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Net Promoter System for Agile Environments @ Agile 2013 in Nashville, Tennessee

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Net Promoter System for Agile Environments @ Agile 2013 in Nashville, Tennessee

  1. 1. NET PROMOTER SYSTEM FOR AGILE ENVIRONMENTS 05/08/2013 Agile Conference Nashville Bernd Schiffer
  2. 2. cinema! I want to open a
  3. 3. System Rating http://en.wikipedia.org/wiki/File:The_Leading_Hotels_of_the_World.jpg
  4. 4. http://www.explainxkcd.com/wiki/index.php?title=1098:_Star_Ratings - http://xkcd.com/1098
  5. 5. http://www.explainxkcd.com/wiki/index.php?title=937:_TornadoGuard - http://www.xkcd.com/937
  6. 6. book The about NPS(Net Promoter System)
  7. 7. 1.) On a zero- to-ten scale, how likely is it that you’d recommend my cinema to a friend or colleague of yours? 2.) Why is that?
  8. 8. On a zero-to-ten scale, how likely is it that you would recommend us (or this product/service/ brand) to a friend or colleague? I also instructed companies to ask at least one follow-up question: What is the primary reason for your score? Fred Reichheld
  9. 9. Detractors (aka dissatisfied customers) Neutrals (aka satisfied customers) Promoters (aka delighted customers) 0-6 7-8 9-10 0 105 very unlikely very likely
  10. 10. http://www.flickr.com/photos/braveheartsportsnetwork/5815110255/ LoyalCustomers
  11. 11. Recommendationsgenerate most value
  12. 12. … because loyal customers come back more often, buy additional products and services, refer their friends, provide valuable feedback, cost less to serve, and are less price sensitive. Fred Reichheld
  13. 13. Bad Profits
  14. 14. 1) Count promoters, neutrals, and detractors. 2) Subtract detractors from promoters. 3) Divide the result by the number of all votes. 4) Multiply the result with 100. 5) You got a number between -100 and +100. That’s the NPScore! NPScore
  15. 15. Real World
  16. 16. http://agilemanifesto.org/
  17. 17. NPSfor Products http://lean.st/ & http://www.scrumalliance.org/ 2-4 WEEK SPRINT POTENTIALLY SHIPABLE PRODUCT INCREMENT SPRINT BACKLOGPRODUCT BACKLOG SPRINT PLANNING DAILY SCRUM MEETING (EVERY 24 HOURS)
  18. 18. Qualitative feedback (answers to “Why?”) Quantitative Feedback (answers to the ultimate question) What is the Net Promoter System? The Net Promoter System (NPS, or NPSystem) is an open-source customer relationship management tool.With the NPS, an organisation measures the loyalty of its customers.This feedback is used to improve the organisation’s services.At the core of the Net Promoter System is the so called ultimate question, which provides a simple metric, the Net Promoter Score (also called NPS, in this sheet NPScore). Read more about the NPS in John Warrillow’s article on Inc.com “One Question Can Predict the Future ofYour Company” http://www.inc.com/articles/201106/whats-your-net-promoter-score.html What is the Net Promoter Score? The NPScore is a single number between -100 and 100 which sums the answers to the ultimate question “How likely is it that you would recommend our service to a friend or colleague?”.A number below 0 indicates a service in need of improvement, whereas a number between 0 and 50 indicates a good service, and a number above 50 usually means a top-of-the- class service. However, the NPScore is a relative metric, so it’s only comparable to related services. How to calculate the Net Promoter Score? Each customer is asked to answer the ultimate question on a scale from 0-10, where 0 means “very unlikey” and 10 means “very likely”.The answers are categorised in 3 groups: detractors, dissatisfied customers (0-6); neutrals, satisfied customers (7-8); and promoters, delighted customers (9-10).The percentage of detractors minus the percentage of promoters results in the NPScore. How to get feedback through a single number…? We don’t.The NPScore is an indicator for the quantitative feedback.With the NPScore we can compare different customers’ feedbacks on the same service. But we also ask another question “Why?”, which asks the customer for the reason of his giving this score.This is where we get the qualitative feedback.Also, we engage our customers in follow-up interviews, to learn more about potential improvements of our services. Detractors (aka dissatisfied customers) Neutrals (aka satisfied customers) Promoters (aka delighted customers) 0-6 7-8 9-10 0 105 very unlikely very likely number between -100 and 100 Net Promoter Score, Net Promoter and NPS are registered trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld. NPSexplained 1 2 3 4 # means “size of” (simply count…)
  19. 19. (Large) Meetings
  20. 20. Alternative for small meetings
  21. 21. eNPS for the organisation
  22. 22. Personal NPS: 360º Feedback eNPSjust for me
  23. 23. Mythor Truth ?
  24. 24. A product has an NPS of 80. Therefore it’s certainly market leader! Mythor Truth ?
  25. 25. A product has an NPS of 80. Therefore it’s certainly market leader! Myth!
  26. 26. Your NPS is 60. So what?
  27. 27. Two independent trainer having an NPS of 20 and 60. The one with the 60 is the better trainer! Mythor Truth ?
  28. 28. Two independent trainer having an NPS of 20 and 60. The one with the 60 is the better trainer! Myth!
  29. 29. Can’t compare NPS without common ground.
  30. 30. Asked the ultimate question, people in different regions and countries will answer differently! Mythor ?Truth
  31. 31. Asked the ultimate question, people in different regions and countries will answer differently! Truth!
  32. 32. Andere Länder, andere Sitten!German Saying
  33. 33. That’s a good idea: give an employee a huge bonus if she brings the product’s NPS up to x! Mythor Truth ?
  34. 34. That’s a good idea: give an employee a huge bonus if she brings the product’s NPS up to x! Myth!
  35. 35. Aim for a win, not a certain score!
  36. 36. NPS core ystem
  37. 37. http://www.memecenter.com/fun/238053/cheating Beware! Having a single metric causes cheating!
  38. 38. 1.) On a zero-to-ten scale, how likely is it that you’d recommend this session to a friend or colleague of yours? 2.) Why is that? You knew that this was coming, right?
  39. 39. NET PROMOTER SYSTEM FOR AGILE ENVIRONMENTS Bernd Schiffer 05/08/2013 Agile Conference Nashville ‣@berndschiffer ‣@bold_mover ‣coaching@berndschiffer.com ‣http://slideshare.net/berndschiffer ‣http://berndschiffer.com ‣http://boldmover.com ‣http://agiletrail.com Thank you!

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