The latest thinking on Customer Satisfaction Measurement Leading Edge Management Consultancy Limited Leading Edge Management Consultancy Limited 27th April 2004 Why we feel we understand the issues around customer satisfaction O We have been carrying out customer service audits, by telephone and face to face interviews, since 1995 O 6000 interviews have been completed O We always use ‘moments of truth’ O Audits are comprehensive but expensive O A web based system is be cheaper O KPI-online was developed and launched (now known as ACE) Leading Edge Management Consultancy Limited And what we ourselves: O O O O We became quality assured in 1997 and now have ISO 9000: 2000 We aim to capture our clients expectations in our briefing sheet when we meet the client We use KPI-online system for getting feedback from our clients We have been using a system for capturing improvements since 1996, called Worry Notes (now known as PIN Notes) Leading Edge Management Consultancy Limited The need for change O A benchmarking study of 66 central government departments’ construction projects (with a total value of £500m) showed that in 1999: · 3/4 of the projects exceeded their budgets by up to 50% · 2/3 exceeded their original completion date by 63% Source: Benchmarking the Government Client Stage Study: Agile Construction Initiative, December 1999 Leading Edge Management Consultancy Limited The issues for a modern efficient and effective construction industry O O The construction industry is not known for focusing on customers’/end users’ needs Many of the people who are actually managing construction projects have no experience in doing so · head teachers · hospital trust managers · groups that have been allocated lottery money (e.g Bootle Cricket Club’s pavilion) O O They may have an unrealistic idea of what they are going to get for their limited budget and may be insufficient The public sector (with the NAO) is driving the way of engaging stakeholders in defining construction outputs not inputs Leading Edge Management Consultancy Limited But we can help by changing the way we approach customer satisfaction To improve, we need to: O O O understand what is important to each customer as an individual measure to give a datum point to show where improvement is needed look for where improvement is needed O O O have specific actions to work against choose a specific person to be responsible for making sure agreed actions are carried out measure continuously to show that improvement has taken place Leading Edge Management Consultancy Limited And so we must begin with a measurement system that asks the right questions O O Many companies have been working with Key Performance Indicators (KPI’s) - but if they get a low score they don’t know what to to improve it We need to measure things that give us an action list to work against O O If people are being scored and they don’t understand the basis on which they are being scored, it can be very threatening They need to understand what they need to to ‘score an 8’ Leading Edge Management Consultancy Limited Principle Measure in a useful way by focusing on ‘Moments of Truth’* O O O O A ‘Moment of Truth’ is anytime a customer comes into contact with any aspect of a business, however remote O Murphy’s law says, according to Tom Peters, · ‘each bad moment of truth scores 10x against you, · but each good moment of truth only scores 1x for you’ It is an opportunity to form an impression Many ‘Moments of Truth’ are controlled by people People are probably your least controllable asset *Jan Carlzon, SAS Airline, 1981 Leading Edge Management Consultancy Limited Make the questions into statements which the scorer can agree with on a scale of 1-10 O Understand what the customer expects O · so that the team can strive to meet it · not every element is equally important O Measure what the customer perceives is the level that the team is reaching · so that the team can identify where its performance is falling short Focus on the performance gap between the two · removes the arbitrariness of different scoring scales, i.e what is an out of 10 for one person may be a for another O Perception may not be reality - but that means the issue still exists, but is one of communication Leading Edge Management Consultancy Limited You need to be able to aggregate the data against business models that managers are familiar with O O While project team members need to work to improve their ‘Moments of Truth’… Managers need to get a higher level strategic overview against standard business models that they use: · Business excellence model · Customer satisfaction · Quality standard ISO 9000:2000 Leading Edge Management Consultancy Limited 10 ... Management Consultancy Limited The issues for a modern efficient and effective construction industry O O The construction industry is not known for focusing on customers’/end users’ needs Many of the. .. what the customer perceives is the level that the team is reaching · so that the team can identify where its performance is falling short Focus on the performance gap between the two · removes the. .. Edge Management Consultancy Limited Make the questions into statements which the scorer can agree with on a scale of 1-10 O Understand what the customer expects O · so that the team can strive