GE Consumer & Industrial - Driving Investments in NPS Improvements With a Lean Six Sigma Approach[1]

The Journey to The Journey to Customer LoyaltyCustomer Loyalty

NPSNPS

LeanLean

Vivian Hairston Blade

Master Black Belt - Marketing

GE Consumer & IndustrialNet Promoter® is a registered trademark of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

1GE – VHB 2008 Net Promoter Conf

Jan 2008

•NPS … A growth enabler

Learning Objectives

•Mobilizing sustainable growth … Culture

•Growth … Measuring success

•NPS … A simple framework

•Improve using Lean Six Sigma

Net Promoter® is a registered trademark of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

NPS…A growth enabler


Jan 2008

Our leadership believes…..

Jeff ImmeltCEO, GE

“We are using a simple metric called

Net Promoter Score (NPS) to measure how

customers view GE. The absolute score is

less important than the trend. We learn

from both promoters and detractors.

Most importantly, we have been able to

associate NPS improvement with growth.

NPS is simple and we can use it across

the Company.


Jan 2008

GE: Model for organic growth

Getting results: sustainable ….. visible ….. valuable

Organic growth (V%)

4%

2-3X

GDP

Historical 2007

Execute forgrowth

Technology/services

Customers

Globalization

Innovation

Growth leaders

Commercial excellence

Growth as a process


Jan 2008

NPS @ GE Practical business applications

Product

&Process

B2C

&

B2B

NPS…

A simple framework


Jan 2008

NPS: The GoalThe goal must be to go beyondmere satisfaction to increase Promoters and reduce Detractors.

….NPS IS about how we improvecustomers’ experiences!

NPS is NOT about managing the score…….

Listen Act Grow


Jan 2008

Toolkit to drive growth

Growth

Act

Diagnose& Fix

Communicate

Listen

Measure

Validate

Customer Metrics Lean

NPS

LISTEN:

Experience

Expectations

vs.

AnalyzeSegment Survey

�Traditional

�Non-Traditional

�Include lost & new customers

�Align with business strategy

�Ensure objectivity

�Audio record

�Follow up to find root causes

�Immediately feed results with audio into the organization

�Find patterns

�Use customer experience councils

�Resource with cross-functional teams

Implementing “Listen”

Survey questions: Score & Why

1. On a scale of 0 to 10, how likely is it that you would recommend to a friend or colleague?

2a. Promoters: What factors most influenced your rating?

2b. Detractors / Passives: What would we have to improve or do differently for you to be extremely likely to recommend?


Jan 2008

Listen …experience vs. expectations

Important Consumer Cues / Attributes

Delivery & Installation

Expectations

/ Needs /

WantsShort-term Quality

Long termPerformance

Service Experience & Problem Resolution

Long-term Quality

Call-Center Interaction

Brand Experience / Perception

Experience Cues +

Food Preservation

Capacity / Dimension

Quiet Operation

Economical Operation

Cleanability

Appearance

Product Cues

Expectations

/ Needs /

Wants

Flexibility and Convenience

Features


Jan 2008

Listen …experience vs. expectations

Nail the basics:

“Eliminating defects”

Product meets

customer needs

Product works as expected

Problems are

resolved as expected

Passively Satisfied

Ordinary products/ services delivered

exceptionally

Exceptional products / services

delivered well

Loyal Promoters

Differentiators:

“Creating the wow-factor”To Grow….

…must deliver on key cues Exceptionally well

Source: Fred Reichheld, Bain & Company, Inc.

ACT:Leveraging Lean Six Sigma to drive improvements

Implementing “Act”

Strategic

�Create action plan by customer & track progress

�Do 3-6 month follow-up

�Identify systemic fixes

�Prioritize & resource strategic opportunities

�Use Lean to improve customer facing processes

�Hold leaders accountable

Tactical


Jan 2008

Lean Six Sigma and Growth

Creates capacity to fund growth

…by freeing people from non-

value added work

Stimulates increased revenues

…by improving cycle times,

being faster to the market with

less defects


Jan 2008

Manufacturing … Defect Reduction, Cycle-time Improvements


If there is an output, there is a process.Lean Six Sigma will work!

Finance … Billing Timeliness /Accuracy, Risk Analysis

Engineering … Design For Reliability, Drawing Accuracy

Services … Accurate appointment times, Repair Turnaround

Info. Technology … Application Development, System Efficiency

Distribution … On-time transportation, Inventory control

Sales …Face time, Accurate Orders, Timely Quotations

Lean Attacks Waste by

reducing cycle timeProcess

Non Value Add Time

Value Add Time

Lead Time/Cycle Time

Six Sigma Attacks defect

reduction & variation

Focus on continuous improvement

Three type of activities

Not necessary and does not add value

Necessary but does not add

value

Value add

Non Value Add

Most value

streams’ “value

add” activity is

2-5% of total

cycle time –

95% - 98% of a

process is

waste!



Jan 2008

Excess Processing

• Rework

• Entering same data

multiple times

• Learning Curve

Overproduction

•Making or processing

more than needed

Unrealized Creativity

• Failure to use good

ideas from anywhere

Waiting

• On decisions

• On Systems

• On Equipment

Transportation

• Conveyance of material

• Delivering Hard Copies

Unnecessary Motion

•Navigating multiple

screens to input data

• Surgeon – Nurse

Defects

• Broken Light bulbs

• Scratched appliances

• Can’t Access the Home

Page

Excess Inventory

•Multiple applications

awaiting approval

• Product in Warehouses

•Unnecessary document/

data storage

Lean Principles & Enablers: Waste


Jan 2008

Lean Principles & Enablers

Moonshine

1 Piece Flow

Heijunka

AWO

7 Ways

SMED

Standard Work

Poke Yoke

Takt Time

Value Stream Map

House of Toyota Spaghetti M

ap3P

Kanban

Pugh Matrix

Pull

JIT

Observation Sheets

Visual Management

MEASURE:

Growth … Measuring success


Jan 2008

Measuring “Growth”

Referral Sales

Market Share

Quote Conversion Rates

Measure results against key customer & business metrics

Accessibility

NPS

Cycle-Times

Transaction Quality

Responsiveness

Pre/Post-Sales Support

Repurchase Rates

Profitability

Cost-to-Serve


Jan 2008

Builders…key investments for growth….

Improve the customer sales, construction & move-in experience

Enhance ownership experience & customer service after closing

Sales / Construction Move-in Ownership / Live-in

Purchase / Ownership Cycle

Exceed Expectations

Satisfaction

LoyaltyRepeat Visits

ReferralSales

RepurchaseCost-to-Serve


Jan 2008

Improve customer service after the sale

Shopping In-Store Purchase Post-Sales / Service

Purchase Cycle

Repeat Visits

ReferralSales

Repurchase

Exceed Expectations

Satisfaction

LoyaltyRepeat Visits

Retailers…key investments for growth…

Improve the customer shopping & buying experience

Mobilizing sustainable growth…Culture


Jan 2008

New Technical Thinking

Change Culture

Dollars

Mobilizing Sustainable Growth

Growth requires “Retooling” the way we Think & Operate

NPS / LEAN


Jan 2008

• Stimulate Growth through Passionate Customer Advocates

Mobilizing Sustainable GrowthBuilding a loyalty focused culture to realize

growth

Listen Act Grow

• Measure NPS for strategic customer segments

• Clearly Define Customer Expectations

• Resource strategic Priorities

• Use LEAN to deliver Exceptional Value Propositions

• Build a Culture of Accountability for Customer loyalty

“Culture”


Jan 2008

Customer Loyalty Ignites Growth

NPS / LEAN SIX SIGMA


Jan 2008

Questions


Jan 2008

GE Consumer & Industrial - Driving Investments in NPS Improvements With a Lean Six Sigma Approach[1]

Documents

Transcript of GE Consumer & Industrial - Driving Investments in NPS Improvements With a Lean Six Sigma Approach[1]