Leveraging Leading Indicators

Leveraging Lea ading Indicators Lynn Hunsaker Strateg Customer Experience Mentor gic g p Author: • Metrics Yo Can Manage For Success ou • Customer Experience Improvement Momentum • Innovating Superior Customer Experience g www.ClearAction.biz See Creative Commons License: http://creativecommons.or rg/licenses/by-nc-nd/3.0/us/ © 2008 ClearAction. All rights reserved.

Example: 'Peel ling The Onion' Root Causes: Process Drivers: Leading Team's Quality Results: Measures Measures Manager's Frequency: F Measures Supply List Outdated Supply List Wrong Market Results: Distribution Customer's Item Code Measures Lack of Ordered Order Training g Wrong Part g Accuracy 1) Why? Missing Item Code Delegated Allowed by Coding Procedures 2) Why? Root Out Problem 3) Why? © 2008 ClearAction. All rights reserved.

Root Causes of Symptoms Root Causes Are Le eading Indicators Machines Management Environment MPH Oil O Change Hybrid Tire Pressure Symptom: MPG Spark Plugs Acceleration Distractions Fuel Boost Deceleration Materials Methods Manpower © 2008 ClearAction. All rights reserved.

Hierarchy of Leading Indicator Dashboard g ‘What’ & ‘How’ Ar Actionable re Lagging Process Indicators Consequences C q Why Financial Process Customer C t Outputs Team Leading Indicators Proc cess Process Inputs Control What Points How Resources Skills Stake- Culture holders © 2008 ClearAction. All rights reserved.

Example: Leading I Indicator Dashboard Leading Indicators P Predict Lagging Indicators Gal/$ G Lagging w/MP mgt PG Indicators Why $/Gal MPG Leading MPH Rattes Tires Oil Indicators City Hi-way Accel DDecel Heat Cold New Filter What Resources Skills Stake- Stake Culture How holders Maintenance $ Do-it-yo ourself No-rush attitude Time for appts. Driver ex xpertise Other drivers Attentiveness Passengers © 2008 ClearAction. All rights reserved.

Cascading Objectives Worksheet: Initiative s Initiative Goal 6. Near-End Metrics Near-End Goal N E dG l 5. Interim Metrics 1. Cascading Focus Interim Goal 4. Initial Metrics 2. Cascading Focus Initial Goal 3. 3 Cascading Focus © 2008 ClearAction. All rights reserved.

Cascading Objectives W Worksheet: Organization Corporate Goal 6. Division Metrics Division G l Di i i Goal 5. De epartment Metrics 1. Cascading Focus Department Goal 4. 4 Team Metrics 2. Cascading Focus Team Goal 3. 3 Cascading Focus © 2008 ClearAction. All rights reserved.

Tracking Indicators in a Large Organization n Maintains Management Support Total Compa y pany A B C D E Org A BUs BU #1 BU B #2 BU #3 BU #4 Org B BUs BU #1 BU B #2 BU #3 BU #4 Org C BUs BU #1 BU B #2 BU #3 BU #4 © 2008 ClearAction. All rights reserved.

Typical Score ecard Metrics Steward- Finances Customer People Operations Competitors ship • Revenue • Satisfaction • Satisfaction • Productivity • Market Share • Environmental • Profit • Promoters • Retention • Efficiency • Win-Loss • Safety • Gross Margin • Lifetime Value • Turnover • Inventory • Relative • Philanthropy • EPS • Turnover • Training • Delivery Time Quality • Association • Stock Price • Conversions • Succession • Cycle Time • Relative IP Involvement • ROI • Share of Wallet • Payback • NPV © 2008 ClearAction. All rights reserved.

Balanced S Scorecard Finances Customer People Operations Competitors Stewardship External Metrics Process Consequences Process Outcomes Process Inputs & Control Points Process Levers © 2008 ClearAction. All rights reserved.

Nurture Leading Indic cators: Tashiro Chart What Gets Measure Gets Managed ed Root Cause Metric: ____________________ Customer-Focused Problem Statement: Root Cause Statement: Root Cause Goal: Goal Owner: Action Plan Action Owner Action Deadline Goal Impact 1) 2) 3) 4) 5) © 2008 ClearAction. All rights reserved.

Summary: Connected, Actionable, Predictive Big P Picture Meas sures Actio onable Meas sures Pred dictive Meassures Lagging Lagging Gasoline Customer's Verify Expenses Measure Closed Loop Experience Measure Impact Trends Communication via Survey Car Miles per On-Time Satisfaction Maintenance Create Gallon Delivery Ratings Create Action Plans Action Plans Leading Lagging Leading Lagging © 2008 ClearAction. All rights reserved.

Tips for Leadi Indicators ing Applications: SetUp Connect to big picture C Identify root causes ROI Focus on inputs & in-process F y Productivity Quality 2-Way Levers: resources, skills, culture L Customer Focus Focus management support F Product Close loop to re-set perceptions C Price Promotion Value Actionable – you control it A y Distribution Predictive – early warnings P Leverage – clout, resources L www.clearaction.biz/metrics-incentives © 2008 ClearAction. All rights reserved.

Customer Experi ience Resources Podcasts clearaction.podomatic.co clearaction podomatic co om Blog customerexperience.vox.com blogtalkradio.com/customerexperience blogtalkradio com/customerexperience Every Month slideshare.net/clearaction slideshare net/clearaction brighttalk.com/channels/2107/view © 2009 ClearAction. All rights reserved.

Testim monials • “ClearAction taught us things that wouldn’t readily cross our minds t and has increased our efficiency & accuracy in many areas y • We highly recommend ClearActio as a business consultant” on • “ClearAction’s assistance was he elpful • We look forward to working together in future” • “Lynn is a superb strategist, diagn nostician, facilitator & team player • She is the Sh i th most k t knowledgeable p f l d bl professional I k i l know in intertwining voice of the customer and marketing operations” © 2009 ClearAction. All rights reserved.

CEM Mentoring • Cle early see what’s needed to take imm mediate action CEM Enabling • C Clear the way for f organization-wide action i ti id ti 1-877-CEM-RO toll-free OI-4 1-408-687-97 direct 700 Lynn.Hunsaker@C ClearAction.biz © 2009 ClearAction. All rights reserved.

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Leveraging Leading Indicators

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