Bpe Survey Presentation


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Preliminary results of a Global Survey on Business Process Excellence. More than 800 comp;anies represented

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  • The death spiralDeming said it best:Balke: this might be the time for a little banter. Observations you may have had about companies doing the same thing – focused on cost cutting, but cutting out their capacity to deliver value to customers
  • Bpe Survey Presentation

    1. 1. The Current State of Business Process Excellence:Preliminary Results focused on the Customer Experience<br />LSS & Process Improvement for <br />Customer Experience Conference<br />March 23, 2010<br />Reginald W. Goeke, Ph.D.<br />Market Value Solutions<br />814-234-2486<br />Reg@MarketValueSolutions.com<br />
    2. 2. Market Value Solutions<br />MVS is a consulting group that focuses on the measurement and management of customer value.<br />Different from most consulting firms<br />MVS uses the VOC to quantify your firm’s current value propositions in your targeted markets<br />More than just a research firm<br />Focus on the effective deployment of VOC to drive business results<br />Recognized thought leaders in customer value analysis and management -- authors of :<br />Dominating Markets with Value: Advances in Customer Value Management – (2002)<br />Value-Driven Channel Strategy: An Extension of Lean Thinking (2005)<br />Competing for Customers and Winning with Value (2006)<br />Strategic Six Sigma for Champions (2006)<br />Six Sigma Marketing: From Cutting Costs to Growing Market Share (2009)<br />Listening to the Voice of the Market (2009)<br />Subject matter experts in the area of Customer Value Management for<br />the American Productivity and Quality Center<br />the International Quality and Productivity Center<br />the Institute for the Study of Business Markets<br />the Maryland World Class Manufacturing Consortium<br />2<br />
    3. 3. Companies That Have Deployed<br />Market Value Solutions<br />Strategically & Operationally<br />3<br />
    4. 4. Topics We’ll CoverIn This Session<br />Objectives of the Global BPE Survey<br />Quick overview of how we did it<br />Who participated<br />Key success factors<br />A “Best Practice” model<br />4<br />
    5. 5. Global BPE SurveyObjectives<br />How companies are using the Voice of the Customer (VOC) to identify improvement priorities <br />How companies are measuring the success of their Process Excellence initiatives, and <br />What types of new approaches are working particularly well.<br />
    6. 6. Methodology<br />Personalized email invitations<br />IQPC and MVS<br />Links to web-based survey<br />Newsletter invitations<br />Six Sigma and Process Excellence IQ<br />Drawing: 5 tickets to 11th Annual Process Excellence Summit and Awards<br />London in April<br />Executive summary, if requested<br />
    7. 7. Survey Participation (1)<br />835 Responses<br />Representing a variety of BPE Roles<br />Across companies of all sizes<br />
    8. 8. Survey Participation (2)<br />Representing a variety of industries<br />
    9. 9. Survey Participation (3)<br />From many different countries<br />
    10. 10. Types of BPE Deployments<br />Lean and/or Six Sigma<br />Business Process Management<br />Balanced Scorecard<br />Business Process Re-engineering<br />Total Quality Management<br />Design for Six Sigma<br />Six Sigma Marketing<br />Hoshin Planning<br />77%<br />74%<br />67%<br />64%<br />52%<br />42%<br />31%<br />22%<br />
    11. 11. Whose “Voice” Determines Improvement Priorities<br />VOB:Voice of the Business – internal business stakeholders such as IT, accounting, and other internal personnel from internal departments, as well as dealers, brokers, and agents<br />VOC:Voice of the externalCustomer, or end user, who buys your products or services<br />VOM:Voice of the Market, which includes not only your current customers, but also the customers who buy your competitor’s products or services<br />
    12. 12. Impact of “Voices”on Program Success<br />
    13. 13. Linkage of BPE Projectsto Competitive Business Strategies<br />
    14. 14. Impact of Strategic Linkageon Program Success<br />
    15. 15. Correspondence Between Strategic Linkages and Influential “Voices”<br />
    16. 16. Primary Purposeof BPE Initiatives<br />
    17. 17. Correspondence BetweenBPE Purpose andInfluential “Voices”<br />
    18. 18. The Evolution<br />of Six Sigma<br />And Business Process Excellence<br />
    19. 19. 6s – Gen 1<br />Defect Reduction <br />Mid- ’80s<br />Motorola<br />Customer Satisfaction<br />19<br />Defect reduction is a good thing!<br />
    20. 20. 6s – Gen 2<br />Cost cutting<br />Mid -90s<br />GE<br />Internal Focus<br />20<br />But are you cutting the right costs?<br />
    21. 21. 6s – Gen 3<br />Shift from emphasis on cost cutting to revenue generation and market share<br />Requires a focus on value creation and delivery<br />Value from the perspective of targeted customer groups<br />Value from the perspective of channels of distribution<br />Requires shifting from an internal focus to an external focus<br />This is the role and expertise of marketing<br />Requires:<br />Modifying the DMAIC process of Six Sigma<br />Adding PROCESS to the traditional 4 Ps of marketing<br />21<br />
    22. 22. Why Value?<br />Corp. Image<br />Quality<br />Price<br />Product/Service<br />Offering<br />Accurate<br />Customer<br />Competitive<br />Fair<br />Service/Support<br />Channel Partners<br />(e.g., Dealers, Brokers)<br />Product<br />Durability<br />Process<br />Effectiveness<br />Sales/Service<br />Support<br />Product<br />Features<br />Accessible<br />Service<br />Efficiency<br />Product <br />Reliability<br />Problem<br />Resolution<br />Convenient<br /><ul><li>Worth it?
    23. 23. Justifiable price relative to product performance
    24. 24. Delivering best value in the industry
    25. 25. Providing best productivity for the money</li></ul>Value =<br />Customer<br />Loyalty<br />Market Share<br />Customer<br />Acquisition<br />Customer Value<br />Requires a shift in measurement from Voice of the Customer (VOC) to Voice of the Market (VOM)<br />22<br />
    26. 26. Traditional DMAIC<br />23<br />DEFINE the project:<br /><ul><li>What is the problem and how does it relate to customers?</li></ul>MEASUREthe current situation:<br /><ul><li>Where are we today?</li></ul>ANALYZE to identify causes:<br /><ul><li>What is causing the defects and variation?</li></ul>IMPROVEby implementing solutions:<br /><ul><li>What data-driven solutions will minimize the variation?</li></ul>CONTROL:<br /><ul><li>How will the gains be maintained?</li></li></ul><li>Modified DMAIC<br />24<br />DEFINE the targeted product/market:<br /><ul><li>What are your most important products/services and who are the customers that buy them?</li></ul>MEASUREhow that market segment defines value:<br /><ul><li>What is the quality/price trade-off and what are the CTQs?</li></ul>ANALYZE your competitive value proposition:<br /><ul><li>Where are your value performance gaps?</li></ul>IMPROVEvalue performance on key CTQs:<br /><ul><li>Which performance gaps can be leveraged? Which must be fixed?</li></ul>CONTROL customer defect(ion)s:<br /><ul><li>How does the market react to improvements?</li></li></ul><li>Six Sigma Marketing:The Six Sigma/VOM/Strategy Linkage<br />P/M Focus<br />Competitive<br />Analysis<br />Opportunities<br />Objectives<br />Strategy<br />Actions<br />Budgets<br />Define<br />Measure/Analysis<br />Improve/Control<br />Tools:<br />1. Market Opportunity<br />Analysis<br />2. P/M Matrix<br />Tools:<br />Market Value Model – Identifies CTQs & Their Importance<br />Competitive Value Matrix – Identifies value performance gaps<br />Customer Loyalty Matrix – Identifies threats to loyalty<br />Competitor Vulnerability Matrix – Identifies competitor’s vulnerabilities<br />Tools:<br />Cause & Effect Matrix<br />Value Stream Mapping<br />Touch point Monitoring Systems<br />© 2009 Market Value Solutions<br />25<br />
    27. 27. Voice of the Market<br />Tractors/Hobby Farmers<br />Acquisition Market Share Retention<br />.229<br />Dealer Service<br />Machine <br />Operation<br />.189<br />Quality<br />.518<br />Machine <br />Productivity<br />.149<br />Trial & <br />Training<br />.147<br />Value<br />Image<br />.101<br />Dealer Sales<br />.139<br />Order &<br />Delivery<br />.074<br />Machine <br />Reliability<br />.073<br />.381<br />Price<br />Critical-to-Quality Factors (CTQs)<br />
    28. 28. Competitive Value MatrixHobby Farmers<br />High<br />Outstanding Value<br />Expensive Relationship<br />Competitor 1<br />Quality Evaluation<br />Competitor 4<br />Competitor 2<br />Competitor 3<br />New Holland<br />Value Performance Gap<br />What’s the basis of the gap?<br />Discount Relationship<br />Poor Value<br />Low<br />High<br />Low<br />Price Evaluation<br />
    29. 29. Competitive Performance GapsQuality, CTQs, Price & Image<br />The numbers are mean performance scores (averages) on each of the CTQs and value drivers. They represent the average ratings across the survey questions within each “bucket.”<br />Advantages and disadvantages are defined in terms of statistical tests of significance<br />
    30. 30. CTQ Gaps & Their Importance<br />Differences between New Holland and the targeted competitor (Comp 1 = John Deere)<br />Importance weights from the value model<br />CTQ importance times the competitive performance gaps<br />
    31. 31. Value Performance Criteria (VPCs) Provide Actionability<br />VPC Importance based on correlations with the CTQ<br />Gaps & Gap Importance calculated as before<br />
    32. 32. The Cause & Effect MatrixTargeting Processes: Linking X’s to Y’s<br />These are the VPCs, with Gap Importance highlighted<br />Targeted Processes<br />Individual processes within the repair (service) value stream.<br />Evaluations of the process (X) impact on the on the relevant VPCs (Y).<br /> 0 = No impact<br /> 3 = Low impact<br /> 6 = Medium impact<br /> 9 = High impact<br />
    33. 33. Value Stream Mapping:Targeted Improvements<br />Tractor Transmission Repair<br />Value Stream Analysis based on<br />Market Opportunity #5<br />Service: Repair Processes<br />Scheduling<br />Diagnosis<br />Critical Areas <br />of Focus<br />Repair<br />©2008 Market Value Solutions<br />
    34. 34. Six Sigma MarketingThe Value-Strategy-Process Linkage<br />Strategic<br />Focus<br />VALUE<br />Develop <br />Value Model<br />Identify<br />& Prioritize<br />Quality Drivers<br />Competitive<br />Value Matrix<br />Competitive <br />Strengths & <br />Weaknesses<br />Market<br />Value<br />Opportunities<br />STRATEGY<br />Action<br />Programs<br />Budget<br />Business<br />Performance <br />Objectives<br />Product/Market<br />Strategy<br />(Lead, Challenge…)<br />Marketing<br />Mix<br />Objectives<br />(5 Ps)<br />PROCESS<br />Calculate<br />Value<br />Gaps<br />Identify Key<br />Value Stream<br />Cause & Effect<br />Matrix<br />Value Stream<br />Mapping<br />Prioritize<br />Improvement<br />Opportunities<br />Lean or Six Sigma Initiatives<br />33<br />
    35. 35. For More information<br />Executive summary<br />How to compare your company to your industry<br />34<br />Oksana Shubchinskaya<br />Senior Conference Director<br />IQPC<br />535 5th Ave, 8th Floor<br />New York, NY 10017<br />P: 212-885-2672<br />Oksana.Shubchinskaya@iqpc.com <br />Genna Weiss<br />Senior Editor, Six Sigma IQ<br />Anchor House<br />15-19 Britten Street<br />London SW3 3QL<br />+44 (0) 207 368 9822<br />Genna.Weiss@sixsigmaiq.com <br />www.sixsigmaiq.com <br />Reg Goeke<br />President & Managing Director<br />Market Value Solutions<br />281 Homan Avenue<br />State College, PA 16801<br />P: 814-234-2486<br />Reg@MarketValueSolutions.com<br />www.MarketValueSolutions.com<br />