Case Study: Johnson Controls Drives Global Continuous

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Case Study: Johnson Controls Drives Global Continuous Improvement and Customer Satisfaction

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Case Study: Johnson Controls Drives Global Continuous

  1. 1. Case Study Johnson Controls Drives Global Continuous Improvement and Customer Satisfaction > industry Facilities Management“Upper management can look at top-level measures while service delivery, HR, safety, finance, andcustomer satisfaction managers can drill into the details.” > company size — David J. Mercier, Global Director of Continuous Improvement at Global WorkPlace Solutions, Over $32 billion in revenues, to more than 200 million vehicles, Building Efficiency Division of Johnson Controls 12 million homes and one million commercial buildings. The Benchmarking were also paramount, since GWS needed > Challenge • More than 500 measures Challenge a performance management solution that would be up and running on site within as across 33 contracts made it impossible to benchmark per- With over 300 customer locations around little as 30 days of securing a contract. formance and compare regions the world and more than 500 contractually- Lacking broadly-accepted, widely-understood to identify Best Practices required service delivery measures in the US service delivery measures, it was impossible • Data gathering was time- alone, the Global WorkPlace Solutions (GWS) for GWS to compare site and account team consuming and inefficient unit of Johnson Controls’ Building Efficiency performance, identify business best practices • Excel and PowerPoint slides Division faced the daunting task of tracking and demonstrate hard statistics to customers were difficult to modify, unify the performance of all its account teams. how they are performing, how they can and scale The mission for GWS Global Continuous improve, and demonstrate to prospects why Improvement includes setting benchmark they should hire Johnson Controls. > solution standards based on best practices, using As customer negotiations often produced Global Performance Scorecard performance scorecarding to compare sites unique metrics regarding people, safety, using Actuate Performancesoft to drive continuous improvement, knowledge service, customer satisfaction and financials, Views for strategic, operational management and customer satisfaction. there was no single place to review metrics performance management Without a centralized database to draw across functional areas. The ad hoc nature of from—a contractual requirement—GWS’s > benefits responding to customer requests for one-off need to pull data from its own databases (as • Global customer performance measures made benchmarking increasingly well as from customer databases) into a tool scorecards difficult and subjective. that could share information securely with • Performance metrics viewable account teams and customers over the web in a single place became imperative. Speed and flexibility • Best practices, greater ef- ficiency produced $500,000 ROI in one year
  2. 2. Case Study: Johnson ControlsThe Scorecard • Configure database changes quickly, withoutSolution need for IT • Speed and time to deploymentIn 2006, GWS concluded it needed a web- In January 2007, GWS purchased Actuate’sbased, customer-facing tool for displaying Performancesoft Views, engaged Actuatebenchmark comparisons and demonstrating Professional Services to consult and guidebusiness best practices. They spent six the implementation, and in less than 90 daysmonths in an evaluation process, thoroughly went live with a full North American rolloutdefining, dissecting, analyzing and in April 2007.discussing what benchmarks they needed toaccomplish their goals. BenefitsThe primary functions of the Global With the Global Performance ScorecardPerformance Scorecard System (GPSS) are to: System (GPSS), GWS has achieved excellence1. Standardize customer-facing, contractually- in several key areas. required performance measures2. Replace one-off slide decks in operations Performance Scorecard reviews With intuitive green/yellow/red indicators,3. Use scorecard to gather data that is then the performance scorecard helps focus used to define business best practices and immediate attention on what needs to be hold best practice sharing workshops fixed, providing drill-to-detail features that enable managers to not only determineOnce the global team, which consisted which measures need attention, but provideof corporate Vice Presidents for GWS and insight to more granular details that impactregional Vice Presidents, agreed on the performance. “Upper management can lookservice delivery measures and a systematic at top-level measures while service delivery,discussion of defined business processes and HR, safety, finance, and customer satisfactionrequirements, they set about to choose their managers can drill into the details,” explainssoftware tool. The key criteria included the David Mercier.following: For the first time, GWS can now compare1. Intuitive, customer-facing tool accounts and regions worldwide to2. Rapid, easy configuration with beginner IT recognize and reward performance, skills as well as identify accounts that need3. Flexibility to make modifications in a narrow mentoring and attention. “The ability is view timeframe performance metrics worldwide, in a single4. At-a-glance view of performance metrics place is phenomenal,” states Mercier. across functional areas (e.g., finance, HR, safety, etc.) Continuous ImprovementGWS evaluated four vendors, and ultimately A cornerstone of the GPSS is the Businesschose Actuate’s Performancesoft Views, for Best Practices (BBP) benchmarking initiative.the following reasons: GWS can track account performance, identifying both best-in-class performers and• Briefing book format opportunity-for-improvement performers on• View and compare performance of regions a particular measure. They can then facilitate and accounts BBP workshops, providing an opportunity• Ability to present data from disparate for improved knowledge transfer. “Executives systems in single view who are delivering the best performance• Distribute performance information securely, meet with those who need to improve,” in an intuitive format 2 says Mercier. A critical component to the• Ability to enter data in many ways acceptance and success of the workshops is
  3. 3. Case Study: Johnson Controlsthat “they can sit with peers--not somebody Tips and Lessonsfrom corporate--and learn how to solveproblems,” adds Mercier. Learned This journey to a global performanceGWS follows up on the BBP workshops scorecard helped GWS uncover underlyingafter four months, and the program has data integrity issues which may never haveconsistently achieved statistically significant been questioned or discovered otherwise.improvement on the measures by those Identifying a measure is not the same aswho attend, helping to further the goal agreeing on how it should be measuredof continuous improvement. These Best- or even what it means. And the key toin-Class practices save both GWS and success has been to identify processes andits customers money through increased business rules up front. Johnson Controlsproductivity, continuous improvement and aims to make its index the industry-leadingbest business practice sharing. measurement of service performance, and itCustomer Satisfaction looks like it is well on its way.Driving customer satisfaction is a critical About Johnsongoal of the GPSS. In its first year, GWS sawcustomer renewals and new contracts Controlsaccept 70% of GWS-recommended customer Johnson Controls is the global leadermeasures—up from 0% before—with some that brings ingenuity to the places wherenew contracts accepting 100% of GWS people live, work and travel. By integratingmeasures. “Global customer scorecards technologies, products and services, weprovide a competitive advantage to Johnson create smart environments that redefineControls,” says Mercier, and will set the the relationships between people andstage for global benchmarking of accounts their surroundings. Our team of 140,000by industry, by service type on standard employees creates a more comfortable, safemeasures. and sustainable world through our products and services for more than 200 millionOperational Efficiency and ROI vehicles, 12 million homes and one millionThrough rigorous examination, definition commercial buildings. Our commitmentand analysis of service delivery measures to sustainability drives our environmentalrequired in its contracts, GWS has improved stewardship, good corporate citizenshipits operating margins by eliminating in our workplaces and communities, andredundant measures at contract renewal, the products and services we provide towhile also reducing the number of measures customers. For additional information, pleaseit needs to track. Defining control parameters visit http://www.johnsoncontrols.com/.has also improved overtime management at With over $3 billion in revenue, Johnsonmultiple sites, and—most importantly--the Controls Global WorkPlace SolutionsActuate Performancesoft Views interface provides a single source for real estatehelps managers focus quickly on what needs portfolio management, design and projectto be fixed. These measures helped GWS management, strategic consulting, energyrealize $500,000 in return on investment in and facilities management services. ItNorth America in its first full year using Views currently manages over one billion squareas the performance scorecard. 3
  4. 4. Case Study: Johnson Controlsfeet of corporate real estate for some of theworld’s leading companies.About ActuateActuate Corporation is dedicated toincreasing the richness, interactivityand effectiveness of enterprise data, foreveryone, everywhere. Actuate deliversthe next generation RIA-ready informationplatform for both customer and employee-facing applications. The Actuate platformboasts unmatched scalability, high-performance, reliability and security.Its proven RIA capabilities and highlycollaborative development architectureare backed by the world’s largest opensource information application developercommunity, grounded in BIRT, the EclipseFoundation’s only top level BusinessIntelligence and reporting project.Global 9000 organizations use Actuate toroll out RIA-enabled customer loyalty andPerformance Management applications thatimprove customer satisfaction and employeeproductivity. The company has over 4,200customers globally in a diverse range ofbusiness areas including financial servicesand the public sector, many of which havea long history of deploying Actuate-basedsolutions for dozens, or even hundreds oftheir mission-critical applications. Foundedin 1993, Actuate has headquarters in SanMateo, California, with offices worldwide.Actuate is listed on NASDAQ under thesymbol ACTU. For more information onActuate, visit the company’s web site atwww.actuate.com. Actuate Corporation Tel: (888) 422-8828 2207 Bridgepointe Parkway Web: http://www.actuate.com Suite 500 4 San Mateo, CA 94404

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