Topic 5 - Customer Focus New-1

7/24/2019 Topic 5 - Customer Focus New-1

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TOPIC 5

CUSTOMER FOCUS

IN THE PUBLIC SECTOR


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Quality Improvement Pyramid

Strategic Plans

Leaders Trustwort! Trusting o" Oters

#$$roaca%le& Ins$iring

'ualit! I($ro)e(ent S!ste( Trained Sta"" Recognition *ata #nal!sis

Custo(er Focus E($owered Sta"" Pro%le( Sol)ing Tea(wor+ 'ualit! Processes Measure(ent S!ste(s

,ision

E""icientProcesses

Sta""Trustwort!Trusting o" Oters

Colla%orati)e& Co((itted


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Identi"!ing Custo(ers


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Giorgio Merli (1990) --- Total ManufacturingManagement

- !e "u#tomer mu#t $e t!e organi%ation toppriority

- 'elia$le "u#tomer# are t!e mo#t important ---$uy repeatedly rom t!e organi%ation and eel t!e

#ati#a"tion via t!eir pur"!a#e#

- u#tomer #ati#a"tion i# en#ured $y produ"ing!ig!-*uality produ"t# --- #ati#a"tion implie#"ontinual improvement

Understanding Custo(er-*e"ined

'ualit!


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u#tomer --- people ,!o intera"t ,it! t!eorgani%ation ater t!e pro"e##e# !ave produ"ed

t!e produ"t

In Q #etting --- "u#tomer in"lude# t!e employee#ie t!o#e ,!o#e ,or. ollo,# t!at o anot!er

employee and it i# dependent on it in #ome ,ay

It i# ea#ier to identiy "u#tomer# via t!in.ing interm# o "u#tomer-#upplier relation#!ip#

!ree type# o "u#tomer# --- internal/ eternal and"on#umer#


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Identi"!ing Custo(er.s

Need/Re0uire(ents in tePu%lic Sector


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Internal "u#tomer --- t!o#e at t!e pro"e##

level department# and .ey "ro##-un"tional

pro"e##e# ,it!in an organi%ation

ontri$ute to organi%ation mi##ion

epend on t!e department 5 un"tionprodu"t# 5 #ervi"e# to ultimately #erve

"on#umer# and eternal "u#tomer#

Internal Custo(er.s Needs


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7ome undamental *ue#tion# need to .no,8

- !at produ"t# 5 #ervi"e# are produ"ed:

- !o u#e# t!e#e produ"t# ; #ervi"e#:

- !o do employee# "all ,rite to 5 an#,er*ue#tion# or:

- !o #upplie# t!e input# to t!e pro"e##:

Internal Custo(er.s Needs(ont


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= matter o en#uring t!at employee# (depend onone anot!er a# individual#) ; department#

(depend on ea"! ot!er a# unit#) "ommuni"atet!eir need# to one anot!er "ontinually

ommuni"ation mu#t $e en"ouraged ; a"ilitated

Improving "ommuni"ation me"!ani#m# --- eg*uality "ir"le# "ro##-departmental team# ;

improvement team#

>a"ilitate "ommuni"ation among internal"u#tomer# ; #upplier#


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?ternal "u#tomer# --- t!o#e ,!o re"eive 5 pay ort!e produ"t# and5or #ervi"e#

!e @out#ider#& ,!o deal# ,it! t!e organi%ation

?g8 'etail #tore# are eternal "u#tomer# to t!emanua"turer# o produ"t# #old --- Aedai 'un"it =li; ?7B

?g8 7tudent# are t!e eternal "u#tomer# to CiM; ot!er in#titution#

E1ternal Custo(er.s Needs

*e$ending on our %usiness $rocess& all o" tese could %e !ourcusto(ers2


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-#tep #trategy or identiying eternal "u#tomer# need#8

S$eculate a%out te results

Plan ow to gater in"or(ation

3ater in"or(ation

#nal!4e te results

Cec+ te )alidit! o" conclusions

Ta+e action


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Primary and 7e"ondary u#tomer#

Pri(ar! custo(ers8 t!e output# o t!e pro"e##e# are ultimately de#igned

developed and #upplied or t!em

Secondar! custo(ers8 re"eive pro"e## output# or are impa"ted $y t!e

pro"e## $ut are not t!e rea#on t!at t!e pro"e## ei#t#

?ample8

D Pro"e## D Euying a ne, "ar

D Primary u#tomer D Euyer

D Secondary Customer Salesperson, Service Dept.

Dealership

Focus on te needs o" !our Pri(ar! Custo(ers


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Relationsi$ %etween Internal

E1ternal Custo(ersFature o "u#tomer-#upplier lin.age# ---

$uild up "!ain o "u#tomer#H t!roug!out

t!e organi%ation t!at "onne"t everyindividual ; un"tion to t!e eternal

"u#tomer# --- "!ara"teri%ing t!e

organi%ation value "!ain


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Building Custo(er

Satis"actionVs

2Strategi4ing Custo(er

Lo!alt!


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I($ortance o" Custo(er Satis"action

and Lo!alt!

Satis"action i# an attitude/ lo!alt! i# a%ea)iorH

oyal "u#tomer# #pend more/ ,illing to pay!ig!er pri"e#/ reer ne, "lient#/ and le## "o#tlyto do $u#ine## ,it!

It "o#t# ive time# more to ind a ne, "u#tomert!an to .eep an ei#ting one !appy


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= irm "annot "reate loyal "u#tomer# ,it!out ir#t

"reating #ati#ied "u#tomer#

7ati#a"tion and loyalty are inluen"ed greatly $y

value #ervi"e *uality integrity and t!erelation#!ip# t!at organi%ation# $uild ,it!

"u#tomer#

oyalty "an $e maintained --- telling t!e trut! to

t!e "u#tomer# ,!et!er it i# good or $ad ne,#


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Many organi%ation# #till o"u# more on

pro"e##e# and produ"t# rom an internal

per#pe"tive rat!er t!an ta.ing t!eper#pe"tive o t!e eternal "u#tomer

(producers should look at processesthrough the customers eyes, not the

organi!ations".

Creating Satis"ied Custo(ers


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!ree =#pe"t# o u#tomer-riven Quality6

- E1$ected 'ualit!

J !at t!e "u#tomer a##ume# ,ill $e re"eived rom t!egood or #ervi"e

J !at i# t!e role o produ"er:

- #ctual 'ualit!

J !e out"ome o t!e pro"e## and ,!at i# delivered to t!emar.et

J !at #!ould $e epe"ted $y produ"er:

- Percei)ed 'ualit!

J Per"eption $y "omparing epe"tation# (epe"ted *uality),it! a"tual *uality

J !at are t!e "on#e*uen"e#:

J Per"eption# are not al,ay# a""urate


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+ prin"ipal dimen#ion# "ontri$ute to

"u#tomer per"eption# o Q

Tangi%les6 #$$earance o" $!sical ele(ents

Relia%ilit!6 *e$enda%le and accurate $er"or(ance

Res$onsi)eness6 Pro($tness7 el$"ulness

#ssurance6 Co($etence& courtes!& credi%ilit!& securit!

E($at!6 Eas! access& good co((unication&understanding o" custo(er


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1 eine and #egment .ey "u#tomer group# andmar.et#

2 Cnder#tand t!e voi"e o t!e "u#tomer (KB)

3 Cnder#tand lin.age# $et,een KB and de#ignprodu"tion and delivery

7i #tep# or "u#tomer-oriented

pra"ti"e#8
http://../VOC.ppthttp://../VOC.ppt


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4 Euild relation#!ip# t!roug! "ommitment#

provide a""e##i$ility to people andinormation #et #ervi"e #tandard# and

ollo,-up on tran#a"tion#

+ ?e"tive "omplaint management

pro"e##e#

Mea#ure "u#tomer #ati#a"tion or

improvement


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Strategi4ing Lo!al Custo(er

!eory o loyal "u#tomer --- a "u#tomer orever

Aarl =l$re"!t (1996) --- !eory o 7ervi"e'elativity8

, 8 R 9 E

K L Kalue

' L 'e#ult#

? L ?pe"tation#

!e produ"er need# to go $eyond meeting t!eepe"tation --- "reating value


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u#tomer oyalty Model --- 4 "omponent#8

- Business $er"or(ance

J on#ideration o #everal a"tor# ie produ"t

*uality/ #ervi"e *uality/ relation#!ip *uality/

image #trengt!/ and pri"e per"eption

- 3lo%al $erce$tion

J Ea#ed on t!e evaluation o an organi%ationJ Po#itive --- loyalty


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- Lo!alt! %ea)iors

JMea#ured t!roug! dee"tion rate o"u#tomer# and $u#ine##-volume-$y-

"u#tomer rate

- Financial outco(es

J=e"ted $y #everal .ey a"tor#

JMar.et #!are/ redu"ed "o#t#/ employeeattitude#/ proit/ and #!are!older value


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Caracteristics o" a

Custo(er Focused

Pu%lic Organi4ation


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'i"!ard !itely (1991) #ugge#t# se)en

caracteristicso "u#tomer o"u#

1 Ki#ion "ommitment and "limate

2 =lignment ,it! "u#tomer#

3 illingne## to ind and eliminate "u#tomer#&

pro$lem

4 C#e o "u#tomer inormation

+ 'ea"!ing out to "u#tomer#

ompeten"e "apa$ility and empo,erment opeople

ontinual improvement o produ"t# and

pro"e##e#

Q i . Q t


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Qui". Quote

:Te custo(er is not an interru$tion o" our

wor+& te! are te $ur$ose o" our wor+2;

- #non!(ous


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Topic 5 - Customer Focus New-1

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