Good morning. I am Eduardo López, the sponsor of this project. I am director of regional opera>ons for our company Movistar, which is the cellphone
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- Nigel Robinson
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1 1
2 Good morning. I am Eduardo López, the sponsor of this project. I am director of regional opera>ons for our company Movistar, which is the cellphone and mobile internet operator of the Telefonica Group in Spain and La>n America. Telefónica is the leading telecommunica>ons operator in the Spanish- and Portuguese- speaking world. 2
3 Telefonica Group has encouraged the standardiza>on of cer>fica>ons and the use of excellence models in its development of strategy, and now has ISO and COPC cer>fica>on. Movistar won silver in the Stars of Excellence na>onal quality contest in 2009, and bronze in In 2010 Movistar was ranked third in Argen>na in the list of Great Places to Work for companies with more than 1000 employees.
4 Movistar s customers conduct their transac>ons in our 53 customer service centers, or by calling one of our call centers, or by internet. This project was designed to transform delivery in our customer service centers by reducing demand where no value was added, increasing revenue, and improving customer sa1sfac1on. Our customers are at the heart of our business, and the ul>mate goal of this model is to turn them into diehard fans of our company.
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6 1Aa 1/2 Thank you Eduardo. Good auernoon, my name is Emilio Bernat and I took part in the project as a Green Belt. Movistar selects its improvement projects by evalua>ng the impact on strategic objec>ves. These objec>ves are priori>zed through the analysis of strategic and opera>onal indicators, customer sa>sfac>on surveys and internal and external audits. Using an impact matrix, we reach a proposed list of poten>al projects which are validated by the Board of Directors and the organiza>on s Master Black Belt. The methodology adopted for this project was Six Sigma DMAIC, which is set out in Movistar s standard improvement system. 6
7 1Aa 2/2 Our project achieved an impact evalua>on of 285 points in the impact matrix, making it one of the company s high priority projects in terms of the Pareto diagram shown on the slide. 7
8 1Ab In March 2009 the Commercial Opera>ons Department compiled a report on its customer service centers. It listened to the voice of the internal client and saw that the current situa>on included the following: Only 10% of service center visits generated revenue and the customer sa1sfac1on index was be low our target of 8 points. This presented the following improvement opportuni>es in line with the strategic objec>ves for that year: To increase revenue from the customer service centers; to reduce customer demand which did not generate revenue; and to improve customer sa>sfac>on. It was expected that the project would have a high impact on the company s organiza>onal goals. 8
9 1Ac The internal client and departments on which the project would have an impact were consulted to help iden>fy poten>al stakeholders. Those poten>al stakeholders were represented at management level to Define and Approve the Project selec>on. All of the iden>fied poten>al stakeholders were involved in selec>on of the project to reflect their aspira>ons as shown in the slide. For example, the Commercial Opera>ons department was involved by Defining strategic focal points; and Evalua1ng and approving the project. 9
10 1Ba The project objec>ves were aligned with the company s organiza>onal goals and strategic axes. For example, genera>ng more revenue and reducing unnecessary demand are related to increasing income, which in turn has an impact on the Shareholder axis. On the slide we can also see how the project objec>ve of reducing the use of paper is related to corporate responsibility, measured by the REP Track indicator, with an impact on the Society axis. 10
11 1Bb The types of impact of the project were iden>fed in team mee>ngs and by means of mul>- vo>ng. For example, the increase in employee sa>sfac>on was the result of the improvement in their scheme of remunera>on, since they would now have the possibility to earn more money if they met their targets. 11
12 1Bc The degree of impact on each organiza>onal goal was determined by compiling and analyzing an opera>onal impact matrix. This calculated the number of performance indicators which would be affected by the project. 12
13 1Ca We iden>fied the internal stakeholders through a SIPOC, a detailed process mapping and mee>ngs with affected departments. We determined that those departments which executed stages in the process, or relied on informa>on about the process, were key to the successful development of the project. As a result of this analysis, three extra stakeholders were added. From this point, the role of the Quality department was in providing the team with support and training. 13
14 1Cb The type of poten>al impact on stakeholders was iden>fied in mee>ngs with the different departments who worked on the SIPOC, by using the informa>on obtained from the impact matrix to analyze how changes in the process would affect each department posi>vely and nega>vely. The nega>ve impacts listed on the slide formed the basis of the resistances addressed in 4Ab. 14
15 1Cc As can be seen here, the tools used enabled us to measure the degree of poten>al impact on stakeholders by calcula>ng in percentage terms the number of affected performance indicators, linked to the organiza>onal goals, and classifying the degree of impact as high, medium or low. These tools were validated by the Quality Department to ensure the correct measurement of impacts. 15
16 16
17 Thank you Emilio. Good auernoon, my name is Noelia Mansilla and I was the project leader. 2 A.a The methods and tools used to iden>fy poten>al root causes were taken from Movistar s standard improvement system, which was adopted throughout the project. We started by analyzing the current situa>on using: Pareto, to iden>fy the most common reasons for visi>ng customer service centers; Process Mapping, to understand the process step by step, and iden>fy delays and unsa>sfactory outcomes; and Control charts to iden>fy varia>ons and trends. To iden>fy poten>al causes, we used brainstorming and 5 Whys in a focus group of employees with experience of the process to iden>fy a wide range of poten>al causes.then we grouped and classified related causes using an Ishikawa diagram. With the poten>al causes iden>fied, we used mul>vo>ng to place them in order of priority. The use of these tools enabled successful analysis of the process. For example with the Control Chart we detected different levels of demand on different days of the week. 17
18 2 Ab 1/3 Our analysis of the current situa>on was based on informa>on provided by the relevant departments, such as reasons for visi>ng customer service centers, average >me spent with each customer, and the number of personnel, products and services, using the tools described in 2Aa. With the Pareto of reasons for visi>ng and the detailed process map, we used Lean techniques to iden>fy wasted resources, and with the control Charts we saw varia>ons in the process. This analysis revealed two groups of poten>al causes: A group of causes which produced unnecessary demand for personal afen>on in customer service centers; and a group which prevented the genera>on of revenue. 18
19 2Ab 2/3 We put these two groups of poten>al causes to the focus group, who analysed them using the tools iden>fied in 2Aa, and iden>fied more than forty causes which produced unnecessary demand for personal afen>on, and more than twenty which prevented the genera>on of revenue. 19
20 2Ab 3/3 The mul>- vo>ng eliminated the possible causes with lowest impact, and gave us a Pareto of our poten>al root causes, of which 8 produced unnecessary demand for personal afen>on, and 6 prevented genera>on of revenue. 20
21 2 Ac All of the stakeholders seen in 1Cc par>cipated in the iden>fica>on of poten>al root causes by working with the team in mee>ngs and focus groups. Each stakeholder was connected with the project in some way, and this resulted in both individual impacts and a combined group impact on this stage of the project. Customer Service Strategy, for example, provided both their technical knowledge of the processes and a global vision of them. 21
22 2 Ba 1/2 Before analyzing the data we calibrated the measuring tools using an ATTRIBUTE AGREEMENT ANALYSIS to reduce the possibility of error and ensure certainty of results. By making modifica>ons, we increased repeatability and reproducibility from 30% to 85%. 22
23 2 Ba 2/2 To select final root causes, we used the following sequence of tools from Movistar s standard improvement system: Pareto: to analyze the most common reasons for service center visits, and iden>fy those which could be redirected to the call centers or online; Quality func>on deployment and mul>- vo>ng: to weight the causes and then rank them according to priority; Hypothesis and pilot tests: to test poten>al root causes through sta>s>cal valida>on; and Correla>on of variables: to analyze the rela>onship between combina>ons of causes and predicted outcomes. 23
24 2 Bb 1/2 The team analyzed the paretos of informa>on from customer queuing systems and the commercial management database, and linked them to the poten>al causes iden>fied in 2Ab to iden>fy the most common reasons for visi>ng customer service centers. 24
25 2Bb 2/2 Then the team created a quality func>on deployment, in which we weighted the poten>al root causes using a number of variables represen>ng the company s strategic plan and organiza>onal goals and the objec>ves of the project, as you can see in the slide. Finally the poten>al causes were priori>zed using mul>- vo>ng. In this way we obtained the list of seven high impact root causes shown on the slide, 4 which produced unnecessary demand for personal afen>on, and 3 which prevented the genera>on of revenue. 25
26 2Bc The final root causes were validated and confirmed through hypothesis tes>ng, correla>on and pilot tests. 6 causes were validated. For example, we did a paired- t hypothesis test to measure the sales results of a group of agents before and auer sales training. This confirmed that lack of commercial training was one of our principal causes and needed to be solved in order to achieve our objec>ve. The only cause not validated was requests for technical support. We carried out a pilot test, with technical support available only by calling a call center, but customers were resistant to seeking technical support by phone and con>nued visi>ng a customer service center to seek technical support, so there was no fall in demand for personal afen>on. 26
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28 3 Aa Thank you Noelia. Good auernoon, my name is Analia Robledo. I was champion of this project, and I have responsibility for customer service centers na>onally. Once we had iden>fied the 6 final root causes shown in point 2B, we used: Brainstorming, affinity diagram and crea>ve thinking, to generate ideas for poten>al solu>ons; And then mul>- vo>ng, Pilot test and projec>ons of results, to validate and select them. Again, the methodology for this phase is set out in Movistar s standard improvement system. 28
29 3Ab 1/3 Based on the selected root causes, the team analyzed the following data: Details of transac>ons conducted in customer service centers na>onally; Expert opinions in rela>on to customer demand and sales; Internal procedures; and Performance indicators. One of those indicators is average 1me spent with each customer, which was analyzed to predict the impact of the poten>al solu>ons on the efficiency of the process. 29
30 3 Ab 2/3 Taking the data already men>oned, the team held brainstorming sessions to generate possible solu>ons, using crea1ve thinking to generate radical, innova>ve ideas, which were then grouped and ordered in an affinity diagram. The result was a wide range of 30 proposed solu1ons. 30
31 3 Ab 3/3 This set of solu>ons was grouped into categories and then analyzed by experts using: Mul1vo1ng, to rank them in order of importance in the opinion of the stakeholders; and The projec1on of pilot test results in different scenarios, for example to predict the revenue that could be generated by introducing a SIM card fee. In this way, the ini>al set was reduced to a total of 13 poten1al solu1ons. 31
32 3 Ac To select the final solu>ons, the team used the data already men>oned in 3 Ab to define selec>on criteria that were aligned with the organiza>onal goals seen in 1Cc and the objec>ves of the project. Those criteria are shown on the slide. Alignment with organiza>onal goals can be seen in the example of cost: the organiza>onal goal of Growth in Income would be most highly impacted by a solu>on with low implementa>on cost. 32
33 3Ba Once the team had iden>fied its list of poten>al solu>ons and defined the selec>on criteria already men>oned, the thirteen (13) poten>al solu>ons were fed into a selec>on matrix containing those criteria. Then the six sigma team discussed each solu>on and reached a concensus in the 8 definite, final solu>ons. 33
34 3Bb In this matrix we weighted each solu>on against the criteria in the matrix to calculate the rela>ve priority of each. This allowed us to select the solu>ons with the highest relevance to our project objec>ves. In the slide you can see examples of the result of the priori>za>on for poten>al solu>ons related to two of the root causes: transac>ons diverted to customer service centers and lack of financial incen>ves for sales. In this way, we selected 8 final solu1ons 34
35 3Bc The Commercial Opera1ons Department, meaning both the department itself and its customer service personnel, played the most important role in the selec>on of final solu>ons. Each person involved in customer services was able to reflect their needs and objec>ves, aligned with those of the company. Customer Service Strategy had direct involvement in selec>ng final solu>ons, and in evalua>ng pilot test results. The end user was involved through the use of sa>sfac>on surveys during the pilot test, which helped to validate our proposals. 35
36 3Ca These are our eight final solu>ons: 1. A single employee profile, to combine sales and post- sales roles; 2. Diver1ng transac1ons to call centers, where possible; 3. A SIM card fee to generate extra revenue, for which our compe>tors already charged; 4. Provision of Internet self- help in customer service centers, offering a more convenient alterna>ve for some transac>ons; 36
37 3Ca 5. New scheme of remunera1on for customer service agents, to support the new single profile; 6. Greater sale of value- added services, such as when changing handset; 7. Simplifica1on of the sales process to reduce the amount of paperwork; and finally 8. Monitoring of customer sa1sfac1on by SMS. 37
38 3Ca 2/2 The solu>ons were validated using Hypothesis Tes>ng, Design of Experiments and two- month Pilot Tests, as well as through sa>sfac>on surveys and feedback from customer service agents. For Example We validated the proposed Sim Card fee through pilot tes1ng, followed by a hypothesis test which confirmed that the fee, would not affect customer sa>sfac>on; To validate the new scheme of remunera1on, we carried out a design of experiments in which we combined new scheme of remunera1on, different brochures and special sales offers. We saw that sales would increase when the new scheme of remunera>on was introduced. 38
39 3Cb The team predicted tangible benefits by making annual projec>ons based on the pilot test and hypothesis test results referred to in 3Ca. All of them would impact on the genera1on of revenue: The Single Profile, through a 300% increase in sales; Diver1ng transac1ons to call centers, by handling 4 per cent of transac>ons more cost effec>vely; The SIM card fee, which half of all customers would now pay for; Internet self- help in service centers, by handling another 3 per cent of transac>ons more cost effec>vely; And The sale of value- added services, which increased by 50 per cent. As regards the intangible benefits we predicted that: The new scheme of remunera1on would contribute to an improvement in the working environment; Simplifica1on of the sales process would help the environment by reducing the amount of paper we use; And The SMS sa1sfac1on survey would set us apart from our compe>tors, and help increase customer loyalty. 39
40 3Cc The team evaluated the level of impact of project results on the company s four organiza>onal goals, based on the es>mated benefits just described. We carried out a cost/benefit analysis, taking these considera>ons into account, and this enabled the sponsor to approve the proposed solu>ons. 40
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42 4 A.a Thank you Analia. My name is Manas Gadda and I was a team member. Each stakeholder played a different role in implementa>on. Commercial Opera>ons, the sales and post- sales teams and Customer Service Strategy had the greatest involvement given the project s high degree of impact on them shown in 1Cc: Commercial Opera1ons, by valida>ng the implementa>on; Sales and Postsales, by providing their expert voice as well as implemen>ng solu>ons; and Customer Service Strategy, by applying their experience of quality norms to ques>ons of communica>on and training in our implementa>on planning. We used an implementa>on matrix to define the strategy for each solu>on deployment, and allocate responsibility for every stakeholder involved in this phase. 42
43 4Ab (1/2) In 1Cb we iden>fied possible nega>ve impacts from the Stakeholder Impact Matrix. In the course of the project, these were converted into resistances. These were also iden>fied in further mee>ngs with stakeholders. 43
44 4Ab (2/2) These resistances were addressed with various tools. For example Customer Service Strategy were worried about the possibility of having to lose staff, so we conducted a pilot test to show that all of their employees would s>ll be required. This converted their concern into a posi>ve expecta>on: the possibility of genera>ng extra revenue. 44
45 4Ac We nego>ated the acceptance of all of the stakeholders through agreement, and through their direct or indirect par>cipa>on in the design and implementa>on of solu>ons. The stakeholders shown on the slide as having a high degree of buy- in were involved in accep>ng the proposed solu>ons to a greater extent given the high degree of impact on them detected in 1Cc. 45
46 4Ba 1/2 Implementa>on was planned in 4 stages: - Training by the commercial training department, who defined training needs and helped define launch dates for the solu>ons; - Communica1on of the details of each solu>on to affected staff one week before the launch of that solu>on; - Risk management, to ensure successful implementa>on of the solu>ons; and 46
47 4Ba 2/2 Implementa1on, using the implementa>on >metable shown on the slide which was developed in consulta>on with the departments involved. 47
48 4Bb Various changes were made to customer service processes in order to implement solu>ons: For example To help create the single profile, the procedure for buying a new phone was changed ; and To divert transac>ons to call centers, we changed the way to request blocking and unblocking. The results were sustained over >me by developing an inheritance plan, which involved assigning an heir with responsibility for maintaining the improvements for a further year. 48
49 4Bc The heir had access to a number of charts to help him ensure that project results were sustained. These charts provided informa>on on monthly sales trends; customer sa>sfac>on; reasons for visits to customer service centers; and number of customer visits per day. This data forms part of Movistar s formal informa>on system, which is related to the four organiza>onal goals iden>fied in 1Bc. 49
50 4Ca 1/3 To calculate the project s tangible results, we measured performance before and auer implementa>on and quan>fied the improvements. Revenue from customer service centers increased 250% The number of customer visits which generated no revenue fell 50% and We eliminated 53 forms. 50
51 4Ca 2/3 By crea>ng a single profile for customer service agents and introducing a SIM card fee, we increased revenue from customer service centers from 3.5 million dollars to almost 12 million dollars. You can see on the slide how some of the solu>ons reduced the rate of transac>ons which generate no income from 1.24% to 0.66% by the end of the project, and 0.63% by the end of inheritance. 51
52 4Ca 3/3 The project objec>ve for customer sa>sfac>on was 8 out of 10 on the sa>sfac>on index, which was achieved during the project and has been maintained since February Conduc>ng customer sa>sfac>on surveys by SMS had a posi>ve impact on the commitment of customer service agents, since their performance was being assessed by every customer. The new variable scheme of remunera>on, simplifica>on of procedures, con>nuous training and new opportuni>es for personal development resulted in a 24% improvement in employee sa>sfac>on. This contributed to the company s Greate Place To Work ranking of 3rd. 52
53 4Cb Each of the project s results had a direct and posi>ve impact on the organiza>onal goals. Increased revenue impacted posi>vely on the company s profit margin. Our solu>ons resulted in a 5% improvement in the customer sa>sfac>on index. The impact on the Reputa>on Track objec>ve was based on reduced consump>on of paper. The project s impact on employee sa>sfac>on was reflected in the employee sa>sfac>on index and the company s improved Greate Place To Work ranking. 53
54 4Cc We shared project results with the stakeholders in a variety of ways. In par>cular: A closing presenta>on was made to the Board of Directors of Movistar, showing the results obtained and receiving approval of the inheritance phase; Mee>ngs were held with stakeholder management to confirm the results of the project; and The company s in- house magazine Nosotros featured the project to update all other company employees. At the end of the project we received feedback from our stakeholders. 54
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56 Thank you Ma>as! 5 A 1/2 How did we select the team? The Director of Commercial Opera>ons was selected as sponsor given the objec>ves of the project. Human Resources has created a three- stage selec>on methodology : Stage 1- Iden>fy poten>al applicants by internal search; Stage 2 Select candidates by tes>ng poten>al in individual and group interviews; and Stage 3- Validate selec>on through field tes>ng. The criteria used in the selec>on process were: High level of involvement in the process and Good analy1cal skills 56
57 5 A 2/2 As a result of this process, an interdisciplinary team was selected. All the team members par>cipated in accordance with the roles for which they were selected. For example I was the Black Belt in this project, and my contribu>on was: ü Making strategic decisions together with the Champion; ü Mo>va>ng the team; and ü Guaranteeing the applica>on of DMAIC tools. 57
58 5 B 1/2 While the team was working on the project, we received training in parallel in four stages, to enable the acquired knowledge to be applied during the project. 58
59 5 B 2/2 This prepara>on methodology was very successful. All team members were trained in six sigma DMAIC methodology, wich is the basement of Movistar improvement system. In addi>on the black belt was trained as a team facilitator and effec>ve nego>ator. Finally all green belts and the black belt needed to develop and excellent project as well as aproving the final exam in order to be cer>fied 59
60 5C 1/2 Effec>veness was guaranteed by choosing the right people for each role in the team, and by using the responsibility matrix established by the Movistar improvement system. For example, in my case, I live five hundred miles away from Buenos Aires, where the team was based. That forced us to fix a structured mee>ng and communica>on schedule in order to accomplish the project >metable. More over, as a black belt I devoted a hundred percent of my >me to the project, whereas green belts used fiuy percent of their >me. 60
61 5C 2/2 In addi>on, the project succeeded through a strong focus on Ø Clear and precise communica>on; Ø Effec>ve use of mee>ngs and delega>on of tasks, and Ø Monitoring of project phases by means of tollgates We set immediate and accessible objec>ves, and by evalua>ng progress and results in each successive mee>ng, we reinforced team morale and commitment. 61
62 Thank you very much for your afen>on!! We are proud to belong to a culture which constantly pushes us to rewrite the rules, and to have taken part in a project which has led to us being here today sharing this excellent experience, which makes us want to go back and do it all over again. Once again, thank you so much! The Less is More Team 62
Good afternoon members of the jury and members of the audience.
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