This is Part IV of Fixing the Leaks, a 4 Part Workshop on Improving Profitability in small and medium sized businesses and not-for-profits. How Can You Fix the Leaks explains how to move forward once you have made the decision to address profitability issues in your organization.
Investment Opportunity for Thailand's Automotive & EV Industries
How You Can Fix TheLeaks
1. Section IV
In theory, there is no difference between theory and
practice. In practice, there is. - Yogi Berra
Copyright @ 2014, Ron Ryan & Associates, LLC 1
2. But Isn’t This Just Common
Sense?
“Constant
Improvement
Should Be Part
of Our Culture”
“ But we can’t
afford to do this
now; we’re in
survival mode.”
The Reality:
Discipline Is
Difficult To Build
& Maintain
Copyright @ 2014, Ron Ryan & Associates, LLC
2
Yes. How
To Fix The Leaks?
3. How To Get Started?
Outside
Consultant(s)
Leadership
Commitment
<Either Way>
Inside Task
Force
Start Here
And
Work Your
Way Out
How
To Fix The Leaks?
Copyright @ 2014, Ron Ryan & Associates, LLC 3
4. Why Bother With A Task Force?
No CEO direct
reports;
Middle Managers
Are Best:
Multi-departmental
point of view;
Objectivity;
Independence and
intellectual honesty;
Customer-focused
rather than
department-focused.
How
To Fix The Leaks?
Copyright @ 2014, Ron Ryan & Associates, LLC 4
5. Make Sure You Are Looking
With New Eyes
If it ain’t is
broken don’t
go fix it!
How
To Fix The Leaks?
Copyright @ 2014, Ron Ryan & Associates, LLC 5
6. 6 Sigma Ninja’s Helpful But Not Required -
A Check List For Change Teams
Smart – big picture
person comfortable with
ambiguity
Understands company
and how it works
Analytical - not afraid of
numbers
Plays well with others - is
well respected by peers
Has strong domain
expertise in his/her field
Willing to work hard
How
To Fix The Leaks?
Copyright @ 2014, Ron Ryan & Associates, LLC 6
7. How To? Buy Books Not
Dogma
Customer Analytics
• How to Measure and Improve In-Store Buyer Experience (Underhill)
• How to Measure and Improve Internet Experience and Ecommerce
(Kaushik)
• How to Measure and Manage In-Bound Call Center Customer
Experience (Cleveland)
Customer Satisfaction Measurement And Management
• How to Conduct Meaningful Satisfaction Surveys (Hayes)
• Net Promoter Score (Reichold)
• Experience And Interaction Economies (Pine, Gallup)
• How (Nudges) Can Affect Buying Behaviors (Thaler, Sunstein)
Process Improvement
• Six Sigma (Pande et al.)
• Lean (Womack, George, Seddon)
• Reengineering (Hammer)
Copyright @ 2014, Ron Ryan & Associates, LLC
7
No Single Approach Does It All How
To Fix The Leaks?
8. Where Should You Start?
Online
Sales
Process
1 in 20
Buy
Call Center
1 in 5 buy
Fulfillment
8 or 9 out
of10 Keep
What You
Sold Them
Repeat
Purchase
(Or
Renewal)
Between 5
and 9 Out of
10 Buy
again
How
To Fix The Leaks?
Copyright @ 2014, Ron Ryan & Associates, LLC 8
9. The Higher You Start In Your Funnel, The
Greater The Impact Of The Change…
Sales
Center
Online
Lead
Generation
& Sales
Fulfillment
& Service
…But also the more controversial,
risky, and difficult to measure.
How
To Fix The Leaks?
Copyright @ 2014, Ron Ryan & Associates, LLC 9
10. Where Should You Start?
Online
Sales
Process
1 in 20 buy
Call Center
1 in 5 buy
Fulfillment &
Service
8 or 9 out of
10 Keep
What You
Sold Them
Repeat
Purchase
(Or
Renewal)
Between 5
and 9 Out of
10
Buy again
Start with a system or process you control. Fix it first.
The further back in the value chain you start, the safer
you will be. How
To Fix The Leaks?
Copyright @ 2014, Ron Ryan & Associates, LLC 10
11. Summary – Fixing The
Leaks
About making incremental
improvements;
Reduces customer attrition;
Has High ROI;
Creates Incremental
Revenue;
This Revenue falls straight
to the bottom line;
Improves customer
experience and brand;
Improves job satisfaction;
Makes your organization
better.
Copyright @ 2014, Ron Ryan & Associates, LLC 11