leveraging leading indicatorsww1.prweb.com/prfiles/2008/12/10/1038494/metrics... · summary:...

Lea

Author –

CustomeCustome

© 2008 ClearAction. All rights reserved.

LeveragingLeveraging ading Indicators

Lynn Hunsakery

Metrics You Can Manage For Success

er Experience Improvement Strategister Experience Improvement Strategist

www.ClearAction.biz

Which Key Performance

MPH

$/G l$/Gal

MPG

© 2008 ClearAction. All rights reserved.

MPG

e Indicators to Monitor?

Objective: Minimize Costs

Most Objectives

Most Visible Layerof Limited Use

Many Layers

© 2008 ClearAction. All rights reserved.

Are Like Onions

s Inside

I L R tInner Layers = Rootsfor New Growth!

Example: 'Peel

F

Process Drivers:Team's

Measures

Root Causes:Leading

Measures

OutdatedSupply List

Frequency:Supply ListDistribution

OrderedWrong Part

Lack ofTraining

Delegated

gg

DelegatedCodingAllowed by

Procedures

3) Why?Root Out Problem

© 2008 ClearAction. All rights reserved.

ling The Onion'

Quality Results:Manager's Measures

Wrong Item Code

Market Results:Customer's Measures

Measures

OrderAccuracy

Measures

MissingItem Code

1) Why?

2) Why?

Root Causes

Machines Management

OMPHHybridHybrid

AccelerationSpark Plugs

Fuel BoostDeceleration

MethodsMaterials

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of Symptoms

Environment

Oil Change

Symptom: MPG

Tire Pressure

MPGDistractions

Manpower

Hierarchy of Leading

CLagging

Indicators

FinancialCustomer

Why

CustomerTeam

LeadingProcInp

What

LeadingIndicators

Resources SkilHow

What

Resources SkilHow

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g Indicator Dashboard

ProcessConsequences

ProcessO t tOutputs

cessuts

ProcessControlPoints

ls Stake-

Points

Culturels Stake-holders

Culture

GExample: Leading I

LaggingIndicators

w/MP

Why$/Gal

Wh

LeadingIndicators

MPH RatCity Hi-way Accel D

R SkilH

What

Resources SkilHowMaintenance $Time for appts.

Do-it-yoDriver ex

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Gal/$Indicator Dashboard

PG mgt

MPG

tes Tires OilDecel Heat Cold New Filter

l St k C ltls Stake-holders

Cultureourselfxpertise Other drivers

P

No-rush attitudeAttentiveness

Passengers

Cascading Objectives

Initiative Goal6. Near-End Metrics

N E d G lNear-End Goal

1. CascadingFocus

5.

Focus

2. CascadingFocus

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s Worksheet: Initiative

Interim Metrics

4. Initial MetricsInterim Goal

3 Cascading

Initial Goal

3. CascadingFocus

Cascading Objectives WCorporate Goal

6. Division Metrics

Di i i G lDivision Goal

1. CascadingFocus

5. De

Focus

D

2. CascadingFocus

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Worksheet: Organization

epartment Metrics

4 Team Metricsepartment Goal

4. Team Metrics

3 Cascading

Team Goal

3. CascadingFocus

Total Compa

Tracking Indicators inp

BA

BBU #1Org A BUs

BU #1 BOrg B BUs

BU #1Org C BUs B

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any

n a Large Organizationy

C D E

BU #2 BU #3 BU #4

BU #4BU #3BU #2

BU #2 BU #3 BU #4

Typical Score

Finances Customer People

• Revenue• Profit• Gross Margin• EPS

• Satisfaction• Promoters• Lifetime Value• Turnover

• Satisfaction• Retention• Turnover• Training• EPS

• Stock Price• ROI• PaybackNPV

• Turnover• Conversions• Share of Wallet

• Training• Succession

• NPV

© 2008 ClearAction. All rights reserved.

ecard Metrics

Operations Competitors Steward-ship

• Productivity• Efficiency• Inventory• Delivery Time

• Market Share• Win-Loss• Relative

Quality

• Environmental• Safety• Philanthropy• Association• Delivery Time

• Cycle TimeQuality

• Relative IP• AssociationInvolvement

Balanced SFinances Customer Pe

ExternalMetrics

ProcessProcessConsequences

ProcessProcessOutcomes

ProcessInputs &

Control Points

ProcessLevers

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Scorecardople Operations Competitors Stewardship

Nurture Leading IndicCustomer-Focused Problem Statement:

Root Cause Statement:

Root Cause Goal:

Goal Owner:

Action Plan Action Owner 1) )

2)

3)

4)

5)

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Root Cause Metric: ____________________

cators: Tashiro Chart

Action Deadline Goal Impact

Summary: Connected,

Big PMeas

ActioMeas

PredMeas

Lagging

GasolineExpenses Measure

TrendsVerifyImpact

Miles perGallon

CarMaintenance

LaggingLeading

CreateAction Plans

© 2008 ClearAction. All rights reserved.

LaggingLeading

Actionable, Predictive

Picturesures

onablesures

dictivesures

Lagging

Customer'sExperience Measure

via SurveyClosed Loop

Communication

SatisfactionRatings

On-TimeDelivery

LaggingLeading

CreateAction Plans

LaggingLeading

Tips for Leadi

CApplications: SetUp

FROI

Productivityy

Quality

Customer FocusL2-Way

Customer Focus

Product

Price

FC

Price

PromotionAValue

DistributionPL

© 2008 ClearAction. All rights reserved.

L

ing Indicators

Connect to big pictureIdentify root causesIdentify root causesFocus on inputs & in-process

Levers: resources, skills, cultureFocus management supportClose loop to re-set perceptions

Actionable – you control ityPredictive – early warningsLeverage – clout, resourcesLeverage clout, resources

Lynn Hunsaker – Custom

ClearAction Executive Mentoring: Clearly see what’s needed

Take your customer advocacy to the next leve

to take immediate action

- Prevent issues systemically

- Align effort with lifetime value

- Embrace negative feedback

- Innovate customers' full experience

© 2008 ClearAction. All rights reserved.

Significant gains in revenue

mer Experience Strategist

ClearAction Change Management:Clear the way

l:

Clear the way for organization-wide action

Auxiliary customer experience enablers:y p

- Team recognition strategies

- Leading indicator dashboards

M k ti kill & ti l ffi i i- Marketing skills & operational efficiencies

- Interaction bridges

& profit simultaneously

Testim

“Lynn has taught us things that wShe has increased our efficiencyShe has increased our efficiencyI highly recommend her as a bus

“Lynn’s assistance was helpfulI look forward to working togethe

“Lynn is a superb strategist, diagShe is the most knowledgeable pin intertwining voice of the custo

© 2008 ClearAction. All rights reserved.

monials

would not readily cross our mindsy & accuracy in many areasy & accuracy in many areassiness consultant”

er in future”

nostician, facilitator & team playerprofessional I know mer and marketing operations”

Tools & GOn-Demand Training Podcasts

Building Customer Relationships – hear sample:www.clearaction.biz/podcast.html

Upcoming eBook: “Experience Innovation”Feb’09 – more information at:

www.clearaction.biz/experience-innovation.htm

eBook – Templates, Worksheet, Tips!20% Discount Code: slideshare

www clearaction biz/metricsbook htmlwww.clearaction.biz/metricsbook.html

GuidanceCustomer Experience Optimization –

Delivering Your Brand Promise -- subscribe:www.clearaction.biz/blog

ml

Free 1-Hour Consultation:CEM on a Shoestring Budget:

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Lynn HunsakerLynn Hunsaker

408-687-9700

L @Cl A ti biLynn@ClearAction.biz