its customers and users. Engineering Field Services provides on-site troubleshooting services on an as-needed basis.
As the Training and Engineering Field Services groups were recent additional capabilities, Customer Support presented the biggest obstacle to overcome. Noted management consultant Peter Drucker declared several years ago that Quality in a service or product is not what you put into it. It is what the client or customer gets out of it. Moreover, an obstacle to achieving this objective was one of the core challenges faced by the department: developing an appropriate customer focus and developing new service offerings. A major reason for these challenges is the nature of OMNI products. OMNI's customers integrate their products into custody transfer systems that involve a wide variety of large-scale hardware and electronic equipment from other manufacturers. OMNI’s customers usually develop and commission these systems for their clients and end users. Therefore,

Published in: Business
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Using the CMMI-SVC to Transform an Organization into a High-Functioning, Customer-Driven Profit Center

  1. 1. Using  the  CMMI-­‐SVC  to  Transform  an   Organiza8on  into  a  High-­‐Func8oning,   Customer-­‐Driven  Profit  Center   Henry  Schneider/PPQC     Dan  Stoller/OMNI   2010  SEPG   Savannah,  Georgia  
  2. 2. Agenda     Background     OMNI  Overview     Issues  with  Delivering  Engineering  Services       ISO  9000  Limita8ons  Regarding  Services     How  CMMI-­‐SVC  Applied     Results   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   2  
  3. 3. Background   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   3  
  4. 4. Many  companies  begin  with  a  great  idea  for  a  product   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   4  
  5. 5. ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   5  
  6. 6. ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   6  
  7. 7. Case  in  Point  –  OMNI  Flow  Computers   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   7  
  8. 8. ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   8  
  9. 9. ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   9  
  10. 10. ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   10  
  11. 11. ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   11  
  12. 12. Issues  with  Delivering  Engineering  Services   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   12  
  13. 13. Organiza8on  Structure   Each  group  has  a  different   Job  Descrip>ons  wriEen  based  on   customer  focus,  but  must  work   what  someone  was  currently   Engineering   performing  in  their  assigned  job   together  to  provide  a  value-­‐ Services   role(s),  not  on  the  expecta>ons  for   added  customer  experience   the  job  role   Return  Material   Customer  Support   Field  Services   Training   AuthorizaCon   Provide  product   Provide  product   Provide  help  desk   Provide  product   warranty,   troubleshooCng   services   training  services   replacement,   services   repair  services   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   13  
  14. 14. Engineering  Services  Strengths     Great  customer  service     Strong  technical   background  and  exper8se     Field  Services  Technicians   duplicate  customer’s   problems  in-­‐house  before   going  on-­‐site     Students  are  tested  to   determine  what  they  have   learned  during  a  product   training  class   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   14  
  15. 15. Engineering  Services  Issues     Engineering  Services  evolved   without  an  overall  strategy     Issues  with  capturing  and  tracking   customer  inquiries     Mul8ple  databases  and  systems  in   use     Lack  of  formal  training  for  Field   Services  technicians     Returned  items  diagnosed,  repaired,   and  returned  to  the  customer,   some8mes  taking  months   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   15  
  16. 16. ISO  Limita8ons   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   16  
  17. 17. ISO  9000  Limita8ons  Regarding  Services     Per  ISO  9000:2008  (clause  7.2.1(a))     Service  items  are  called  “post-­‐delivery  acCviCes”     ISO  limita8ons     Post-­‐delivery  acCviCes  should  be  treated  as  any  other  product   requirement  and  be  included  in  new  product  development     Does  not  work  when  Services  ARE  the  product     Standard  does  not  provide  guidance  for  providing  Services       Hence  the  need  for  another  model,  standard,  or   guideline  for  delivering  Services   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   17  
  18. 18. CMMI-­‐SVC  to  the  Rescue!   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   18  
  19. 19. How  CMMI-­‐SVC  Helped     OMNI’s  primary  focus  is  on   obtaining  and  maintaining   cer8fica8ons  for  the  world-­‐wide   standards  necessary  for  their   industry     Did  recognize  the  need  for  guidance   for  delivering  Engineering  Services,  but   not  interested  in  being  appraised   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   19  
  20. 20. How  CMMI-­‐SVC  Helped     Many  of  the  Specific  Prac8ces   in  the  Maturity  Level  2  and  3   Process  Areas  provided  the   needed  guidance,  but  not  the   whole  model     Service  Delivery,  Incident   ResoluCon  and  PrevenCon,  Service   ConCnuity,  and  Strategic  Service   Management   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   20  
  21. 21. Service  Delivery     Provided  necessary  guidance  for  Engineering  Services   to  document  its  exis8ng  service  offerings,  ensuring   that  each  group  was  prepared  to  deliver  the  defined   service  offerings,  and  delivering  the  services     SP  1.2  Establish  and  maintain  the  service  agreement     SP  2.1  Establish  and  maintain  the  approach  to  be  used  for   service  delivery  and  service  system  operaCons     SP  3.1  Receive  and  process  service  requests  in  accordance  with   service  agreements     SP  3.3  Maintain  the  service  system  to  ensure  the  conCnuaCon   of  service  delivery   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   21  
  22. 22. Incident  Resolu8on  and  Preven8on     Provided  necessary  guidance  for  iden8fying,   documen8ng,  tracking,  repor8ng,  and  resolving   customer  complaints,  issues,  and  other  service   interrup8ons     SP  2.1  IdenCfy  incidents  and  record  informaCon  about  them     SP  2.2  Analyze  incident  data  to  determine  the  best  course  of   acCon     SP  2.5  Monitor  the  status  of  incidents  to  closure  and  escalate  if   necessary     SP  2.6  Communicate  the  status  of  incidents   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   22  
  23. 23. Service  Con8nuity     Provided  the  necessary  guidance  to  focus  the   Engineering  Services  Department  Manager  to  iden8fy   and  priori8ze  the  essen8al  func8ons  and  necessary   resources     SP  1.1  IdenCfy  and  prioriCze  the  essenCal  funcCons  that  must   be  performed  to  ensure  service  conCnuity.     SP  1.2  IdenCfy  and  prioriCze  the  essenCal  resources  required   to  ensure  service  conCnuity   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   23  
  24. 24. Strategic  Service  Management     Provided  the  necessary  focus  for  establishing   Engineering  Services’  strategic  needs  and  plans  for   standard  services     SP  1.2  Establish  and  maintain  plans  for  standard  services     SP  2.2  Establish  and  maintain  descripCons  of  the  organizaCon’s   defined  standard  services   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   24  
  25. 25. An  Example  Improvement   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   25  
  26. 26. Former  Inquiry  Process   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   26  
  27. 27. Proposed  Inquiry  Process   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   27  
  28. 28. Results  and  Next  Steps   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   28  
  29. 29. Preliminary  Results  -­‐  1   #  of  Inquiries  Issued   160   140   120   100   80   60   40   20   0   Number  of  new  inquiries  per  month  remains  fairly  constant   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   29  
  30. 30. Preliminary  Results  -­‐  2   200   180   160   140   120   100   80   #  Open   60   #  Closed   40   20   0   Inquiries  are  being  closed  at  a  faster  rate   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   30  
  31. 31. Preliminary  Results  -­‐  3   ES  Inquiry  Average  Days  Open   250   200   150   100   50   0   Average  #  of  days  for  an  open  inquiry  has  dropped  by  57%   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   31  
  32. 32. Preliminary  Results  -­‐  4   Average  of  All  ES  Inquiries  (Open  and  Closed)   180   160   140   120   100   80   60   40   20   0   Average  number  of  all  inquiries  has  dropped  by  43%   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   32  
  33. 33. Explana8on  of  Improvement     Measurements  are  being  taken,  analyzed,  and   communicated     Inquiry  process  has  been  improved     Daily  team  meeCngs  to  discuss  new  and  open  inquiries     Close  the  inquiry  when  a  customer  receives  an  answer/ resoluCon     Reopen  the  inquiry  if  a  customer  responds  with  a  quesCon  or   addiConal  informaCon     Staff  has  been  trained  to  reduce  dependency  on  key   “knowledge  masters”  within  OMNI   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   33  
  34. 34. Accomplishments  -­‐  1     Job  Descrip8ons  have  been  wrijen  to  document  the   expecta8ons  for  each  manager  and  technical  job  role     Customer  issue  data  are  now  fed  to  the  appropriate   department  for  resolu8on     Product  issue  and  enhancement  data  are  now   forwarded  to  Product  Development  for  considera8on   in  future  releases     Management  now  has  insight  into  Engineering   Services  work  levels  and  issues   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   34  
  35. 35. Accomplishments  -­‐  2     Goals  established  for  different  service  performance   levels  and  Engineering  Services  personnel  are  working   towards  mee8ng  those  goals     Training  evalua8on  data  are  used  to  drive   improvements  in  training  materials  and  delivery     Complaint  data  are  now  reviewed  and  analyzed  to   determine  service  improvements   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   35  
  36. 36. Next  Steps     Establish  and  plan  an  Engineering  Services   departmental  budget     Evaluate  Engineering  Services  job  descrip8ons     Establish  a  training  program  to  bring  staff  knowledge   up  to  required  proficiency  levels   BOTTOM  LINE   CMMI-­‐SVC  can  be  very  effec8ve  in  helping  an  organiza8on  to   rapidly  achieve  improvement   ®2009  ***Proprietary***    All  Rights  Reserved  -­‐  Process  and  Product  Quality  Consul>ng,  LLC   36