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Managing customer
expectation
What clients really want ?
Ruslan Seredyuk
Management is changing
Cost
Time Scope
Quality
Cost
Scope
Time
Quality Expectations
Expectations are changing
I expect you will quickly do MVP and deliver to prod
Expectations are changing
I expect you do professional, stable and robust software,
since I have hundred clients online
Are you a good customer ?
Over 1 million people view tweets about customer services every week.
Roughly 80% of those tweets are negative or critical in nature.
How good is your service ?
• Excellent
• Professional
• Good
• Moderate
What are the clients expectations ?
• On time
• On budget
• MINIMAL DISRUPTION
• Relationships
Why do we fail ?
• Sales over-promised
• Poor customer service
• Expectations are set incorrectly
• Expectations are not being managed
• Account manager has no time to talk to the customer
Expectations
Outcome Disappointment
Who are our customers ?
• Business efficiency clients - insurance, banking
• Cost conscious smart shoppers – IT services, electro technology
• Strategies and innovation seekers – automotive, engineering
• IT excellence clients - startups
What does startup need ?
• Fast delivery
• Less processes
• Moderate prices
• Ability to grow up/down fast
• Ongoing communication
Smart shoppers needs
• Adhere to their processes
• Less questions, more work, we already thought it through. “We say
you do”
• Professional, experienced engineers (not sure about managers)
• Ability to select and interview your workforce
Business efficiency client
• Solving their problem, not just going way they say
• Professionalism of engineers and managers
• Solid processes and tools
• Predictability
• Less disturbing
Aligning the expectations
Burn downs
IterationsThey need Scrum
PM just got Agile Coach certificate
Smart shoppers
two more Senior C++ and
we are happy.
Aligning the expectations
Burn downs
IterationsThey need Scrum
PM just got Agile Coach certificate
• standard status report
• risk management
• proposed schedule
• work and cost breakdown.
Business efficiency clients
Aligning the expectations
Project plan
Risks
Stakeholders management
PM has just become PMP.
Startups
Any idea what I can have in a month ?
Team development
SRS
Charter
Everything is relative
• Moderate services + High end customer = DISSAPOINTMENT
• Moderate services + Low end customer = SATISFACTION
So what to do ?
Build TRUST
Be involved
• Ask and listen
• Be interested in customer’s business
• Deliver often and in professional manner
• Get a feedback
• Show improvements
Relationships
• Customer wants and expects relationships
• They expect somebody will contact them to say: “Hello how are you
doing?”
• There’s nothing worse than over-promising and under-delivering!
Reporting
Reporting
• Gives customer feeling that you do the work
• Risks, Changes, Decisions –expectation about project
• Estimate at completion – expectation about delivery
• PM’s check point
Bad news
• Be ready yourself
• The sooner the better
• Imagine you are the customer and get such news
• Write down your explanation
• Have couple of solutions in your pocket
• Tell the truth
• Take the responsibility
• Or at least have a clear vision how customer CAN HELP
• Watch your mouth and emotions
• Listen
Arguments with the customer
• Customers are always right, even if they are not
• Understand why do you do that?
• What can you get at the end ?
• Can you turn it into constructive discussion?
Arguments with the customer. Summary
You win – you lose THEM
You lose – you lose
CASES
OnTime - OnBudget or Happy Customer
• OnTime, OnBudget – important but short term win
• Happy customer – crucial and long term win
Case:
Project expected duration 3 months. Real duration 15 months
Real budget vs Expected – 3x
Happy customer due to the correct expectation management
Case: GPU Startup
• Customer wanted fast GPU software
• Had requirements
• Selected us as GPU experts
• Informed us that won a grant from government
Case Startup
Our Expectations:
• GPU – a lot of $$$
• Startup – has funding
• Easy on spending, T&M
Customer expectations:
• Need was a speedup, not GPU
• Fast delivery
• High complexity outsourcing
• Fixed bid
Case. Results
• All development went to us
• Customer brought his friends who became our customers
• Comparing to initial bid – we have got 5x more sales with the
customer
• We are friends
Summary
• Meeting expectations is not enough, you have to manage them
• Understand your own expectations
• Understand who your customers are and align with their expectations
• Maintain relationships
QUALITY OF EXPECTATIONS
DETERMINE
THE QUALITY OF OUR ACTIONS
Q&A
ruslan.seredyuk@gmail.com
http://seredyukr.wordpress.com/
@rulllesss

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PMday 2015. Руслан Середюк “Managing customer expectations або чого вони всі хочуть”

  • 1. Managing customer expectation What clients really want ? Ruslan Seredyuk
  • 2. Management is changing Cost Time Scope Quality Cost Scope Time Quality Expectations
  • 3. Expectations are changing I expect you will quickly do MVP and deliver to prod
  • 4. Expectations are changing I expect you do professional, stable and robust software, since I have hundred clients online
  • 5. Are you a good customer ? Over 1 million people view tweets about customer services every week. Roughly 80% of those tweets are negative or critical in nature.
  • 6. How good is your service ? • Excellent • Professional • Good • Moderate
  • 7. What are the clients expectations ? • On time • On budget • MINIMAL DISRUPTION • Relationships
  • 8. Why do we fail ? • Sales over-promised • Poor customer service • Expectations are set incorrectly • Expectations are not being managed • Account manager has no time to talk to the customer Expectations Outcome Disappointment
  • 9. Who are our customers ? • Business efficiency clients - insurance, banking • Cost conscious smart shoppers – IT services, electro technology • Strategies and innovation seekers – automotive, engineering • IT excellence clients - startups
  • 10. What does startup need ? • Fast delivery • Less processes • Moderate prices • Ability to grow up/down fast • Ongoing communication
  • 11. Smart shoppers needs • Adhere to their processes • Less questions, more work, we already thought it through. “We say you do” • Professional, experienced engineers (not sure about managers) • Ability to select and interview your workforce
  • 12. Business efficiency client • Solving their problem, not just going way they say • Professionalism of engineers and managers • Solid processes and tools • Predictability • Less disturbing
  • 13. Aligning the expectations Burn downs IterationsThey need Scrum PM just got Agile Coach certificate Smart shoppers two more Senior C++ and we are happy.
  • 14. Aligning the expectations Burn downs IterationsThey need Scrum PM just got Agile Coach certificate • standard status report • risk management • proposed schedule • work and cost breakdown. Business efficiency clients
  • 15. Aligning the expectations Project plan Risks Stakeholders management PM has just become PMP. Startups Any idea what I can have in a month ? Team development SRS Charter
  • 16. Everything is relative • Moderate services + High end customer = DISSAPOINTMENT • Moderate services + Low end customer = SATISFACTION
  • 17. So what to do ?
  • 19. Be involved • Ask and listen • Be interested in customer’s business • Deliver often and in professional manner • Get a feedback • Show improvements
  • 20. Relationships • Customer wants and expects relationships • They expect somebody will contact them to say: “Hello how are you doing?” • There’s nothing worse than over-promising and under-delivering!
  • 22. Reporting • Gives customer feeling that you do the work • Risks, Changes, Decisions –expectation about project • Estimate at completion – expectation about delivery • PM’s check point
  • 23. Bad news • Be ready yourself • The sooner the better • Imagine you are the customer and get such news • Write down your explanation • Have couple of solutions in your pocket • Tell the truth • Take the responsibility • Or at least have a clear vision how customer CAN HELP • Watch your mouth and emotions • Listen
  • 24. Arguments with the customer • Customers are always right, even if they are not • Understand why do you do that? • What can you get at the end ? • Can you turn it into constructive discussion?
  • 25. Arguments with the customer. Summary You win – you lose THEM You lose – you lose
  • 26. CASES
  • 27. OnTime - OnBudget or Happy Customer • OnTime, OnBudget – important but short term win • Happy customer – crucial and long term win Case: Project expected duration 3 months. Real duration 15 months Real budget vs Expected – 3x Happy customer due to the correct expectation management
  • 28. Case: GPU Startup • Customer wanted fast GPU software • Had requirements • Selected us as GPU experts • Informed us that won a grant from government
  • 29. Case Startup Our Expectations: • GPU – a lot of $$$ • Startup – has funding • Easy on spending, T&M Customer expectations: • Need was a speedup, not GPU • Fast delivery • High complexity outsourcing • Fixed bid
  • 30. Case. Results • All development went to us • Customer brought his friends who became our customers • Comparing to initial bid – we have got 5x more sales with the customer • We are friends
  • 31. Summary • Meeting expectations is not enough, you have to manage them • Understand your own expectations • Understand who your customers are and align with their expectations • Maintain relationships
  • 32. QUALITY OF EXPECTATIONS DETERMINE THE QUALITY OF OUR ACTIONS Q&A ruslan.seredyuk@gmail.com http://seredyukr.wordpress.com/ @rulllesss

Editor's Notes

  1. Ми завжди говоримо про meeting or exceeding customer expectations Це дуже хороша ціль. Але в поточних умовах, коли все міняється навколо , природньо що і очікування можуть змінюватися. І одна з багатьох задач менеджера це не тільки дивитися щоб проект мачився з очікуваннями замовника але й контролювати і направляти його очікування. Тому доводиться говорити про менеджмент. Дана презентація це роздуми на тему чому важливо розумінти і керувати очікуваннями замовників ------------------------------------------------------ Я спробую зараз трохи заменеджити ваші очіуквання: Хто знає про матриці стейкхолдерів і стратегії їх менеджменту ? Так от – про це не буде. Спочатку ми оцінимо проблеми, подивимося навколо Потім пошукаємо рецептів ---------------
  2. More recently, the triangle has given way to a project management diamond: cost, time, scope, and quality are now the four vertices, with customer expectations as a central theme (see Figure 2). No two customer expectations are the same, so you must ask specific questions about the customer's expectations:
  3. Сьогодні очікування замовника чим по швидше і подешевше і реліз Що буде очікувати замовник завтра ?
  4. завтра – дуже якісно і надійно бо в мене клієнти. Природньо що в даному прикладі нам буде важко перевершити друге очікування замовника Для того щоб зрозуміти як менеджити очікування замовника, треба що зробити ? Так – стати замовником. Розібратися в собі трохи. Колись мав змогу вчитися в одної цікавої пані яка вчила нас різним навичкам Пмста. Так от – ми починали на з хард скілів а навіть не з софт. Ми починали з себе. Це дуже допомагає. Це не тільки про очікування інших – це про багато граней вашого життя. Треба знати що ми хочете і хто ви є.
  5. Підніміть руки хто з вас вважає що він гарний замовник. Отож бачимо що 80% людей на щось жаліються – їм надали сервіс але вони жаліються. Нічого (або нікого не нагадує) не нагадує ? I’m perfectionist Why – because I expect service level I give to my customer or better ?
  6. Ок – тепер з іншого боку. Скажіть як ви думаєте – який сервіс ви надаєте ?
  7. Клієнти зазвичай наймають когось щоб не тільки вирішити свою проблему але й щоб вивільнити свій час для чогось іншого. Наприклад для займання бізнесом, продаж. Вони хочуть знати що у них за плечима надійний партнер. Але які їх очікування. Звичайно вирішення проблеми – то ціль. Але як ви то зробите – які їх очікування. Вирішіть якісно-дешево і швидко. Яка буде ваша відповідь на це питання ? Вибери два з трьох. Know their name (personification) – Starbucks -------------------------------------------------- Та чи справді це так. Чи справді всі клієнти мають
  8. Але чому ми все одно не можемо менеджити очікування замовників
  9. Я тут не претендую на істину, але коли ми зрозуміли дещо про себе – тепер починаємо говорити про замовників. Хто вони наші замовники. Зараз орієнтуємося на outsourcing IT Outsourcing Governance: Client Types and Their Management Strategies (Munich 2009) Business efficiency clients Cost conscious smart shoppers - short term, focus on costs saving Strategies and innovation seekers - long term , value add solutions. Knowledge acquisition IT excellence clients - extend current technology or deliver cutting edge new technology
  10. BUT WHAT IF OWNER WORKED FOR IBM ?
  11. Все на нашій землі відносно. Ми міряємо відносно чогось, ми навіть есітімейтимо відносно зараз. For this reason, luxury resort, for example, might receive a lower satisfaction rating than a budget motel—even though its facilities and service would be deemed superior in ‘absolute’ terms.” – Тож і замовники будуть свої очікування відносно досвіду який в них уже був. Ви навряд чи купите жигулі після тойоти. Так і тут ми маємо розуміти хто до нас прийшов і на який рівень сервісу клієнт очікує. Зрозуміло що те чого очікує стартап може не відповодіти тому що очікує cost saver. Different plans ( For example, Starter, Basic and Professional plans. Each plan has different customer expectations that have been established and need to be met.) Just imagine you will have to ask for business referral after the project
  12. Мене якось раз спитали – як в тебе так класно з замовником. Я довго думав і зробив односторінкову презентацію
  13. Як його будувати
  14. Бізнес бізнесом але всі ми люди і всі мають ті чи інші людські якості і відносини Замовники теж люди і вони очікують від нас простих людських відносин.
  15. Здається така проста і нікому не потрібна річ – репорти. Чому їх не пишуть ? Впадло читати бо нема корисної інформації.
  16. Здається така проста і нікому не потрібна річ – репорти. Чому їх не пишуть ? Впадло читати бо нема корисної інформації.
  17. – understand how did it happen, how could you avoid such situation. It can be stressful. Write down your explanation - (Connect to identified risks if possible) Trigger Words (to avoid): “You should” “You can’t” “I can’t” “No” “If only” “But” “Bug” or “glitch” “That’s our policy” Collaborative words (more effective): “We can do this together” “One alternative for you could be…” “What I can do is” “I’m sorry, that is not possible, because…” “Let me show you what to do in the future…” “And” “issue” or “situation” “In order to provide you with great service…” (see below) Listen - This is a good time to employ your best active listening skills by focusing on what the customer is saying, taking notes, and paraphrasing their concerns to confirm your understanding of what they are saying.
  18. Садовий казав що коли починаєш сватиритися дружиною то ти вже програв. Why - Show them that you are smarter? that will offend Do I understand it right that there is an issue which was caused by undocumented requirement and you want our team work over weekend on this?
  19. Садовий казав що коли починаєш сватиритися дружиною то ти вже програв. Why - Show them that you are smarter? that will offend
  20. То що ж краще вкластися в часові та грошові рамки чи мати щасливого замовника. Якщо ми будете працювати строго по плану і не дивитися що відчуває замовник. В кінці у вас може бути правильно зроблено, але не те. Тут як кажуть досвідчені презентери – у вас є план на презентацію, і недосвідчений презентер слідує плану, а досвідчений читає аудиторію підлаштовується. Звичайно я не кажу про те що не треба дотримуватися планів. Плани треба мати і їх треба виконувати але треба завжди памятати що очікування замовникиві можуть змінюватися , і за цим треба уважно слідкувати, так само як за бюджетом на розкладом проекту. Недавно у нас був кейс Замовник заказав софт , у нього не було subject mantter expects. Ми відмовили сказали що так як від хоче – ми не будемо робот Потім він прийшов знову – сказав – допоможіть Ми описали всі ризики – дали емтейти базуючись на розумінні сиситеми. Як виявилося ми ідентифікували 20-30% функціоналу.
  21. Need was a speedup, not GPU Fast delivery since there were no much funds and there was a BIG competitor releasing similar tool Need was to prove (research) that it’s possible to outsource highly innovative and complicated development Need to use not only product but library Fixed bid
  22. In 2011, 86% of consumers quit doing business with a company because of a bad customer experience