Voice of the constituents

What quality the constituent needs/wants

Services (Products) Accuracy Completeness Timeliness -speed) Responsiveness (reliability, serviceability, accessibility, convenience) Variety of offerings (features) Service structure (durability) Risk sensitivity (serviceability) Attitude, courtesy (aesthetics) Exception processing Vendor management Job security Advancement, reward & recognition (status, profile)

How the quality may be measured

Services (Products) # or rate inaccurate # or rate incomplete # of time units, rate late, or rate real-time Subjective ranking of responsiveness (reliability, serviceability, accessibility, convenience) # of offerings (features), # new services(products), # internet based services, subjective customer satisfaction ranking Service structure (durability) # of risk exposures (incidents) Subjective ranking of courtesy (aesthetics) or # of # of occurrences of exception processing (subjective) # of vendors per service(product), subjective ranking of vendor performance Average tenure, # riffs # achievement awards, # of promotions, subjective ranking of employee rewards & recognition satisfaction subjective ranking of employee environment/comfort subjective ranking of management performance # of training attendees, # of online development attendees Quarterly earnings per share growth, # of dividends, value in relation to fees % market share # or rate of new clients

VOC ustomer

VOE mployee

Environment safe, comfortable & diverse leadership of senior managers / challenge (esteem, fulfillment) Self development

VOS hareholder

ROI Market share New clients (top line) Net income growth = f(rev,costs): bottom line

# or rate of revenue/expense dollars

Client turnover rate Employee turnover rate Subjective sigma index for all service (production) processes, # of value added audits (inspections), # of rework loops per process map Rate of capital/labor dollars to output material

VOB usiness

Client retention Employee retention Quality control Scalability (Workstation) productivity

Actionable Metric examples

# of inaccurate stock pricings Rate of incomplete support calls % real-time inventory reports # of medication errors # of hours website down # lines of error free computer code Average patient treatment cycle time Average diagnosis treatment cycle time # of medication errors Rate of occupancy % of invoice errors per 1,000 Average transaction cycle time Average product cycle time # of 4 rankings in customer service survey results; # unhappy customers # of departments with double digit minority management X point increase in X% reduction in X& improvement in. Achieve x% first contact resolution by y regarding Deliver x% improvement in the y ratio X% in y

Improvement Objective examples

# of inaccurate stock pricings Rate of incomplete support calls % real-time inventory reports # of medication errors # of hours website down # lines of error free computer code Average patient treatment cycle time Average diagnosis treatment cycle time # of medication errors Rate of occupancy % of invoice errors per 1,000 Average transaction cycle time Average product cycle time # of 4 rankings in customer service survey results; # unhappy customers # of departments with double digit minority management

Eliciting the Voice of the Constituents

Communicate with the constituents. Listen to what the constituents believe. Survey those beliefs with short but important questions. Questions should be close ended, tested & easily accessible/visible. Answers should quantify constituents voice numerically. (interrogate Sell the survey: how many of your competitors make surveys available?

y i n of desks: once year l st af f r ot at o

Num ber of cr i t i cal i nci dent s or com pl ai nt s

deo y vi l ng: annual ni c e t r ai st af f ser vi

2
W i dget s R' Us benchm ar k Devel opm ent Pot ent i al

t y: 100% f ax num ber net wor k secur i ty i al dent i conf i

4
Val i d Cust om er Requi r em ent I ndex Docum ent ed l oss am ount s I s r eq Under st andabl e?

ew: 2- 3 days or 1 m e r evi r esponse t i day or 2 hour s

Customer: Acme Investor Organization: Widgets R' Us

Good / Service: widget service

Date: 6/10/2003 5
on pr ocess: when you at i l escal em ai nd out fi s l c e cal net wor k & m gm t ser vi y - weekl ( CRM ) : bi

Organization Answers to VOC (quantitative Ys or Qs): HOW

c y: 90% i ng pol r st r i fi

oal s Requi r em ent G

I s r eq Measur eabl e

I s r eq Achi evabl e?

I s r eq Reasonabl e

I s r eq Bel i evabl e

Sal es Em phasi s

Absol ut e Val ue

Com pet i t or 1

Com pet i t or 2

Com pet i t or 3

I m por t ance

on 10 Funct i

on 11 Funct i

on 12 Funct i

on 13 Funct i

on 14 Funct i

on 15 Funct i

1 Voice of the Customer. Customer

Acme Investor's Requirements Index (illustrated)

requirements (potential Ys or Qs): demanded quality (WHAT does client need, want wow)
Accuracy excellent widget vendor management high quality response on old items resolution notification resolution control - updated problem statuses organized service structure organized service staffing / coverage quick widget turnaround deadlines good value - satisfying widget service fees regular fee reductions highly trained internal personnel highly trained clients' personnel flexibility to process exceptional problems low client service staff turnover high use of internet for widget reporting high breadth in widget reporting

7.0

5.0

5.0

7.0

6.7

1.0

1.0

5.2

Completeness

5 5 10 10 10 5 5 5 5 5 5 5 5

5.7 5.7 5.5 5.5 5.5 5.7 5.7 5.7 5.7 5.7 5.7 5.7 5.7

5.3 5.3 4.9 4.9 4.9 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3

4.7 4.7 4.0 4.0 4.0 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7

4.5 4.5 5.4 5.4 5.4 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 421

6.7 6.7 6.7 6.7 6.7 6.7 6.7 6.7 6.7 6.7 6.7 6.7 6.7 570

0.9 0.9 0.8 0.8 0.8 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9

1.0 1.0 1.5 1.5 1.5 1.5 1.5 1.2 1.5 1.0 1.2 1.2 1.0

4.3 4.3 12.3 12.3 15.3 6.4 6.4 5.1 6.4 4.3 5.1 5.1 4.3 3.0 3.0 3.0 3.0 3.0 2.0 3.0 3.0 2.0 2.0 2.0 2.0 3.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 3.0 3.0 3.0 2.0 2.0 72.0 108.0 162.0 48.0 48.0 2 1 1 1 3 3 1 2 3

Timeliness

Low cost

2 1

3.0 2.0 2.0 2.0 1.0

24.0

Other requirements

Customer Requirement Vs Organization Answer: 3 = strongly influence 2 = middle influence 1 = weakly influence = no influence

Customer Fulfilment Totals:

485 437 381

Limiting factors Competitor 1

Notes: 1) What requirements (reqs) the constituent has 2) Reqs importance to constituent 3) Competitors req. rating as perceived by constituent (opportunity coordinate). 4) Our rating as perceived by constituent 5) Our goal for the req. 6) Development potential result. 7) Sales emphasis associated w/req (opportunity coordinate) 8) Number of critical incidents or complaints associated w/req. 9) Documented loss amounts 10)RUMBA validity ratings

Competitor 2 Competitor 3 Requirement Goals Development costs technical value (customer) technical value (absolute) Relative meaning (absolute)

35

20

55

30

44

25

77

43

19

11

34

19

16

The highest ranked item is the potential project Y metric. Next: 1) choose the appropriate data measurement and collect historical data around this metric. 2) Input it into the DemStats template (and include the performance targets from this template here) to determine sigma and control and thus determine if an improvement opportunity actually exists. 3) If it does, assemble a project team. 4) Otherwise, take the next highest ranked item and repeat these steps!

Notes: 1) What requirements (reqs) the constituent has 2) Reqs importance to constituent 3) How organization currently meets those requirements (including targets) 4) Impact rating of each How across all requirements

Note: Customer satisfaction is traditionally limited to asking your current customers what they thought of past transactions. On the other hand, customer perception looks to the future behaviors of both current & prospective customers!

37

30

on 16 Funct i

et c.

Benchmarking: Value: 5 = much worse 10 = very important 3 = like all 1 = least important 1 = very much worse (for user tips click cells with red upper right hand corner)

ck e: 1 cm t hi l dget pi aged wi

Constituent Matrix