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- The latest thinking on
Customer Satisfaction
Measurement
Leading Edge Management Consultancy Limited 27th April 2004
Leading Edge Management Consultancy Limited 1
- Why we feel we understand the issues around
customer satisfaction
We have been carrying out customer service audits, by
telephone and face to face interviews, since 1995.
6000 interviews have been completed
We always use ‘moments of truth’
Audits are comprehensive but expensive
A web based system is be cheaper
KPI-online was developed and launched (now known as
ACE)
Leading Edge Management Consultancy Limited 2
- And what we do ourselves:
We became quality assured in 1997 and
now have ISO 9000: 2000
We aim to capture our clients expectations
in our briefing sheet when we meet the
client
We use KPI-online system for getting
feedback from our clients
We have been using a system for
capturing improvements since 1996, called
Worry Notes (now known as PIN Notes)
Leading Edge Management Consultancy Limited 3
- The need for change...
A benchmarking study of 66
central government
departments’ construction
projects (with a total value of
£500m) showed that in 1999:
3/4 of the projects
exceeded their budgets
by up to 50%
2/3 exceeded their
original completion date
by 63%
Source: Benchmarking the Government Client Stage 2 Study: Agile Construction
Initiative, December 1999
Leading Edge Management Consultancy Limited 4
- The issues for a modern efficient and effective
construction industry
The construction industry is not known for focusing on
customers’/end users’ needs
Many of the people who are actually managing construction
projects have no experience in doing so.
head teachers
hospital trust managers
groups that have been allocated lottery money
(e.g. Bootle Cricket Club’s pavilion)
They may have an unrealistic idea of what they are going to get
for their limited budget and may be insufficient
The public sector (with the NAO) is driving the way of engaging
stakeholders in defining construction outputs not inputs
Leading Edge Management Consultancy Limited 5
- But we can help by changing the way we
approach customer satisfaction
To improve, we need to:
understand what is have specific actions to
important to each customer work against
as an individual
choose a specific person to
measure to give a datum be responsible for making
point to show where sure agreed actions are
improvement is needed carried out
look for where measure continuously to
improvement is needed show that improvement has
taken place
Leading Edge Management Consultancy Limited 6
- And so we must begin with a measurement
system that asks the right questions
Many companies have If people are being scored
been working with Key and they don’t understand
Performance Indicators the basis on which they
(KPI’s) - but if they get a are being scored, it can
low score they don’t know be very threatening.
what to do to improve it
They need to understand
We need to measure what they need to do to
things that give us an ‘score an 8’
action list to work against
Leading Edge Management Consultancy Limited 7
- Principle 1. Measure in a useful way by
focusing on ‘Moments of Truth’*
A ‘Moment of Truth’ is Murphy’s law says, according
anytime a customer comes to Tom Peters,
into contact with any aspect ‘each bad moment of truth
of a business, however scores 10x against you,
remote but each good moment of
truth only scores 1x for you’
It is an opportunity to form
an impression
Many ‘Moments of Truth’
are controlled by people
People are probably your
least controllable asset
*Jan Carlzon, SAS Airline, 1981
Leading Edge Management Consultancy Limited 8
- Make the questions into statements which the
scorer can agree with on a scale of 1-10
Understand what the Focus on the performance
customer expects gap between the two
so that the team can strive removes the arbitrariness
to meet it of different scoring scales,
not every element is i.e. what is an 8 out of 10
equally important for one person may be a 6
for another
Measure what the customer
perceives is the level that Perception may not be
the team is reaching reality - but that means the
so that the team can
issue still exists, but is one
identify where its of communication
performance is falling
short
Leading Edge Management Consultancy Limited 9
- You need to be able to aggregate the data
against business models that managers are
familiar with
While project team members need to work to improve their
‘Moments of Truth’…
Managers need to get a higher level strategic overview
against standard business models that they use:
Business excellence model
Customer satisfaction
Quality standard ISO 9000:2000
Leading Edge Management Consultancy Limited 10
- The Business Excellence Model
(shown in relation to ISO 9000:2000 headings)
System Involvement Process
Approach of People Approach
ENABLERS RESULTS
PEOPLE PEOPLE
RESULTS
Leadership
Factual
LEADERSHIP POLICY & PROCESSES CUSTOMER
KEY
PERFORMANCE
Decisions
STRATEGY RESULTS RESULTS
PARTNERSHIPS SOCIETY
& RESOURCES RESULTS
INNOVATION & LEARNING
® EFQM Excellence Model
Continual
Supplier Customer Improvement
Relationships Focus
Leading Edge Management Consultancy Limited 11
- How customer satisfaction can be expressed
against 5 dimensions of customer service*
Customer
service
Reliability Responsive- Assurance Empathy Tangibles
ness or or or
Competence Understanding Equipment
and Image
Moments of truth
* based on research conducted by Parasuraman, Zeithaml & Berry
(Journal of Marketing Vol 49 1985).
Leading Edge Management Consultancy Limited 12
- How the ISO 9000:2000 process model needs
customer requirements & satisfaction to be acted on
ACE workshop
MANAGEMENT
RESPONSIBILITY
PIN notes
R S
C e a C
U q CONTINUAL t U
u KPI- i
S I s S
T r RESOURCE Management MEASUREMENT online f T
ANALYSIS
O e MANAGEMENT System a O
m
IMPROVEMENT scores c
M e t
M
E n IMPROVEMENT i E
R t o R
s n
PRODUCT
& SERVICE
INPUTS OUTPUTS
REALISATION
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- You also want to be able to present the data in
a graphical and simple way that will show
trends
Leading Edge Management Consultancy Limited 14
- Principle 2. Start off by understanding exactly
what is important to your customer BEFORE
YOU BEGIN THE PROJECT so that you can:
Identify what the client
Help the client understand
expects from the project
their role & how they can
team on each moment of
help improve the way that
truth
the project works
This identifies what a 6 or 8
Help all members of the
is. And more specifically
project team to understand
what a 10 is - as this will be
their mutual responsibilities
best practice
to one another
Explain to members of the
project team what they
need to do to achieve
specific scores
Leading Edge Management Consultancy Limited 15
- If you know what is important to your
customer then the measurement should be just
a formality
Discuss with the client what Measurement can be at any
is important appropriate frequencies
it brings their hidden but should be far enough
agendas onto the table apart so that improvements
can be made and seen before
the next scoring
When you understand what
a customer wants it is
easier to meet their needs Reviews look at any issues,
measurement becomes suggested improvements or
a formality changes - to agree the best
course of action
make one person responsible
for making sure it happens
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- This means that:
You know which issues You know exactly what you
need improvement need to do to ‘score an 8’
You identify them early You can even probably
enough to make predict what your score will
improvements be
Hidden agendas are Greater client satisfaction!
exposed - no late surprises
The project team works co-
operatively & cohesively
Leading Edge Management Consultancy Limited 17
- Principle 3. Capture issues & develop best
practice with the PIN Note system to:
Identify issues that prevent Monitor progress
a higher level of client
satisfaction being achieved Agree the final solution
Jointly problem-solve & Recommend it be adopted
agree the likely area to find as best practice
a solution
Share it!
Designate one person to be
responsible for finding a
solution on a clear
timeframe
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- The PIN Note (Worry Note) system looks like
this..
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- Which means that..
The whole team is working It provides a meeting
together agenda for communicating
internally
Ideas don’t get lost or
forgotten The whole organisation is
progressively brought up to
Dates & actions are met the standard of the best
Improvements actually
happen
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