Stroma Service Consul2ng Inc.

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2 Mark Sherry ITSM OTHER IT Service Management Consultant ITIL Service Manager ITIL Expert (v3) ISO/IEC Cer2fied Consultant ITIL Trainer MBA, MA, BComm. Co creator of The Game of Things Partner in Stroma An IT consul2ng company Partner in iring A sosware company specialized in drilling and blas2ng Owner of an A&W Partner in Nexco An explosive manufacturing company

3 It is not necessary to change. Survival is not mandatory. W. Edwards Deming

4 What is a Leaky Bucket? A leaky bucket refers to customers that do not return to your business for one reason or another every business leaks customers. Look at how IT and ITSM can help stem the flow.

5 Food Industry 2009 Annual Leaky Bucket Report conducted annually by the Restaurant Marke2ng Group. 160 brands across the USA. A leak is defined as the % of customers who report they are unlikely to return to a par2cular eatery. Surveyed 5,600 consumers aged 18 to 64. The food industry average leak size is 36%. Top Three: Price and value 36% Food quality 25% Service 23%

6 Keep Puing More Water Into the Bucket Expensive it is much cheaper to retain a customer than to find a replacement. You can only survive (in the short term) using this approach in a rapidly growing market. Study Texas banks. 14% akri2on per year. Average Bank 15,000 customers. Average customer worth $4,200 in profit. Need to find 2,100 new clients per year to replace lost profit of $8,820,000.

7 How Does a Business Leak? Service Price/Value Product/Quality Loca2on Compe22on Change in Consumer Die Move Tastes Change

8 How Do You Fix a Leak? Keep puing more water into the bucket. Fix the holes. Get a new bucket.

9 Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them. W. Edwards Deming

10 Fix the Holes Service Price/Value Product/Quality Loca2on Compe22on Change in Consumer Die Move Tastes Change

11 Service Department Store Stories Large Canadian Retailer

12 Customer Service Hall of Shame 2009 Published by MSM Magazine. Zogby Interna2onal conducts survey s on 145 US leading retail and service providers. Percentage relates to those companies that scored poor. 9 out of 10 companies are the same in the top ten.

13 10 Common Customer Service Mistakes Untrained staff. Poor record keeping. Trying to win the argument. The runaround. Inaccessibility. /online cop outs. Standing by your policy. Failure to listen. Unfulfilled promises. Forgeing the basics.

14 Excellent Service ITs Role Answer the phone Keep decision trees to a minimum, or don t have one. Do what you said you will do Deliver on your promises. Listen Stop what you are doing and listen. Deal with complaints Empower employees. Respond. Be helpful Even if it is not your job. Train your employees Helpful, courteous, and knowledgeable. Take the extra step Go beyond what the customer expects. Throw in something extra Tell them a shortcut. Susan Ward, Cypress Technologies

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16 Product/Quality Marke2ng, Sales, Opera2ons and IT need to work more closely together than ever before. Marke2ng has less influence in crea2ng or maintaining brand iden2ty. Your customers have much more influence than they used to have and their strength is growing. Social networking, social marke2ng, social media, trust agents or whatever you call it.

17 United Breaks Guitars Dave Carroll s $3,500 $1,500 damage. First song 1.5 million views in the first 4 days, 8,371,349 as of April 13, United share price dropped 10% aser the first four days the song was released cos2ng shareholders 180 million or 51,000 replacements guitars. 3 Songs.

18 Game of Things

19 Game of Things

20 Game of Things

21 Marke2ng and IT IT needs to help Marke2ng, Sales and Opera2ons understand and use the technology: Market the product. Address product or service quality issues. New product ideas. Build brand loyalty. Understand changing tastes.

22 Large Telecom Company Stroma Service Consul2ng Inc.

23 How To Deliver Quality Services You need well defined processes that s2ll allow people to think and act on the customers behalf. Build processes with customers in mind whoever they are.

24 Ordering a Burger Standard Process Approach Counter Order Burger Want Fries NO Want Drink NO Pay Cashier YES YES Order Fries Order Drink

25 Improved Process Approach Counter Order a Teenburger Meal Pay Cashier

26 Service Times 85% of all orders delivered to the customer in 90 seconds or less. 85% of all orders delivered to the customer in 60 seconds or less drive thru. Spent a great deal of effort trying to shave seconds off the 2me.

27 Process Improvement 1. A process exists to produce quality products & services. 2. Process is an ENABLER not a disabler. 3. A process which inhibits quality is a bad process. 4. Process, whether defined or understood, always exists. 5. Process must evolve to be successful. Marval Process Improvement process

28 ITIL/ISO We need to put process in place. The processes must be a simple and as efficient as possible. No idea why ISO has not caught on in Canada, nor why a company would akempt to implement ITIL verses ISO even if they are not going for their cer2fica2on.

29 ISO / IEC 20000: WHERE? Japan China India UK South Korea Germany USA Taiwan Czech Other 10 0 Japan China India UK South Korea Germany USA Taiwan Czech Other

30 ISO / IEC Scope ISO/IEC 20000

31 Home Building Box Store

32 Incident and Service Request Management IT is good at it but you need to help the en2re organiza2on use it. Make the process as simple and quick as possible, i.e. new starter. In areas of uncertainty empower employees to use their judgment in making a decision.

33 Problem Management Just as important to use Problem Management with consumers as it is of IT, i.e. Bose. Consumer proac2ve problem solving may not just be things that do not work but things that are missing product enhancements.

34 Change Management Change Management is not about trying to inhibit people from making changes, it is about enabling changes that are in the best interest of the customer and the business. Organiza2ons should see Change Management as the mechanism that allows the organiza2on to improve. If the customer is looking for a simple change then the process should be simple and easy to follow.

35 Service Level Management Service Level Management is not about making sure the laggards in your organiza2on are 2ed to a work schedule. It is about providing excep2onal service as quick as you can. Service Level Management is the gauge that let s you know how well you are doing so you can know when changes are made if it improves the delivery of the service.

36 Insanity: Doing the same thing over and over again and expec2ng different results. Albert Einstein or Doing different things over and over and expec2ng to get the same result. Mark Sherry

37 Ques2ons?