Building a Cost Effective Voice of the Customer Infrastructure to Feed the Pipeline of Six Sigma Projects

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Building a Cost Effective Voice of the Customer Infrastructure to Feed the Pipeline of Six Sigma Projects

  1. 1. Building a Cost Effective Voice of the Customer Infrastructure to Feed the Pipeline of Six Sigma Projects Jackie Cazar Managing Director [email_address]
  2. 2. Agenda <ul><li>Which one comes First? </li></ul><ul><li>VOC/Six Sigma Infrastructure </li></ul><ul><li>CTC’s & Listening Post </li></ul><ul><li>Capturing & Analyzing the VOC </li></ul><ul><li>Corporate Goals, Action Plans & Six Sigma Project Pipeline </li></ul>
  3. 3. <ul><li>Voice of the Customer (VOC) Infrastructure : A system that collects, measures and analyzes Customers’ feedback & provides the Company with direction on WHERE to allocate limited resources to address the Customers’ most critical Loyalty and Satisfaction issues. </li></ul><ul><li>Critical-to-Customer (CTC) : The Customers’ requirements measured in Customer, Financial and Business terms and linked to specific process/product improvement/enhancement plans. </li></ul><ul><li>Customer Experience (CE): Umbrella containing the top 10 most critical CTC’s </li></ul><ul><li>Listening Post (LP) : An employee, a system or a mechanism that collects and codes Customer’s feedback. </li></ul><ul><li>Revenue: Is driven by the Customer’s perception of value (Satisfaction) & decision/action (Loyalty) on products and services. </li></ul>VOC Lexicon
  4. 4. <ul><li>VOC or Six Sigma? </li></ul><ul><li>Do we need both? </li></ul><ul><li>Budget for VOC? </li></ul><ul><li>ROI? </li></ul><ul><li>When VOC? When Six Sigma? </li></ul><ul><li>Benefits & Risks? </li></ul><ul><li>Why? </li></ul>Which One Comes First?
  5. 5. To drive improved Customer Satisfaction, Loyalty and Retention, create positive Economic Profit and achieve competitive advantage in the Market Place 2005 Goal Provide your Company with direction on WHERE to allocate limited resources to fix the Customers’ most critical issues EASY or HARD? Long/Short Terms Goals
  6. 6. Identify LP Identify CTC Listen Prioritize Fix/Build Map CTC/LP COPQ Design & Execution Analysis (correlation) DMAIC or DFSS against CTC Measure <ul><li>When do we start VOC? </li></ul><ul><li>When do we start Six Sigma? </li></ul><ul><li>Benefits & Risks </li></ul>2 months $0 - $100K Less Expensive 1 month $0 - $30K Financial Data VOC Infrastructure
  7. 7. Roles Defined Roles Defined Roles Defined Roles Defined Roles Defined Finance Rep on board Communication Strategy Kick off Change Mgt. Strategy Staffing begins Finance Training ready Six Sigma Vendor selection begins CTC’s Identification Strategy CTC Manager on board Compensation Strategy Career Development Performance Mgmt.Process Black Belt selection begins Master Black Belt on board Exe/Champion training begins Process Mapping & Metrics Project Pipeline Strategy begins Champions on board Financial Mgmt. & Reporting Process ready Initial Financial Forecast (ICOPQ) ready Green Belts, Data Owners on board Data Assessment Project Selection MINITAB & Visio/iGrafx ready Data Assessment Go/No Go Champions Go/No Go Black Belts Green Belt training ready Black Belt training starts SIX SIGMA OFFICIAL LAUNCH RISK ASSESSMENT COMPLETED ON-TARGET SOME ISSUES SERIOUS ISSUES Information Systems Finance CEO Six Sigma Office Human Resources Go/No Go DECISION Well defined Projects
  8. 8. Roles Defined Roles Defined Roles Defined Roles Defined Well defined Projects Finance Rep on board Communication Strategy Kick off Change Mgt. Strategy Staffing begins Finance Training ready Six Sigma Vendor selection begins CTC’s CTC Manager on board Compensation Strategy Career Development Performance Mgmt.Process Black Belt selection begins Master Black Belt on board Exe/Champion training begins Process Mapping & Metrics Project Pipeline Strategy begins Champions on board Financial Mgmt. & Reporting Process ready Initial Financial Forecast (ICOPQ) ready Green Belts, Data Owners on board Go/No Go Champions Go/No Go Black Belts Green Belt training ready Black Belt training starts SIX SIGMA OFFICIAL LAUNCH RISK ASSESSMENT COMPLETED ON-TARGET SOME ISSUES SERIOUS ISSUES Finance CEO Six Sigma Office Human Resources Roles Defined Data Assessment Project Selection MINITAB & Visio/iGrafx ready Data Assessment Information Systems Go/No Go DECISION
  9. 9. Internal Interviews External Interviews CTC List of Attributes LP Attribute Map Maintenance Issues Critical Issues Less Critical Secondary Issues x x x x x x x x x x x x x x x x Six Sigma Project Pipeline Attribute Map: Courtesy of Burke Incorporated Month 1 Month 3 - 4 Month 2 Month 4 - 5 CTC to Project Pipeline
  10. 10. <ul><li>Identify/validate top CTC’s </li></ul><ul><ul><li>Customer Segmentation </li></ul></ul><ul><ul><li>Internal Interviews </li></ul></ul><ul><ul><li>External Interviews </li></ul></ul><ul><li>Identify list of 40+ attributes </li></ul><ul><ul><li>Satisfaction </li></ul></ul><ul><ul><li>Loyalty </li></ul></ul><ul><ul><li>Retention </li></ul></ul>Critical to Customer Identify CTC
  11. 11. <ul><li>Top 3 CTC’s were not identified internally </li></ul><ul><li>One or two levels down </li></ul>Critical to Customer Validate CTC
  12. 12. <ul><li>Identify critical Listening Posts </li></ul><ul><ul><li>CTC’s </li></ul></ul><ul><ul><li>% Volume captured on CTC’s </li></ul></ul><ul><li>Identify data collection processes & variation on CTC terminology </li></ul><ul><ul><li>Standardize data collection process & CTC terminology </li></ul></ul><ul><li>Fix/Enhance critical Listening Posts </li></ul><ul><ul><li>People - Training/Education </li></ul></ul><ul><ul><li>Systems - Fix/Enhance </li></ul></ul>Listening Post Identify LP
  13. 13. CTC & Listening Posts Mapping Out
  14. 14. <ul><li>Customer Expectations Short/Long Term </li></ul><ul><li>Infrastructure on Data processing & reporting </li></ul><ul><li>Resources (budget) to act upon </li></ul>Data Collection Chart: Partially taken from “ Choosing the Best Method for Listening to the Customer” by Dr. Pam Hunter, published by iSixSigma.com Gathering VOC Listen
  15. 15. <ul><li>Survey Design </li></ul><ul><ul><li>Top 10 CTC’s (validated) </li></ul></ul><ul><ul><li>Attribute List </li></ul></ul><ul><ul><li>Customer Segmentation </li></ul></ul><ul><ul><li>Customer Role (skip logic) </li></ul></ul><ul><li>Revenue Data </li></ul><ul><ul><li>Customer & Customer Segment </li></ul></ul><ul><ul><li>COPQ on top CTC’s </li></ul></ul><ul><li>Education & Training </li></ul><ul><ul><li>Company/Industry </li></ul></ul><ul><ul><li>Customer Segment </li></ul></ul><ul><li>Launch (logistics) </li></ul>Survey Plan Listen
  16. 16. Customer Risk Category taken from “Linking Measures of Customer Satisfaction, Value & Loyalty to Financial Performance,” by Randall Brandt, Jim Roberts and Kunal Gupta., Courtesy of Burke Incorporated Ultimate Survey Goal Listen & ROI
  17. 17. <ul><li>Project Pipeline is defined by CTC’s, revenue per Customer and critical attributes </li></ul><ul><li>Financial impact based on correlation between revenue per Customer and critical attributes </li></ul><ul><li>Complexity depends on Six Sigma deployment model </li></ul><ul><li>Ultimate decision on resource allocation requires high organizational readiness level based on % of revenue that is at risk </li></ul>Project Pipeline Prioritize
  18. 18. Customer Experience CTC 1 Project Critical Y Attribute 24 Trivial X’s Vital X’s Key driver of Loyalty & Satisfaction required by the Customer Key Attribute linked to internal broken process(es) - C&E Matrix Potential root Cause Root Cause SIX SIGMA VOC Project Pipeline FIX MEASURE
  19. 19. <ul><li>CTC’s (validated) </li></ul><ul><li>Effective Listening Posts </li></ul><ul><li>Scientific/Standardized Customer Listening Process </li></ul><ul><li>Coding & Classification System – based on CTC’s </li></ul><ul><li>Scientific (Statistical) Data Analysis </li></ul><ul><li>Agreed Upon Prioritization Criteria </li></ul><ul><li>Actionable Process Improvement Projects </li></ul>What do We Need?
  20. 20. <ul><li>Do you know what are the top 10 CTC’s? </li></ul><ul><li>Do you know what and who are the Company’s most critical Listening Posts? </li></ul><ul><li>Do you know which percentage of revenue is at risk due to Loyalty, Satisfaction and Retention issues? </li></ul><ul><li>Is your survey data linked to financial data? </li></ul><ul><li>Is there a centralized system where the information collected by all Listening Posts is processed and acted upon? </li></ul><ul><li>Has your VOC Infrastructure explained the Customer’s Loyalty, Retention & Satisfaction issues? </li></ul><ul><li>Does your Infrastructure provide you with actionable data (direction) on where to allocate limited resources to fix the Customer most critical issues? </li></ul><ul><li>How does your company set up corporate goals and allocate resources to achieve these goals? </li></ul>Questions on your Existing VOC Infrastructure
  21. 21. Revenue is driven by the Customer’s Perception of Value of your Company’s Products, Services and People Linking Six Sigma with VOC & Revenue Benefits $
  22. 22. Thank You - Q&A Session Jackie Cazar Managing Director [email_address] www.endtoend-consulting.com

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