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Preliminary results of a Global Survey on Business Process Excellence. More than 800 comp;anies represented

Preliminary results of a Global Survey on Business Process Excellence. More than 800 comp;anies represented

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  • The death spiralDeming said it best:Balke: this might be the time for a little banter. Observations you may have had about companies doing the same thing – focused on cost cutting, but cutting out their capacity to deliver value to customers

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  • 1. The Current State of Business Process Excellence:Preliminary Results focused on the Customer Experience
    LSS & Process Improvement for
    Customer Experience Conference
    March 23, 2010
    Reginald W. Goeke, Ph.D.
    Market Value Solutions
    814-234-2486
    Reg@MarketValueSolutions.com
  • 2. Market Value Solutions
    MVS is a consulting group that focuses on the measurement and management of customer value.
    Different from most consulting firms
    MVS uses the VOC to quantify your firm’s current value propositions in your targeted markets
    More than just a research firm
    Focus on the effective deployment of VOC to drive business results
    Recognized thought leaders in customer value analysis and management -- authors of :
    Dominating Markets with Value: Advances in Customer Value Management – (2002)
    Value-Driven Channel Strategy: An Extension of Lean Thinking (2005)
    Competing for Customers and Winning with Value (2006)
    Strategic Six Sigma for Champions (2006)
    Six Sigma Marketing: From Cutting Costs to Growing Market Share (2009)
    Listening to the Voice of the Market (2009)
    Subject matter experts in the area of Customer Value Management for
    the American Productivity and Quality Center
    the International Quality and Productivity Center
    the Institute for the Study of Business Markets
    the Maryland World Class Manufacturing Consortium
    2
  • 3. Companies That Have Deployed
    Market Value Solutions
    Strategically & Operationally
    3
  • 4. Topics We’ll CoverIn This Session
    Objectives of the Global BPE Survey
    Quick overview of how we did it
    Who participated
    Key success factors
    A “Best Practice” model
    4
  • 5. Global BPE SurveyObjectives
    How companies are using the Voice of the Customer (VOC) to identify improvement priorities
    How companies are measuring the success of their Process Excellence initiatives, and
    What types of new approaches are working particularly well.
  • 6. Methodology
    Personalized email invitations
    IQPC and MVS
    Links to web-based survey
    Newsletter invitations
    Six Sigma and Process Excellence IQ
    Drawing: 5 tickets to 11th Annual Process Excellence Summit and Awards
    London in April
    Executive summary, if requested
  • 7. Survey Participation (1)
    835 Responses
    Representing a variety of BPE Roles
    Across companies of all sizes
  • 8. Survey Participation (2)
    Representing a variety of industries
  • 9. Survey Participation (3)
    From many different countries
  • 10. Types of BPE Deployments
    Lean and/or Six Sigma
    Business Process Management
    Balanced Scorecard
    Business Process Re-engineering
    Total Quality Management
    Design for Six Sigma
    Six Sigma Marketing
    Hoshin Planning
    77%
    74%
    67%
    64%
    52%
    42%
    31%
    22%
  • 11. Whose “Voice” Determines Improvement Priorities
    VOB:Voice of the Business – internal business stakeholders such as IT, accounting, and other internal personnel from internal departments, as well as dealers, brokers, and agents
    VOC:Voice of the externalCustomer, or end user, who buys your products or services
    VOM:Voice of the Market, which includes not only your current customers, but also the customers who buy your competitor’s products or services
  • 12. Impact of “Voices”on Program Success
  • 13. Linkage of BPE Projectsto Competitive Business Strategies
  • 14. Impact of Strategic Linkageon Program Success
  • 15. Correspondence Between Strategic Linkages and Influential “Voices”
  • 16. Primary Purposeof BPE Initiatives
  • 17. Correspondence BetweenBPE Purpose andInfluential “Voices”
  • 18. The Evolution
    of Six Sigma
    And Business Process Excellence
  • 19. 6s – Gen 1
    Defect Reduction
    Mid- ’80s
    Motorola
    Customer Satisfaction
    19
    Defect reduction is a good thing!
  • 20. 6s – Gen 2
    Cost cutting
    Mid -90s
    GE
    Internal Focus
    20
    But are you cutting the right costs?
  • 21. 6s – Gen 3
    Shift from emphasis on cost cutting to revenue generation and market share
    Requires a focus on value creation and delivery
    Value from the perspective of targeted customer groups
    Value from the perspective of channels of distribution
    Requires shifting from an internal focus to an external focus
    This is the role and expertise of marketing
    Requires:
    Modifying the DMAIC process of Six Sigma
    Adding PROCESS to the traditional 4 Ps of marketing
    21
  • 22. Why Value?
    Corp. Image
    Quality
    Price
    Product/Service
    Offering
    Accurate
    Customer
    Competitive
    Fair
    Service/Support
    Channel Partners
    (e.g., Dealers, Brokers)
    Product
    Durability
    Process
    Effectiveness
    Sales/Service
    Support
    Product
    Features
    Accessible
    Service
    Efficiency
    Product
    Reliability
    Problem
    Resolution
    Convenient
    • Worth it?
    • 23. Justifiable price relative to product performance
    • 24. Delivering best value in the industry
    • 25. Providing best productivity for the money
    Value =
    Customer
    Loyalty
    Market Share
    Customer
    Acquisition
    Customer Value
    Requires a shift in measurement from Voice of the Customer (VOC) to Voice of the Market (VOM)
    22
  • 26. Traditional DMAIC
    23
    DEFINE the project:
    • What is the problem and how does it relate to customers?
    MEASUREthe current situation:
    • Where are we today?
    ANALYZE to identify causes:
    • What is causing the defects and variation?
    IMPROVEby implementing solutions:
    • What data-driven solutions will minimize the variation?
    CONTROL:
    • How will the gains be maintained?
  • Modified DMAIC
    24
    DEFINE the targeted product/market:
    • What are your most important products/services and who are the customers that buy them?
    MEASUREhow that market segment defines value:
    • What is the quality/price trade-off and what are the CTQs?
    ANALYZE your competitive value proposition:
    • Where are your value performance gaps?
    IMPROVEvalue performance on key CTQs:
    • Which performance gaps can be leveraged? Which must be fixed?
    CONTROL customer defect(ion)s:
    • How does the market react to improvements?
  • Six Sigma Marketing:The Six Sigma/VOM/Strategy Linkage
    P/M Focus
    Competitive
    Analysis
    Opportunities
    Objectives
    Strategy
    Actions
    Budgets
    Define
    Measure/Analysis
    Improve/Control
    Tools:
    1. Market Opportunity
    Analysis
    2. P/M Matrix
    Tools:
    Market Value Model – Identifies CTQs & Their Importance
    Competitive Value Matrix – Identifies value performance gaps
    Customer Loyalty Matrix – Identifies threats to loyalty
    Competitor Vulnerability Matrix – Identifies competitor’s vulnerabilities
    Tools:
    Cause & Effect Matrix
    Value Stream Mapping
    Touch point Monitoring Systems
    © 2009 Market Value Solutions
    25
  • 27. Voice of the Market
    Tractors/Hobby Farmers
    Acquisition Market Share Retention
    .229
    Dealer Service
    Machine
    Operation
    .189
    Quality
    .518
    Machine
    Productivity
    .149
    Trial &
    Training
    .147
    Value
    Image
    .101
    Dealer Sales
    .139
    Order &
    Delivery
    .074
    Machine
    Reliability
    .073
    .381
    Price
    Critical-to-Quality Factors (CTQs)
  • 28. Competitive Value MatrixHobby Farmers
    High
    Outstanding Value
    Expensive Relationship
    Competitor 1
    Quality Evaluation
    Competitor 4
    Competitor 2
    Competitor 3
    New Holland
    Value Performance Gap
    What’s the basis of the gap?
    Discount Relationship
    Poor Value
    Low
    High
    Low
    Price Evaluation
  • 29. Competitive Performance GapsQuality, CTQs, Price & Image
    The numbers are mean performance scores (averages) on each of the CTQs and value drivers. They represent the average ratings across the survey questions within each “bucket.”
    Advantages and disadvantages are defined in terms of statistical tests of significance
  • 30. CTQ Gaps & Their Importance
    Differences between New Holland and the targeted competitor (Comp 1 = John Deere)
    Importance weights from the value model
    CTQ importance times the competitive performance gaps
  • 31. Value Performance Criteria (VPCs) Provide Actionability
    VPC Importance based on correlations with the CTQ
    Gaps & Gap Importance calculated as before
  • 32. The Cause & Effect MatrixTargeting Processes: Linking X’s to Y’s
    These are the VPCs, with Gap Importance highlighted
    Targeted Processes
    Individual processes within the repair (service) value stream.
    Evaluations of the process (X) impact on the on the relevant VPCs (Y).
    0 = No impact
    3 = Low impact
    6 = Medium impact
    9 = High impact
  • 33. Value Stream Mapping:Targeted Improvements
    Tractor Transmission Repair
    Value Stream Analysis based on
    Market Opportunity #5
    Service: Repair Processes
    Scheduling
    Diagnosis
    Critical Areas
    of Focus
    Repair
    ©2008 Market Value Solutions
  • 34. Six Sigma MarketingThe Value-Strategy-Process Linkage
    Strategic
    Focus
    VALUE
    Develop
    Value Model
    Identify
    & Prioritize
    Quality Drivers
    Competitive
    Value Matrix
    Competitive
    Strengths &
    Weaknesses
    Market
    Value
    Opportunities
    STRATEGY
    Action
    Programs
    Budget
    Business
    Performance
    Objectives
    Product/Market
    Strategy
    (Lead, Challenge…)
    Marketing
    Mix
    Objectives
    (5 Ps)
    PROCESS
    Calculate
    Value
    Gaps
    Identify Key
    Value Stream
    Cause & Effect
    Matrix
    Value Stream
    Mapping
    Prioritize
    Improvement
    Opportunities
    Lean or Six Sigma Initiatives
    33
  • 35. For More information
    Executive summary
    How to compare your company to your industry
    34
    Oksana Shubchinskaya
    Senior Conference Director
    IQPC
    535 5th Ave, 8th Floor
    New York, NY 10017
    P: 212-885-2672
    Oksana.Shubchinskaya@iqpc.com 
    Genna Weiss
    Senior Editor, Six Sigma IQ
    Anchor House
    15-19 Britten Street
    London SW3 3QL
    +44 (0) 207 368 9822
    Genna.Weiss@sixsigmaiq.com
    www.sixsigmaiq.com
    Reg Goeke
    President & Managing Director
    Market Value Solutions
    281 Homan Avenue
    State College, PA 16801
    P: 814-234-2486
    Reg@MarketValueSolutions.com
    www.MarketValueSolutions.com