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1、1“Hot topics” SeminarPortsmouth Business School21 June 2006Strategy: where do you start to improve a company?Professor Michael KayeEmeritus Professor of Operations and Quality ManagementUniversity of Portsmouth2Overview of presentation Customer value and competitiveness: latest research findings Cus

2、tomer Value Management as a competitive strategy Transforming the organisation using “Lean Methods” Successful implementation of a Customer Value Strategy3The Evolution of QualitySTRATEGICQUALITY MANAGEMENTQUALITY ASSURANCEQUALITYCONTROLINSPECTION1900 1920 1930 1940 1950 1960 1970 1980 1990 2000COMP

3、ETITIVESQM4Evolution of qualityCompetitive mixQuality emphasis in 1980sStrategic Quality emphasis in 1990sCompetitive Quality emphasis in 21st centuryDesignFitness for purposeIntegrated application of technologiesBuilding in the voice of the customerReliabilityRight first time “to be the best”Right

4、every time “ahead of the best”Reputation as role model for best practice in anticipating customer needs accuratelyProductivityPerformance/operational costsLife-time costs/economic access to new technologyStrategic partnerships enhance responsiveness and optimise resourcesDelivery and dependability5

5、star response to repeat ordersMatching customers strategic milestonesPredicting customer needsService (after sales)Prompt after salesContinuous supportRelationship management on-goingPromotional follow-upBuild up customer confidenceBuild up customer strategic commitmentStrategic alliances with custo

6、mers to enhancetheir competitivenessCustomer ValueManagement Strategy5Latest research findingsinto customer valueand competitiveness6Organisations involved in the research 70+ organisations Cross-section of organisations operating in public, private and voluntary sectors (including manufacturing, se

7、rvice, defence, health, criminal justice, high-technology, central and local government) Small, medium and large organisations Geographical scope of operations - UK, Europe, International (Far East and South-east Asian), global industries7 Challenges to achieving competitiveness: our research findin

8、gs1, Over-emphasis on financial business drivers with little emphasis on customer value as a driver Organisations were operating in crisis mode i.e. being buffeted by a rapidly changing and turbulent environment reactive not proactive in setting strategy and planning Organisations were not designed

9、for the responsiveness needed to achieve and sustain competitiveness There was a need to satisfy a complex web of stakeholders and customers confusion and conflicting customer needs Measurement systems were lacking Overload of management initiatives Strategies were not effectively deployedKaye M M &

10、amp; Dyason M D (1995, 2006 forthcoming publication)8Characteristics of high performing organisationsActive involvement of top management in the regular strategic review of customer needs, and in the creation of a realistic long-term strategic vision that takes account of market complexityRigorous m

11、anagement of the processes that deliver customer valueThe ability to design new processes that build in the “voice of the customer” and assure responsiveness to changing needs9 Sustainability and what this means in practice in continuing to meet customer and stakeholder needs and expectations and to

12、 survive in an increasingly competitive environment having the appropriate infrastructure and people skills to adapt quickly Managing relationships between those engaged in the supply chain and how the effectiveness of these interactions can be measured A clear understanding of “customer value” from

13、 the perspective of the customer, not the business, translated into a “customer value management strategy”10Achieving and sustaining competitiveness through customer valuemanagement as a strategy 11Customer Value Management The strategy of Customer Value Management offers an opportunity to understan

14、d the relationship between customer satisfaction and key processes and to track improvement in business results or competitive positioning over time The focus shifts from reactive through proactive to predictive12Aim of a Customer Value Management Strategy The aim of a CVM strategy is to provide pro

15、ducts and services to customers that are perceived by the customer to be of greater value that they could expect to purchase or receive from the competition in similar markets (competitive advantage or “best value”) The CVM strategy must provide: a focus on customer perception of value the means to

16、identify the key criteria or quality attributes of value to the customer and their relative importance the means by which customer needs are broken down into actionable parts and linked to internal process measures13Customer value and sustainability extent to which key processes reflect the voice of

17、 the customer Successful outcomes depend upon managing the interdependencies between suppliers in order to speed up delivery and reduce cycle times Emergence of “virtual organisation” characteristics to provide flexibility, speed of response found to be lacking in traditional functionally structured

18、 organisations Flexible boundaries Innovation Optimising access to information and technology Customer involvement in designing product or service Customer profiling and recognising differing needs and expectations14Examples of leading-edge customer value strategies from our research The application

19、 of “virtual organisation” principles to the supply chain: the boundary-less organisation, resulting in fewer defects and faster cycle-time (Far Eastern leading electronics company) The design of a new process for logistics department, integrating the “voice of the customer” into the process. Collab

20、oration with supplier, investing in latest logistics technology so that customer needs are met every time (Global motoring parts manufacturer based in South America) Lean manufacturing methods, including six sigma successfully pioneered by Motorola applied to key processes in NHS hospital and to UK

21、criminal justice system in order to reduce waste and delays in work-flow15 Competitive benchmarking key customer processes, sharing of communication tools and methods between leading European mobile communications company and the UK police High value manufacturing companies including a strong base i

22、n production with unique processes, high brand recognition, or highly customised services (Cadbury Schweppes, Pfizer To determine appropriate key process improvement strategies so that the organisation works more effectively together (cross-functionally) to produce a product which meets the expectat

23、ions of customers and stakeholders Design, deployment and regular review of customer-focused organisational development strategy and performance management framework in global steel manufacturer in order to achieve and sustain greater competitiveness. Baltic company now competing in volatile market

24、place.16Achieving and sustaining competitiveness through customer value: transforming the organisation 17Organisation Transformational ModelLeadershipTotal management involvementVisionMethodsBenchmarkingQuality improvementTools, including lean methods, six sigmaVoice of Customer(Servqual), Design of

25、ExperimentsPeopleInvolvementCommunicationTeamworkTrainingReward and RecognitionStrategyInnovation - InventionProcess qualityCUSTOMERVALUE18The 5 “principles” of Lean Methods with Six Sigma1 2 6Specify valuefrom the point ofview of the customerIdentify the valuestream for eachproduct orservice4 3 5 M

26、ake valueflow withoutinterruptionsLet the customerpull value fromthe producer orsupplierPursueperfection196BenchmarkingProcess driven virtualorganisationDefect reductionAnalysis of varianceCustomer-focused strategic driverBalanced ScorecardsVoice of the Customer -ServqualProblem DefinitionProcess Ma

27、nagementTools and techniques used in the studyProblem solvingDefineMeasureAnalyseImplementControl20Successful implementation21Based on our experience, the following is critical for successful implementation: Approaches used (i.e. methods and “jargon” fits the culture of organisation) Practical relev

28、ance using tried and tested methodologies (e.g. deployed flowcharts, six sigma, Servqual) Flexibility of learning options to suit the needs of the organisation and learning styles of individuals Training supports job and “project role” needs - minimal time away from job Learning materials (e.g. Stat

29、istical process control examples) are based on clients own data Continuous learning opportunity: methods are being applied to other projects22Best practice pointers in ensuring successful implementation Careful project selection all projects justified against carefully selected criteria, based on cu

30、stomer impact, cost, effort, feasibility etc. All improvement projects linked to strategy and the need to address customer value issues Top management on-going involvement On-going support for those learning Realistic benefit realisation plan Assign ownership for reporting and follow-up23Strategy wh

31、ere do you start to improve a company? Key features of a Customer Value Management Strategy24Customer value must be embedded in all aspects of the organisation leaders must establish a process by which this is reviewed and sustainedLet the customer drive the business, not pursuit of profit. Maintain

32、 a regular review of competitiveness from all angles, not just financial.Measure the performance of important features or activities that add value to your customers and make your organisation competitive Sustain high performing key customer-focused processes, free from defects and waste and “non-va

33、lue added” activitiesBe proactive in forming partnerships and collaborations with suppliers and customers in order to mutually enhance competitivenessLook outside the organisation for leading-edge practices that could help to exploit a market opportunity think innovatively and adapt the learning so

34、that it works for your organisationGenerate and sustain a culture that is excited by growth and innovation - align the reward and recognition systems to the achievement of strategic goals25References: Selection of authors publications and other key textsPublicationsKaye M M and Dyason M D (2005) 49t

35、h EOQ proceedings, Antalya, Turkey, A model for managing complex stakeholder and customer relationshipsKaye M M and Dyason M D (2004) 48th EOQ conference proceedings, Moscow, Russia, Increasing Confidence in the Criminal Justice System by the use of Customer-focused ModelsKaye M M and Dyason M D (20

36、02) Order in court (Part 1) and The Retrial (Part 2). UK Excellence, October/November pp 28-29Kaye M M and Dyason M D (2001) Applying six sigma in the public sector Quality World, January pp 33-35Kaye M M and Dyason M D (1999) Customer value-driven strategies. Total Quality Management. Vol 10, Nos.

37、4and 5, pp. 594-601.Kaye, M M and Anderson R (1999) Continuous Improvement: The Ten Essential Criteria International Journal of Quality and Reliability Management, 1999, Vol 16, No. 6, pp. 485-506.Kaye M M and Dyason M D (1998) Achieving a Competitive Focus through Self-assessment. Total Quality Management