Critical to Customer Requirements (CTCR)

Transcription

1 Critical to Customer Requirements (CTCR)

2 Objectives After completing this unit, you will be able to: Explain the framework for establishing critical to customer requirements.

3 Overview Various business drivers determine the direction in which the business grows. The voice of the customer is a critical issue to achieve success. Obtaining the voice of the business and the voice of the customer are necessary steps in defining critical success factors.

4 Outputs are a Function of Inputs Y = f(x) Y: Output (things important to the business and the customer) f: Function (how to treat and manage interrelationships) X: Variables that must be controlled to consistently predict Y

5 What Drives Your Business? What are the X s that impact your Y s? X1 X2 X3 X4 Mission Vision Strategic Goals Priority Activities and Critical Business Processes Y s X5 X6 X7 X8 Business Results Employee Satisfaction Customer Satisfaction = Major Improvement Opportunities Principles Indicators Evaluation & Review Communication Plan

6 What About the Customer? If you are not aligned with the customer you are toast!

7 What Effects the Customer Experience? Your Principles Customer Focus What aligns you with your customer?

8 Customer Requirements Product and service quality Expense/cost Delivery Integrity Safety Corporate responsibility

9 Gathering Requirements Ask the customer: What do you currently like about our product and/or service? What problems do you have with our product and/or service? What would you like to have that you are not getting? What are you getting that you don t use?

10 Turning Expectations into Requirements Customer Wants Customer Expectations Customer Needs Agreed upon requirements Customer Satisfaction

11 Iceberg of Customer Complaints Cancellations Formal Complaints Public Complaints Non-Referrals Sea of Trouble Customer perception of service. Silent dissatisfaction Informal complaints Non-returns Processes Problem Root Cause Customers vote with their feet

12 Changing Expectations to Requirements Requirements (CTCR) Measurable Characteristics Effectiveness and Efficiency Measures

13 How do you Identify your Customers? The SIPOC model is the foundation for identifying your customers. Requirements Requirements S I P O C Suppliers Inputs Process Outputs Customers Measures Measures

14 The Customer External External to the organization Internal Direct customer Stakeholders Next process is the customer A chain of suppliers and customers I wanted it yesterday!

15 External Customers External Customers Direct Customers - Stakeholders - Those who receive and use our products or services Those who are affected by our work, or who have authority over us, but who may not actually use our products or services themselves, e.g., regulatory agencies

16 Internal Customers Internal Customers Groups or individuals whose ability to perform a job is impacted by the quality of products or services we provide them.

17 Capture Customer/Stakeholder Requirements Types of customer/stakeholder requirements: Basic Unspoken but expected. Performance Spoken by the customer/stakeholder. Excitement Pleasant surprises that are generally unspoken or difficult to verbalize. (continued)

18 Capture Customer/Stakeholder Requirements: Example Buying a Car Basic Steering wheel works, gas gauge works, horn works Performance Good acceleration, good traction in snow, long time between tune-ups Excitement Appearance, styling, feel behind the wheel (continued)

19 Degree of Satisfaction Improving Your Business Results Capture Customer/Stakeholder Requirements Customer Satisfaction Degree of Achievement (continued) Clients satisfaction is expected to be LINEAR.

20 Capture Customer/Stakeholder Requirements -cont. Kano Model Customer Satisfaction Excitement Performance Degree of Achievement Basic Customer Dissatisfaction What are your clients basic, performance and excitement needs?

21 Capture Customer/Stakeholder Requirements: Basic Needs gets you into the market Customer Assumption Things they do not think about Expected qualities Expected functions Things that go without saying Where to get them Your experience Customer complaint log Internal brainstorming Industry standards Product/Service brainstorming Function trees

22 Capture Customer/Stakeholder Requirements: Performance -keeps you in the market Voice-of-Customer Spoken wants/needs Formal customer requirements More-the-better or faster-the-better wants Things asked for or looked for when evaluating Where to get them Market research Focus groups Surveys/customer clinics Contract or statement of work Customer interviewing, sales calls Existing information

23 Capture Customer/Stakeholder Requirements: EXCITEMENT -makes you the market leader Customer delights Oh-wow s and gee whiz s Leap improvements Innovation Thoughtful engineering Where to get them Observe products/service in use, watch the customers at work (or play) and notice: Customer frustration (not likely to complain) Customer modifications (after market) Unusual/unintended product uses Time consuming parts of usage Involve outsiders, lateral benchmarking Technological forecasting Demographic trend analysis

24 Capturing Internal Customer and Direct Customer/Stakeholder Requirements Interviews Focus groups Surveys Review of customer/stakeholder complaints

25 Capturing Indirect Customer/Stakeholders Requirements Summarizing current laws and regulations. Consulting with internal/external experts. (continued)

26 Basic/Performance /Excitement Improving Your Business Results Requirements Identification Example Hotel Room Smoking vs. non-smoking room High-speed internet access Pillow-top bed Multiple shower heads Hairdryer Television/Cable Video games (continued)

27 Requirements Identification Example -cont. Final thought Customer expectations and how competitors meet those needs is constantly changing. Features that create a distinguished product and stimulate excitement today, become desired performance features tomorrow.e.g. Intermittent wipers, auto dimming mirrors, baby stroller cup holders Today s performance features become basic needs and expected tomorrow.

28 Capture Customer/Stakeholder Requirements Exercise Purpose: Agenda: Practice identifying CTCR. For your process: Indicate how you think your customer will respond to the four given questions. What do you currently like about our product and/or service? What problems do you have with our product and/or service? What would you like to have that you are not getting? What are you getting that you don t use? Create a list of 3 items that you believe your customer considers critical and identify their probable requirements. Identify at least one customer need in each category (basic, performance, excitement). Limit: Complete examples: 30 minutes Discussion: 15 minutes

29 Summary Business Process Management focuses on delighting customers/stakeholders by meeting or exceeding their needs. Many processes fail because the customer requirements are not correctly captured.