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Learning to Sense and Respond - the Fujitsu Service Case

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Learning to Sense and Respond - the Fujitsu Service Case

  1. 1. Learning to Sense and Respond Stephen Parry. Former Head of Strategy and Change Fujitsu Customer Services Independent Lean Service Strategist and Practitioner. CASE STUDY MATERIAL AND CONTACT DETAILS www.stephen-parry.co.uk Tel: +44 7838 114 997 sgparry@aol.com New Cranfield School of Management Case Study available.
  2. 2. Stephen Parry’s career in service centre operations spans over 15 years, during which time he has been responsible for building and operating large scale international call centres in various sectors; IT Services, Retail Direct-Marketing and Financial Services. He has extensive experience in the areas of customer service strategy, proposition development, organisational development, business process alignment, technology introduction, change and turnaround management. Most recent role was Head of European Strategy and Operational Development for Fujitsu. In 2001 he was awarded both the European Call Centre of the Year award for Innovation and Creativity, and the European Call Centre of the Year award for best people development program. In 2002 he took Fujitsu to the finals of the UK National Business awards for Customer Focus and they became winners of the 2003 National Business Awards for the Best Customer Service Strategy.
  3. 3. Feasible parts creating an infeasible whole. Functional units with functional goals and targets F1 F2 F3 FnF4 Independent Solutions Designed to Meet functional Targets and Goals. S1 S2 S3 SnS4 Customer Throughput process Its not unusual to have thirty or more solutions lining up for the attention of Senior Management How concerned is your customer with internal targets and goals?’
  4. 4. Feasible parts creating an infeasible whole. Functional units with functional goals and targets F1 F2 F3 FnF4 Independent Solutions Designed to Meet functional Targets and Goals. S1 S2 S3 SnS4 Its not unusual to have thirty or more solutions lining up for the attention of Senior Management Improved Customer Experience ? How concerned is your customer with internal targets and goals?’
  5. 5. Mass production legacy Today, service delivery issues are emergent features of the Mass production paradigm Organisations are headed by “Command and Control”, “Productivity and Profit” based thinkers Middle managers are tasked with representing their departments in terms their bosses will understand Line managers are taught to measure and control their teams using comparative methods, regardless of the work performed. “It is not necessary for any one department to know what any other department is doing. It is the business of those who plan the entire work to see that all of the departments are working … towards the same end.” Henry Ford. • This has had its day…..….
  6. 6. Issues. How do you create cross-functional unity? How do you measure service from the customers’ perspective? How do you identify and remove the causes of costs? How do you innovate new service offerings? How do you create a differentiated business?
  7. 7. Issues. How do you identify new opportunities with existing customers? How do you realise the knowledge potential of your staff? How do you identify critical intangible assets? How do you create customer success?
  8. 8. Transformation: (Theory-to-performance model) Theory Principles Thinking Design Operation Behaviour Culture Performance Transformation Happens here
  9. 9. Change initiatives: (Theory to performance model) Quality movement, TQM Fish Re-engineering Core-competencies Outsourcing Lean Manufacturing and Service Fifth Discipline High Performance Teams People Centred Leadership Balanced Scorecard Six-Sigma CRM MBWA MBO Don’t do the ‘wrong-things’ righter! Without a change in THINKING these initiatives become Management Fads Theory Principles Thinking Design Operation Behaviour Culture Performance Emergentproperties
  10. 10. Case Study: Fujitsu. Consult, Design, Build and Operate IT infrastructures. 165,000 employees in over 65 countries 65,000 people in software and services 12,500 consultants worldwide Leading in IT services Asia Pacific #1 Worldwide #3 UK #3 Ranked in top fifty international companies* * Forbes International 500 2002 Worldwide IT Services Revenue $35.0B $21.5B $15.6B $14.0B Source: McDonald Equity Research – IT Services (15/10/2002)ASK FUJITSU… Contact us on +44(0) 870 242 7998 Or Visit:www.uk.fujitsu.com
  11. 11. Case Study: Endorsement. Massachusetts Institute of Technology. ‘Through Sense and Respond, Fujitsu has achieved remarkable mastery in the use of staff and client knowledge to drive continuous improvement. In particular, they have converted customer knowledge into powerful drivers of business strategy.’ Dr. Joel Cutcher-Gershenfeld Senior Research Scientist Engineering Systems Division and Sloan School of Management, MIT Co-Author of Knowledge-Driven Work (Oxford University Press, 1998)
  12. 12. Case Study: Sense and Respond wins best customer service strategy. The judges at the 2003 National Business Awards praised Fujitsu for demonstrating an entire cultural change around the needs of its customers and could, as a result of its customer service strategy, demonstrate business growth, innovation and success.
  13. 13. It’s not about IT, it’s about the flying passenger. Customer benefits driven by the call centre “I can’t print” Ticketing, Boarding Passes, Bag Tags. Flying Passenger impact. Queues at ticket office. Queues at check in, Boarding delays Missed connections Customer dissatisfaction Customer perception of bmi It’s about making our clients successful.
  14. 14. It’s not about IT, it’s about flying aircraft. Customer benefits driven by the call centre “I can’t access” Parts ordering, Staff allocation system Finance system. e-mail system. Impact on bmi staff. Aircraft repair delays Unable to schedule Aircrew Missed air slots Head office administration delays It’s about real people doing real jobs.
  15. 15. It’s not about IT, it’s about creating business value. ‘Fujitsu are enabling bmi to provide added value to its flying customers’. ‘Using its sense and respond approach, in the past two years Fujitsu has reduced the level of calls to the bmi help desk by 40%. The time to fix has also reduced by 70%, both as a result of increased knowledge of the customer's business’ Richard Dawson CIO bmi The Purpose: To keep bmi passengers flying through the provision of an effective, efficient IT infrastructure. It’s about making clients successful.
  16. 16. Case Study: Customer service strategy: Background summary. Drivers for change. In 1999, losing business (just meeting contractual obligations). High staff attrition, losing market share with no differentiator. Challenge. To transform the organisation in order to understand and meet customer needs. Critical barriers to overcome. Traditional organisational thinking, silo design, performance measurement, efficiency fixation. Targeting the unthinkable. – this was not a quick fix solution. Transforming organisational performance, thinking, learning and measurement. Educating the marketplace to have higher expectations.
  17. 17. Choice Freedom Power Performance is a matter of having which is a matter of with the Role Design Processes and Procedures Performance Measures Policy Technology The organisation is a hindrance to both employees and customers. Matter of Design Organisational Transformation to do.
  18. 18. What is Sense & Respond ? A philosophy A different management approach A complete logic A new set of operating principles A way of measuring the service from the customers perspective It allows operations to take control of operations It works on People, People, People Greatest distinction is the use of human intelligence It is now a core competency in a ‘better way of thinking’
  19. 19. Sense and Respond operating principles. Deliver against customer purpose in every step of the value chain. Apply end-to-end measures along the value chain. Manage the organisation as ‘one system’. Measure individual performance against customer success. Measure front-line staff on creating value, managers on creating capability. Engage in the relentless elimination of corporate waste.
  20. 20. Three important areas for a truly customer-focussed organisation. Buildrelationship ShareKnowledge Buildrelationship Captureknowledge SENSE what matters to customers People 1. People 2. People 3. DRIVE the service Adapt – Evolve – Inform – Innovate RESPOND Clients and their customers Front-line staff Support organisation
  21. 21. Where is the customer value ? 1. 2. 3. Why the transaction. How we transact. How we innovate. What matters to customers. Business intelligence. Measuring client business-impact, cost and benefits. Innovate new services. Develop client account. End-to-end measurement of service performance in terms of: •Customer success •Costs •Revenue •Type, time, frequency •Forecasting customer satisfaction. VALUE (Optimise) OPPORTUNITY (Innovate) FAILURE (Remove) INSTITUTIONALISED (Re-think) Customer environment Front-line staff Support organisation
  22. 22. Demand Profile: Which company is being successful? VALUE (Optimise) OPPORTUNITY (Innovate) FAILURE (Remove) INSTITUTIONALISED (Re-think) Company A Company B Traditional assessments might indicate these two companies perform equally
  23. 23. Taking action. Operational Development Product and Service Development SENSE what matters to customers Adapt, Evolve Inform, Innovate RESPONDV O F I Optimise Innovate Remove Re-think
  24. 24. Value Demand data drives the entire organisation. Consumers or Customers Front-line Operation Training and HR Sales and Marketing 3rd Parties Technology Commercial 1. 2. 3. Product Development Demand ActionDemand Action Value Optimise Innovate Remove Re-think Opportunity Failure Institutional
  25. 25. Sense and Respond transformation starts with understanding the user context. Transformation begins at the user interface by understanding why customers transact and to what purpose they use your goods and services. Then identify how end-to-end service provision creates value for users. Only when you understand what value looks like from the customers perspective, can meaningful action can be taken.
  26. 26. 2. People Understand how front line add value. Measure the business against what matters to customers. Demand Analysis. 1. People Gather business intelligence and build system map. Understand what matters to users and their customers. Understand their environment. Sense and Respond: What matters to customers? Business intelligence map is then linked to the service. 3. People Develop organisational support activities, technology, processes, job roles, training, and people.
  27. 27. Sense and Respond: What matters to customers? Business intelligence map is then linked to the service.
  28. 28. Sense and Respond: Putting it all together. Front-line staff gathering business intelligence.
  29. 29. Throughput process
  30. 30. Where do your Customer and People measures fit in? Leading-Predictive MeasuresFunctionalEnd-to-End No Matters to Customers Yes Resourcing and ZERO DEFECT SLA AHT Calls/Man/Day Customer Survey First Time Fix Total Elapsed Time by demand type Value SLA Critical Customer Success Factors Av Speed of Answer Lagging Measures Sense and Respond SLAs are based on what creates Value Todays SLAs are mostly based on a Zero Defect Mentality
  31. 31. Transformational approach. 1. 2. 3. Understand what matters to customers Understand how the organisation responds Remove organisational waste, optimise delivery Develop new customer opportunities Learning to sense Learning to respond Enterprise Value Framework Mobilisation Leadership Accreditation The transformation objective is to align the service to the real needs of users while optimising the value chain
  32. 32. Internal Fujitsu Service. Headcount 2000/2003 End of 1999 = 125 people End of 2003 = 30 people 30 40 50 60 70 80 JulyAugust Septem berOctober Novem ber Decem berJanuaryFebruaryM arch April M ay June Month Headcount (FTE) 2000/01 2001/02 2002/03
  33. 33. Internal Fujitsu Service. Monthly Costs 2000/2003 80 100 120 140 160 180 200 220 JulyAugust Septem berO ctober Novem ber Decem berJanuaryFebruary M arch April M ay June Month £(000) 2000/01 2001/02 2002/03
  34. 34. Internal Fujitsu Service. Demands (Calls + e-mails) 2000/2003 7,000 10,000 13,000 16,000 19,000 22,000 25,000 JulyAugust Septem berO ctober Novem ber Decem berJanuaryFebruaryM arch April M ay June Month Volume 2000/01 2001/02 2002/03
  35. 35. Internal Fujitsu Service. Demands per Advisor 2000/2002 350 550 750 950 July August Septem ber O ctober Novem ber Decem ber January February M arch April M ay June Month Demands /Advisor 2000/01 2001/02 2002/03
  36. 36. Leveraging Value for Business Benefit 1-5% MC 100% Profit Opportunities: Increase Sales Revenue Decrease Business Expense Reduce Service Costs
  37. 37. Benefit areas: Traditional Helpdesk Solution Lower transaction costs Lower Total cost Decrease in sites and Headcount Quicker critical mass Client Customers Client Users 3rd Party Support Support Functions Helpdesk Client Benefit Areas. Increased Customer Satisfaction. Increased Employee Satisfaction. Increased Revenue. Reduced Infrastructure Costs. Reduced Business Costs.
  38. 38. Benefit areas: Sense and Respond Management Centre Client Benefit Areas. Lower transaction volume End-to-end process time reduction Increased productivity Higher skill levels Client Customers Client Users 3rd Party Support Support Functions Management Centre Increased Customer Satisfaction. Increased Employee Satisfaction. Increased Revenue. Reduced Infrastructure Costs. Reduced Business Costs. Increased user productivity Greater technology utilisation Appropriate self help User requirements identified Business intelligence Service alignment Alignment to customer purpose Decrease sites and headcount Go to market propositions Performance Management Best Value Risk reduction People 1. clients and their customers People 2. Front-line staff People 3. Support organisation
  39. 39. Make and Sell Organisational Behaviour: Old to New Sense and Respond Measures related to the customer Functional management to systems thinking From blamestorming to brainstorming Management to leadership Making the numbers No freedom to act Customers come 2nd Managers tell, workers do Crisis management No communication Mass production thinking Leadership and Re-education Open culture End-to-end measures New measures related to purpose True customer focus Deliver what matters Deliver customer IT strategy Leaders and empowered staff Mechanistic Hired hands Fixed product Organic Hired minds Product innovation Thinking Operation Performance From panicking ahead to planning ahead
  40. 40. Quotes: From the Industry. ‘What makes these call centres stand head and shoulders above others is their management method. It's generated an incredibly high level of commitment and motivation amongst the staff.’ Gary Fisher, Research Fellow. Centre for Economic Performance Aston Business School ‘The Sense and Respond process has proved itself with very real benefits, not only to the clients but internally to the people involved, by way of job satisfaction, and by breaking down inter-department barriers.’ Alan Hughes, Client Manager. British Standards Institute, Management Systems ‘In essence, Sense and Respond helps to re-engineer customer support. Through a disciplined regime of continuous improvement, benefits have been realised in quality, costs and performance.’ Roger Camrass, Director, Client Business Transformation. Fujitsu Services
  41. 41. Quotes: From the Staff. It [Sense and Respond] provided a total shift in my way of thinking, getting into the customer’s business and absorbing it. Putting the customer’s needs first, each time. Getting rid of the waste and concentrating on delivering what matters. It [Sense and Respond] has allowed me to approach things from a different angle, look at the facts and disregard opinions and stories. I now have the courage to stand up and present data and facts to show reality and to be committed to providing opportunities for others. I have become much calmer. I can see the impact I can make without all the noise and drama. It [Sense and Respond] has given me a much broader perspective and a new focus. I now see happy customers. I can now see what will make them happy. I am learning what matters. I discovered a new way of thinking for myself and about the role I perform and that using relevant data can assist in changing people’s attitudes.

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