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Leveraging Leading Indicators
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Leveraging Leading Indicators

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How to choose actionable & predictive metrics as leading indicators of your overall objectives. Setup key performance indicators, measurement dashboards, balanced scorecards, and management tools for …

How to choose actionable & predictive metrics as leading indicators of your overall objectives. Setup key performance indicators, measurement dashboards, balanced scorecards, and management tools for follow-through and accountability. Applies to ANY use of metrics.

See http://ClearActionCX.com

Published in: Business, Technology

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  • 1. www.ClearActionCX.com Leading Indicators How to Identify & Leverage Predictive Performance Metrics
  • 2. © Copyright ClearAction LLC. All rights reserved. Which Key Performance Indicators to Monitor?  MPH  $/Gal  MPG Objective: Minimize Costs Symptoms or Root Causes?
  • 3. Most Objectives Are Like Onions Many Layers Inside Inner Layers = Roots for New Growth! Most Visible Layer of Limited Use © Copyright ClearAction LLC. All rights reserved.
  • 4. © Copyright ClearAction. LLC All rights reserved. Customer Feedback Customer Perceptions 1) Capture Customer Inputs Lagging Indicators WHY VOC is a lagging indicator: Reveals what customers already think Customer Experience Improvement Model
  • 5. © Copyright ClearAction. LLC All rights reserved. Customer Feedback Action Plan Metrics Customer Perceptions 1) Capture Customer Inputs 2) Create Action Plans 3) Communicate Progress Lagging Indicators Leading Indicators WHY VOC is a lagging indicator: Reveals what customers already think WHY action plan metrics are a leading indicator: Predicts what customers will think Customer Experience Improvement Model
  • 6. Process Improvement at Root Level Market Results: Customer's View Quality Results: Manager's View Process Drivers: Team's View Root Causes: Leading Measures 1) Why? 2) Why? 3) Why? RootofProblem Service Too Expensive Under-Utilized Service Value Unappreciated Customer Data Not Integrated Overselling Communication Issue Incentives Not Balanced Instructions Not Clear 4) Why? Send root cause reports to originators Outdated Supply List © Copyright ClearAction LLC. All rights reserved.
  • 7. Root Causes of Symptoms Symptom: MPG Machines Management Environment Methods ManpowerMaterials Acceleration Deceleration Spark Plugs Oil Change Tire Pressure MPH Distractions Fuel Boost Hybrid Root Causes Are Leading Indicators © Copyright ClearAction LLC. All rights reserved.
  • 8. Hierarchy of Leading Indicator Dashboard Resources Skills Stake- holders Process Inputs Process Control Points Process Outputs Culture  Financial  Customer  Team How What Why Process Consequences Lagging Indicators Leading Indicators ‘What’ & ‘How’ Are Actionable © Copyright ClearAction LLC. All rights reserved.
  • 9. Resources Skills Stake- holders Culture How What Why Lagging Indicators Leading Indicators  MPH  Rates  Tires  Oil City Hi-way Accel Decel Heat Cold New Filter  $/Gal  MPG  Gal/$ w/MPG mgt Maintenance $ Time for appts. Do-it-yourself Driver expertise Other drivers Passengers No-rush attitude Attentiveness Example: Leading Indicator Dashboard Leading Indicators Predict Lagging Indicators © Copyright ClearAction LLC. All rights reserved.
  • 10. Top-Down Objectives & Bottom-Up Metrics © Copyright ClearAction LLC. All rights reserved. Corporate Objective 15% YoY C Sat Division Objective Process Improvements 1. Cascading Focus 2. Cascading Focus 3. Cascading Focus Department Objective Timely Responses Team Objective Confirm Solutions
  • 11. Top-Down Objectives & Bottom-Up Metrics © Copyright ClearAction LLC. All rights reserved. Corporate Objective 15% YoY C Sat Division Objective Process Improvements 4. Team Metrics % Resolved < 48 Hrs 1. Cascading Focus 2. Cascading Focus 3. Cascading Focus Department Objective Timely Responses Team Objective Confirm Solutions 5. Department Metrics % Response < 1 Wk 6. Division Metrics % Automation
  • 12. B CA D E Total Company BU #2 BU #3 BU #4BU #1Org A BUs BU #1 BU #1Org C BUs BU #2 BU #3 BU #4 BU #4BU #3BU #2Org B BUs Tracking Indicators in a Large Organization Maintains Management Support © Copyright ClearAction LLC. All rights reserved.
  • 13. Finances Typical Scorecard Metrics Customer People Operations Competitors Steward- ship  Revenue  Profit  Gross Margin  EPS  Stock Price  ROI  Payback  NPV  Satisfaction  Promoters  Lifetime Value  Turnover  Conversions  Share of Wallet  Satisfaction  Retention  Turnover  Training  Succession  Productivity  Efficiency  Inventory  Delivery Time  Cycle Time  Market Share  Win-Loss  Relative Quality  Relative IP  Environmental  Safety  Philanthropy  Association Involvement © Copyright ClearAction LLC. All rights reserved.
  • 14. Finances Balanced Scorecard Customer People Operations Competitors External Metrics Process Consequences Process Outcomes Process Inputs & Control Points Process Levers Stewardship © Copyright ClearAction LLC. All rights reserved.
  • 15. Workshops for Everyone to Improve CEM © Copyright ClearAction LLC. All rights reserved.
  • 16. Customer-Focused Problem Statement Root Cause Statement Root Cause Goal Goal Owner (Person) Goal Action Plan Action Owner (Person) Action Deadline (Date) Goal Impact 1) 2) 3) 4) Weave CEM into Staff Meetings, Ops Reviews © Copyright ClearAction LLC. All rights reserved. Root Cause Metric: ____________________
  • 17. Root Cause Metric: ____________________ Customer-Focused Problem Statement: Action Plan Action Owner Action Deadline Goal Impact 1) 2) 3) 4) 5) Root Cause Statement: Root Cause Goal: Goal Owner: Nurture Leading Indicators: Tashiro Chart What Gets Measured Gets Managed © Copyright ClearAction LLC. All rights reserved.
  • 18. Tips for Leading Indicators  Connect to big picture  Identify root causes  Focus on inputs & in-process Applications: ROI Productivity Quality Customer Focus Product Price Promotion Distribution SetUp  Levers: resources, skills, culture  Focus management support  Close loop to re-set perceptions 2-Way  Actionable – you control it  Predictive – early warnings  Leverage – clout, resources Value © Copyright ClearAction LLC. All rights reserved.
  • 19. ClearActionCX.com/cx-books If You Like These Concepts, Get the Book! 4 Keys Explained 10 Templates Step-by-Step Guidelines © Copyright ClearAction LLC. All rights reserved.
  • 20. Do you like these concepts? Let us help you master them to increase your company’s growth! Contact us today: OptimizeCX@ClearActionCX.com tel +1 408 687 9700
  • 21. ClearAction clients praise our insights on actionability & engagement “ClearAction taught us things that wouldn’t readily cross our minds and has increased our efficiency & accuracy in many areas. We highly recommend ClearAction as a business consultant.” “The cross-functional collaboration necessary to successfully manage the customer experience requires big picture, systems thinking. ClearAction brings very practical, well-thought out approaches to get the internal cooperation needed.” “ClearAction is very dependable and detail-oriented, and has an extremely high sense of integrity. There's no question ClearAction will do what's needed to ensure the work is done correctly and the client's best needs are taken into account.” © Copyright ClearAction LLC. All rights reserved. Page 21
  • 22. Consulting Roles We have provided ClearWisdom™ to dozens of companies Partial List© Copyright ClearAction LLC. All rights reserved. Page 22
  • 23. Customer Experience Optimization Talk Show Hear interviews with companies such as: Adobe, Aon, CenturyLink, Cisco, Citrix, Coca Cola Enterprises, Dell, EMC, GE, HP, ICW, Intuit, Kimpton, NCR, Philips, Safelite, Sungard, SunTrust, Symantec, TELUS, tw telecom, Virgin Mobile, Wells Fargo http://ClearActionCX.com/cx-podcasts e-books available at ClearActionCX.com/cx-books or Amazon Kindle: Metrics You Can Manage For Success Customer Experience Improvement Momentum Innovating Superior Customer Experience white paper available at ClearActionCX.com/cx-articles Employee Engagement in Superior Customer Experience: 4 Overlooked Key Competencies for Sustainable Results Resources about customer experience optimization See more at http://ClearActionCX.com/best-practices © Copyright ClearAction LLC. All rights reserved. Page 23
  • 24. © Copyright ClearAction LLC. All rights reserved. Page 24
  • 25. For More About Customer Experience: www.ClearActionCX.com/best-practices OptimizeCX@ClearActionCX.com tel +1 408 687 9700