Edgewater Consulting blog

Voice of the Customer – Kano Analysis

As a Consultant, I’ve acquired specific preferences when traveling, and learned to adapt behaviors that make these experiences as stress free as possible. For example, at airport security, I try to avoid standing in line behind anyone who is dressed too “casually” or has sun screen as one of the items in their plastic bag. Chances are that they will take twice as long going through security, thus delaying my time to reach my gate/flight. When selecting a hotel, I look for one with a good in-house dining menu. The benefit of coming back to the hotel and enjoying a good meal without having to leave my room is priceless. Also, let’s be honest, it all comes down to points.

The casual traveler might see little value in earning points or priority boarding; however, the business traveler sees great value in these service items.  Not all consumers value the same services and products on the market in the same way and many companies are keen to analyze these trends. To aid in analyzing customer needs, and provide insight into services or products of little importance or that miss Critical to Quality (CTQ) features, companies may want to perform a Six Sigma process based on the Voice of Customer (VOC), called Kano Analysis.

What Does It Do?

Kano Analysis identifies and prioritizes customer needs or requirements by classifying them under key categories, including: basic services a customer expects, services that a customer desires, and services that delight a customer. Below is a summary of categories and definitions (terminology may vary slightly).

Requirement/Need Definition
  • “Must Be”
  • Basic Requirements
  • Dissatisfiers
  • (Expected Quality)
  • Expected features – cannot increase satisfaction
  • Taken for granted, rarely voiced
  • If not fulfilled, customer is extremely dissatisfied
  • “More is Better”
  • Performance Requirements
  • Satisifers
  • (One Dimensional Desired Quality)
  • Linear effect – the more needs are met, the more satisfied
  • Customer is aware that feature is important to them
  • Remain in the market
  • “Delighter”
  • Excitement Requirements
  • Satisifers
  • (Excited Quality)
  • Unexpected feature – impresses customers
  • Delights when present – does not cause dissatisfaction when not present – rarely voiced
  • Leading edge in the marketplace

How To Do It?

Gather as much VOC information as possible (via interviews, focus groups, surveys, etc.) from your customers regarding service or product offerings. Have them classify the requirements / needs under the three categories. Eliminate any requirements that aren’t relevant. The example below shows classifications pertaining to hotel services.

Requirement/Need Definition
  • “Must Be”
  • Basic Requirements
  • Dissatisfiers
  • (Expected Quality)
  • Clean hotel room
  • Reinforced lock
  • Toiletries
  • Towels
  • “More is Better”
  • Performance Requirements
  • Satisifers
  • (One Dimensional Desired Quality)
  • Large work desk
  • Wi-Fi
  • Car service
  • Hair dryer
  • Bed-side outlet
  • On-Demand movies
  • “Delighter”
  • Excitement Requirements
  • Satisifers
  • (Excited Quality)
  • Dimmable lights
  • Heated floors
  • Bottle of wine on birthday
  • Cappuccino machine in room
  • Room access activated via smart phone

It’s important to point out that a customer’s needs / requirements change over time. What was once a “Delighter” could be a “Dissatisfier” nowadays. For example, receiving an invoice (slipped under the hotel room door) used to mean that it wasn’t necessary to wait in line to check out of the hotel. Nowadays, it’s just one more piece of paper to file. Many travelers prefer to automatically receive an electronic copy of the invoice.

Voice of the Customer – Critical to Quality Trees

Don’t Get Stumped by Broadness

Often times, employees are able to identify a service need or improvement opportunity, but do so in a way that is too broad or can’t be acted on by the team. Employees may have identified needs such as a comfortable work environment, increased competitiveness in the marketplace, or improved customer service, but what does that really mean and how can it be achieved?

In this case, having a structured approach in place with which to identify specific characteristics or requirements that are critical to quality is imperative. To achieve this, implement techniques for process improvement known as Six Sigma . Through the use of the Six Sigma technique, Voice of the Customer (VOC), you’re able to gain insight into customers’ needs and their perception of quality. One VOC tool, Critical to Quality (CTQ) Trees, aid in identifying quality measures from the customer perspective.

What Does It Do?
  • It aids in the transition from broad, Voice of the Customer (VOC) needs / vague statements to precise, actionable performance requirements
  • It identifies problems along with root causes
  • It enables employees to identify features by which customers can evaluate companies’ services and that can be used as measures for a project
  • A useful CTQ characteristic is:
    • Critical to the customer’s perception of quality
    • Specific
    • Easy to measure
How To Do It?

Identify Critical Needs

  • Ask yourself “What is critical for this service or product?”
  • Brainstorm to identify the critical need that has to be met
  • Create a CTQ Tree for each identified need

pic 1Identify Quality Drivers

  • Identify specific quality drivers that have to be present to meet the needs identified in the previous step
  • When considering each need, ask, “What would that mean?”
  • “Good Customer Service” means “Knowledge of Product”

pic 2

Identify Performance Requirements / CTQs

  •  Identify the performance requirements that must be satisfied for each quality driver
  • Keep asking “What would that mean?” until reaching the level of detail that the team’s knowledge will allow
  • “Knowledge of Product” means “Zero Calls Transferred”

pic 3

What’s the Benefit?

It’s easy to get trapped by broad concepts that are not so easily quantified, such as providing good customer service. When you branch out and translate performance in terms of units (e.g. number of calls made) time (e.g. amount of time on hold) or money (e.g. total expenses) you start to see the clearing through the trees. The Voice of Customer approach is a great way to obtain clear, desired performance requirements that promote overall company goals. In my next blog, I continue exploring the Voice of Customer, but do so using the tool of Kano Analysis. It’s sure to delight!

For more information on Voice of the Customer, or other related Six Sigma processes, the following book is recommended: Voice of the Customer: Capture and Analysis.

Are You an Effective Leader?

Edgewater ConsultingI’m a bit of a history buff and I recently finished reading Jeff Shaara’s new book “The Smoke at Dawn” which focuses on the Civil War battle for Chattanooga.

The book has me thinking about what makes an effective leader. At the beginning of the novel, one general has every advantage, but focuses on the wrong things. While the other general begins at a major disadvantage, focuses on the right things, and ends up winning the battle.

The novel reinforced some core leadership principles that were good reminders for me.

  • First and foremost – where you decide to focus your energy matters. You can allow your attention to be distracted and squandered on the petty minutia or you can keep yourself focused on key goals. An effective leader doesn’t ignore the details, but does know what is important and what is not. An effective leader actively chooses to spend most of his or her energy on what is important.
  • Second, you need to identify a goal to be accomplished and share that vision. An effective leader ensures that everyone on the team understands what the goal is, why the goal is important, and the part they play in making the goal a reality. Even the “reserve forces” play an important role, and they need to be told what it is.
  • Third, you need to listen to and trust the people in the trenches. An effective leader listens to the team’s problems and removes roadblocks. He or she also listens to their ideas and lets them experiment with different ways to reach the goal.
  • Fourth, you need to recognize and acknowledge the efforts of the team, even when they don’t succeed. An effective leader holds people accountable, but also helps them learn from mistakes.
  • Finally, you need to recognize, acknowledge, and act to correct your own mis-steps.

So in brief, the refresher leadership course I gained from reading a novel. It seems that others have found similar inspiration:   http://blogs.hbr.org/2014/07/what-made-a-great-leader-in-1776/  http://theweek.com/article/index/259151/lessons-from-lincoln-5-leadership-tips-history-and-science-agree-on

So — What leadership lessons have you drawn from unexpected sources?

 

Avoiding Agile Anarchy

Agile project management

Conventional Agile Methodology Wisdom lists three factors that define an Agile-ready project:

  1. High Uniqueness
  2. High Complexity
  3. Aggressive Deadlines

After using these three parameters to select your first agile project, there is still legwork to be done before sprints are humming along.

Many agile initiatives are announced by fiat with the team structure, sprint length and other basic rules of the road mandated by the Agile Initiative Sponsor. They dive right into development sprints, gathering user stories along the way to build a backlog. Here are some ways this approach could backfire:

  • In a rigid, hierarchical organization, the ability of teams to self-organize is often historically non-existent, and the change management hurdle might be a gap too big to jump. There are many ways that interoffice personalities and politics can sink an agile initiative in its early stages, or at any point along the way.
  • Complex, unique projects require some upfront work on architecture before the development sprints can begin. Agile teams can best manage this by making the first few sprints architecture sprints. Time and again, we have seen horror stories when the overall design or architecture is glossed over:
    • Parallel agile teams within a business design disparate UI’s to enable functionality that is essentially the same, but serves the needs of one particular product group. Before long, it’s obvious that external stakeholders are confused and put off by having to remember two different ways of interacting with the same company
    • User stories are taken down as the basis for development sprints, but they fail to consider the secondary stakeholders. BI reporting needs are often missed.
    • Prioritization of the backlog is driven by business need, without any attention to building foundational pieces first, then layering on transactions.

In short, Agile without Architecture leads to Anarchy, and a lasting bad impression that will taint future Agile efforts. It’s best to look before you leap and take time to address any Agile readiness gaps.

 

Diagnose Your Inefficiency Potholes

potholesMany employees tend to complain about work-related inefficiencies as much as Wisconsinites bemoan the craters (aka potholes) left in the roads each winter. In response, companies usually acknowledge that making improvements is critical, and do their part in researching Enterprise Resource Planning (ERP) options. But, are all work-related inefficiencies exclusively due to a legacy system? Are people jumping the gun in assuming so, or are they misidentifying a process problem? Could some of these issues disappear by making a few simple process adjustments? Without empowerment and support, all the technology in the world won’t move your business forward.

There is no exact formula to determine if a problem stems from a bad system or a bad process; but asking yourself some basic questions could help you figure out where the problem lies. For example:

  • Would implementing new process improvements really resolve the problem?
  • Could implementing new system functionality resolve the problem and also provide a competitive edge?
  • Do the system benefits outweigh process benefits?

The following steps should aid you in your diagnosis and decision-making:

Create a problem Inventory 

Interview Subject Matter Experts (SME’s) from the various departments affected to develop a problem inventory list.

Identify process-related problems

Identify all process-related issues from your inventory list. Ask yourself: What is the root cause of the problem? Is there a lack of communication, lack of enforcement, or lack of an actual process? If you answered yes to any of these questions, the problem likely stems from a process issue.

Examples of process-related problems include:

  • A customer is upset that they’re getting bounced around
  • Sales Agents aren’t required to track or manage lead information
  • No official process for returns exists. (If an actual documented process cannot be provided, there probably isn’t one.)

These items may also range in severity. While going through this process, consider assigning priority levels or at least identify quick fixes.

Make process improvements where possible

This step is important because it improves overall business processes and productivity by making identified improvements. It also validates problems that can be resolved realistically. This step may take a few weeks to a few months to transpire, but it provides important insight and brings the process to the next step.

Focus on system-related problems

Once process-related problems are identified and resolved, one is able to ascertain that the remaining problems are system-related and decide if a new ERP system would be advantageous.

Examples of system-related problems include:

  • No visibility to inventory availability
  • Multiple customer masters, item masters, and vendor masters
  • Manipulation applied to reports (current system lacks reporting functionality)

This step will not completely resolve a company’s problems and inefficiencies, nor will it guarantee employee satisfaction. It will, however, allow for a more focused approach when considering solutions. It also provides the added benefit of some inexpensive process improvements along the way.

Total Recall: The True Cost of Foodborne Illness

All eyes are on Tyson this week after their recall of chicken nuggets with a trace of plastics. Unfortunately, it’s not just the makers of highly processed foods that are struggling with recalls right now.

As April unfolds, we see that the organic food industry is not immune either:

  • Three purveyors of organic black peppercorns here, here and here have also announced recalls this week.
  • And, the real shocker is this one: Tea Tree Oil mouthwash is recalled because of bacterial contamination, despite the many websites and even an NIH article touting tea tree oil’s antibacterial properties!

Traceability of the root cause is difficult for both contaminated food and hazardous consumer products, as the recent Fitbit Force recall shows. There still doesn’t seem to be an answer as to what material in the wristbands caused so many users to break out in a rash.

As the following infographic shows, foodborne illness is a serious issue, and some companies are better than others at weathering a recall crisis. As we have said in earlier blog posts, social media has been a real game changer during recent recall crises, in ways both positive (providing a way to tap into rising consumer concerns to spot quality issues early) and negative (the viral consumer frustration response at any lag in response or mis-step during a recall crisis).

Total Recall: The True Cost of Foodborne Illness infographic for disaster recovery and product recalls

 

 

Without a trace…..

NYresolutionsIn earlier posts  here  and here, we talked about how social media is changing the game when it comes to consumer recalls.  I just took a peek at the FDA enforcement report in my inbox, and all I can say is that it will help motivate my January diet resolutions…

Today, let’s take a look at another key part of the recall readiness toolkit: traceability. Over on FoodDive, the Traceability playbook describes six key advantages of implementing a comprehensive, modern traceability system:

  • Operational visibility that extends into your supply chain so that you can verify quality of raw materials
  • Rapid training of a multi-lingual workforce, because modern systems eliminate the need for language skills by relying on barcode scanning
  • Providing a foundation for improving operational efficiency by making it easier to find bottlenecks and address sourced of confusion
  • Through integration with CRM and social media, a modern traceability system enables tailored responses to inbound social media complaints and concerns, so that you can get a head start on recalls and find the source of the quality issue more quickly
  • Enables you to meet growing consumer desire for non-ingredient attributes of your products, for things like non-GMO, free-range, fair trade, etc.
  • You can issue targeted (as opposed to blanket recalls) to address quality issues, because you can trace your raw materials and packaging as well as the employees and production equipment who touched a particular lot

Diligent, cross-functional process modeling, coupled with modern traceability systems, can make or break you, if you are suddenly in a recall situation. Are you ready?

 

Project Management Resolutions for 2014

resolutions-catIt’s that time again folks.  New Year’s Resolutions. Been a few years since we did project management new year’s resolutions, so here’s what I am offering up based on this year’s project experiences.

1Make change management integral to your project management methodology. If it’s considered a separate discipline, it can often get left by the wayside with disastrous results. It’s the project manager’s responsibility to make sure that there are tasks in the plan that pertain to the people-readiness for the go-live of any project.

2. Document meetings in project artifacts, then link or copy into minimalist meeting notes. Back in 2010, we talked about limiting meeting attendance, let’s talk today about eliminating or minimizing meeting minutes. The way to do this is to parse the meeting content directly into project artifacts. Actions go in an action log and issues go in an issues log or register or whatever your flavor of project management calls it.

3. Simplify. Simplify ruthlessly.  Instead of adding to your methodology, look for ways to streamline it and cut it back. You may find that you get better adoption of your pm methodology when less is more. The trick is in knowing where and when less is appropriate.

4. Broaden your knowledge base. Read new and different blogs and books, delve into business journals, neoroscience, leadership, psychology, sociology and other seemingly peripheral topics. You would be surprised at the creativity it sparks in your thinking and approach to your projects.  My favorite ways to do this include:

5. Embrace new tools.  The rumble from the trenches is starting to include disatisfaction with MS Project as the be-all and end-all of project management tools. Have you looked into alternatives yet? Sometimes it’s actually simpler to manage projects with Excel.   Are you using social media effectively to manage, motivate and communicate with your project teams? Be especially alert for tools that can help you simplify to achieve resolution #3.

Let’s grow this list:

  • How are you looking to change the way you manage projects in 2014?
  • What new tools are you going to explore?
  • What’s on your reading list?

Change Management Lessons from the Animal Kingdom

My recreational reading this week has been Temple Grandin‘s Animals Make Us Human. (Don’t worry, it’s not another animal post from Skeptechal!) I’ve found lots of great insights that will help me figure out why my cat behaves in ways that have been puzzling (although I am sure she will keep me guessing). Some of the lessons from the animal world are really reshaping some of my entrenched thinking about organizational change management.

Much of Grandin’s approach to more humane animal handling boils down to preventing the rage, fear and panic responses, and promoting seeking (curiosity) and play behaviors.

When we think about some of the typical overt and inadvertent messages that many companies release in the course of launching a big business initiative (be it a new ERP system, an acquisition, or an internal reorganization) we see much that is likely to press those rage, fear and panic buttons right out of the gate.  Once these responses are in play, they are difficult to quell:
rage

Welcome to the core team! You will need to spend 20 hours per week for the next nine months getting our new software ready for release. We know you will be able to work this into your schedules along with your current day job.

fear

Here is the course outline for your job role (5 pages, 55 unique system tasks). We have one training session for your group (53 people), with 1 hour allotted this Thursday.

 

panic

We haven’t had time to complete the testing but we only have a small launch window, so we are going live this weekend as originally planned.

You get the idea.

What if we approached things differently….and used early messages and techniques to promote curiosity and made even a small effort to make things fun:

  • Instead of the typical big bang kickoff (complete with bulky boring  slide deck) use internal social media tools like Yammer and Sharepoint to build excitement — dropping hints about how things will change for the better, without revealing all the details.
  • Use gamification and crowdsourcing to augment formal software QA processes, rewarding people for completing their test cases on time, or naming winners for finding the must bugs
  • Show users how to interact with the new system to get answers to their everyday questions BEFORE teaching them to plow through lengthy transactions

If we turn on the seeking and play behaviors first, we may have a good shot at keeping fear, panic and rage to a minimum.

The Vale of False Best Practices

What is a best practice and why you should and sometimes should not accept them.

The way ERP vendors speak about “best practices,” you would expect accompaniment from a bell choir and a sonorous, celestial host. Best practices! Let us all bow and acknowledge their wisdom!

A best practice in ERP-speak is nothing more than a set of process steps, supported by underlying functionality within the system, that a majority of system users agree works for them. This is completely understandable from the perspective of an ERP vendor, who wants to sell software to the widest possible audience.

What better way to do that than to incorporate into the software functionality and processes that provide value to the largest number of prospects? Does that mean that best practices are nothing more than a marketing ploy?

Well, yes and no. If your accounting department is not doing true three-way matches between orders, receipts, and invoices, then an automated three-way match process would probably be a best practice for you because you are behind the curve. So, best practices built into ERP software can be a huge win for companies that are behind the technology curve.

Cherdonsidering that the rest of your industry has probably already adopted better practices, it is not invalid to hope to move forward by joining the herd. I grew up in Texas where herds are not to be disparaged. They provide a livelihood to many and can be quite tasty. Being one-in-a-herd is sometimes the right place to be. Deciding when to separate yourself from the herd is the hard part.

Consider your accounting department again – when was the last time you heard anyone say that their accounting processes provided a competitive advantage or made them stand out in their market? Right. It doesn’t happen. That’s because some processes are me-toos – sure you want to do them the right way and maybe save some money, but they are simply not places where significant investment is warranted. Enough investment, yes. More than that, no.

If, however, you introduce new products in half the time as your nearest competitor, then that is an advantage you want to not just protect, but enhance. That is an area where additional investment is warranted.

Here’s the stark reality. If you are leading the pack within your market, it is unlikely that any ERP software will natively support best practices within those areas where you are a market leader or visionary. Why? Because you are an outlier. A trend setter. Once people figure out how you are leading the market, and then replicate that within their companies and in their technology in order to catch and then dominate you, then those become best practices.

Notice that best practices can make your company more efficient, but they will NOT make you a market leader. Only innovation and ingenuity can do that, and while those are always best practices, they are also uncommon in the herd.