Voice of customer

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Voice of The Customer (VOC) Management
Manu K. Vora, Ph.D., MBA, ASQ CQE & Fellow
Chairman and President, Business Excellence, Inc. Adjunct Professor, Stuart GSB, IIT, Chicago, IL Past Vice President, American Society for Quality (ASQ)
P. O. Box 5585, Naperville, IL 60567-5585, USA Tel: 630-548-5531, E-Mail: manuvora@b-einc.com Website: http://www.b-einc.com/

Keynote Presentation at theCRQC 2005, San Jose, Costa Rica, March 15, 2005
© Copyright Business Excellence, Inc., USA 2005 1

Introduction
Ø

Customer Satisfaction & Economic Justification - Why Customer Satisfaction Management Principles - What Customer Delight: - How
X X X

Ø

Ø

Voice of the Customer (VOC) World-Class Customer Service Best-in-class Examples
© Copyright Business Excellence, Inc., USA 2005 2Ø Recipe for Success

Economic Justification
ØStudy of 22 companies who received a Site Visit or won the Baldrige Award (19881991):
ü Improved customer satisfaction ü Improved employee satisfaction ü Improved operational parameters ü Enhanced financial performance
Reference: US General Accounting Office study (GAO NSIAD 91-190, May 1991).
© Copyright Business Excellence, Inc., USA 2005 3 Customer Satisfaction Results
Parameter Overall Customer Satisfaction Customer Complaints Customer Retention Average Annual % Improvement 2.5 Favorable Unfavorable No Indicator Indicator Change 12 0 2

(11.6) _ 1.0

5 4

1 2

0 4

Total 17 compa nies responded. Reference: GAO NSIAD 91 -190, May 1991. Total 22 companies responded.

© Copyright Business Excellence, Inc., USA 20054

Enhanced Financial Performance Results
Parameter Market Share Sales per Employee Return on Assets Return on Sales Average Annual % Improvement 13.7 8.6 1.3 0.4 Favorable Unfavorable No Indicator Indicator Change 9 12 7 6 2 0 2 2 0 0 0 0

Total 15 companies responded.

© Copyright Business Excellence, Inc., USA 2005

5

Management of Critical Voices
Delighted Customers (VOC)
VOE –Voice of Employee VOC - Voice of the Customer

VOP - Voice of Process

Excited Employees (VOE)

Improved Processes (VOP)

Operational Performance Financial Performance
© Copyright Business Excellence, Inc., USA 2005 6

Customer-Supplier Relationship

Input Supplier

Process

Output Customer

Requirements & Feedback

Requirements & Feedback

Source: AT&T PQMI, Issue 1.1,1988.

© Copyright Business Excellence, Inc., USA 2005

7

Baldrige Criteria Framework: A Systems Perspective

© Copyright Business Excellence, Inc., USA 2005

8

ISO 9001:2000 Requirements: Customer Focus
ISO 9001:2000 broadens management responsibilities to communicate with customers, monitor and measure customer satisfaction and develop improvements related to customerrequirements. An important role required of top management is to communicate to staff the importance of meeting customer requirements. Top management must also monitor customer satisfaction information, tying it to continual improvement.

© Copyright Business Excellence, Inc., USA 2005

9

Employee-Customer-Profit Chain, Sears, USA
A Compelling Place to Work A Compelling Place to Shop A CompellingPlace to Invest

Employee Attitude and Behavior

Customer Impression

Revenue Growth

+ 5.0 %

+ 1.3 %

+ 0.5 %

Source: Rucci et al., Harvard Business Review, 1998.
© Copyright Business Excellence, Inc., USA 2005 10

Voice of the Customer (VOC)
ØVoice of the Customer (VOC) is a comprehensive Systems Approach to effectively manage customer needs and expectations. ØIt requiressystematically listening to multiple customer voices, analyzing, prioritizing and then responding to customer issues.
© Copyright Business Excellence, Inc., USA 2005 11

VOC Model Defined
Ø Capture: Multiple customer voices – direct and real-time feedback Ø Analyze: Integration of multiple customer voices and prioritization of key focus areas (VOC Projects) Ø Respond: Appropriate owners...
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