Six Sigma Sales & Marketing

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Business Excellence Briefing:

Six Sigma Sales & Six Sigma Sales & MarketingMarketing

Bob Crescenzi

VP, Business ExcellenceStandard Register Company

Who is Standard Register?

Leading provider of document management & print supply chain outsourcing services

ISO 9000Certified

ISO 9000Certified

• Founded 1912

• More than $900 million in revenue

• Recognized industry leader

• A strong financial position

• Focused on Business Excellence

•Specialize in helping large corporations produce, procure, manage, and distribute documents and printed materials

Master of Quality

Supplier Achievements

Awards

Customer Scorecards

FORTUNE:America’s Most

Admired Companies

2002, 2003, 2004

FORTUNE:America’s Most

Admired Companies

2002, 2003, 2004

InformationWeek 500

InformationWeek 500

SRRanked 58

SRRanked 58

Resourced to Support You Nationally & Globally

Worldwide Coverage• 35 Production Locations (US)

• 22 Distribution Facilities (US)

• Alliances and JVs extend our reach to more than 40 countries

The Evolving World of Print

• Office Documents• Proposals / Contracts• Collateral• Email

Desktop (Office)

ImmedLimitedLow

TurnColorFinish

Centralized (Production)

High Volume

4-24hrsDigitalMed.

DigitalTurnColorFinish

• Presentations; Newsletters• Manuals; Directories; Catalogs• Collateral; Proposals• Tech pubs; Booklets• Compliance Documents • Business Forms• Stationery

External (Commercial)

Multiple

1-3daysMultipleHigh

DigitalTurnColorFinish

• Labels• Post Cards • Premiums/Ad

Specialties • Business Forms• Business Cards• Stationery• Books• Packages• POP

• Direct Mail• Brochures• Kitting • Fulfillment• Posters

$50B

Print on Print on Demand Demand ServicesServices

Core Core Doc MgtDoc Mgt& Labels& Labels

BusinessBusinessProcessProcess

ImprovementImprovement&&

OutsourcingOutsourcing

Products

Solutions

Technology Enabled Processes

Paper Based

Reengineering our Business Model

The Enterprise Wide Supply Chain Approach

Business Process Improvement:Lean Six Sigma

INTERNAL EXTERNALCustomer “Critical to Qualities”

EFFICIENCY Cost Savings

EFFECTIVENESS Revenue Generation

Enterprise Print & Document

Mgmt StrategyPartnerships

CONCIERGE

Standard Register Products & Services

• Printed Documents

& Business Forms

• Label Products

• ID Documents &

Labels

• Secure Document

Printing Solutions

• Commercial Print

• Warehousing &

Distribution Services

• Billing & Statement

Solutions

• One-to-One

Marketing

Collateral & Direct

Mail

• Kitting & Fulfillment

• Print-On-Demand

• SMARTworks

• Digital Pen & Paper

• Data Retrieval &

Scanning

• Document

Automation Software

• Design On Demand®

Marketing Automation

• RFID

• Internet Document

Presentment

• Sourcing Management

• Print Spend Analysis

• Facilities Management

• Document Security

Audits

• Fleet Management

• Technology

Integration &

Implementation

Services

Printed Products & Services

Fulfillment & Personalized

Communications

Document Technology Solutions

Professional Services & Consulting

Operational Excellence

SRC’s Journey to Business Excellence

Short Term Focus

Process Stability

Continuous Improvement

Business Excellence

2000/1

Pe

rfo

rma

nc

e

2002 2003 2004...

Launched DMAIC / AWO

Launched Lean

Launched DFSS

SR’s Business Excellence ModelC

om

plia

nce

Man

ag

em

en

tKn

ow

led

ge

Man

ag

em

en

t

Learning & Growth

ProManagement

Customer Management

Financial Management

Performance Management

LeadershipLeadership

Strategic and Operational Planning

Com

plia

nce

Man

ag

em

en

tKn

ow

led

ge

Man

ag

em

en

t

Learning & Growth

ProcessManagement

Customer Management

Financial Management


LeadershipLeadership

Strategic and Operational Planning

Performance Enhancement

Best practices approach

– Baldrige criteria

– Balanced scorecard

– Process improvement methodologies

• Six Sigma

• Action Workout

• Lean


Co

mp

lian

ce M

ana

gem

ent

ISO

90

00

, ISO

14

00

0S

afe

ty, HIP

AA

Kn

ow

led

ge

Man

ag

emen

tB

est

Pra

ctic

es,

Da

ta

Wa

reh

ou

se,

Be

nch

ma

rkin

g

Malcolm Baldrige Assessment

StrategyStrategic and Operational Planning

Balanced Scorecard

LeadershipVision, Mission, Values

Learningand Growth

• VOA (Voice of Associate)

• Human Capital Utilization

• Total Rewards• Leadership

Development• SR University

FinancialManagement

• EPS• Revenue Growth• Cost Savings• ROI/ROC• Cash Flow

Process Management

• Action Workout• Six Sigma • Lean

Methodologies• CRM• Product/

Solution Development

• Supplier Partnerships

Customer Management

• VOC (Voice ofthe Customer)

• Customer Scorecards

• Customer Partnerships

• FTC (For The Customer)

SRC Management System

We need to be faster, better and cheaper, all at the same time!

The Challenge of Business Excellence

Realizethe Vision

To drive financialsuccess…

Equip our people with Knowledge, Skills, Systems and Tools

To build the strategic capabilities…

Needed to deliver uniquesets of benefits to customers…

Objectives Measures Targets Initiatives

Driving Performance - Balanced Scorecard

The Vision

Customer

Financial

Internal Process

Learning and Growth

Financial PerspectiveObjectives Measures Targets Initiatives

Customer PerspectiveObjectives Measures Targets = Initiatives

Internal Process PerspectiveObjectives Measures Targets Initiatives

Learning & GrowthLearning & Growth

AchievingAchievingBusiness ExcellenceBusiness Excellence

within our organizationwithin our organization and supply chainand supply chain


Theme

Business Excellence Priorities 2001-2003

Our Deployment Plan

• Six Sigma infrastructure established, then…

• Champion training for executives first…

• Black Belt/Green Belt Training followed

– 2001: focus was operations

• Manufacturing, production support, engineering

– 2002: added some transactional groups

• Accounting, Information Management, etc.

– 2003: added Client Services and Consulting Services

Success due to planning & strong commitment from executive mgmt

In the beginning…

• Early projects were internally focused

– “Low-hanging fruit”

– Emphasis on hard dollar savings

– Practitioner learning curve

– Unknown customer CTQs

Driven by operational metrics of cost, waste and efficiency

2002 Results

• While we met our training goals AND achieved 2X return on Six Sigma investment…

• …Project results had little direct impact on customers

– For example, 4-hour press setup time reduction was not noticeable in a 4-week production cycle

Balanced Scorecard didn’t reflect Six Sigma gains

Changes were needed in 2003…

• Business focus moved from cost-reduction to revenue-generation

– Deliver more value to customers

• Many SR customers are engaged in Six Sigma

– Expectation of customer-focused improvements

– “Show me how you’re better”

Six Sigma projects need to be driven by our customers

Helping Helping customers achieve customers achieve

Business Excellence Business Excellence with our solutionswith our solutions

Revenue Growth

Theme

AchievingAchievingBusiness ExcellenceBusiness Excellence

within our organizationwithin our organization and supply chainand supply chain


Theme

Business Excellence Priorities 2004 and beyond…

Value

Supplier

Voice of Customer

Value

gProjects

Processes

Prioritize

Six SigmaQuality

Voice of Customer

Customer

Customer-Driven Six Sigma

Creating a Customer Focus

• Identify critical customer requirements

– Today and in the future?

• Help customers solve their business problems

– How well are we meeting customer needs?

• Measure SR performance

– How well are we delivering to customer expectations

Deploy Comprehensive Voice of the Customer Initiative

Linking Customers’ Expectations to Six Sigma Results

Ensure Your Customers See & Feel the Effects of Six Sigma

Delivery

Service Responsiveness

Product Quality

Transaction Quality

Value

VOC Elements

• Customer Satisfaction Metrics

– Loyalty Assessments

– Customer Satisfaction Surveys

– Transactional Surveys

• Life Cycle Profiles

– Win-Loss Analyses

– Milestone Interviews

• Customer Scorecards

Customer Loyalty & Satisfaction

• Approach

– Telephone or web interviews (3rd party & in-house)

– Frequency

• Loyalty – annual

• Satisfaction – quarterly

• Transaction – event-based

• Benefits:

– Identifies factors linked to customer satisfaction & loyalty

– Measures SR performance against customers’ expectations

Expectation-Performance gaps drive process improvement projects

Secure Customer Index® Overview

FavorableFavorable

VU

LN

ER

AB

LE

CU

ST

OM

ER

SGreatest RiskGreatest Risk

IndifferentIndifferent

SecureSecureverysatisfied

definitely will partner

again

definitelywould

recommend

SecureCustomers

Secure Customer Index ® (SCI)

Secure Customer Index®

31

0 10 20 30 40 50 60 70 80SCI® Percent

Numbers represent the minimum and maximum

SCI® percentagesin total and by industry.15 50

5 50

30 54

0 76

12 45

2 62

8 52

10 41

17 68

0 76

445

Utilities

Telecommunications

Retailing

Industrial Products

Entertainment

Computer Software

Computer Services

Computer Hardware

Automotive

Total

Cellular (subset of Tel)

Banks/Financial 9 54

Norms & Best In Class Figures

Median SCI

Secure Customers By Industry

Identifying Needs and Wants

Must Be

More is Better

DelightersDelighters

Delight

Neutral

Dissatisfaction

Absent FulfilledPresence of the Characteristic

The Kano Model of Quality

Customer Scorecards

• Approach

– Joint development with key customers

– Quarterly reviews

– Requires Six Sigma practitioner (Green Belt minimum)

• Benefits

– Focuses both parties on critical, value-add attributes

– Strengthens partner relationship

Customer-specific CTQs drive process improvement projects

Mar$0.024

April$0.023

May, $0.026 YTD

$0.024

$0.020

$0.022

$0.024

$0.026

$0.028

$0.030

Cost Per Copy

.025

Mar97.0%

April99.0%

May, 98.7%

YTD97.8%

95.0%

96.0%

97.0%

98.0%

99.0%

100.0%

User Satisfaction

98.5%

Mar9.0%

April15.0%

May, 12.0%

YTD11.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Device Utilization Rate

11.0%

QualityQualityQualityQuality

CostCost

ReliabilityReliability

TurnaroundTurnaroundTurnaroundTurnaround

ConvenienceConvenienceConvenienceConvenience

Fleet ScorecardMar

97.0%

April99.0%

May, 98.7%

YTD97.8%

95.0%

96.0%

97.0%

98.0%

99.0%

100.0%

Uptime

98.0%

Employee toDevice Ratio

6.6 to 1

2.0

4.0

6.0

8.0

10.0

12.0

8:1

$815

$697 $678

$780

500

600

700

800

900

1000

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Spend per Employee

Linear (Spend per Employee)

Desk-top

22.0%

Fleet78.0%

$0.042

$0.043 $0.040$0.038

$0.025

$0.02

$0.03

$0.04

$0.05

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Incurred

Contract

Metrics Gathered For Control And Future ImprovementsMetrics Gathered For Control And Future Improvements

DMAICCustomer Scorecard

Aligning Customer & Internal Goals

Customer Satisfaction

Quality DeliveryPrice/Value

CTQ – Critical to QualityCTD – Critical to DeliveryCTP – Critical to Price/Value

Products

CTP1 – Critical to Process 1



ProcessesOrganization

Goals

DefectsCycle Time Cost

2005 Focus

• Customer-focused Six Sigma training– 60 Green Belt trained: Client Care, Sales and Business

Consultants

– Emphasis on VOC, transactional tools

• Executive bridging– Taking the message to the top

– Speaking in National Forums (Financial & Healthcare)

• “For the Customer” Six Sigma projects– Project work by SR Green/Black Belts to help solve Customer

reduce their costs

– On-site projects to assist customers in maximizing value from SR products/services

– PathForward Consultants utilizing six sigma methodology

Customer Focused Six Sigma Training

Champion(Account Executives)

Green Belt(Account Managers)

Yellow Belt(Sales Associates)

2 Days

6-9 Days

2 Hours

Account Teams Build Six Sigma Capability

• Account managers build executive level credibility and analytical problem solving skills by becoming Green Belts and leading customer focused improvement teams

• Sales managers implement Six Sigma Management discipline in their management processes

• Client service specialists become Green & Black Belts to provide sales with advanced analysis and to drive improvements in service performance.

“For the Customer” Process

• Engage customers in a discovery dialogue

– Develop Customer Scorecards + VOC Surveys

– Identify & define opportunities (win-win)

• Establish collaborative improvement teams to establish baseline measurements & formalized team structure

• Drive analysis, improve project execution, and demonstrate impact on desired results

• Transfer Six Sigma Capability to customer

– Develop control plans and monitoring systems

– Optimize the process

Customer Facing Six Sigma Teams

Utilizing the right teams & tools to drive improvements at our customers

Imp

act

Difficulty/Complexity

Action Work Out

Teams

Kaizen Blitz Teams or

Action Work Out Teams

DMAIC / Lean

Teams

DMAIC/ DMADV

Teams

AVOID


Business Excellence Briefing:

Six Sigma Project: Six Sigma Project:

Sales VOC to ActionSales VOC to Action

Strategic AccountsStandard Register Company

Sales VOC to Action ProjectDEFINE MEASURE

ANALYZE DESIGN VALIDATE

Problem:

The project objective was to develop a process for which each Strategic Account team could analyze the VOC data, validate critical issues, identify root causes and effectively track progress of each team.

Ultimately by achieving the objective, we will drive more revenue because customers will view us a TRUSTED partner in our efforts to improve our performance in areas they deem important

•No process for using annual VOC data to drive Customer improvements

•Only 20% of Strategic Accounts had action plans for 2004

•SRC Strategic Account teams are not actively engaged with the Voice of the Customer initiative

Customer: Strategic Account Sr. VP

Completed: July 2005

Objective:

•Design is efficient and capable

Project Summary:

Yes

Collect VOC data

Break down VOC data by Strategic

Cusotmer

Analyze VOC data using Gap Analysis

Set Up VOC Customer Meeting

Conduct Customer VOC

Meeting

Validate Critical Issues and

Identify Root Causes w/Customer

Implement Solutions while

informing Customer

Does Customer See Improvement

No

Annotate Customer validated

improvement

Develop Solution(s) for each identified

root cause

The project objective was achieved by:

•establishing a gap analysis tool for VOC data

•establishing a process to validate critical issues

•implementing a schedule to meet with each customer to discuss the VOC data, critical issues, root causes and any other critical issues not identified by VOC data

•standardizing the process for tracking the progress of each account team

PROJECT COMPONENTS

Customer Needs (CTQs):

•Need a process to analysis VOC data•VOC to Action process that does not take away from Account Teams sale time•A tracking process which is easy to manage from leadership perspective•Develop a VOC to Action process that will drive revenue •Increase the Secure Customer Index for Strategic Accounts

Tools Used:

•CTQ Matrix•Kano Analysis•Affinity Diagram•Structure Tree

Macro Flowchart:

House of Quality:

•Whats – Efficient process, analyze VOC data, focus account teams, measurable results and easily tracked process•Hows –Customer follow up meetings, action item templates, gap analysis, validate and identification critical issues and root cause identification

Detailed Design:

•Outcome Indicator (Y) – Detailed Action Plan

•Upstream Indicators (X) – Customer Meeting, VOC “gap” analysis and root cause identification

Pilot Results:

•Tested detailed design on Strategic customer from the financial industry and the results were:

•8 “gap” issues were identified from VOC data•4 out of 8 critical issues were validated by the customer through our customer follow up meeting•Root causes were collected for the 4 critical issues •An additional critical issue was noted (not highlighted during our “gap” analysis)•Account teams integrated the VOC customer meeting with an existing sales meeting•Account team within 2 weeks has developed an action plan to address the root causes•Customer offered feedback on ways to possibly improve the participation in the VOC survey

•The control system is in place and all teams have been trained.

Project Components

Customer: Strategic Account Sr. VP

Completed: July 2005

The project objective was achieved by:

1. Establishing a gap analysis tool for VOC data2. Establishing a process to validate critical issues3. Implementing a schedule to meet with each

customer to discuss: • the VOC data• critical issues• root causes• any other critical issues not identified by VOC

data4. Standardizing the process for tracking the

progress of each account team

Project Summary:

Define

Problem:

The project objective was to develop a Strategic account team VOC process to:

• analyze the VOC data• validate critical issues• identify root causes• effectively track progress of each team.

Ultimately by achieving the objective, we will drive more revenue because customers will view us as a TRUSTED partner in our efforts to improve our performance in areas they deem important

• No structured sales process for using annual VOC data to drive Customer improvements within the sales force

• Only 20% of Strategic Accounts achieved VOC Improvement action plans for 2004

• Need to increase Strategic Account teams participation in the Voice of the Customer initiative (increase understanding and corrective action on customer specific issues)

• No structured process for tracking VOC corrective actions

Objective:

Measure

Customer Needs (CTQs):

• Need a process to analysis VOC data

• VOC to Action process that does not take away from Account Teams sale time

• A tracking process which is easy to manage from leadership perspective

• Develop a VOC to Action process that will drive revenue

• Increase the Secure Customer Index for Strategic Accounts

Tools Used:• CTQ Matrix

• Kano Analysis

• Affinity Diagram

• Structure Tree

Analyze

Yes

Collect VOC data

Break down VOC data by Strategic

Cusotmer

Analyze VOC data using Gap Analysis

Set Up VOC Customer Meeting

Conduct Customer VOC

Meeting

Validate Critical Issues and

Identify Root Causes w/Customer

Implement Solutions while

informing Customer

Does Customer See Improvement

No

Annotate Customer validated

improvement

Develop Solution(s) for each identified

root cause

Macro Flowchart:

House of Quality:

• What(s) – Efficient process, analyze VOC data, focus account teams, measurable results and easily tracked process

• How(s) – Customer follow up meetings, action item templates, gap analysis, validate and identification critical issues and root cause identification

Issue Prioritization

1

2 3

4

5

6

7

8

9

10

11

12

13

14

15

161718

19

2021

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

Percent of Customers Perceiving a Deficiency

Lower

Higher

AttributeImpact

CriticalIssues

CriticalIssues

MaintenanceIssues

MaintenanceIssues

Less CriticalIssues

Less CriticalIssues

SecondaryIssues

SecondaryIssues

Below Average(BETTER Performance)

Above Average(WORSE Performance)

Design

• Design is efficient and capable

Detailed Design:

• Outcome Indicator (Y) – Detailed Action Plan

• Upstream Indicators (X) – Customer Meeting, VOC “gap” analysis and root cause identification

Actual VOC Data

Action Item Tracking/Planning Template

Validate

Pilot Results:

• Tested detailed design on Strategic customer from the financial industry and the results were:

• 8 “gap” issues were identified from VOC data

• 4 out of 8 critical issues were validated by the customer through our customer follow up meeting and root causes were collected for the 4 critical issues

• An additional critical issue was noted (not highlighted during our “gap” analysis)

• Account teams integrated the VOC customer meeting with an existing sales meeting and within 2 weeks developed an action plan to address the root causes

• Customer offered feedback on ways to possibly improve the participation in the VOC survey

• The control system is being completed by using a FMEA and Control Plan.

“VOC to Action” Six Sigma Project

• Summary

– Strategic Accounts needed a process for analyzing the VOC data, validating the critical issues, identifying root causes and implementing solutions without burdening the Strategic Account teams while increasing the Secure Customer Index

– Developed process for “gap” analysis for VOC data

– Instituted customer meetings to explain our VOC purpose, validate “gap” issues (critical issues), identified root causes and identify any “other” performance issues not highlighted during “gap” analysis

– Developed an action item tracking template for each Strategic account team (standardization)

– Developed a process for leadership to track and focus the Strategic account teams on customer important issues

– Each customer meeting has lead to identifying additional business opportunities and improvements to SRC’s conducting of the VOC survey

Six Sigma Sales & Marketing

Education

Transcript of Six Sigma Sales & Marketing