How Software Developers Destroy Business Value.pptx
2015-04-15 CLIP customer loyalty NPS ABB QO M_Berthus at CQI final 169
1. Customer Loyalty Improvement Process (CLIP)
ABB Business Function Quality and Opex
April 15th, 2015, Michel Berthus, ABB, Group Head of Quality Management
2. Customer Loyalty Improvement Process (CLIP)
Contents
ABB Group
CLIP process
NPS Journey
Issues Resolution
Results
Way Forward
3-7
8-14
15-21
22-29
30-32
33-36
6. Quality Culture in ABB
Overview - Definition of Quality
High Quality Operations;
§ deliver exactly what their customer ordered,
§ exactly when they wanted it,
§ functioning exactly as they expected,
§ with any issues resolved quickly and effectively
§ at competitive levels of cost and capital employed
This includes;
§ Quality of the Offering - Marketing & Product Mgt
§ Quality of the Offer - Sales
§ Quality of Basic Design - R&D
§ Quality of Customised Design - Engineering
§ Quality of Purchases - Supply Chain Mgt
§ Quality of Manufacture - Manufacturing
§ Quality of Delivered equipment - Manufacturing
§ Quality of Delivered projects - Project Mgt
§ Quality of Delivered services - Service
11. Customer Satisfaction Survey
The Follow Up
RCA or other
solution
Follow up
by AM
Submit
CCRP to RU
NPS Red Card
Feedback to
Customer
Capture / Confirm
Resolve
Communicate
Follow Up Process
§ Non-anonymous red cards
automatically generate a CCRP
§ Account Managers follow up with
customer and clarifies/confirms
complaint details
§ CCRP submitted to correct resolving
unit
§ Resolving unit carries out RCA Root
Cause Analysis if appropriate but
responds in any case ri customer
complaint
§ Solution communicated back to
customer by account manager
§ KPI’s: Assigned on Time (AoT),
Resolved on Time (RoT), Completed on
Time (CoT).
12. § Main Customer Contact must contact detractor within 14 days
to carry out detractor follow up and forward the complaint to
the relevant unit, irrespective of the product the customer has
evaluated.
§ Failure to follow up is escalated to the CEO. Regular alerts to
Main Customer Contact and line managers as deadline
approaches. Performance relative to deadlines is closely
monitored.
§ Root Cause Analysis and proposed solution returned to Main
Customer Contact for discussion with customer.
§ Main Customer Contact either closes complaint or returns
complaint to resolving unit for further work. The complaint may
only be closed with the customer’s agreement.
CLIP @ ABB
Rules: follow up with the customer
13. § Red and green cards are analyzed at all levels and action
plans established for top 3 systemic issues.
§ Where appropriate a root cause analysis (RCA) is carried out
in accordance with ABB’s “4Q” methodology
§ RCA is built in the Complaint Management System with offered
solutions when being returned to Account Manager / Customer
for completion
§ Goal is to have NPS/CLIP as agenda item at all management
meetings
CLIP @ ABB
The internal follow up rules
14. CLIP@ABB journey
Commitment to Customer Service
NPS Piloted
NPS was piloted in
major ABB countries
worldwide.
Link to CCRP
NPS was linked to
ABB’s global complaint
management tool to
enable tracking of
follow up
Global Process
The Customer Loyalty
Improvement Process
(CLIP) was established,
linking customer
feedback, issue
resolution and closing
the loop
Transactionals
ABB introduced
transactional surveys
for service and projects.
Promoters
Over 50% of responses
in ABB’s annual
relational survey were
from Promoters
2011 2012 20132010 2014
6’000
Responses
15’000
Responses
22’000
Responses
28’000
Responses
32’000
Responses
NPS becomes part of
the ABB Group
scorecard at all levels
15. Net Promoter Score to capture customer loyalty
3 Categories: Promoters, Passively Satisfied and Detractors
Promoter
Passive
Detractor
Extremely likely
to recommend
9-10
0-6
7-8
Extremely unlikely
to recommend
Promoters are loyal, enthusiastic fans.
We call this group “passively satisfied” because they are
satisfied—for now.
Detractors are unhappy customers and account for more
than 80 percent of negative word-of-mouth. They have
high rates of churn and defection.
18. NPS @ ABB
Selecting a Product / Writing a Comment
§ Write a comment
explaining why
you gave the
red/green card
that you did
§ Select the
product(s) that
your comments
apply to
19. World Coverage by NPS Country Surveys
NPS @ ABB
Manila
Shanghai
Tokyo
New York
Mexico-City
Seoul
Mumbai
São Paulo
Jakarta
Los Angeles
Delhi
Osaka
Calcutta
Moscow
Buenos Aires
London
Cairo
Teheran
Karachi Dhaka
Berlin
Chicago
San Francisco
Toronto
Washington
Rio de Janeiro
Paris
Istanbul BeijingMadrid
Oslo
Vienna
Sankt-Petersburg
Sydney
Canberra
Perth
Astana
Ulaanbaatar
Samara
Novosibirsk
Anadyr
Cape Town Durban
Windhoek
Mogadishu
Asmara
Accra
Dakar
Niamey
N‘Djamena
Fairbanks
Seattle
New Orleans
San José
Brasilia
Porto Velho
El Golea
Benguela
Mbuji-Mayi
Maputo
Gibraltar
Darussalam
HarareLa Paz
Santiago
Quito
Lima Darwin
Melbourne
Wellington
Port Moresby
21. Example: NPS Transactional in Projects with external customers
Identifying priorities for improvement
By checking the cards
distribution among
categories you can
easily identify the most
important areas that
need to be improved
22. CLIP @ ABB
Red Card Resolution
16‘23616‘236
69‘69669‘696
17‘85417‘854
16‘236
69‘696
17‘854
Almost 70‘000
green and red
cards in 2014
17’854 red cards entered
into Complaint
Management System.
16‘236 resolved and closed
24. ABB 4Q Program – overview end 2014
ABB - 150’000 employees – in 100 countries / 125 Product Groups / 3600 Local Units
12’503 - 4Q trained people doing improvement projects
(target 10% of ABB)
562 - 4Q Trainer / Coaches
(target each ABB roof has a T/C)
102- 4Q Master
Trainer / Coaches
4Q PMOEducation of
QTC’s to become
Master TC
Education
of Certified 4Q
project leader to
become TCTraining & Coaching of
employees to become
4Q Certified
Run and lead the 4Q program.
Insure global deployment and
integration into ABB’s culture
Goal is to have 50% of the workforce trained by end 2017
30. Results – NPS going well, on target for 2015
Both on NPS score and Red/Green cards/respondent
Group NPS target 2015 =
New
4Q
CLIP
16%
22%
29%
-5%
35%
Top 3
RT5
New
CCRP
Red & Green cards per respondent
NPS score increasing in line with
2015 target, set in 2010
Participation increasing year on year
On average per respondent;
Red cards decreasing
Green cards increasing
50%
44%
31. Results – perceived Product and Systems Quality improving
Quality of Products and
Systems drive <4% of Red
Cards (982) = Quality
escapes from Factories and
Project Sites
Top 10 customer issues drive
70% of Red Cards (17660) =
Quality escapes in white
collar functional processes
rather than on end products
Overview – 2014 NPS Red Card ranking of customer issues
§ Quality of ABB products and solutions delivered to Customers measured by NPS red card ranking
§ In NPS 2010, Quality was ranked 10th top customer issue, in 2014 Quality was ranked 13th
§ Primary Quality failure root causes lie in upstream functions, not in factories or on project sites
13th
32. Working simultaneously for the Customers and the Shareholders
Positioning NPS / OPQ per Business Unit
§ Quality finally delivered to
Customers is measured by NPS
red cards ranking
§ Quality momentum is measured
by how well OPQ is being attacked
through OPEX projects
§ Having Quality in the Top 10
NPS Red Card drivers must
become unacceptable
§ Lack of transparency on OPQ
(<6% COS) must become
unacceptable
§ Lack of Opex projects to attack
OPQ must become unacceptable
§ Quality out of Top 10, OPQ transparency >6% COS & many Opex projects = Green
§ Quality in Top 10 red card attractors = Red
§ OPQ transparency <6% COS = Red
§ OPQ transparency >6% COS but few OPEX projects = Red
BU Colour Coding
Quality Zone, the place
to be, and be green
ABB (10.2%)
ABB
33. The Way Forward - 1000 Day Quality Program
Part of Next Level ABB Strategy 2020
Key Information
Objective 1.
Embed customer focused quality behavior (CLIP & bring
"Voice of the Customer" to all of ABB )
Objective Leader xx
Incremental Impact by 2020 $xM & yTransactional NPS points
Level 1 Projects
Project
Leader
2015 2016 2017
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Deploy Transactional NPS surveys to internal Sales, Service, Project &
Site Mgt in all BU’s
Recover and develop units having lowest Transactional NPS scores to
improve quality
Execute specific Customer Quality Improvement Plans for all Group
Accounts
Execute specific Customer Quality Improvement Plans for all Strategic
Accounts
Upgrade and deploy Customer Loyalty Improvement Process (CLIP)
…
…
BU’s contributing to Objective
DMPC
DMDR
DMMG
DMRO
PPMV
PPTR
PPHV
LPED
LPBS
LPCP
LPLS
LPWA
LPCW
PAMP
PAOG
PACT
PAMA
PATU
PSPG
PSGS
PSNM
PSSS
PAPI
34. KPI #1 -
KPI #2 -
KPI #3 -
Customer Perception kpi’s;
NPS %age - high level, infrequent, customer loyalty sensing
Transactional Q - internal survey, Sales, Service, PMgt and Site Mgt
Red Card Count - customer rating of poor Quality from ABB
Green Card Count - customer rating of good Quality from ABB
Operational Quality kpi’s;
On Time Delivery - Customer Requested OTD, in the R.E. dashboard
Issue Resolution - CCRP closure performance, in the R.E. dashboard
Warranty spend - proxy for Field Failure Rate, in the R.E. dashboard
OPQ - Process waste (>3bn $/yr), in the R.E. dashboard
Cost Reduction - $ from OPEX + SCM, in the R.E. dashboard
Opex projects - $ value of OPEX projects, in the R.E. dashboard
Project slippage - Number & value of projects margin slippage
Process maturity - Process maturity assessment scores
First Pass Yield - %ge, works for product businesses locally
R&D project Q - On-time completion & requirements spec. compliance
Primary program KPI’s, targets set and followed up, by BU
1000 Day Program: Quality
Flight Plan – KPI’s
35. Challenges
§ CLIP is here to stay. It is not a fad.
§ Convincing the organization that asking a customer what they
think is always the right thing to do in any culture
§ Focusing on the essentials and not over-analyzing before
taking action
§ The issue is more important than the score
§ Demonstrating that the follow-up can be a great sales
opportunity without even talking about a sale
§ Competing with the pressure of day-to-day business
Customer Satisfaction @ABB
Retrospective
36. § Deploy Transactional NPS surveys to Sales, Service, Project &
Site Management in all Business Units
§ Recover and develop units having lowest Transactional NPS
scores to improve quality
§ Execute specific Customer Quality Improvement Plans for all
Group and Strategic Accounts
§ Upgrade Customer Loyalty Improvement Process (CLIP)
§ Campaign to increase awareness and understanding of the
“external focus” cultural imperative, including training curriculum
and establishment of worldwide CLIP Champions Network
Customer Satisfaction @ABB
Next steps on the journey