customer and workforce focus

Baldridge criteria

1. Leadership

2. Strategic Planning

3. Customer Focus

4. Measurement, Analysis, and Knowledge Management

5. Workforce Focus

6. Process Management

7. Results 

key customer-focused practices for performance excellence

1. identify the most important customer groups and markets

2. understand long and short term customer needs and expectations (voice of the customer)

3. use voice-of-the-customer information to identify and innovate product offerings and customer support processes

4. create an organizational culture and manage customer relationships

5. develop effective complaint management processes

6. measure customer satisfaction, engagement, and dissatisfaction 

Customer Satisfaction and the Bottom Line

Loyal customers are cheaper to retain, spend more, and promote the brand; dissatisfied customers spread negative experiences.

American Customer Satisfaction Index

What does ACSI stand for? 

measures national customer satisfaction across industries.

What does ACSI measure? 

Customer expectations, perceived performance, and satisfaction levels.

What are the main factors affecting ACSI scores?

promoters

• scores of 9 or 10

loyal customers, tend to be repeat customers

passives

• scores of 7 or 8

satisfied customers but may switch to competitors

A measure of customer loyalty based on likelihood to recommend (0–10 scale).

what is net promoter score (NPS)?

detractors

• score of 6 or below 

unhappy customers 

kano model of customer needs

classifies customer needs into…

1. dissatisfiers — expected requirements that cause dissatisfaction if not present

2. satisfiers — expressed requirements

3. exciters / delighters — unexpected features

voice of customer

Processes for collecting and analyzing customer needs through surveys, focus groups, complaint analysis, and direct customer contact.

moment of truth

Every customer interaction between a customer and the organization that shapes satisfaction or dissatisfaction

• popularized by Jan Carlzon of Scandinavian Airlines

customer-supplier partnerships

long-term relationships characterized by teamwork and mutual confidence

customer relationship management (CRM) software

Segmenting customers, tracking trends, forecasting retention, and improving marketing/loyalty through data analytics.

customer relationship management (CRM) software

• segment markets based on demographic and behavioral characteristics

• track sales trends and advertising effectiveness by customer and market segment

• identify which customers should be the focus of targeted marketing initiatives with predicted high customer response rates

• forecast customer retention (and defection) rates and provide feedback as to why customers leave a company

• Study which goods and services are purchased together, leading to good ways to bundle them

• Study and predict which web characteristics are most attractive to customers and how the website might be improved 

customer contact requirements

measurable performance levels or expectations that define the quality of customer contact with an organization

• technical requirements

• behavioral requirements

technical requirements - customer contact requirements

• response time

• answering the telephone within two rings

• shipping orders on the same day

behavioral requirements - customer contact requirements

using a customer’s name whenever possible 

customer focus - baldrige criteria

examines an organization’s processes for determining product offerings and mechanisms to support customers’ use of products, and how an organization builds a customer-focused culture.

— customer expectation (VOC)

• analysis and use of customer data

• customer satisfaction

— customer engagement

• customer support

• building a customer culture

Top management must ensure customer requirements are met to enhance satisfaction; requires feedback and perception monitoring.

How does ISO 9000 define customer focus?

customer focus in six sigma

The identification of critical to quality (CTQ)
characteristics that are vital to customer satisfaction

human capital 

The workforce’s knowledge, creativity, and motivation—considered a company’s most valuable asset.

workforce 

Everyone who is actively involved in accomplishing the work of an organization.

Project completion time, suggestion activity, absenteeism, employee turnover, participation in learning, and use of quality tools.

What metrics assess workforce effectiveness and engagement?

1. Understand engagement drivers.

2. Design work to promote communication and empowerment.

3. Invest in development and safety.

4. Create reward systems for high performance.

5. Assess engagement and capacity for improvement.

6. Manage career progression and succession planning.

What are key workforce-focused practices for performance excellence?

workforce engagement

Employees who find meaning in work, are emotionally bonded, contribute ideas, and exceed expectations—driving innovation and advantage

Commitment to values, fair recognition, clear expectations, respect, leadership trust, and knowing personal impact on customers.

What are the main drivers of workforce engagement?

empowerment

Trusting employees to make decisions, take risks, and promote change within psychologically safe environments.

Provide training/resources, remove barriers, foster trust, share information, and use “hands-off” leadership.

How can empowerment be successful?

workforce focus - baldrige criteria

addresses key workforce practices— those directed toward creating and maintaining a high‐performance environment and toward engaging your workforce

Provide training/resources, remove barriers, foster trust, share information, and use “hands-off” leadership.

How can empowerment be successful?

Employees must be competent (education, training, experience) and aware of how their work supports quality; safe, ergonomic environments are required.

What does ISO 9000 say about workforce focus?