6 Sigma Principals to Help Quantify theVoice of the Customer

By: Michael Maffei

General Manager, Customer Service

Caterpillar Financial (AccessAccount)

Agenda

By the end of this session, you will…

• How to identify the Voice of the Customer(VOC) and how that translates to Six-Sigma

• Does Six-Sigma really matter when it comes toevaluating your call center.

• How to start integrating Six-Sigma into your callcenter organization.

• Evaluating the opportunity costs of Six Sigma.

6 Essential Themes of 6 Sigma

• There is a Genuine focus on the customer.

• Data and fact-driven management is essential.

• Process Focus, Management and Improvement.

• Proactive and Involved Management at all levels.

• Boundary-less Collaboration and Involvement.

• A Drive for Perfection and a Tolerance for Failure.

What is the Goal of 6 Sigma?

• To increase profits by eliminating variability,defects and waste that undermine customerloyalty.

Leadership is KEY

6 Sigma Critical Success Factors

CommittedLeadership

CommittedCommittedLeadershipLeadership

QuantifiableMeasures& Results

Incentives&

Accountability

Full Time6 Sigma

TeamLeaders

StrategyIntegration

Customer&

MarketNetwork

BusinessProcess

Framework

CommittedLeadershipis critical tothe successof 6 Sigma

6 Sigma Methodology

6 Sigma Processes

DMAIC: Improveexisting processes,products, services,

Leverage and sustain the gains achievedby improvement and creation

DMEDI: Create newprocesses, products,services

6 Sigma Roles

• Executive Leadership

• Deployment Champions

• Project Sponsors

• Process Owners

• Master Black Belts

• Black Belts

• Green Belts

• Yellow Belts

The Executive Leadershipmust inspire, own, fund, anddrive 6 Sigma. They must leadwith clarity, consistency, andcommitment. Walking thetalk is critical. They identifygreatest areas of opportunitiesfor the enterprise andbusiness unit.

6 Sigma Roles

• Executive Leadership

• Deployment Champions

• Project Sponsors

• Process Owners

• Master Black Belts

• Black Belts

• Green Belts

• Yellow Belts

Deployment Champions areresponsible for development andimplementation of 6 Sigmadeployment plans andimplementation for their businessunits. DCs assist business unitleadership with resourceallocation, prioritization of projectsand coordinate the projectselection with Project Sponsors.

6 Sigma Roles

• Executive Leadership

• Deployment Champions

• Project Sponsors

• Process Owners

• Master Black Belts

• Black Belts

• Green Belts

• Yellow Belts

Project Sponsors are often linemanagers / process owners andare responsible for identificationand sponsorship of 6 SigmaBlack Belt projects. They workwith Deployment Champions onproject prioritization andselection and oversee the detailsassociated with the deploymentplans and implementation. Thisis a Critical role…this is the“Rubber meets the road” positionwithin 6 Sigma.

6 Sigma Roles

• Executive Leadership

• Deployment Champions

• Project Sponsors

• Process Owners

• Master Black Belts

• Black Belts

• Green Belts

• Yellow Belts

Process Owners areresponsible for sustainingthe gains. They inherit thenew or improved processand ensure that theprocess remains in control.

6 Sigma Roles

• Executive Leadership

• Deployment Champions

• Project Sponsors

• Process Owners

• Master Black Belts

• Black Belts

• Green Belts

• Yellow Belts

Master Black Belts are our internalgurus. They are 6 Sigma expertswho train and coach Black Belts.They are accomplished Black Beltswho demonstrated exceptionaltechnical expertise and leadershipqualities. They are full-timecoaches dedicated to making theBlack Belts successful.

6 Sigma Roles

• Executive Leadership

• Deployment Champions

• Project Sponsors

• Process Owners

• Master Black Belts

• Black Belts

• Green Belts

• Yellow Belts

Black Belts are the full-time, trainedleaders of 6 Sigma projects. Anexperienced Black Belts will managea portfolio of 3-5 projects delivering$500,000 in direct, bottom-linebenefits. They also are responsiblefor training new Green Belts.Informally they network andcollaborate with other Black Beltsaround the world to benefit theenterprise.

6 Sigma Roles

• Executive Leadership

• Deployment Champions

• Project Sponsors

• Process Owners

• Master Black Belts

• Black Belts

• Green Belts

• Yellow Belts

Green Belts work onprojects on a part-timebasis giving approximately20% of their time to aproject and are usually keymaterial or processexperts.

6 Sigma Roles

• Executive Leadership

• Deployment Champions

• Project Sponsors

• Process Owners

• Master Black Belts

• Black Belts

• Green Belts

• Yellow Belts

Yellow Belts are everyonewithin the organization andmust have a generalunderstanding about 6Sigma.

Application of Six-Sigma inCall Centers

• Voice of the Customer (VOC) - Provides a means to understand whatcustomers are saying and identifies internal processes that may be causingcustomer dissatisfaction.

• Rep Dissatisfaction - Customer service representatives will often expressfrustration that they cannot do their job because someone else doesn't do theirs.

• Human Resources - Define the new hire process by looking at such factors asthe length of time it takes to hire a new employee;

• Call Center Technology - Review of systems and processes that are in placeand how efficient they are in helping CSR’s perform their jobs consistently.

• Call Monitoring & Service Levels – Is the data collected from this forum usedto help improve call center processes?

What Do Your Customers Want?The challenge is to understand how your customers define and prioritize the various needs andexpectations they have of your call center.

Superior QualityProduct or Service Features, Attributes, Dimensions, Characteristics Relating to theFunction of the Product or Service, Reliability, Availability, Taste, Effectiveness - AlsoFreedom from Defects.

Competitive Pricing Prices to Consumer (Initial Plus Life Cycle), Repair Costs, Purchase Price, FinancingTerms, Depreciation, Residual Value

Exceptional Service Wait Times, Turnaround Times, Setup Times, Cycle Times, Delays

Reputable OrganizationEthical Business Conduct, Environmental Impact, Business Risk Management, Regulatoryand Legal Compliance

Areas in Call Center to IdentifyVoice of the Customer

• Quality objectives

• Call quality (evaluation score)

• First call resolution

• Errors and rework (accuracy – data entry)

• Efficiency objectives

• Adherence to schedule

• Cost performance

• Cost per call

• Strategic impact

• Customer satisfaction scores

• Customer feedback

• Employee satisfaction

• Turnover

• Percent quality monitored

• Percent call back

• Percent sales conversion

• Average interviews per hire

• Percent first call resolution.

Six Steps for SuccessfulImplementation

1. Identify the business role of the call center and itscore function and processes.

2. Identify key customers and customer needs andexpectations. (CCR’s)

3. Accurately measure current performance.

4. Analyze, identify weaknesses and opportunities.

5. Develop and implement process redesign.

6. Assume Control and improve CCR’s..

Call Center Process Measures

Determining current process performanceusually requires the collection of data. Whendeveloping a measurement plan ensure that:

– The data collected is meaningful

– The data collected is valid

– All relevant data is collectedconcurrently

What issues are relevant?

Who will collect data?Where is the data located?When will it be collected?What additional assistance is required?

What you want to do with the data?

Used daily, weekly, etc.Identify trends in the process dataIdentify deficiencies in the processDemonstrate current process

performanceIdentify variation in a processIdentify a cause and effect relationship

What precise data will be collected?

Performance measurement?Causes of process deficiencies?

Do we analyze all relevant data or a sample?

What is the right sample size?What is the right frequency?What will be the sample selection method?

The specific, precise andmeasurable expectationwhich a customer hasregarding a product orservice.

Add additional menu items tothe voice system (bad)

Customer reaches correctperson the first time within 30seconds. (Good)

Actual customerstatements and commentswhich reflect theirperception of:

1. An attribute of aproduct or service

2. An experience with aproduct or service orits delivery

3. An encounter orexperience with abusiness processesor representative

“I’m always on hold or end uptalking to the wrong person”

Critical Customer RequirementsKey Customer IssueVoice of the Customer

The real customerconcerns, values orexpectations regarding aproduct or service.

Void of emotion or bias, thestatement describes theprimary issue a customermay have with the product orservices. Describes theexperience surrounding theattributes of the product orservice expected or desiredby the customer.

Wants to talk to the right personquickly

Analyze Findings, Define CriticalCustomer Requirements (CCRs)

• What businessdecisions do weneed to make?

• Whatinformation do weneed to makethose decisions?

• What data do weneed for eachpiece ofinformation?

• Determineresearchcollectionmethodology

• Developstructuredquestionnaire

• Developanalytical plan

• Traininterviewing team

• Pilotquestionnaire

• Modifyquestionnaire, asneeded

• Collectinformation fromcustomers

• Analyze findings

• Display ingraphical format

• Convert VOC intoCCRs

• Select input,output, andprocess indicators

• Establish outputperformancetargets

• Develop processto monitorperformance

3. CollectVoice of theCustomer

(VOC)

5. DevelopProcess

Measures toMonitor Status

4. AnalyzeFindings/

Define CCRs

1. IdentifyInformation

Needed fromCustomers

2.Develop

ResearchPlan

Process for Developing Customer-Focused Business Strategy

Understanding Your Role

• Management’s view of things is likely to be different than yours.While there is no way to know everything that causes this difference inperspective, keep in mind that scheduling, budgeting, and other issues arealmost certainly involved.

• Realize that your team will have developed a knowledge of theprocess being reviewed that exceeds management’s.

• Make sure that you include the right information needed by thestakeholders in the organization so they can make the rightdecisions about your proposed solution.

Strengthening Your Case

• Explain how the solution will fit into the organization

– Who will be affected? How?

• Communicate with all parties who may be affected by yourrecommendation.

• Review your implementation plan & solicit feedback.

• Make sure everyone understands why the solution is needed.

• Be prepared to sell your recommendations.

• Your goal is to present solutions that will work and be accepted.

Thank You

Questions