IMPROVING YOUR BUSINESSOPERATIONS BY MEETING YOURCOMPANY’S OBJECTIVE, MISSIONAND CURRENT BUSINESSLANDSCAPECase Study, Conc...
The World Today…                  13th April 2009                  •Two Domino’s employees                  •YouTube      ...
TAKAFUL IKHLAS CORPORATE PROFILE•   Shareholder              : MNRB Holdings Berhad (100%)•   Established Date         : 1...
TISB Medical/Health (EB/GHS) Solution   EASY ACCESS TO CARE                                               CLIENT          ...
Contents• Re-energising your company’s mission by  developing a strategic improvement plan that  aligns with its objective...
In Other Words…        ↑ Focus    ↓ Complexity
Intro
“…in the past 18 months, we have heard      that profit is more important than   revenue, quality is more important that  ...
Before we start…In the old days of HR…• Average training hours per staff• % of staff attending training• # of training pro...
Before we start…Moral of the story…2. Innovation:  – Business models  – Products  – Services3. Market Leadership4. Competi...
Understanding Your Business Model           and Strategy   Focus on the Business Strategy and         Business Direction f...
The McPlaybook* Make it easy to eat              Make it easy to prepare • 50% drive-thru                 • High Turnover ...
What is the Business Model?•Google•Tata Nano       USP                           Market  Profit Model                     ...
Business Model: USP  Unique Selling Proposition (USP)                  =         Targeted Customer                  =Core ...
Business Model: USP“The Product is Not the Product”• What is the customer really buying?• What is the “Core Buying Purpose”?
Business Model: USP1.   Insufficient WEALTH2.   Insufficient ACCESS3.   Insufficient SKILL4.   Insufficient TIME
Business Model: Profit Model          RevenueAssets                    Cost   Cash                      Margin   Flow
Strategy + BSC Financial               Revenue   Cost   Margin   Cash Flow   AssetCustomers   Internal   ProcessLearning &...
What is the Business Model?               USP                          MarketProfit Model                         Discipline
Market Discipline      Product         "They are the most innovative"    •LV   Leadership         "Constantly renewing and...
Alignment & Consistency:                     Market Disciplines                                                           ...
Alignment & Consistency:                     Market Disciplines                                                           ...
Alignment & Consistency:                     Market Disciplines                                                           ...
Alignment & Consistency:          Disciplines, Priorities, and KPIsOperational             Product Leadership      Custome...
Alignment & Consistency:                     Market Disciplines                                                           ...
Alignment & Consistency                   Apple powerful Product Leadership               products, premium    (best produ...
ALIGNING YOUR ORGANIZATIONTO THE BUSINESS MODEL
Strategy: Disciplines, Priorities, and               KPIs                                                                 ...
Strategy: Disciplines, Priorities, and KPIsOperational             Product Leadership      Customer Intimacy  Excellence  ...
Strategy: Value Disciplines• Operational Excellence    • Move know-how from top performing      units to others    • Bench...
Strategy: Value Disciplines• Customer Intimacy    • Capture knowledge about customers    • Understand customer needs    • ...
Strategy: Value Disciplines• Product Leadership    • Reduce time to market    • Commercialize new products fast    • Ensur...
Strategy: Value Disciplines                                                                    Product Leadership         ...
Strategy: Value Disciplines                                                                    Product Leadership         ...
Alignment: 4-Wheels Model                                               Business                                          ...
Alignment: FrameworkCulture     •   Focus point            •   Alignment            •   Quality            •   Innovation ...
Alignment: FrameworkStructure   •   Org Structure            •   Job Design            •   C&B            •   Policies & p...
Strategy: FrameworkLeadership   •   Role modeling             •   Vision/Mission/Philosophy             •   Leadership Sty...
Strategy: Framework         •   RecognitionPerson   •   Recruitment         •   Training         •   Profit sharing       ...
Strategy: Framework          EnablersResources • Technology          • Equipment                             Funding      ...
Alignment: 4-Wheels Model                                               Business                                          ...
Strategy + BSC Financial                Revenue           Cost         Margin     Cash Flow    AssetCustomers             ...
Aligning Budget and Resources toBusiness and Organization Goals  The art and science of allocating and  aligning Resources...
Alignment: 4-Wheels Model                                               Business                                          ...
Strategy: Framework          EnablersResources • Technology          • Equipment                             Funding      ...
Each Discipline Requires           Different Priorities & ResourcesOrganization, jobs,skillsCulture, values,norms         ...
Each Discipline Requires          Different Priorities & Resources                   Operational ExcellenceOrganization,  ...
Each Discipline Requires          Different Priorities & Resources                 Product LeadershipOrganization, jobs,•A...
Each Discipline Requires          Different Priorities & Resources                   Customer IntimacyOrganization, jobs,•...
Budgeting vs. PrioritiesExample: Business Situation vs. R&D Priorities   Upturn                      Flat          Downtur...
Activity Grid to determine       budget prioritiesIncrease (↑)                 Create (+)What are features/           What...
Budgeting for Investments based       on the ‘BCG Matrix’ principles MarketPotential                 Business Performance
Measuring Success   KPIs and PMS
Before we start…Which comes first?2. Strategies -> KPI?3. KPI -> Strategies?
Before we start…Which comes first?• Strategies -> KPI?• KPI -> Strategies?•already know our priorities, aware of allstrate...
Before we start…Which comes first?• Strategies -> KPI?• KPI -> Strategies?•want to find out possible strategies,•determine...
Example: Selection of KPIs for BSC•   Customer satisfaction            •   Win rate (sales closed/sales contact)•   Custom...
Wrong KPIs“What is the moral of    the story?”
KPIs and BehaviorBefore: “Handle Time” Per Call• Motivated Call Centre staff to transfer callers,  getting rid of complain...
KPIs and BehaviorAfter: “Minutes Per Resolution” of a problem• Resolution in ONE CALL become the core goal• Reduced probab...
Cause and Effect Financial                 Revenue          Cost         Margin     Cash Flow        AssetCustomers       ...
Cause and Effect: An ExampleFinancial                        Revenue               Market Value                    Product...
Sample: Other 1st Level KPIs across industries     Financial Services                Retail                 Telecommunicat...
Sample KPIs for Each DisciplineOperational        Product                 Customer Intimacy  Excellence         Leadership...
B2B/B2G BSC Matching                Customer/Client/                Government BSC   Financial                  Revenue   ...
Why we hate Performance Appraisals
Complaints about Performance         Management SystemsHow we de-motivate our own Talent Pool•   Bias•   Different Standar...
Complaints about Performance         Management SystemsSystems Problem…•   Different Standards•   Surprise•   Subjective• ...
What is PerformanceAppraisal used for?         Monitor?         Reward?  No wonder our     Discipline?  employees are    D...
What is PerformanceMeasurement used for?         Monitor?         Reward?        Discipline?       Development?        Mot...
Which system should we use?               Trait-based             Behavior-based          Knowledge/Skill based           ...
MBO StandardsA    ExcellentB    GoodC    AverageD    PoorE    Useless
MBO StandardsA    ExcellentB    GoodC    Average     GoodD    PoorE    Useless
MBO StandardsA    Excellent   ExcellentB    Good        Very GoodC    Average     GoodD    Poor        Not GoodE    Useles...
Sample KPIs for Each Market DisciplineOperational        Product                 Customer Intimacy  Excellence         Lea...
Competency Target Setting1.   Initiative2.   Teamwork3.   Problem Solving4.   Leadership5.   Integrity           What’s th...
Competency Target SettingInitiative2. Minimize problems quickly without needing to     be asked3. Seeks personal growth an...
Competency Standards3     Meets behavioral standards consistently. Is a        good role model for others.2     Meets beha...
END NOTES
Which Company?American Customer Satisfaction Index (ACSI)• 64 out of100-point scale: lower than IRS (Tax)• 2nd last among ...
Which Company?American Customer Satisfaction Index (ACSI)• 64 out of100-point scale: lower than IRS (Tax)• 2nd last among ...
Popularly Unpopular     Popularity          ≠      Affection
Don’t forget…  “The business ofbusiness is Business”
Thank You.              soft copy of slides:http://totallyunrelatedrandomanddebatable.                blogspot.com/
Improving your business operations by meeting your company’s objective, mission and current business landscape
Improving your business operations by meeting your company’s objective, mission and current business landscape
Improving your business operations by meeting your company’s objective, mission and current business landscape
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Improving your business operations by meeting your company’s objective, mission and current business landscape

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Marcus Evans Business Process Improvement & Transformation Conference
KL, March 2012

Improving your business operations by meeting your company’s objective, mission and current business landscape
• Re-energising your company’s mission by developing a strategic improvement plan that aligns with its objective
• Establishing business imperative, defining vision and targets, realising the targets and fine-tuning your upcoming business transformation needs
• Measuring the effectiveness of your business processes to see how you can improve your margins

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Improving your business operations by meeting your company’s objective, mission and current business landscape

  1. 1. IMPROVING YOUR BUSINESSOPERATIONS BY MEETING YOURCOMPANY’S OBJECTIVE, MISSIONAND CURRENT BUSINESSLANDSCAPECase Study, Concepts and Debatable IdeasKenny OngTakaful Ikhlas Sdn Bhd
  2. 2. The World Today… 13th April 2009 •Two Domino’s employees •YouTube •Apology from Domino’s after 48 hours •1 million hits •Twitter: questions on silence •LinkedIn: suggestions by users in forum BusinessWeek, May 4, 2009
  3. 3. TAKAFUL IKHLAS CORPORATE PROFILE• Shareholder : MNRB Holdings Berhad (100%)• Established Date : 18 September 2002• Operational since : 2 July 2003• Takaful Model : Al-Wakalah• Business Portfolio : General and Family Takaful• Number Products : More than 90• Number of Participants : More than 1,800,000• Number of Agents : More than 6,000• Number of Staff : 490• Regional Offices : 11• Paid Up Capital : RM295 million
  4. 4. TISB Medical/Health (EB/GHS) Solution EASY ACCESS TO CARE CLIENT PANEL CLINICS •Panel of 2000 clinics •Processing Bills nationwide •Payment •All major hospitals recognises •Appointment and our GLs removal •Policies & Procedures•Appointment & management of •Tracking Entitlements medical panel TISB •Issues & Complaints •Overcharging & Abuse 1st CLASS SERVICE •MC Verification •Benefit & Procedure briefing Panel GP Clinics •Help Desk •Tri-annual Cost & Utilization Specialist Referral Report & Hospitals •Benchmarking SPECIALIST & HOSPITALS •Analysis & Recommendations Employees •Issuance of GL •Hosp. Bank EMPLOYEES & DEPENDANT Guarantee/Deposit • Claims Submission •Appointment and removal PEACE OF MIND • Tracking of eligibility •Tracking Entitlements •24/7 LOG Issuance • Enquiries & Complaints •Processing Bills •Cashless Admission • Employee benefit materials •Payment •Comments • Unions •Hospital Reports • Abuse of benefits
  5. 5. Contents• Re-energising your company’s mission by developing a strategic improvement plan that aligns with its objective• Establishing business imperatives, defining vision and targets, realising the targets and fine- tuning your upcoming business transformation needs• Measuring the effectiveness of your business processes to see how you can improve your margins
  6. 6. In Other Words… ↑ Focus ↓ Complexity
  7. 7. Intro
  8. 8. “…in the past 18 months, we have heard that profit is more important than revenue, quality is more important that profit, people are more important than profit, customers are more important than our people, big customers are more important than small customers, and that growth is the key to our success. No wonder our performance is inconsistent" CEO, Anonymous
  9. 9. Before we start…In the old days of HR…• Average training hours per staff• % of staff attending training• # of training programs• % of training programs conducted• Training needs analysis conducted• Competency models developed• Training budget as % of payroll What’s wrong with this picture?
  10. 10. Before we start…Moral of the story…2. Innovation: – Business models – Products – Services3. Market Leadership4. Competitive differentiation Get the picture?
  11. 11. Understanding Your Business Model and Strategy Focus on the Business Strategy and Business Direction first
  12. 12. The McPlaybook* Make it easy to eat Make it easy to prepare • 50% drive-thru • High Turnover • Meals held in one • Tasks simple to learn hand & repeat Make it quick Make what customers want • “Fast Food” • Prowls market for new • Tests new products products for Cooking Times • Monitored field tests*Adapted from: Businessweek , Februrary 5th 2007
  13. 13. What is the Business Model?•Google•Tata Nano USP Market Profit Model Discipline
  14. 14. Business Model: USP Unique Selling Proposition (USP) = Targeted Customer =Core Buying Purpose/ Customer Value Proposition/ Job To Be Done (JBTD)
  15. 15. Business Model: USP“The Product is Not the Product”• What is the customer really buying?• What is the “Core Buying Purpose”?
  16. 16. Business Model: USP1. Insufficient WEALTH2. Insufficient ACCESS3. Insufficient SKILL4. Insufficient TIME
  17. 17. Business Model: Profit Model RevenueAssets Cost Cash Margin Flow
  18. 18. Strategy + BSC Financial Revenue Cost Margin Cash Flow AssetCustomers Internal ProcessLearning & Growth
  19. 19. What is the Business Model? USP MarketProfit Model Discipline
  20. 20. Market Discipline Product "They are the most innovative" •LV Leadership "Constantly renewing and creative" "Always on the leading edge"•Air Asia Operational •Ramly Customer Intimacy Excellence "Exactly what I need""A great deal!" Customized products Excellent/attractive price Personalized communications Minimal acquisition cost and "Theyre very responsive" hassle Preferential service and Lowest overall cost of flexibility ownership Recommends what I need"A no-hassles firm" "Im very loyal to them" Convenience and speed Helps us to be a success Reliable product and service
  21. 21. Alignment & Consistency: Market Disciplines Product Leadership (best product) Eg. Google Tata Nano Operational Excellence Customer Intimacy (low cost producer) (best total solution)Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
  22. 22. Alignment & Consistency: Market Disciplines Product Leadership (best product) Operational Excellence Customer Intimacy (low cost producer) (best total solution)Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
  23. 23. Alignment & Consistency: Market Disciplines Product Leadership (best product) Operational Excellence Customer Intimacy (low cost producer) (best total solution)Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
  24. 24. Alignment & Consistency: Disciplines, Priorities, and KPIsOperational Product Leadership Customer Intimacy Excellence • New, state of the • Management by• Competitive price art products or Fact• services Error free, • Easy to do reliable • Risk takers business with• Fast (on • Meet volatile • Have it your way demand) customer needs (customization)• Simple • Fast concept-to- • Market segments• counter of one Responsive • Never satisfied - • Proactive,• Consistent obsolete own and flexible information for competitors all • Relationship and products• consultative Transactional • Learning selling• Once and Done organization • Cross selling
  25. 25. Alignment & Consistency: Market Disciplines Product Leadership (best product) Operational Excellence Customer Intimacy (low cost producer) (best total solution)Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
  26. 26. Alignment & Consistency Apple powerful Product Leadership products, premium (best product) pricing, limited range Still Doing well in Acer super lean HP well-balanced 2009/2011 cost structure, portfolio, mass aggressive pricing customizationOperational Excellence Customer Intimacy (low cost producer) (best total solution)
  27. 27. ALIGNING YOUR ORGANIZATIONTO THE BUSINESS MODEL
  28. 28. Strategy: Disciplines, Priorities, and KPIs Product Leadership (best product) Operational Excellence Customer Intimacy (low cost producer) (best total solution)Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
  29. 29. Strategy: Disciplines, Priorities, and KPIsOperational Product Leadership Customer Intimacy Excellence • New, state of the • Management by• Competitive price art products or Fact• services Error free, • Easy to do reliable • Risk takers business with• Fast (on • Meet volatile • Have it your way demand) customer needs (customization)• Simple • Fast concept-to- • Market segments• counter of one Responsive• • Never satisfied - • Proactive, Consistent obsolete own and flexible information for competitors all • Relationship and products• consultative Transactional • Learning selling• Once and Done organization • Cross selling
  30. 30. Strategy: Value Disciplines• Operational Excellence • Move know-how from top performing units to others • Benchmark against best in class • Ensure operations training for all employees • Use disciplines like TQM for continuous learning to reduce costs and improve quality
  31. 31. Strategy: Value Disciplines• Customer Intimacy • Capture knowledge about customers • Understand customer needs • Empower front line employees • Ensure that everyone knows the customer • Make company knowledge available to customers
  32. 32. Strategy: Value Disciplines• Product Leadership • Reduce time to market • Commercialize new products fast • Ensure that ideas flow • Reuse what other parts of the company have already learned • Ensure there are multiple sources of funding
  33. 33. Strategy: Value Disciplines Product Leadership (best product) Operational Excellence Customer Intimacy (low cost producer) (best total solution)Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
  34. 34. Strategy: Value Disciplines Product Leadership (best product) Operational Excellence Customer Intimacy (low cost producer) (best total solution)Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
  35. 35. Alignment: 4-Wheels Model Business Model PersonStructure Strategic Planning Culture Leadership Resources
  36. 36. Alignment: FrameworkCulture • Focus point • Alignment • Quality • Innovation & Differentiation • Risk taking • Performance Management • Corporate obsession • Decision making
  37. 37. Alignment: FrameworkStructure • Org Structure • Job Design • C&B • Policies & procedures • Decision making • Job fit • Management Systems • BSC and KPIs • Decentralized & Empower
  38. 38. Strategy: FrameworkLeadership • Role modeling • Vision/Mission/Philosophy • Leadership Style • Delegation & Empowerment • C&B, Promotions • Sense of Urgency • Speak regularly about Performance
  39. 39. Strategy: Framework • RecognitionPerson • Recruitment • Training • Profit sharing • Values • Motivation • Self Efficacy • Awareness • Useful Competencies • Career aspirations • Attribution (control)
  40. 40. Strategy: Framework EnablersResources • Technology • Equipment Funding • Materials • CAPEX • Human • OPEX • Intellectual Property • Partners • Property
  41. 41. Alignment: 4-Wheels Model Business Model PersonStructure Strategic Planning Culture Leadership Resources
  42. 42. Strategy + BSC Financial Revenue Cost Margin Cash Flow AssetCustomers Satisfactio n Base Share Gain Positioning Adjacent New Retention Market Business Internal Process Investment Operational Product Customer Strategy Excellence Leadership IntimacyLearning & Growth
  43. 43. Aligning Budget and Resources toBusiness and Organization Goals The art and science of allocating and aligning Resources to strategic plans
  44. 44. Alignment: 4-Wheels Model Business Model PersonStructure Strategic Planning Culture Leadership Resources
  45. 45. Strategy: Framework EnablersResources • Technology • Equipment Funding • Materials • CAPEX • Human • OPEX • Intellectual Property • Partners • Property
  46. 46. Each Discipline Requires Different Priorities & ResourcesOrganization, jobs,skillsCulture, values,norms Operationa Product Customer l Leadership IntimacyInformation andsystems Excellenc eManagementsystems
  47. 47. Each Discipline Requires Different Priorities & Resources Operational ExcellenceOrganization, • Central authority, low level of empowermentjobs, skills • High skills at the core of the organization • Disciplined TeamworkCulture, values,norms • Process, product- driven • Conformance, one size fits all mindsetInformation and • Integrated, low cost transaction systemssystems • The system is the processManagement • Command and controlsystems • Quality management
  48. 48. Each Discipline Requires Different Priorities & Resources Product LeadershipOrganization, jobs,•Ad hoc, organic and cellularskills •High skills abound in loose-knit structuresCulture, values, •Concept, future-drivennorms •Experimentation and out of the box mindsetInformation and •Person-to-person communications systemssystems •Technologies enabling cooperationManagement •Rewarding individuals innovative capacitysystems •Risk and exposure management •Product Life Cycle profitability
  49. 49. Each Discipline Requires Different Priorities & Resources Customer IntimacyOrganization, jobs,• Empowerment close to point of customerskills contact • High skills in the field and front-lineCulture, values,norms • Customer-driven • Variation and have it your way mindsetInformation andsystems • Strong customer databases, linking internal and external information • Strong analytical toolsManagementsystems • Customer equity measures like life time value • Satisfaction and share management • Focus on ‘Share of Wallet’
  50. 50. Budgeting vs. PrioritiesExample: Business Situation vs. R&D Priorities Upturn Flat DownturnFight Complacency Innovation SalesSharpen Edge Acquire Cash FlowKeep Momentum ProfitsConquer Build momentumNPD Cycle Time Focused on Improve Top 15% ‘Breakthrough’Improve Edge revenue-generating JV, In-source, Out- productsExtensions sourceCounter Competitor ↓ R&D, ↑Sales Eliminate bottom 20%
  51. 51. Activity Grid to determine budget prioritiesIncrease (↑) Create (+)What are features/ What are features/ activities/services to activities/services to increase? introduce?Reduce (↓ ) Eliminate (-)What are features/ What are features/ activities/services to activities/services to reduce? eliminate?1. Manage conflicts where limited resources should go2. Solve problem of compounding activities & resources
  52. 52. Budgeting for Investments based on the ‘BCG Matrix’ principles MarketPotential Business Performance
  53. 53. Measuring Success KPIs and PMS
  54. 54. Before we start…Which comes first?2. Strategies -> KPI?3. KPI -> Strategies?
  55. 55. Before we start…Which comes first?• Strategies -> KPI?• KPI -> Strategies?•already know our priorities, aware of allstrategy options available•creating something UNIQUE, INNOVATIVEand DISRUPTIVE e.g. Air Asia•conducting a business Turnaround e.g. MAS
  56. 56. Before we start…Which comes first?• Strategies -> KPI?• KPI -> Strategies?•want to find out possible strategies,•determine our priorities first thru selection ofimportant KPIs;•growing through ‘normal’ business, not aTurnaround.
  57. 57. Example: Selection of KPIs for BSC• Customer satisfaction • Win rate (sales closed/sales contact)• Customer loyalty • Customer visits to the company• Market share • Hours spent with customers• Customer complaints • Marketing cost as a percentage of• Complaints resolved on first sales contact • Number of ads placed• Return rates • Number of proposals made• Response time per customer • Brand recognition request • Response rate• Price relative to competition • Number of trade shows attended• Total cost to customer • Sales volume• Average duration of customer • Share of target customer spending relationship • Sales per channel• Customers lost • Average customer size• Customer retention • Customers per employee• Customer acquisition rates • Customer service expense per• Percentage of revenue form new customer customers • Customer profitability• Number of customers • Frequency (number of sales• Annual sales per turnover transactions)
  58. 58. Wrong KPIs“What is the moral of the story?”
  59. 59. KPIs and BehaviorBefore: “Handle Time” Per Call• Motivated Call Centre staff to transfer callers, getting rid of complainers, making them someone else’s problem• Callers at 45% chance of being transferred• 7,000 customers each week suffered transfers 7 times or more
  60. 60. KPIs and BehaviorAfter: “Minutes Per Resolution” of a problem• Resolution in ONE CALL become the core goal• Reduced probability of call transfers from 45% to 18%
  61. 61. Cause and Effect Financial Revenue Cost Margin Cash Flow AssetCustomers Satisfactio n Base Share Gain Positioning Adjacent New Retention Market Business Internal Process Investment Operational Product Customer Strategy Excellence Leadership IntimacyLearning & Growth Competencies Information Motivation, Systems empowerment, alignment
  62. 62. Cause and Effect: An ExampleFinancial Revenue Market Value Productivity GrowthCustomers /Distributors Products/ Channel Target Services Strategies MarketsInternal Supplier & Department ExternalProcess Alliances Operations InvolvementLearning & TechnologyGrowth Human Information & Resources Systems & Intelligence Processes
  63. 63. Sample: Other 1st Level KPIs across industries Financial Services Retail Telecommunications•Maximize ARPU •Understand customer •Anticipate and prevent churn•Minimize Churn behavior related to customer despite compensation•Mutichannel customer conversion, acquisition, and •Increase number of products retention per customerservice •Single view of customer •Turn call center information •Multichannel customer opportunity to up-sell and experience cross-sell •Personalized customer •Increase customer experience satisfaction and loyalty Hospitality Travel & Leisure Manufacturing•Personalized customer •Increase customer loyalty •Single view of customersexperience and preference across supply chain•Maximize share of wallet •Maximize customer revenue •Zero-error order capture•Player/customer loyalty •Improve service quality and •Streamline opportunity to•Multichannel customer efficiency cash processesservice •Capture and close sales •Leverage investment in ERP opportunities and backoffice systems
  64. 64. Sample KPIs for Each DisciplineOperational Product Customer Intimacy Excellence Leadership• Price • Marketing • Customer• Selection Knowledge • Functionality• Convenience • Solutions Offered• Zero Defects • # of Successes • Penetration• Growth • # of Failures • Customer Data • Learn from key • Customer-success users focus • Interdisciplinary teams • Pipeline
  65. 65. B2B/B2G BSC Matching Customer/Client/ Government BSC Financial Revenue Cost Margin Cash Flow Asset Customers Satisfaction Your BSC Base Share Gain Positioning Adjacent New Retention Market Business Financial Revenue Cost Margin Cash Flow Asset Internal Process Customers Satisfaction Investment Operational Product Customer Strategy Excellence Leadership Intimacy Base Share Gain Positioning Adjacent New Retention Market Business Learning & Growth Competencies Information Motivation, Internal Systems empowerment, Process Investment alignment Operational Product Customer Strategy Excellence Leadership Intimacy Learning & Growth1. Draw your ‘customer’s’ BSC Competencies Information Systems Motivation, empowerment, alignment2. Match their CP/IP with your CP3. Identify IPs that support/conflict
  66. 66. Why we hate Performance Appraisals
  67. 67. Complaints about Performance Management SystemsHow we de-motivate our own Talent Pool• Bias• Different Standards• Surprise• Subjective• No linkage• No differentiation• Secretive• No follow up• No control• No support
  68. 68. Complaints about Performance Management SystemsSystems Problem…• Different Standards• Surprise• Subjective• No linkage• No differentiation• No support *The rest are ‘people’ problems… to be dealt with in another time
  69. 69. What is PerformanceAppraisal used for? Monitor? Reward? No wonder our Discipline? employees are Development? confused! Motivation? Promotion?
  70. 70. What is PerformanceMeasurement used for? Monitor? Reward? Discipline? Development? Motivation? Promotion?
  71. 71. Which system should we use? Trait-based Behavior-based Knowledge/Skill based Activity based Results-basedManaging Performance = Managing Expectations What’s YOUR expectation?
  72. 72. MBO StandardsA ExcellentB GoodC AverageD PoorE Useless
  73. 73. MBO StandardsA ExcellentB GoodC Average GoodD PoorE Useless
  74. 74. MBO StandardsA Excellent ExcellentB Good Very GoodC Average GoodD Poor Not GoodE Useless Commit Suicide
  75. 75. Sample KPIs for Each Market DisciplineOperational Product Customer Intimacy Excellence Leadership• Price • Marketing • Customer• Selection Knowledge • Functionality• Convenience • Solutions Offered• Zero Defects • # of Successes • Penetration• Growth • # of Failures • Customer Data • Learn from key • Customer-success users focus • Interdisciplinary teams • Pipeline
  76. 76. Competency Target Setting1. Initiative2. Teamwork3. Problem Solving4. Leadership5. Integrity What’s the problem here?
  77. 77. Competency Target SettingInitiative2. Minimize problems quickly without needing to be asked3. Seeks personal growth and professional self- development4. Doing more than is required/expected in a job5. Seeks new and improved solutions and approaches to completing assignments6. Looks for opportunities to help others and team
  78. 78. Competency Standards3 Meets behavioral standards consistently. Is a good role model for others.2 Meets behavioral standards some of the time. Needs improvement.1 Does not meet behavioral standards. Require counseling or disciplinary actions.
  79. 79. END NOTES
  80. 80. Which Company?American Customer Satisfaction Index (ACSI)• 64 out of100-point scale: lower than IRS (Tax)• 2nd last among 30 companies surveyed• Lowest 5% among 223 companies surveyed• Bottom 5% of all measured private sector companies• 500 million customers 2010 American Customer Satisfaction Index (ACSI) E-Business Report
  81. 81. Which Company?American Customer Satisfaction Index (ACSI)• 64 out of100-point scale: lower than IRS (Tax)• 2nd last among 30 companies surveyed• Lowest 5% among 223 companies surveyed• Bottom 5% of all measured private sector companies• 500 million customers 2010 American Customer Satisfaction Index (ACSI) E-Business Report
  82. 82. Popularly Unpopular Popularity ≠ Affection
  83. 83. Don’t forget… “The business ofbusiness is Business”
  84. 84. Thank You. soft copy of slides:http://totallyunrelatedrandomanddebatable. blogspot.com/

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