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Final case study sharpe bmw
- 2. Background • Location: Grand Rapids, Michigan • Clarifying OD Issue: Problems with Service Department • Previous Service Dept. Manager Left • Revenues have declined • Customer Service Ratings (CSI) have dropped
- 3. Condensed Org. Chart Bob Deshane (Service Director) Tom Dunn (Service Manager) (Technician #1) (Technician #2) (Technician #3) (Technician #3)
- 4. Customer Service Index • BMW Rewards dealers who score higher than 91% on CSI surveys • BMW sends financial rewards • BMW sends “New Release” vehicles to dealers • Sharpe BMW – scored below 91% recently • CSI is 8 question survey 91% 88% 86% 87% 88% 89% 90% 91% 92% Score Needed Sharpe BMW CSI Score
- 5. Customer Service Questions/Ratings 1. Ease of obtaining a service appointment 2. Greeted promptly when vehicle dropped off 3. Respectful and courteous treatment 4. Vehicle ready at time promised 5. Waited on promptly at vehicle pickup 6. Paperwork completed/accurate at pick up 7. Explanation of service work performed 8. Satisfaction with work performance • Excellent: 100 points • Good: 80 points • Fair: 60 points • Poor: 0 points
- 6. New Plan - Suggested by Management • Bob Deshane submitted “New Plan” to George Sharpe • Monthly bonus paid to service technician if CSI rating is above 91% • Attempt to motivate technicians to perform better customer service • Happier customer means repeat customer • Repeat customer means more revenue • Higher CSI scores means more financial rewards to dealership • Monthly bonus ranges from 2% - 3% of hourly pay
- 7. Technicians Thoughts on New Plan • Tom Dunn interviewed technicians to get their feedback on new plan • Overall, technicians were not satisfied with plan • Bonus showed dealer was willing to reward technicians • Bonus was only marginal at best
- 8. Our Intervention Plan • Our Plan: 1. Large Group Intervention – To discuss problems, formulate solution 2. Goal Setting – Need to align company goals with Technician goals
- 9. Our Plan Continued • Need Better Collecting and Feeding Back Data • BMW contracts with Sky Allend to administer Customer Survey • Need more robust customer service data - Interview with customer • Why is the score Excellent? • Why is the score Good? • Why is the score Fair? • Why is the score Poor?
- 10. INTERVENTIONS
- 11. LARGE GROUP INTERVENTIONS • BMW tried small group interventions • Limited information received • Large Group Intervention is a system-wide process intervention • PROS • Empowers and involves more employees • Will get information from several points of view • CONS • Hard to keep meeting on topic with a large group • Some employees may not participate or talk at meetings
- 12. Preparing For The Meeting • Outline of what will be discussed • For BMW is to focus on how to increase CSI and Revenue • Broad or Narrow a Focus as Chose • Develop a pre-survey to narrow ideas and information for agenda • Decide on who should attend • Those who are committed to change • For BMW it would be senior management and technicians • Relevant tasks to address conference theme • Use an agenda to formulate why we’re there • Look at current CSI and Revenue Numbers • Could break employees out into 2 groups: CSI and Revenue
- 13. Pre-Survey What Information Do We Want to Gather? 1. Do You Know What Customer Service Index is? 2. Do You Understand Your Role in Customer Service? 3. Do You Understand Your Role as it relates to BMW Revenue? Metric System Rating of 1-5 • 1 -- Don’t understand above ideas • 5 -- Fully Aware of Role as relates to above ideas
- 14. Conducting the Meeting Positive Method/Appreciative Inquiry (AI) Summit 1. Discover the Organization’s positive core 2. Dream about a more desired future 3. Design the systems that will support the vision 4. Create specific actions plans
- 15. Following up on the Outcomes Develop Post Meeting Survey 1. Do You Know What Customer Service Index is? 2. Do You Understand Your Role in Customer Service? 3. Do You Understand Your Role as it relates to BMW Revenue? Compare this data to the Pre-Meeting Survey How Effective was the Large-Group Meeting?
- 16. Communicate Most Important part of Large-Group Intervention: • Communicate Survey Results • Communicate Large-Group Findings to Organization • Communicate Plans for change
- 17. Intervention 2: Goal Setting Goal Of Company: • Align company goals ( increase revenue, high rating CSI) with technicians goals. Increasing sales of vehicles with local customers. Aggressively seeking business. Career advancement of technicians. • Proposed “New Plan” 2% to 3% bonus to technicians. High CSI rating for technicians. Score higher than 90% in CSI.
- 18. Pros & Cons Pros: • Align company goals and technician goals through compensation • Allows technicians to raise their voice in the company through goal setting. • Provides counselling and support to employees. (Manager Involvement with technicians).
- 19. Pros & Cons Cons: • What if technicians and management don’t come to agreement in goal setting. Provide difficult to meet specific goals . Lack of participation may occur. • Find difficult to give real opinion during large group intervention
- 20. INSPIRATIONAL CASE STUDY Case Study 17.1- Siebel Systems • It was leading CRM (Customer Relationship Management) software provider • Seibel focused on Customer relationship. • Emphasis on ERM (Employee Relationship Management) called “my Siebel” which provide planning and performance management, training content management, workforce collaboration & employee support.
- 21. • Based on Siebel’s core value, customer satisfaction was shared objective for everyone so there was clear understanding among all employees. • Bonuses were tied to achievement of quarterly objectives. • Due to “information system architecture” employees get suggested training opportunities for work and career paths
- 23. Leadership Concepts • Motivating Change: How will Dunn address resistance? • Creating Vision: What is the future state of service department? • Sustaining Momentum Build support system New skills and competencies Staying the course
- 24. Evaluation • “Implementation and evaluation feedback” In chapter 11, Pg. 190, • Assess employee’s reaction • Measure customer service • Measure their revenue
- 25. Evaluation: New Reward System • How much better is the new reward system compared to the old reward system?
- 26. Institutionalization • Education management • Deliver New Process • Training • Monitor changes in procedures
Hinweis der Redaktion
- Explain that even if you do “Good” it is only 80 points which is not good enough. You essentially have to be excellent on everything, which means everyone constantly has to go above and beyond Could talk about technicians only apply to one of the questions “I would rather be called into meetings where revenue was low than one where CSI was low” Could talk about how questionnaire is not enough – Need more data to dig into questions.
- Need to mention that there are 4 technicians Mention in next slide that this would hopefully help out there problem of retaining talent Also, next slide should mention interviews to get feedback Based on disagreement it’s best that we don’t implement this plan just yet
- Do I want to talk about pros, cons of each Company goals are increasing revenue and CSI ratings Do we want to hire outside consultant to run help run Large Group Intervention
- Do we recommend a different third party for customer feedback? If we know why scores are the way they are, we can figure out what we are doing well and what we are performing poorly on Talk about what they did right now was collect data from customers, but not enough specific data Also, they collected data from technicians, which was great, and why we feel we need to do large group intervention Talk about how we believe increased revenue will come from increased customer service, repeat customers