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                                                     Many organisations believe they are doing all the right things but results show that their 
                            customer-related performance is not improving as they would like. The right senior 
                            executives are accountable and have responsibilities for the customer written into their 
                            personal objectives but corporate results show that accountability is not translated fast 
                            enough into action. Consistently delivering measurable improvements in customer 
                            management processes, week by week, is not happening.  
                        
                        Our experience of working with customers, as well as results from Budd’s Fast+Simple™
                                2005 senior executive survey tells us there are four reasons why companies can’t fix 
                                things: 
                        
                          -                               too many one-off projects open and competing for resources
 
                          - lack of a proper, consistent, end-to-end tracking process within companies
 
                          -  lack of a cross-organisational focus and consequent issues prioritisation
 
                          -                               not able to drive internal change effectively, despite good in-house skills.
 
                         
                         Change is not always complicated but it is invariably hard to do successfully – and may
                                require outside help. 
                        
                         Many organisations have a strong customer-focus, and a ‘can-do’ culture. They have 
                                excellent analytical skills, Six Sigma quality projects running in the organisation, use lean 
                                tools to improve processes - but still encounter problems, because they don’t have a 
                                proper cross-organisational tracking process in place. Six Sigma and lean tools are 
                                optimised for manufacturing not for customer services. Projects can become overly 
                              detailed and result in analysis that leads up blind allies. Companies struggle to find the ‘helicopter’ view of operational and project priorities. 
                                                    Success requires focus, good internal communications and speed to drive actions that 
                            improve the impact to the customer. Opening the communication channels to define contact codes in 
                            the right way or providing objectivity in helping to engage senior executives in 
                            accountabilities are just two of the benefits of outside help. For example, it took one 
                            company five quarters to get from prototype to kicking projects off, on their own. That’s 
                            why you need outside focus and help.                             
                         
                                 
        Companies who are delivering successful customer experiences are able to: 
                        
                          -  hear the customers’ frustrations and ideas
 
                          -  focus projects according to these customers’ priorities
 
                          -  actually make a difference to the way they operate
 
                                                   
                        Amazon is an outstanding example of a company who designed a continuous tracking 
                                process (known as Skyline) that has enabled the company to improve customer service 
                                innovation, cost reduction and competitive advantage, whilst massively growing 
                                customer volumes. Other companies in Europe, USA and Australia have followed 
                                Amazon’s lead and proved that Skyline is an effective way to address the underlying root 
                                causes and drivers of service demand across the business, cut OPEX and grow revenues.                               
                        
                          
                            | Examples | 
                            Benefits from using Skyline process | 
                           
                          
                            Large online 
retailer | 
                            
                              - 22% per year reduction in contacts per order
 
                              - Typical corporate IRR was >200%, equivalent to ~9 month payback
 
                              | 
                           
                          
                            Large online 
bill payment 
company | 
                            
                              - Has kept Customer Service headcount flat over past 2 years while number 
                                  of customers has more than doubled
 
                              - 50% reduction in contacts per customer, saving tens of millions
 
                              | 
                           
                                                 
                        Source: “How do customers get Fast+Simple experiences from companies like Amazon and what 
    can you learn from that?, Budd 2005 report, download free at www.fastandsimple.org 
                                                    The key differentiator for these companies is their ability to “close the loop” between 
                            voice of the customer, programmes and operations, as outlined in the graphic below. 
                          
                            In 2005, it’s rare for companies to get beyond first base in demand analysis. They still find 
    it hard to put in place processes which continually sense and improve 
    customer frustrations and remove costly service needs. And drive great product and 
    service development opportunities back into the business. 
                                                    There is a right way to do things, for right first time – and there is a right way to capture 
      and classify codes and a right way to eliminate what is a waste of time. 
      If you have a business problem that you can’t fix, you may need help, because either 
      you haven’t the right components in place or you have the components but they don’t 
      glue together. In either case, you can’t achieve the desired changes.  
                        To see if this process 
                              would benefit your company, check out the list below 
                        
                          
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                              - Good understanding of the contact processes
 
                              - The right listening posts in place – including for customer self service
 
                              | 
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                              - Customer contact reporting reflects ‘Why?’ not ‘What?’
 
                              -  Contact analysis/contact centre assessment as well as code restructuring and improvement processes
 
                              -  Analysis beyond reporting, the ability to dig more efficiently and quickly
      into the reason for codes going up or down (which customer segment, 
      which product segment, which call centre site)
 
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                              - Readily modify agent applications to match new coding systems
 
                              -                                   Understand agent interface and overlaps with existing contact handling and CTI applications
 
                              | 
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                              - Wide enough vision on collaboration across the business
 
                              -  Understand new data and the importance of simulation
 
                              | 
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                              - Can set the right goals to win
 
                              -  Change management programmes
 
                              -  Know how to get collaborative action on the results
 
                                                            | 
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                              -  Identify the differences between the processes you have, expect and actually need
 
                              -                                   Can make what you want compatible with what you have (or need to discard).
 
                              -  Have the right tracking process in place to drive the value you want from 
        what you’re doing
 
                              | 
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                          If you know what’s wrong but can’t fix it yet, look for capabilities that you can’t replicate 
    in-house and expertise that can deliver those critical pieces that will save you time – and 
    probably money. The ability to close the loop is an opportunity to differentiate your 
    offering. As services and products get more complex - and more vital to doing business 
    and staying in touch - so the need to address these long standing issues intensifies. To the 
    winner the spoils! 
                         
                        If you would like to know more - contact Peter Massey, Managing Director of Budd and 
    co-founder of the LimeBridge international alliance. www.budd.uk.com 
                        © BUDD UK   |