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Focus on the Fundamentals vtg

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Parts manager's meeting -- May 25th 2010

Parts manager's meeting -- May 25th 2010

More in: Business , Education
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  • 1. Focus on the Fundamentals
  • 2. During the past 21 years… CEO of two large companies Owned four small businesses Read a minimum of 100 business books a year, every single year!
  • 3. For the past 16 years…
  • 4. What does this mean to me? How can I use this idea? What can I do right away?
  • 5. The Four – I’s
    • Ignorance
    • Inflexibility
    • Indifference
    • Inconsistency
  • 6. How to avoid the Four I’s
    • Aggressive external market focus.
    • Aggressive customer focus.
    • Keep the “Main Things” the main things.
    • Bullish on knowledge sharing and learning.
    • Passion and commitment at all levels.
    • Foster a healthy paranoia.
    • Revel in change.
      • be agile, adaptive, and anticipatory.
  • 7. T + C x ECF = Success
  • 8. Anne Mulcahy CEO of Xerox and the third most powerful woman in the world!
    • Build a network of great relationships with people who want to see you succeed.
    • You don’t have all of the answers, so ask for help and advice from the smartest people you can find.
    • Learn to be a learner.
    • Listen intently to your employees and to your customers.
    Some really great advice…
  • 9. What does it take to be a valued member of a team? Develops and display competence. Follows through on commitments. Delivers required results. 100% integrity / honesty. Enjoyable to work with – positive attitude. Passionate about their work and those they serve. Communicates and keeps everyone informed. Helps the other members of the team. Is proactive – looks for responsibility. Creative and innovative. Share ideas, information and credit. Hold themselves 100% accountable. Team Leaders are: Rigorous… but not ruthless
  • 10.
    • Lack of TRUST
    • Lack of candor
    • Lack of commitment
    • Lack of accountability
    • Lack of results
  • 11. Competence Respect Distrust Affection TRUST HIGH LOW LOW HIGH Concern The 4 C’s of Trust
  • 12. John Spence High-Performance Team Model
    • D
    • M
    • C
    • C
    • M
    • D
    irection – vivid, clear, inspiring --- shared easurements – specific, observable, focused ompetence – very good at what they do ommunication – open, honest, courageous utual Accountability – all team members iscipline – do this every day
  • 13. 4-Level Decision Making
    • You own it.
    • Ask for input… you own it.
    • Team decision… I own it.
    • My call… I own it.
    • Empowerment + Accountability
  • 14. The 4 Pieces of Paper
  • 15. 11 Key Team Competencies:
    • Setting clear, specific and measurable goals.
    • Making assignments extremely clear and ensuring required competence.
    • Using effective decision making processes within the team.
    • Establishing accountability for high performance across the entire team.
    • Running effective team meetings.
    • Building strong levels of trust.
    • Establishing open, honest and frank communications.
    • Managing conflict effectively.
    • Creating mutual respect and collaboration.
    • Encouraging risk-taking and innovation.
    • Engaging in ongoing team building activities.
    1 - 10
  • 16. T + C x ECF = Success
  • 17. 74% 23,000,000
  • 18. 88%
  • 19. What they look for in a leader… Credibility
    • Honest
    • Forward-looking
    • Competent
    • Inspiring
  • 20. The key elements of a winning culture: Employees
    • Fun
    • Family
    • Friends
    • Fair
    • Freedom
    • Pride
    • Praise
    • Meaning
    • Accomplishment
  • 21.
    • Ownership Mentality
    • Sense of Urgency
    • Disciplined Execution
    • Accountability
    • Continuous Innovation
    • Customer Focus
    The key elements of a winning culture: Company
  • 22. T + C x ECF = Success
  • 23. A few good quotes…
    • “ We are not in the coffee business serving people… we are in the people business serving coffee.” Howard Schultz, CEO – Starbucks
    • “ We took our eye off the ball and it damn near put us out of business. We forgot that the customer pays ALL the bills. We are here to serve them, help them, support them. Not keeping that at the front of our minds almost cost us everything.” Lou Gerstner, CEO - IBM
    • “ The very future of our company hinges on our ability to understand and serve our customers better than any other firm. It is all about customer service, the products are actually secondary.” Jeff Immelt, CEO – GE
    • “ The only critic whose opinion counts, is the customer” – Mark Twain
  • 24. Let’s look at your market: The bad news…
    • Strong competition
    • Difficult to differentiate
    • Highly informed consumers
    • Exceedingly high expectations
    • Cost of acquisition of a targeted customer is high
    • Cost to satisfy is higher
    • Cost to replace is 5x higher
    Good News: Value of a delighted customer… priceless!
  • 25. Customer Satisfaction drives Customer Loyalty… and Customer Loyalty drives Profitability A 5% increase in loyalty among your best customers… Can produce a profit increase of 25% – 85% I hate you I don’t care about you I love you 100% 90 80 70 60 50 40 30 20 Extremely Dissatisfied Somewhat Dissatisfied Slightly Dissatisfied Satisfied Very Satisfied Zone of Defection Zone of Indifference Zone of Affection Loyalty Customer Satisfaction Terrorist Evangelist
  • 26. Key Drivers of Customer Loyalty T olerate N othing L ess From: Practice What You Preach by Maister Global study: 16 countries 29 companies 139 offices 5,589 respondents Financial Performance Quality P&S & Customer Relationship Employee Satisfaction Empowerment High Standards Long-term Orientation Enthusiasm, Commitment, Respect Training & Development Fair Compensation CR=104.12 CR= .404 CR=.334 CR=.277 CR=.275 CR=.249 CR=.280 Coaching CR=.285 CR=.371 CR=.365 CR=.191 CR=.247
  • 27. The Five Levels of Customer Service
    • I don’t really care
    • Why try harder
    • Good enough is good enough
    • That’s nice
    • Wow – you guys are awesome
  • 28. To have an effective Customer Relations program, these three statements MUST be true for your organization:
    • Customer satisfaction is a philosophy and a commitment by top management.
    • Customer satisfaction is an attitude and atmosphere that prevails throughout the entire organization.
    • Customer satisfaction is a program of ACTION within the organization.
    1 -10
  • 29. Fundamental Customer Expectations
    • Reliability: The ability to provide what was promised, on time, dependably and accurately. ( Honesty )
    • Assurance: The knowledge and courtesy of employees, and their ability to convey trust and confidence. ( Competence )
    • Empathy: The degree of caring and individual attention provided to customers. ( Concern )
    • Responsiveness : The willingness to help customers and provide prompt service. ( Attitude )
    • Tangibles: The physical facilities, equipment, and appearance of the personnel. ( Professionalism )
    1 -10
  • 30. How do the Best Companies Deliver Superior Customer Service?
    • From a study of more than 3,000 companies — narrowed down to the top 101 companies that profit from customer care — here are the top five factors that were the fundament tactics used to build and manage extraordinary levels of customer satisfaction and loyalty.
    1 -10
  • 31. They listen to, understand, and respond (often in unique and creative ways) to the evolving needs and constantly shifting expectations of their customers. (VOC) Extreme Customer Focus
  • 32. They establish a clear vision of what superior service is, communicate that vision to employees at all levels, and ensure that service quality is personally and positively important to everyone in the organization. . Shared Customer Service Credo
  • 33. They establish concrete standards of service quality and regularly measure themselves against those standards, guarding against the “acceptable error” mindset by establishing as their goal 100% customer satisfaction performance. Clear Standards + Accountability
  • 34. Create A Dashboard of Key Indicators MPS Margin Per Sale Talent Level Service Level
  • 35. They hire the best people, train them carefully and extensively so they have the knowledge and skills to achieve the service standards, then empower them to work on behalf of the customers, whether inside or outside the organization. Customer Focused Employees
  • 36. They recognize and reward service accomplishments, sometimes individually, sometimes as a group effort, in particular celebrating the success of employees who go “one step beyond” for their customers. Deal decisively with mediocrity Reward and Celebrate Success…
  • 37. Understanding the Customer-driven Company
    • Create a customer-focused Vision
    • Flood the organization with VOC
    • Become an expert on delivering superior customer service
    • Turn your employees into customer service champions
    • Destroy any barriers to superior service performance
    • Measure, measure, measure
    • Walk the talk
  • 38. Focus on the Fundamentals: SUMMARY
    • Customer service is the only defendable differentiator.
    • Only engaged and satisfied employees deliver can deliver consistently superior customer service.
    • Consistently superior customer service can lead to as much as a 104% increase in profits.
    • The success of your business is directly tied to the quality of your people.
    • Demand excellence – refuse to tolerate mediocrity.
    • Teamwork is mandatory – not optional.
    • Culture counts.
  • 39.  
  • 40. T HANK Y OU If you have any questions at all please do not hesitate to send a note or call. My email address is: john@johnspence.com Also, you might find value in the ideas I share in my blog. You can sign up for it at: www.johnspence.com/blog