Voice of the Customer (VOC)

I like to call it inexpensive consultancy. Think about the amount of money and time that is put into research and marketing so that a given company is able to truly understand its customers' needs and perception about its product or service. To add to that, sadly enough, a lot of organizations nowadays fail to use the right tool or approach, or even the right resources to listen to what the customer (the one who ultimately pays our salaries and bills) has to say. Voice of the Customer, or VOC, is an important concept within the Lean Six Sigma philosophy for process excellence. By applying VOC, an organization is able to collect valuable feedback from customers on what satisfy, delight, and dissatisfy them. There are many different ways of obtaining such feedback. It can be done through focus groups, mystery shopping, surveys, and formal interviews to name a few. Below, we offer 5 steps to properly implement a successful VOC program.

1. Clearly define your targeted audience. Who are your customers? And who are they now and in the future? Will you introduce a product or service that will be tailored to a completely different kind of customer? What are the demographics related to your targeted audience? If you would like to hear meaningful and insightful answers, ask the right  questions to the right customers.

2. Select the appropriate tools and methods. What tools will you use to collect the data you need? These can be of qualitative nature (for example open-ended questions or binary questionnaires - yes or no, high or low, etc.) or quantitative nature (such as tally count on defects through reports submitted by customers).

3. Improve. Use the results collected for continuous improvement. There is no point in collecting data from customers that cannot be translated into valuable information. Use the reports, surveys, and any other piece of data you have gathered to better your products and services, and showcase to your customers that you care about what they have to say.

4. Continue to ask. The beauty behind the VOC approach is twofold: firstly, customers usually like to provide feedback. Secondly, you are using a rather inexpensive (and reliable) way of doing so - it is inexpensive consultancy! The best feedback a company can get is the one from people who actually use the product. It is the user who knows if the product or service actually works, not the designer, not the operations manager, not the decision maker who decided to procure the product or service.

5. Develop an action plan. As per anything related to the PDCA cycle, such as the implementation of a VOC program, write down names, dates, and expected outcomes for everyone involved with the effort. Check the results of ongoing and new actions and hold people accountable for the implementation of initiatives that will sustain the program in the long run.

eZsigma Group is Canada's leader in training, mentoring, and certification in Lean Six Sigma, strategic management, and process excellence. Contact us to learn more about how we can make your organization an Excellence-focused one.

3 Steps to Reinforce Strategy Deployment

Strategy development and deployment can be a daunting process for those who are trying to truly make the connection between the organization's strategic intention and its  operational perception. What I mean is, the strategic efforts (or intention) at the top are not always perceived fully (or even partly) at the bottom. How can an organization reinforce the link between the two ends? For example, how can a sales representative really get what goes on at the top of the organization when it comes to its long term direction? While the below suggested steps are not everything the practitioner would need to address the disconnect between strategic intention and operational perception, they may help in getting there.

1. Clearly state the organization's critical objectives. "To be the best in the industry" or "to deliver the best customer service" sounds nice but what is it that you are trying to measure here? What are the metrics behind these statements? Does "being the best" mean more market share? How much more? Does "best customer service" mean less recall events? How much less? We human beings respond better and quicker to things we understand clearly. Put a name and a metric to those critical objectives or goals you have in mind and make sure that everyone gets the memo about them.

2. Deploy objectives or goals as mathematically as possible! Consider the following: you work in department C that reports to department B that reports to department A that reports to the COO of the organization. By the time that each department has created its own way of measuring a given strategic goal you have to support, most likely and sadly, you have already lost the meaning of it. On the other hand, if your department's metric is calculated in the exact same way as the the others do all the away to the top, you will always know that, for example, the cost of maintenance in your department affects the cost of maintenance in departments B and A directly - mathematically. You can minimize confusion tremendously by using a mathematical link between the company's main goals and your contribution to them.

3. Make the metrics a personal agenda. Ideally, as explored in item 2 above, you will deploy your organization's goals mathematically throughout the company, as much as possible. Now use those metrics for personal bonuses and rewards. Develop John Smith's individual personal plan (IPP) based on those metrics, or with great weight on those metrics. John will understand very well that his personal accomplishments have a direct impact at the organization's strategic plan.

As stated at the opening paragraph of this post, these 3 steps are not all there is to strategy development and deployment (consider for example leadership involvement, change management, ongoing market conditions, HR policies, etc) but they do provide the practitioner with a solid start. eZSigma Group has recently launched its strategic management practice. If you are looking for more information on how you can make your organization an aligned one - strategically speaking - contact us and book an appointment. We would be pleased to help you out!

Six Lean Core Concepts

Lean is often described as the philosophy that aids the organization in reducing the lead time between a customer's order and its shipment (be it a product or a service). It has been applied to various organizational settings over the past years (including services) and it has successfully created more value-added flows of information, activities, and networks that ultimately led organizations to become "leaner" (as the name implies). The journey of LEAN starts by the understanding of its core concepts. Some things to keep in mind as you start your journey towards operational excellence through Lean:

1. Low tech / low cost. Lean is about creativity before capital. It utilizes people's experiences, insights, skills and brainpower to tackle small and/or complex issues. The order here is to avoid the organization's funds and use teamwork and Lean principles to minimize waste and optimize processes.

2. Lean works today! A "perfect" solution in 6 months is not necessarily better than a good solution today. A Kaizen Rapid Improvement Event (aka RIE) is an excellent way of starting your resolution towards eliminating non-value added activities in your process flow.

3. Inventory hurts. It is not necessarily an asset (from a Lean viewpoint). The "pull" system (knowingly utilized successfully by Toyota) avoids the build up of inventory that costs money while sitting in the warehouse.

4. The PDCA (Plan-Do-Check-Act) cycle is the lead carrier of a well implemented Lean approach. PDCA will help your organization to constantly look at new improvement opportunities as there will never be a "perfectly perfect" process.

5. Based on item 4 above, once started, Lean is a continuous effort. Be it through a Kaizen Rapid Improvement Event or by tackling major issues in your entire functional processes, the effort must go on, and on and on. Spinning the PDCA cycle is the best way to guarantee continuous success in eliminating waste and improving your operational activities.

6. Always remember: there is often more non-value added activities to any given process than value-added activities. The customer is not willing to pay for non-value added activities and someone has to pay for it. You can incur that cost (and lower your competitive advantage) or you can eliminate it by creating an environment of constant improvement towards every single aspect of your organization's operations.

EZSigma Group is the leading consulting firm in Lean, Six Sigma, and Process Improvement in Canada. Contact us to discuss how we can help your organization to become world class in process excellence.