You Can be Great If You Really Want To

According to manufacturing journalist Thomas R. Cutler in a recent issue of Industrial Focus magazine, “Manufacturers all face a similar challenge: a complex sale that often requires a team selling approach. In every industrial organization one finds internal representatives, outside representatives, managers, technical specialist, distributors, and customer service professionals. Often this team manages several product lines with thousands of specific items and interacts with numerous influencers who affect the sale. During the lengthy sales process the team does their best to manage this complex environment, producing notes, sales call reports, quote logs, memos, faxes, e-mails, and customer service reports, however the information is almost always fragmented. There is rarely one central database of customer information that can be accessed and shared among the people who need it to efficiently do their jobs. As a result, acting less like a team, these people act independently when conducting business and are far less effective. “

According to Larry Caretsky, President of Commence (www.commence.com/mfg), an industrial customer relationship management (CRM) firm, “CEO’s of these companies often share how their new enterprise resource planning (ERP) system provides them all the information they need, but fail to recognize that ERP systems provide information after the sale, not before or during the sales process. ERP systems provide no value for improving the efficiency of how to sell and service customers. This is one reason that forecast reports are always inaccurate.”

Industrial senior executives avoid addressing a customer-centric approach including the misconception that an accounting system provides the information needed; they provide only post sale information. The pre-sales process and information drives the sale.

Manufacturers do not resist funding back-end ERP systems; however the front-end CRM solutions often make a substantial impact on reducing new customer acquisition cost and improving sales efficiency by first addressing data capture, data consolidation, and data sharing.

Commence offers industrial companies complete “Freedom of Choice” to select the solutions and platform that best meets the business requirements of manufacturers and distributors. The comprehensive CRM Industrial application suite is available for use on premise or on-demand as a hosted service. Industrial leaders often build departmental CRM solutions with the award winning Commence Industrial CRM Framework. These choices are why so many industrial companies choose Commence as the solution for managing customer relationships. All Commence Industrial solutions support mobile or wireless connectivity and integration to back-office accounting and ERP systems.

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In nearly every organization, there are opportunities for business process-related improvements. In many cases, the problems that plague companies are simple. The factors that influence the efficiency of a given process are few. In these type of situations, a full Six Sigma deployment may be unnecessary for designing a solution. These are circumstances in which Kaizen can offer tremendous value.

The methodology’s focus is dedicated to generating continual improvement. If an activity is constantly improved upon, inefficiencies will eventually disappear. The concept is simple and can be applied to any activity in any environment.

Even though it originally gained popularity within the manufacturing sector (similar to Six Sigma), Kaizen can also be applied to the service industry. In fact, it is perfectly suited for it. This article will discuss the reasons the methodology works well in a service environment. You’ll note that there are strong undercurrents that are very similar to Six Sigma.

Reduces Customer Irritation

In a manufacturing environment, variances are costly. They can bring production flows to a grinding halt. This is the reason Six Sigma is used by many large manufacturers; once process-related inefficiencies are eliminated, production proceeds with few changes.

In a service environment, variance is natural and often the result of customer irritations. For example, consider a restaurant. The kitchen must prepare dishes efficiently or they risk falling behind. If a customer becomes dissatisfied with the wait time, he may complain. His complaint may need to be addressed by the server, which takes her away from other customers. In this case, Kaizen can be used to identify ways to reduce the wait time. Doing so reduces the number of customer irritations, thereby saving time and improving the level of satisfaction among all customers.

Near-Instant Impact

Because Kaizen is focused upon producing small improvements over time, the effects can be observed quickly. Rather than conducting a large-scale project that seeks to realize substantial process-related improvements, Kaizen attempts to resolve a wide range of small problems. As a result, the effects of implementing the methodology are nearly instant, especially within a service environment.

Let’s use our restaurant as an example. During the course of serving a customer, the server will greet him, bring drinks, take his order, and deliver his meal once the kitchen has prepared it. Rather than examining the entire process, Kaizen focuses on improving each piece. In other words, what can be done to greet the diner more quickly? Can the wait time between the greeting and the server bringing drinks be shortened? Can the day’s specials be communicated in a way that reduces the need for questions?

By focusing upon small problems, Kaizen can yield instant improvements that impact the bottom line and improve customer satisfaction.

Boost In Employee Productivity

Much of the variance and customer irritation in the service industry can be attributed to human error. That is, employees make mistakes which often cause problems that require time and effort to resolve. Contrast that to a manufacturing environment where information and material flows are largely static. The goal is to identify inefficiencies and waste within the production process.

If Kaizen is used in a service environment to produce incremental, continuous improvements, employee productivity rises. As productivity rises, the time required to perform a given task declines. This has an immediate impact upon the customer’s experience. In a restaurant, it might translate into shorter wait times for meals. In a hospital, it might mean seeing a doctor more quickly. In a bank, it can help reduce the line of people waiting for a teller. Each circumstance improves the level of customer satisfaction while lowering costs.

Kaizen plays an important role within the service sector. Organizations that implement the methodology will likely see an immediate impact on their efficiency, employee morale, and profitability.

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