Building a Cost Effective Voice of the Customer Infrastructure to Feed the Pipeline of Six Sigma Projects

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Building a Cost Effective Voice of the Customer Infrastructure to Feed the

Pipeline of Six Sigma Projects

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Jackie CazarManaging Director

[email protected]


Agenda

Which one comes First?

VOC/Six Sigma Infrastructure

CTC’s & Listening Post

Capturing & Analyzing the VOC

Corporate Goals, Action Plans & Six Sigma Project Pipeline


Voice of the Customer (VOC) Infrastructure: A system that collects, measures and analyzes Customers’ feedback & provides the Company with direction on WHERE to allocate limited resources to address the Customers’ most critical Loyalty and Satisfaction issues.

Critical-to-Customer (CTC): The Customers’ requirements measured in Customer, Financial and Business terms and linked to specific process/product improvement/enhancement plans.

Customer Experience (CE): Umbrella containing the top 10 most critical CTC’s

Listening Post (LP): An employee, a system or a mechanism that collects and codes Customer’s feedback.

Revenue: Is driven by the Customer’s perception of value (Satisfaction) & decision/action (Loyalty) on products and services.

VOC Lexicon


VOC or Six Sigma?

Do we need both?

Budget for VOC?

ROI?

When VOC? When Six Sigma?

Benefits & Risks?

Why?

Which One Comes First?


To drive improved Customer Satisfaction, Loyalty and Retention, create positive Economic Profit and achieve

competitive advantage in the Market Place

2005 Goal

Provide your Company with direction on WHERE to allocate limited resources to fix the Customers’ most critical issues

EASY or HARD?

Long/Short Terms Goals


Identify LP

Identify CTC

Listen Prioritize Fix/Build

Map CTC/LP COPQ

Design & Execution

Analysis (correlation)

DMAIC or DFSS against CTC

Measure

When do we start VOC?

When do we start Six Sigma?

Benefits & Risks

2 m

onth

s $0

- $

100K

Les

s E

xpen

sive

1 m

onth

$0

- $

30K

Fina

ncia

l D

ata

VOC Infrastructure


Roles Defined

Roles Defined

Roles Defined

Roles Defined

Roles Defined

Finance Rep on board

Communication Strategy

Kick off

Change Mgt. Strategy

Staffing begins

Finance Training ready

Six Sigma Vendor selection begins

CTC’s Identification

Strategy

CTC Manager on board

Compensation Strategy

Career Development

Performance Mgmt.Process

Black Belt selection begins

Master Black Belt on board

Exe/Champion training begins

Process Mapping & Metrics

Project Pipeline Strategy begins

Champions on board

Financial Mgmt. & Reporting Process ready

Initial Financial Forecast

(ICOPQ) ready

Green Belts, Data Owners on board

Data Assessment Project Selection

MINITAB & Visio/iGrafx ready

Data Assessment

Go/No Go Champions

Go/No Go Black Belts

Green Belt training ready

Black Belt training starts SIX SIGMA OFFICIAL

LAUNCH

RISK ASSESSMENT

COMPLETED

ON-TARGET

SOME ISSUES

SERIOUS ISSUES

Information Systems

Finance

CEO

Six Sigma Office

Human Resources

Go/No Go DECISION

Well defined Projects


Roles Defined

Roles Defined

Roles Defined

Roles Defined

Well defined Projects

Finance Rep on board

Communication Strategy

Kick off

Change Mgt. Strategy

Staffing begins

Finance Training ready

Six Sigma Vendor selection begins

CTC’s

CTC Manager on board

Compensation Strategy

Career Development

Performance Mgmt.Process

Black Belt selection begins

Master Black Belt on board

Exe/Champion training begins

Process Mapping & Metrics

Project Pipeline Strategy begins

Champions on board

Financial Mgmt. & Reporting Process ready

Initial Financial Forecast

(ICOPQ) ready

Green Belts, Data Owners on board

Go/No Go Champions

Go/No Go Black Belts

Green Belt training ready

Black Belt training starts SIX SIGMA OFFICIAL

LAUNCH

RISK ASSESSMENT

COMPLETED

ON-TARGET

SOME ISSUES

SERIOUS ISSUES

Finance

CEO

Six Sigma Office

Human Resources

Roles Defined

Data Assessment Project Selection

MINITAB & Visio/iGrafx ready

Data Assessment

Information Systems

Go/No Go DECISION


InternalInterviews

ExternalInterviews

CTCL

ist

of

Att

rib

ute

s

LP

Attribute Map

MaintenanceIssues

Critical Issues

Less CriticalSecondary

Issues

x x x x

x x x x

x

x x x x

x

x

x

Six

Sig

ma

Pro

ject

Pip

elin

e

Attribute Map: Courtesy of Burke Incorporated

Month 1 Month 3 - 4Month 2 Month 4 - 5

CTC to Project Pipeline


Identify/validate top CTC’s

Customer Segmentation

Internal Interviews

External Interviews

Identify list of 40+ attributes

Satisfaction

Loyalty

Retention

# 10 CTC's Internal (50) %1 Poor Customer Service 29%

2 Messy conversions 29%

3 Payment Errors 26%

4 Faster processing time 23%

5 Lack of Technology Infrastructure 21%

6 Customer forgets passwords 21%

7 Dial Transfer 19%

8 Lack of Customer Training 15%

9 SLA errors 15%

10 Lack of Communication 13%

Critical to Customer Identify CTC


Top 3 CTC’s were not identified internally One or two levels down

# 10 CTC's Internal (50) %1 Poor Customer Service 29%



4 Faster processing time 23%

5 Lack of Technology Infrastructure 21%

6 Customer forgets passwords 21%

7 Dial Transfer 19%

8 Lack of Customer Training 15%

9 SLA errors 15%

10 Lack of Communication 13%

# 10 CTC's External (50) %1 Too many hidden fees 67%

2 Locked in until next year 53%

3 Ineffective Relationship Managers 48%

4 Not easy friendly system 45%

5 Poor Customer Service 34%

6 Too many passwords 32%

7 Technology Help Desk does not Help 31%

8 Does not meet SLA 25%



Critical to Customer Validate CTC


Identify critical Listening Posts

CTC’s

% Volume captured on CTC’s

Identify data collection processes & variation on CTC terminology

Standardize data collection process & CTC terminology

Fix/Enhance critical Listening Posts

People - Training/Education

Systems - Fix/Enhance

Listening Post Identify LP


1 2 3 4 5 6 7 8 9 10

Too many hidden feesLocked in until next

year

Ineffective Relationship

Managers

Not easy friendly

system

Poor Customer

Service

Too many passwordsTechnology Help Desk

does not HelpDoes not meet SLAMessy conversions

Payment Errors% Captured

40%

30%

50%

20%

30%

40%

70%

0%

CTC's

1 Call Center

2 Relationship Managers

3 Help Desk

4 CMO

5 Quality Council

6 Last Year Survey

7 Focus Groups

8 Web Suggestion Box

LISTENING POSTS

CTC & Listening Posts Mapping Out


Listening Method

Data Collection

Time

Type of Data

CostResponse

Rate

Interview (person)

Several days Both Medium-High 50% - 80%

Telephone Survey

2 Weeks Objective High 40% - 50%

Web Survey 1 Week Objective Low 10% - 30%

Mail Survey Months Objective Low 3% - 5%

Focus Groups (person)

One day Subjective Low-Medium 80% - 100%

Focus Groups (on-line)

One day Subjective Low-Medium 30% - 80%

Customer Expectations Short/Long Term Infrastructure on Data processing & reporting Resources (budget) to act upon

Data Collection Chart: Partially taken from “Choosing the Best Method for Listening to the Customer” by Dr. Pam Hunter, published by iSixSigma.com

Gathering VOC Listen


Survey Design Top 10 CTC’s (validated) Attribute List Customer Segmentation Customer Role (skip logic)

Revenue Data Customer & Customer Segment COPQ on top CTC’s

Education & Training Company/Industry Customer Segment

Launch (logistics)

Survey Plan Listen


20% 49 0% 060% $162 0% $0

35% 24530% $270

80% 196 0% 040% $108 0% $0

40% 42 5% 280% $72 $4

15% 10510% $90

60% 63 7% 420% $18 $1

70% 147 15% 2230% $149 $22

30% 21055% $495

30% 63 30% 19

70% $347 $104

10% 14 100% 1490% $41 $41

20% 1405% $45

90% 126 100% 12610% $5 $5

Will Leave (Hostages)

Will Talk (Defectors)

Will not Renew

Do complain

Do not complain

Do complain

Do not complain

Loyal (Apostles)

Satisfied (Mercenaries)

Do complain

Do not complain

Do complain

Do not complain

100% 700

100% $900MM

Total Customers

Total Revenue

Revenue Impact $176 20%

Customer Impact 187 27%

Customer Risk Category taken from “Linking Measures of Customer Satisfaction, Value & Loyalty to Financial Performance,” by Randall Brandt, Jim Roberts and Kunal Gupta., Courtesy of Burke Incorporated

Ultimate Survey Goal Listen & ROI


Customer Impact

financial Impact

Strategic Goals

High Low InternalCross-

Functional

Available

Data

< 6

Months

Well-

Defined

10 10 10 0 5 10 5 10 5 10

1 Project 1

2 Project 23 Project 3

4 Project 4

Cross-Functional Success Decision

CodeProject Org.

Read.

Level

Total

Score

Effort

vs.

Benefit

Must Have Complexity

Project Pipeline is defined by CTC’s, revenue per Customer and critical attributes

Financial impact based on correlation between revenue per Customer and critical attributes

Complexity depends on Six Sigma deployment model Ultimate decision on resource allocation requires high organizational

readiness level based on % of revenue that is at risk

Project Pipeline Prioritize


Customer Experience CTC 1

Project Critical Y Attribute 24

Trivial X’s

Vital X’s

Key driver of Loyalty & Satisfaction required by the Customer

Key Attribute linked to internal broken process(es) - C&E Matrix

Potential root Cause

Root Cause S

IX S

IGM

A

V

OC

Project Pipeline FIX MEASURE


CTC’s (validated)

Effective Listening Posts

Scientific/Standardized Customer Listening Process

Coding & Classification System – based on CTC’s

Scientific (Statistical) Data Analysis

Agreed Upon Prioritization Criteria

Actionable Process Improvement Projects

What do We Need?


Do you know what are the top 10 CTC’s?

Do you know what and who are the Company’s most critical Listening Posts?

Do you know which percentage of revenue is at risk due to Loyalty, Satisfaction and Retention issues?

Is your survey data linked to financial data?

Is there a centralized system where the information collected by all Listening Posts is processed and acted upon?

Has your VOC Infrastructure explained the Customer’s Loyalty, Retention & Satisfaction issues?

Does your Infrastructure provide you with actionable data (direction) on where to allocate limited resources to fix the Customer most critical issues?

How does your company set up corporate goals and allocate resources to achieve these goals?

Questions on your Existing VOC Infrastructure


Revenue is driven by the Customer’s Perception of Value of your Company’s Products, Services and People

Linking Six Sigma with VOC & Revenue

Benefits

CustomerPerception

ofValue

ServiceExcellence

Quality ofthe

Processes

OperationalExcellence

Vo ice of theEmployee

Holistic Analysis

From End to End

$


Thank You - Q&A Session

Jackie CazarManaging Director

[email protected]