Ken Dean - ASQasq.org/public/quest/2014/nestle-op-excel-begins-with-customer-voice.pdf · • Baby...
Transcript of Ken Dean - ASQasq.org/public/quest/2014/nestle-op-excel-begins-with-customer-voice.pdf · • Baby...
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CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
OPERATIONAL EXCELLENCE BEGINSWITH THE CUSTOMER VOICE…
Quest for ExcellenceApril 7-9, 2014
CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
Ken DeanVice President/Director Quality Systems
Customer Development GroupNestlé Purina PetCare Company
CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
OVERVIEW OF NESTLÉ S.A.
• Largest and most admired food company in world• A nutrition, health and wellness company• Baby foods, coffee, dairy products, breakfast
cereals, confectionary, bottled water, ice cream, health sciences, pet food, etc.
• 468 factories in 86 countries• 330,000 worldwide employees• Products sold on almost every country in world
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CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
NESTLÉ PURINA PETCARE
Pet Food Category– Worldwide - 324MM Dogs; 263MM Cats– Worldwide $61B; U.S. & Canada $20B
• 42% U.S. Households own a dog (1.7/HH)• 35% U.S. Households own a cat (2.2/HH)
NPPC No. 1 in U.S. Pet CategorySalesMarket ShareTrust
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CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
RESULTS
19 Consecutive Years of Sales GrowthConsecutive Years of Share Increase
Dry Dog FoodWet Dog FoodDry Cat FoodWet Cat FoodTotal TreatsLitter
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CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
CULTURE - THE FOUNDATION
William H. DanforthFounder
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CULTURE
The Four TallsStand TallThink TallSmile TallLive Tall
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CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
WESTMINSTER DOG SHOW GRAND CHAMPIONS:EIGHT IN A ROW…
CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
OUR VISION
A Checkerboard in every involved pet owner’s home
We stand for trust. We earn it every day as we enrich the lives of pets and the people who love them.
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CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
FOR US … DEFINING MOMENTS
• 1990 business results showed stagnating revenue & profit
• Capabilities were not sufficient to meet the demands of changing environment
“We were working hard but not achieving desiredresults”
“Everyone came to work wanting to do what’s right …they just didn’t know what’s right”
“We did not communicate what we were trying toachieve”
T. E. Block, former COO
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DESIGN & IMPLEMENTATION PROJECT (D&I)
• Commissioned by CEO
• 2 year cross-functional project
• Dedicated full-time assignments
• 3 Phases – Assessment, Design, Implementation
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GOALS OF D&I
• Build on the unique culture of Purina (Four Talls)
• Identify & implement new “customer” focused capabilities; increase customer integration – Retailers – becoming larger and more influential
• Improve consumer satisfaction– Consumers – changing wants/needs
• Increase integration across all functions– Optimize systems/processes instead of functions
• Improve communication and measurement
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PRIMARY COMMUNICATION TOOL:ANNUAL “BLUEPRINT”
• Mission• Vision• Values• Objectives• Key performance indicators• Annual major initiatives
Provides the systems / cross functional
focus that allows every person in the
organization to link their role to the
organizational strategy and purpose
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DEPLOYING THE “BLUEPRINT”
• Cascading from “Blueprint” to individualperformance plans
• Multiple communication devices• Corporate communications• Daily / weekly review meetings• Monthly “floor” meetings• Quarterly “all hands” meetings
• Strategy teams
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KEY SUPPORTING MECHANISM…
Quality Systems:– Non-financial performance measures and systems that
support continuous improvement in customer relations, consumer products and our workplace.
Guiding Principles– Linkage: Continually evaluated by the ability to
predict/produce business results.– System-based: Implemented with systems that support
on-going decision making.– Model-based: Developed in context with an overall
conceptual model.
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TRIANGLE MODEL…
Customer/Consumer Measures
Employee Measures
Business Results
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IMPORTANCE OF THE “VOICE OF THECUSTOMER”…
Define/refine strategy
Review current offerings and service processes; identify potential opportunities
Develop and deploy customer-centric measurement/improvement systems- customer satisfaction - employee survey development- full circle feedback development
Voice of theCustomer(VOC)
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LISTENING POSTS…• Product Quality Function Deployment (QFD) (consumer)• Retail Quality Function Deployment (QFD) (customer)• Customer Satisfaction Measurement (retail customer)• Organizational Capabilities Questionnaire (associates)• Retailer Advocacy Measurement Project (retail associates)• Retail Organizational Capabilities Questionnaire• Internal Customer Satisfaction Surveys• Leadership Skills Inventory• Customer Integration Assessment• Pet-Decelerators• Etc.
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THE QFD PROCESS…
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WHAT IS QFD GOING TO TELL US?
1. What’s important to your customers relative to a product/service?
2. How do your customers rate your product/service on these criteria?
3. How do customers rate your competitions’ product/service on these criteria?
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PUTTING IT ALL TOGETHER:VOICE OF THE SHOPPER (VOS) MATRIX
Comp ANPPCComp BComp C
Comp DComp EComp FComp G
Conducts business ethically
Is accessible, easy to contact
Is easy to do business with
Uses authority to make decisions in atimely manner
Provides correct invoices
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CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
WE MAKE IT EASY FOR OUR CUSTOMERS TOGIVE FEEDBACK …
Tell us how Nestlé Purina Pet Care rates compared to all other suppliers
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SALES EXAMPLE…
LINK
$ Sales
Customer Satisfaction Index (CSI)
Employee Measures
R2 = .22 (1992 2011)
CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
DEPLOYING VALID CUSTOMER MEASURES …
Customer/Consumer Measures
Employee Measures
Business Results
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CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
SALES EXAMPLE…
LINK
$ Sales
Customer/ConsumerMeasures
Organizational Capabilities Questionnaire (OCQ)
CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
THE OCQ PROCESS…
• Developed from VOC and NPPC “Blueprint”; tailored to each function; “behaviors, processes and outcomes”
• Annual, “comprehensive” length survey (130+ items)• Work team focus (teams with 3+ associates)• Longitudinal tracking at function level only• “Strength-based” organization development: teams
identify one strength + one-two opportunities• Confidential- no demographics!• Continuous improvement- no evaluation on scores!• 92+% average response rate
CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
THE OCQ PROCESS PROVIDES…
• Team- and department-level feedback
• Increased knowledge of functional role in implementing NPPC Blueprint strategies
• Deployment of “voice of the customer”; early warning on potential customer issues
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CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
ITEMS DEPLOY BOTH VOICES AND STRATEGY…
1 2 3 4 5 6 7
3.00
14. NPPC makes it easy for our customers to dobusiness with us.
4.97Your Team
CDG
1 2 3 4 5 6 7
6.25
13. When I make a commitment to the customer, Ifeel that I will be backed up.
6.07Your Team
CDG
1 2 3 4 5 6 7
5.75
12. Team members feel they have the authority tomake the customer decisions they need to make.
5.98Your Team
CDG
1 2 3 4 5 6 7
5.25
11. CDG Leadership places priority on developing andenhancing integrated customer relationships.
6.17Your Team
CDG
1 2 3 4 5 6 7
6.33
10. My team’s contacts with functions outside ofprocurement have increased in the past year.
5.72Your Team
CDG
CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
SALES EXAMPLE…
LINK
$ Sales
Customer/ConsumerMeasures
Organizational Capabilities Questionnaire (OCQ)
R2 = .38 (1992 2012)
CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
APPROACH DEPLOYEDTHROUGHOUT NPPC
Safety, Quality,Productivity
CSI
MFG
OCQ
MKTG
OCQProductQuality
MKT Share
ORM
Fill rates, OnTime
OCQCSI
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CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
OTHER EXAMPLES
Safety, Quality,Productivity
CSI
MFG
OCQ
MKTG
OCQProductQuality
MKT Share
ORM
Fill rates, OnTime
OCQCSI
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SAMPLE MANUFACTURING ITEMS…• Safety
“We take the time to review all accidents and near misses.”• Quality
“Employees are trained in finding potential problems before they are observedby team leaders or the QA lab.”
• Customer Service“We deliver complete orders/high % fill rate.”
• Target Savings“Employees have an understanding of cost structures and how they can beimpacted.”
• Team Effectiveness“My team has a clear understanding of how each other’s roles andresponsibilities work together.”
• People Leadership“My supervisor/team leader maintains good working relationships byrespecting and cooperating with other departments.”
CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
SAMPLE FINDINGS…
• Total production positively correlated with:– Leadership effectiveness subscale– Perceived respect and trust among team members– Perceived cooperation of supervisor with other groups– Perception of supervisor dealing with poor performance in a timely
manner
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DRY PET FOOD PRODUCTION GAINS
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
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SAMPLE FINDINGS…
• Recordable injury rate is negatively correlated with:– Perception that associates take the time to review all accidents and
near misses
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RECORDABLE ACCIDENTFREQUENCY RATE
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Better
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LOST TIME ACCIDENT FREQUENCY RATE
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Better
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YOUR PEOPLE KNOW WHAT’S GOING ON…ASK THEM!
• Final quality is positively correlated with:– Quality subscale– Customer Service subscale– Perceptions that they provide high quality unit loads at delivery
• Consumer Complaints Index is negatively correlated with:– Customer Service subscale
• Plant controllable on-time arrival is positively correlated with:
– Perception that they provide orders on time or at the time requested– Perception that they deliver accurate orders– Perception that there are effective processes in place for
continuously improving shipment accuracy
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MARKETING EXAMPLE…Safety, Quality,Productivity
CSI
MFG
OCQ
MKTG
OCQProductQuality
MKT Share
ORM
Fill rates, OnTime
OCQCSI
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CONFIDENTIAL DOCUMENT Property of Nestlé Purina Pet Care. Recipient shall not copy or distribute without the prior written approval of Nestlé Purina Pet Care.
QUALITY MATTERS !!!
0
10
20
30
40
50
60
70
80
6 7 8 9 10
Rating
SO
R
R2 = .72 (1999 2011)
Brands
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DISCOVERIES?...
• Keep the customer at the center• Give “grace” to the past• Continuous improvement is not a “bolt on”
accessory• “Demand pull” beats “supply push”• Build ownership; minimize “externally” imposed
requirements• Generic is efficient, not effective• Integrate and link measurement systems• Don’t overburden measures