Booz & CO control-service-costs-gain-competitive-advantage

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The effective management of service operations is crucial
if companies are to control their labor costs and improve
customer satisfaction. The challenge is to achieve both goals
simultaneously. For executives to successfully meet this dual
challenge, service operations must be analyzed and optimized
by holistically addressing the six drivers of high-quality,
cost-effective service: product and process design; servicelevel labor requirements; service and distribution network
structure; process management; workforce management; and
measurement and compensation

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Booz & CO control-service-costs-gain-competitive-advantage

  1. 1. Perspective Harry Hawkes Curt Bailey Patricia Riedl Vikas BhallaControl Service Costs,Gain CompetitiveAdvantageA Winning Playbookfor Service Operations
  2. 2. Contact InformationChicago Houston San FranciscoCurt Mueller George Appling Curt BaileyPartner Partner Partner+1-312-578-4517 +1-713-650-4143 +1-415-263-3701curt.mueller@booz.com george.appling@booz.com curt.bailey@booz.comPatricia Riedl London Doug HardmanPrincipal John Potter Partner+1-312-578-4647 Partner +1-415-281-4948patricia.riedl@booz.com +44-20-7393-3736 douglas.hardman@booz.com john.potter@booz.comClevelandHarry Hawkes MumbaiPartner Abhishek Malhotra+1-216-696-1574 Partnerharry.hawkes@booz.com +91-22-6128-1104 abhishek.malhotra@booz.comFlorham Park, NJBarry Jaruzelski New YorkPartner Richard Kauffeld+1-973-410-7624 Partnerbarry.jaruzelski@booz.com +1-212-551-6582 richard.kauffeld@booz.com Vikas Bhalla Senior Associate +1-212-551-6735 vikas.bhalla@booz.com Booz & Company
  3. 3. EXECUTIVE The effective management of service operations is crucial if companies are to control their labor costs and improveSUMMARY customer satisfaction. The challenge is to achieve both goals simultaneously. For executives to successfully meet this dual challenge, service operations must be analyzed and optimized by holistically addressing the six drivers of high-quality, cost-effective service: product and process design; service- level labor requirements; service and distribution network structure; process management; workforce management; and measurement and compensation.Booz & Company 1
  4. 4. THE DUAL Service operations can have an out- sized effect on customer acquisition Many companies have successfully transformed their manufacturing,CHALLENGE and retention. When service levels R&D, and other product-orientedOF SERVICE and costs are properly balanced and optimized, they can deliver a sub- functions, but far fewer have optimized their service opera-OPERATIONS stantial and sustainable competitive tions. Meanwhile, executives across advantage that competitors will find industries are finding it increas- hard to match. ingly challenging to manage service costs—especially labor, the largest Service operations touch multiple cost component of service—while areas of most organizations, includ- maintaining service levels. Recent ing client service, customer experi- technological advances have helped ence, field service, business support contain service costs by reducing functions, and back office services. or eliminating human intervention, They represent a large and grow- resulting in higher overall produc- ing percentage of the cost structure tivity. For example, airlines, banks, in many companies. They are often and hotels have successfully adopted very labor-intensive and complex self-service kiosks. But technology is to manage. When they require high only one part of the solution. levels of customer interaction or added value, they can be difficult to Maintaining service levels can be outsource. And because repetition critical to business success. In many and consistency are often hallmarks companies, service is the primary of excellence in service operations, revenue-generating activity; in the they can become mired in the status United States, for example, ser- quo, making step-change improve- vice businesses now account for a ments extremely hard to achieve, majority of GDP and employment. even when they are clearly in the Moreover, companies in every sector best interests of customers and of the global economy maintain the company. essential customer-facing functions Executives across industries are finding it increasingly challenging to manage service costs while maintaining service levels.2 Booz & Company
  5. 5. and processes. Without first under- costs to meet higher profitability tifying and capturing opportunitiesstanding your customer segments, expectations. Whether the business for improvement. Toward that end,what their potential lifetime value is, is a retailer considering optimum Booz & Company has developed aand how to design a tailored set of sales floor coverage, a hospital framework to help them simultane-service models to suit them, running seeking to improve care delivery by ously attack service costs and effec-a profitable service operation will be better utilizing nurses and beds, a tively meet customer requirements.very difficult. For example, front- hotel trying to reduce check-in times The framework encompasses the sixdesk performance is strategically (or upgrade customers), or a manu- principal drivers of service qualityimportant in the hotel and gaming facturer trying to deliver technical and costs (see Exhibit 1). Althoughindustry, as this is often where the support in global markets, the lead- all of the drivers may not be relevantcustomer experience begins - par- ers of the organization must under- to all companies, leaders who iden-ticularly for high value customers. stand and manage the factors that tify and manage the drivers that doExecutives must maintain service affect service delivery and costs in a affect their companies will be able tooperations in order to deliver the rigorous and holistic manner. reconcile the conflicting mandatescustomer value on which revenues of service operations and deliverand market share depend, and they Service operations leaders must high-quality, cost-effective servicemust simultaneously reduce service develop strategies capable of iden- to their customers.Exhibit 1The Quality and Cost Drivers of Service Operations G 1 1 - Improve product architecture through product customization and overall configuration management a Product & Process - Analyze and improve mean time before failure (MTBF) and mean time to repair (MTTR) at the product level Design - Embed remote service capabilities in products and processes - Develop comprehensive end of life (EOL) and total cost of ownership (TCO) strategies 3 - Implement self-service technologies - Design processes to produce high-quality outputs and eliminate rework 2 - Match the job requirements to customer needs, desires, and expectations Service-Level Labor - Match the employee to the job requirements Requirements - Align operating hours and service windows with customer demand patterns A 3 - Consolidate across geographic and functional dimensions - Service & Distribution - Make appropriate repair-versus-return tradeoffs - Network Structure - Balance service levels and utilization across geographies - Determine the proper mix of service sourcing L - - 4 - Dynamically baseline all service operations processes Process - Eliminate waste and standardize whenever possible Management - Measure process outputs in real time and pursue continuous improvement L L 5 - Determine the total labor hours required N Workforce - Determine the optimal mix and scheduling of full-time and part-time employees P Management - Identify and manage the trade-offs between employee turnover and career development investments o f T 6 - Identify key performance drivers and define metrics based on those drivers Measurement & - Cascade those metrics through the organization, eliminating extraneous data collection A Compensation - Align compensation and reward systems with desired employee behaviorsSource: Booz & CompanyBooz & Company 3
  6. 6. DRIVER 1: The foundation for high-quality, cost-effective service operations is Improve product architecture through product customization andPRODUCT AND established during the design phase overall configuration management.PROCESS DESIGN of products and processes. Product and process design affects quality For example, by continuously assessing potential computer con- and total service costs in significant figurations, a computer equipment ways. In particular, it can reduce company discovered that it could service costs early in product and save an average of US$6 per com- process life cycles by reducing puter simply by installing its largest defects during their launch phases, hard drive in each unit. The savings and it can reduce total service included reductions in service costs costs by shrinking their maturity (stemming from simplified repairs), curves. Gains can be captured in the in order processing, and in technical following ways: support services. Design can reduce service costs early in product and process life cycles by reducing defects during their launch phases.4 Booz & Company
  7. 7. Analyze and improve mean time customer satisfaction and loyalty. Implement self-service technologies.before failure (MTBF) and mean For example, many production Self-service technologies—such astime to repair (MTTR) at the equipment manufacturers are using bank ATMs, grocery self-checkouts,product level. remote services to increase equip- and automated tech support—reduceAnalysis often reveals huge varia- ment uptime, which enhances the manual support requirements andtions in MTBF and MTTR across productivity of their customers and labor costs in a variety of settings.product types. For example, a second lowers their own service costs. Properly applied, they can alsocomputer equipment company dis- improve customer satisfaction andcovered that the MTTR of its third- Develop comprehensive end of life retention.party products was twice as long (EOL) and total cost of ownershipas that of its internally developed (TCO) strategies. Design processes to produce high-products. The main causes of this For some products, such as photo quality outputs and eliminatevariation were product designs that printers, servicing and repair can rework.made repairs more difficult, a lack of make up the largest portion of their Poor process design can lead toservice technician training, and the total cost. Thus, significant sav- increased rework and lower pro-infrequency of service requests on ings can be realized by analyzing ductivity, especially when manualthe third-party products. and reshaping the product life cycle intervention is required. Companies to improve steady-state reliability. have become increasingly aware ofEmbed remote service capabilities in Apple, a pioneer in this area, has this issue and are trying to addressproducts and processes. adopted very short product life it through programs such as DesignRemote services, including diagnosis cycles (13.9 months on average) that for Six Sigma (DFSS). For example,and repair capabilities that are built seek to shrink post-launch maturity a large managed services companyinto products and processes, can curves with aggressive quality tar- used DFSS to redesign processessimultaneously reduce service costs gets at product launch (1,200 ppm). in its mail center operations and(right part, right place) and enhance reduced rework by 30 percent.Booz & Company 5
  8. 8. DRIVER 2: Do customers desire a full-service experience or do they prefer to shop been done by assistant managers. As a result, overall labor costs wereSERVICE- on their own? Are they technologi- reduced by 4 percent with no adverseLEVEL LABOR cally sophisticated or do they require step-by-step support? Whatever the effect on performance.REQUIREMENTS answers to questions like these, the Align operating hours and service customer should be the primary windows with customer demand determinant of job requirements in patterns. service operations. Service operations leaders analyze usage patterns and consider themTypically, labor is the largest cost in Match the employee to the job in light of corporate targets, suchservice operations and a key driver requirements. as market share and revenue goals,of customer satisfaction. The chal- Companies cannot afford to staff to ensure the proper service cover-lenge is finding the mix of labor that service operations with employees age. One company with a large andenables a company to meet customer who are either over- or under- active mailroom undertook such anservice costs effectively while operat- qualified for their jobs. They should analysis and discovered that mis-ing within regulatory and contrac- rationalize their management alignments in its service coveragetual constraints. This challenge can structures and ensure that the tasks were resulting in unnecessary idlebe met in the following ways: that employees perform are prop- time at some times of the day and erly matched to their abilities. For excessive backlogs at other times. ByMatch the job requirements to example, one retailer recently hired realigning coverage with demand, itcustomer needs, desires, and part-time employees to perform was able to eliminate both problemsexpectations. routine tasks that had previously (see Exhibit 2).Exhibit 2Mailroom Capacity Analysis 11.0 million = S ORIGINAL COVERAGE REALIGNED COVERAGE aölkdfölka = Capacity Planning Capacity Planning (100% Full-Time Employees) (70% Full-Time and 30% Part-Time Employees) 32.8% = Mail Volume Mail Volume 220 220 30.1% = j 200 200 180 180 Reduced Idle Capacity 160 160 TABLE HEADINGS 140 140 120 120 A4 format: 100 100 - width for 3 columns: 1 Idle Capacity 80 80 - width for 2 columns: 1 60 60 40 Letter format: 40 - width for 3 columns: 1 20 20 - width for 2 columns: 1 0 0 9A 10A 11A 12P 1P 2P 3P 4P 5P 6P 7P 9A 10A 11A 12P 1P 2P 3P 4P 5P 6P 7P Lines: 0,5 pt Inflow Capacity Backlog Lines for legend: 0,5 pt Note:Source: Booz & Company Please always delete all otherwise InDesign will i file. These colors can’t be d Approved Colors, Tint6 Booz & Company
  9. 9. DRIVER 3: Consolidate across geographic and functional dimensions. support, while creating functional scale that enhanced its ability toSERVICE AND In order to optimize asset utilization implement advanced technologyDISTRIBUTION and minimize fixed overhead costs in service operations, companies should solutions in a cost-effective way.NETWORK analyze their market coverage and Make the repair-versus-returnSTRUCTURE service footprints. Such an analysis helped one service outsourcer realize choice. The choice between repair and that it was maintaining two separate replacement will differ across organizations to provide hardware companies based on costs, service- installation and repair service in level expectations, and customer the same geographic areas. This types. But it is important to model had enabled fast response determine which option is more cost- in the past, but with the volume of and quality-effective and implementOver time, as business and economic service requests in decline, it made it. When making this choice, it isgrowth rates vary, mergers and more sense to consolidate the two critical to take a comprehensive viewacquisitions occur, and companies organizations. across the full product life cycle.change their product mix and marketfocus, service and distribution Companies can use shared-services Balance service levels and utilizationnetwork costs can get out of whack. models to significantly reduce across geographies.Management coverage can become overhead costs. For example, an The efficiency of service operationsexcessive, idle time can rise, and information management company tends to vary greatly amongunnecessary facility expenses traditionally maintained dedicated geographic locations. For example,can be incurred. The operational support functions within each of the information managementand cost effectiveness of service its business units. By consolidating company used workforceand distribution networks can be and centralizing these functions, the optimization software to conductimproved in the following ways: company reduced the total cost of a resource density analysis andBooz & Company 7
  10. 10. discovered that its field technician proper tracking and reporting density due to their lack of scale,utilization levels were low overall processes in place to recognize and and this can be a good decisionand that there was no correlation improve field service performance. in situations where the servicebetween field tech utilization and being provided is standardizedcustomer density (see Exhibit 3). In Determine the proper mix of service and easily monitored, and servicefact, utilization in some areas with sourcing. part complexity is not too extreme.low customer densities was greater Outsourcing will often produce However, it may not be a good choicethan utilization in areas with high short-term cost savings, but if when services require high customercustomer densities. This suggested it negatively affects customer touch or complex capabilities. Thethat the performance of field satisfaction and the company’s right mix of sourcing balancesmanagement was a primary factor in competitive position, it can be low costs and service quality in athe company’s service tech utilization counterproductive in the long term. way that enhances a company’slevels, and senior management Many companies outsource field tech competitive advantage.realized that it did not have the services in areas with low customerExhibit 3Resource Density Analysis at an Information Management Company Group Clusters Field Reps Utilization Utilization Low utilization in high-density 120% Low Density 62 176 51% clusters is an indicator of overcapacity 100% Medium Density 45 290 56% 80% High Density 17 251 52% 60% Total 124 717 53% 40% 20% Potential for utilization Low Density improvement 0% Medium Density 0 2 4 6 8 10 12 14 16 18 20 22 24 High Density Field Techs per Geographic ClusterSource: Booz & Company8 Booz & Company
  11. 11. DRIVER 4: The management of service opera- tions processes after they are Companies should identify any process steps that can bePROCESS designed and in place can have an standardized across customersMANAGEMENT enormous impact on their cost and effectiveness. Gains can be captured and geographies. Process standardization, and automation in the following ways: when possible, can reduce labor requirements and enhance customer Dynamically baseline all service satisfaction. For example, one operations processes. regional hospital reduced the waiting Service processes are rarely static; time for new admissions from 4.5 they change in response to the needs hours to 1.5 hours by standardizing of the business and its customers. the admissions approval process. As a result, the first step in manag- ing service processes is mapping Measure process outputs in real time them and measuring their outputs. and pursue continuous improvement. Through such a baselining effort, Companies can optimize both cost a major hotel operator was able to and service levels by continually identify the critical path tasks in its measuring and improving processes. front-desk operations that promised Continuous improvement is a to improve guest satisfaction and widely accepted idea, but in eliminate nonessential activities many companies, it will require while significantly cutting costs. the development of a culture that supports it. Further, service Eliminate waste and standardize processes need gatekeepers, who whenever possible. hold decision rights over process There are many kinds of waste changes and are accountable for associated with service operations their performance. Without these processes that can be driven out to gatekeepers, the time and effort enhance service quality and lower devoted to improving processes can costs. There could be waste in the be wasted, as in the case of a retailer process due to unsatisfied demand, in which one team worked hard to overproduction, or delays. For exam- reduce non-value-added register ple, one retailer installed a conveyor pop-ups, only to find out later that belt to reduce the non-value-added another team had been implementing movements in the process used to new non-value-added pop-ups at the deliver products to the cashier. same time. Process standardization, and automation when possible, can reduce labor requirements and enhance customer satisfaction.Booz & Company 9
  12. 12. DRIVER 5: The productivity of employees is a major consideration in all service a detailed model, based on unique store demand patterns, to calculateWORKFORCE operations, especially those in the necessary staffing required toMANAGEMENT which the workforce is large and decentralized. To optimize employee manage its truck tire service centers, generating a 12 percent savings in productivity, decision makers can labor costs. take the following actions: Determine the optimal mix and Determine the total labor hours scheduling of full-time and part- required. time employees. Labor hours can be calculated in a Once labor hours per location are bottom-up manner, by identifying determined, management should labor drivers and creating a robust consider how the hours should be model for determining task times apportioned between full-time and and frequencies, or in a top-down part-time employees, and how these manner, based on comparisons of employees should be scheduled to operational performance to labor meet customer demand and fulfill hours. Either method can be used operational activities. For example, to accurately assign labor hours at when one hotel studied the check-in the location level, but the bottom-up process, it discovered that many approach offers an additional benefit guests were experiencing check-in in that it allows the modification of waits of more than 20 minutes. labor hours as input drivers change. Further analysis revealed that For example, one company created having just one less employee could10 Booz & Company
  13. 13. add more than 10 minutes to the Identify and manage the trade-offs specific needs of employees. Foraverage wait time. A significant between employee turnover and instance, retailers may want tonumber of guests waited so long career development investments. limit development opportunities inthat many of them did not intend to entry-level service positions, suchreturn. However, with the addition Service operations should tailor as clerks, which are subject to highof just five part-time employees benefits, training, and career turnover rates. Conversely, theyduring peak periods, an additional development to specific employee might choose to invest in promisingexpenditure within the hotel’s cohorts. They should also weigh team leaders, who are interestedbudget, more than 90 percent of development investments based in advancing through the ranks ofguests could be checked in with less on the macro conditions in management, and in store managers,than a 15-minute wait. their industry and the position- who are less likely to change jobs. Service operations should tailor benefits, training, and career development to specific employee cohorts.Booz & Company 11
  14. 14. DRIVER 6: Unfortunately, few service opera- tions and companies have robust Misaligned incentives create the risk of driving the wrong employeeMEASUREMENT performance measurement and behaviors, a condition that resultsAND compensation structures. Most fall into one of three groups: those that in increased labor costs, decreased service levels, and low employeeCOMPENSATION track metrics in a consistent way at morale and retention rates. To avoid all levels, but have not aligned their these outcomes, service operations compensation systems to the metrics; must ensure that their metrics (and, those that track metrics, but use thus, performance goals) are aligned inconsistent definitions across levels; with the critical drivers of business and those that don’t track metrics at performance. all. Nonexistent, inappropriate, or inconsistent measurements result in Cascade those metrics through the missed improvement opportunities, organization, eliminating extraneous the inability to understand if process data collection. changes are working, and ineffective Most service organizations, espe- decision making. To properly align cially in the retail sector, are drown- measurement and compensation ing in data and collecting more every systems, executives can take the fol- day, but are thirsty for insights. lowing actions: To avoid this dilemma, companies should identify the data that is most Identify key performance drivers and relevant to their service operations define metrics based on those drivers. performance and ensure that it is Misaligned incentives can result in increased labor costs, decreased service levels, and low employee morale and retention rates.12 Booz & Company
  15. 15. properly collected and utilized (see By clearly defining compensation bands can create wide variations in Exhibit 4). It is important to collect and rewards, and communicating the cost among similarly skilled employ- non-financial data, such as customer metrics that determine them, service ees; and that market-based salary profitability and customer satisfac- operations can stimulate employee reference points are often inflated tion, as well as key financial and motivation and provide the clar- and thus serve as a poor guide to operational indicators. Data should ity that people need to change their compensation. To address the prob- cascade from the bottom to the top behaviors. lems that result from unsupportedd Reps Utilization of the organization so it can be ana- assumptions, companies can act with76 51% lyzed and responses can be crafted. Further, service operations managers varying levels of aggressiveness to90 56% Then the responses need to cascade should work with HR to take a more reduce labor costs, depending on back down through the organization proactive role in establishing and various internal and external factors51 52% so they can be executed and their managing compensation and reward including individual performance,17 53% results measured. systems. They should recognize that salary benchmarks, the financial tenured workforces come at a higher condition and goals of the company, Potential for utilization Align compensation and reward cost that often cannot be justified in and labor supply conditions.1 improvement systems with desired employee terms of performance; that the lack behaviors. of salary caps and compensation Exhibit 4 A Cascade of Data and Insight RESPONSES DATA Senior Management Metrics Operating income/location Indicator Metrics Gross revenue/locatione Direct cost/location Indirect cost/locationAmerica Detailed Metrics Asia/Pacific Revenue/FTE/day Transactions/FTE/day Profit/FTE/day Customer satisfaction % of gross revenue sold % of gross revenue score at full price discounted > 30% Data Average wage # of employees/ % of employees Average wage Average tenure Percentage of rate by position location full-time rate/employee of employees repeat customers in market # of competitor Average customer Average Customer density locations in Age of location Size of location income & profit basket value in trade area trade area Source: Booz & Company Booz & Company 13
  16. 16. Service strategy success always must be able to execute the changesIN PURSUIT OF comes down to execution. The six necessary to achieve cost-effectiveHIGH-QUALITY, quality and cost drivers of service operations provide a comprehensive service levels—and change is never an easy undertaking.COST-EFFECTIVE approach for improvement. However,SERVICE understanding the drivers is only one part of the service cost equation. As service operations leaders approach the quality and cost Executives must recognize which challenge, they should pay particular drivers to address given their unique attention to the first two drivers: organizational goals and structures product and process design and and prioritize them. Then they service-level labor requirements. Too The six quality and cost drivers of service operations provide a comprehensive approach for improvement.14 Booz & Company
  17. 17. often, these drivers are overlooked approached as separate silos, they • Prioritize the set of levers requiredbecause they must be activated in can often work at counter-purposes to drive the change. Identifyingthe design stage of products and to one another. For example, the full which of the above strategies areprocesses—a stage in which service power of continuous improvement most relevant to service costsmanagers have not traditionally initiatives in process management within your organization will helpparticipated. This is a mistake, will be stifled if employees are maximize the impact of change andbecause once costs are built into compensated only on the volume avoid unnecessary effort.products and processes, it is always of their output. They won’t takemore difficult to eliminate them. the time to eliminate waste and • Designate an experienced andSavvy service leaders recognize streamline their processes if they are respected executive to lead thethis and are proactive in bringing penalized financially. Savvy service transformation, supported bythe cost consequences (and the leaders recognize the interconnected a dedicated core team. Changeappropriate revenue implications) nature of these four drivers and is most effectively driven fromof design decisions to the attention approach them in an integrated and the top of the organization andof senior management before they holistic manner. requires the support of a skilledbecome set in stone. team that is capable of identifying Finally, service leaders must opportunities, understandingThe remaining four drivers—service consider the ever present challenge constraints, and communicatingand distribution network structure, of implementation and execution. with employees at all levels.process management, workforce Rigorous analytics and detailedmanagement, and measurement improvement plans are of little • Work closely with HR andand compensation—are the levers consequence if they can’t be employee relations throughout thethat service leaders can pull to translated into action and results. change. HR and employee relationsimprove the quality and cost of To avoid this, service leaders should can provide valuable assistanceexisting operations. But if they are adopt the following best practices: in handling sensitive issues (suchBooz & Company 15
  18. 18. as workforce reductions and demands of the initiative. For employees to actively participate in adjustments to compensation instance, an initiative that depends the execution of the strategy. systems), identify creative resource on employee participation will solutions, and ensure that all require a management framework High-quality, cost-effective service is employees are treated fairly. that motivates, educates, and essential to corporate success, but it empowers employees. is particularly challenging to achieve.• Develop a road map at the level of Defining unique customer segments detail required to drive execution, • Conduct multiple pilot programs and models to profitably serve them including agreed-on milestones. (launch and learn). Pilots are requires frequent analysis. Service This road map should identify extremely valuable in identifying workforces tend to be large with critical path tasks and deadlines, implementation issues, building high turnover rates and are difficult provide the flexibility needed to success stories, and streamlining to mobilize. Service processes are manage special cases, and include the rollout plan. complex and often dependent on a communication plan for ensuring the consistent execution of many that all employees are informed of • Create a detailed training plan. detailed steps. And “big bang” key changes in a timely manner. Gaining traction early on through solutions to cost reduction are rare. focused training is an effective Nevertheless, companies that take• Adopt the right change investment in the long-term a measured and comprehensive management framework. To strategy. approach to delivering service can ensure success in large-scale service improve their bottom lines and transformations, the management • Provide the right incentives and gain a hard-to-match competitive framework used to undertake this motivators. Use incentives and advantage in the marketplace. change should match the change other motivators to encourage16 Booz & Company
  19. 19. Endnote1 For more information, see “Retooling Labor Costs: How to FixWorkforce Pay Structures,” by Harry Hawkes, Albert Kent, VikasBhalla, and Nicholas Buckner (www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/48599052).About the AuthorsHarry Hawkes is a partner with Patricia Riedl is a principalBooz & Company based in with Booz & Company basedCleveland. He leads the firm’s in Chicago. She works withglobal operations and perfor- consumer packaged goodsmance improvement practice and retail clients on laborfor the media and entertain- optimization and supply chainment industries. improvement strategies.Curt Bailey is a partner with Vikas Bhalla is aBooz & Company based in Booz & Company seniorSan Francisco. He focuses associate based in New York.on operational performance He has more than 10 years ofimprovement in the healthcare experience in developing andindustry. implementing both growth and operations strategies for companies in the consumer/ retail, media, digital, and health industries.Booz & Company 17
  20. 20. The most recent Worldwide Officeslist of our officesand affiliates, with Asia Bangkok Helsinki Middle East Florham Parkaddresses and Beijing Brisbane Istanbul Abu Dhabi Houstontelephone numbers, Delhi Canberra London Beirut Los Angelescan be found on Hong Kong Jakarta Madrid Cairo Mexico Cityour website, Mumbai Kuala Lumpur Milan Doha New York Citywww.booz.com. Seoul Melbourne Moscow Dubai Parsippany Shanghai Sydney Munich Riyadh San Francisco Taipei Oslo Tokyo Europe Paris North America South America Amsterdam Rome Atlanta Buenos Aires Australia, Berlin Stockholm Chicago Rio de Janeiro New Zealand & Copenhagen Stuttgart Cleveland Santiago Southeast Asia Dublin Vienna Dallas São Paulo Adelaide Düsseldorf Warsaw DC Auckland Frankfurt Zurich DetroitBooz & Company is a leading global managementconsulting firm, helping the world’s top businesses,governments, and organizations. Our founder,Edwin Booz, defined the profession when he estab-lished the first management consulting firm in 1914.Today, with more than 3,300 people in 61 officesaround the world, we bring foresight and knowledge,deep functional expertise, and a practical approachto building capabilities and delivering real impact.We work closely with our clients to create and deliveressential advantage. The independent White Spacereport ranked Booz & Company #1 among consult-ing firms for “the best thought leadership” in 2010.For our management magazine strategy+business,visit www.strategy-business.com.Visit www.booz.com to learn more aboutBooz & Company.©2010 Booz & Company Inc.

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