six sigma sales & marketing
TRANSCRIPT
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Business Excellence Briefing:
Six Sigma Sales & Six Sigma Sales & MarketingMarketing
Bob Crescenzi
VP, Business ExcellenceStandard Register Company
Who is Standard Register?
Leading provider of document management & print supply chain outsourcing services
ISO 9000Certified
ISO 9000Certified
• Founded 1912
• More than $900 million in revenue
• Recognized industry leader
• A strong financial position
• Focused on Business Excellence
•Specialize in helping large corporations produce, procure, manage, and distribute documents and printed materials
Master of Quality
Supplier Achievements
Awards
Customer Scorecards
FORTUNE:America’s Most
Admired Companies
2002, 2003, 2004
FORTUNE:America’s Most
Admired Companies
2002, 2003, 2004
InformationWeek 500
InformationWeek 500
SRRanked 58
SRRanked 58
Resourced to Support You Nationally & Globally
Worldwide Coverage• 35 Production Locations (US)
• 22 Distribution Facilities (US)
• Alliances and JVs extend our reach to more than 40 countries
The Evolving World of Print
• Office Documents• Proposals / Contracts• Collateral• Email
Desktop (Office)
ImmedLimitedLow
TurnColorFinish
Centralized (Production)
High Volume
4-24hrsDigitalMed.
DigitalTurnColorFinish
• Presentations; Newsletters• Manuals; Directories; Catalogs• Collateral; Proposals• Tech pubs; Booklets• Compliance Documents • Business Forms• Stationery
External (Commercial)
Multiple
1-3daysMultipleHigh
DigitalTurnColorFinish
• Labels• Post Cards • Premiums/Ad
Specialties • Business Forms• Business Cards• Stationery• Books• Packages• POP
• Direct Mail• Brochures• Kitting • Fulfillment• Posters
$50B
Print on Print on Demand Demand ServicesServices
Core Core Doc MgtDoc Mgt& Labels& Labels
BusinessBusinessProcessProcess
ImprovementImprovement&&
OutsourcingOutsourcing
Products
Solutions
Technology Enabled Processes
Paper Based
Reengineering our Business Model
The Enterprise Wide Supply Chain Approach
Business Process Improvement:Lean Six Sigma
INTERNAL EXTERNALCustomer “Critical to Qualities”
EFFICIENCY Cost Savings
EFFECTIVENESS Revenue Generation
Enterprise Print & Document
Mgmt StrategyPartnerships
CONCIERGE
Standard Register Products & Services
• Printed Documents
& Business Forms
• Label Products
• ID Documents &
Labels
• Secure Document
Printing Solutions
• Commercial Print
• Warehousing &
Distribution Services
• Billing & Statement
Solutions
• One-to-One
Marketing
Collateral & Direct
• Kitting & Fulfillment
• Print-On-Demand
• SMARTworks
• Digital Pen & Paper
• Data Retrieval &
Scanning
• Document
Automation Software
• Design On Demand®
Marketing Automation
• RFID
• Internet Document
Presentment
• Sourcing Management
• Print Spend Analysis
• Facilities Management
• Document Security
Audits
• Fleet Management
• Technology
Integration &
Implementation
Services
Printed Products & Services
Fulfillment & Personalized
Communications
Document Technology Solutions
Professional Services & Consulting
Operational Excellence
SRC’s Journey to Business Excellence
Short Term Focus
Process Stability
Continuous Improvement
Business Excellence
2000/1
Pe
rfo
rma
nc
e
2002 2003 2004...
Launched DMAIC / AWO
Launched Lean
Launched DFSS
SR’s Business Excellence ModelC
om
plia
nce
Man
ag
em
en
tKn
ow
led
ge
Man
ag
em
en
t
Learning & Growth
ProManagement
Customer Management
Financial Management
Performance Management
LeadershipLeadership
Strategic and Operational Planning
Com
plia
nce
Man
ag
em
en
tKn
ow
led
ge
Man
ag
em
en
t
Learning & Growth
ProcessManagement
Customer Management
Financial Management
Performance Management
LeadershipLeadership
Strategic and Operational Planning
Performance Enhancement
Best practices approach
– Baldrige criteria
– Balanced scorecard
– Process improvement methodologies
• Six Sigma
• Action Workout
• Lean
Performance Management
Co
mp
lian
ce M
ana
gem
ent
ISO
90
00
, ISO
14
00
0S
afe
ty, HIP
AA
Kn
ow
led
ge
Man
ag
emen
tB
est
Pra
ctic
es,
Da
ta
Wa
reh
ou
se,
Be
nch
ma
rkin
g
Malcolm Baldrige Assessment
StrategyStrategic and Operational Planning
Balanced Scorecard
LeadershipVision, Mission, Values
Learningand Growth
• VOA (Voice of Associate)
• Human Capital Utilization
• Total Rewards• Leadership
Development• SR University
FinancialManagement
• EPS• Revenue Growth• Cost Savings• ROI/ROC• Cash Flow
Process Management
• Action Workout• Six Sigma • Lean
Methodologies• CRM• Product/
Solution Development
• Supplier Partnerships
Customer Management
• VOC (Voice ofthe Customer)
• Customer Scorecards
• Customer Partnerships
• FTC (For The Customer)
SRC Management System
We need to be faster, better and cheaper, all at the same time!
The Challenge of Business Excellence
Realizethe Vision
To drive financialsuccess…
Equip our people with Knowledge, Skills, Systems and Tools
To build the strategic capabilities…
Needed to deliver uniquesets of benefits to customers…
Objectives Measures Targets Initiatives
Driving Performance - Balanced Scorecard
The Vision
Customer
Financial
Internal Process
Learning and Growth
Financial PerspectiveObjectives Measures Targets Initiatives
Customer PerspectiveObjectives Measures Targets = Initiatives
Internal Process PerspectiveObjectives Measures Targets Initiatives
Learning & GrowthLearning & Growth
AchievingAchievingBusiness ExcellenceBusiness Excellence
within our organizationwithin our organization and supply chainand supply chain
Operational Excellence
Theme
Business Excellence Priorities 2001-2003
Our Deployment Plan
• Six Sigma infrastructure established, then…
• Champion training for executives first…
• Black Belt/Green Belt Training followed
– 2001: focus was operations
• Manufacturing, production support, engineering
– 2002: added some transactional groups
• Accounting, Information Management, etc.
– 2003: added Client Services and Consulting Services
Success due to planning & strong commitment from executive mgmt
In the beginning…
• Early projects were internally focused
– “Low-hanging fruit”
– Emphasis on hard dollar savings
– Practitioner learning curve
– Unknown customer CTQs
Driven by operational metrics of cost, waste and efficiency
2002 Results
• While we met our training goals AND achieved 2X return on Six Sigma investment…
• …Project results had little direct impact on customers
– For example, 4-hour press setup time reduction was not noticeable in a 4-week production cycle
Balanced Scorecard didn’t reflect Six Sigma gains
Changes were needed in 2003…
• Business focus moved from cost-reduction to revenue-generation
– Deliver more value to customers
• Many SR customers are engaged in Six Sigma
– Expectation of customer-focused improvements
– “Show me how you’re better”
Six Sigma projects need to be driven by our customers
Helping Helping customers achieve customers achieve
Business Excellence Business Excellence with our solutionswith our solutions
Revenue Growth
Theme
AchievingAchievingBusiness ExcellenceBusiness Excellence
within our organizationwithin our organization and supply chainand supply chain
Operational Excellence
Theme
Business Excellence Priorities 2004 and beyond…
Value
Supplier
Voice of Customer
Value
gProjects
Processes
Prioritize
Six SigmaQuality
Voice of Customer
Customer
Customer-Driven Six Sigma
Creating a Customer Focus
• Identify critical customer requirements
– Today and in the future?
• Help customers solve their business problems
– How well are we meeting customer needs?
• Measure SR performance
– How well are we delivering to customer expectations
Deploy Comprehensive Voice of the Customer Initiative
Linking Customers’ Expectations to Six Sigma Results
Ensure Your Customers See & Feel the Effects of Six Sigma
Delivery
Service Responsiveness
Product Quality
Transaction Quality
Value
VOC Elements
• Customer Satisfaction Metrics
– Loyalty Assessments
– Customer Satisfaction Surveys
– Transactional Surveys
• Life Cycle Profiles
– Win-Loss Analyses
– Milestone Interviews
• Customer Scorecards
Customer Loyalty & Satisfaction
• Approach
– Telephone or web interviews (3rd party & in-house)
– Frequency
• Loyalty – annual
• Satisfaction – quarterly
• Transaction – event-based
• Benefits:
– Identifies factors linked to customer satisfaction & loyalty
– Measures SR performance against customers’ expectations
Expectation-Performance gaps drive process improvement projects
Secure Customer Index® Overview
FavorableFavorable
VU
LN
ER
AB
LE
CU
ST
OM
ER
SGreatest RiskGreatest Risk
IndifferentIndifferent
SecureSecureverysatisfied
definitely will partner
again
definitelywould
recommend
SecureCustomers
Secure Customer Index ® (SCI)
Secure Customer Index®
31
0 10 20 30 40 50 60 70 80SCI® Percent
Numbers represent the minimum and maximum
SCI® percentagesin total and by industry.15 50
5 50
30 54
0 76
12 45
2 62
8 52
10 41
17 68
0 76
445
Utilities
Telecommunications
Retailing
Industrial Products
Entertainment
Computer Software
Computer Services
Computer Hardware
Automotive
Total
Cellular (subset of Tel)
Banks/Financial 9 54
Norms & Best In Class Figures
Median SCI
Secure Customers By Industry
Identifying Needs and Wants
Must Be
More is Better
DelightersDelighters
Delight
Neutral
Dissatisfaction
Absent FulfilledPresence of the Characteristic
The Kano Model of Quality
Customer Scorecards
• Approach
– Joint development with key customers
– Quarterly reviews
– Requires Six Sigma practitioner (Green Belt minimum)
• Benefits
– Focuses both parties on critical, value-add attributes
– Strengthens partner relationship
Customer-specific CTQs drive process improvement projects
Mar$0.024
April$0.023
May, $0.026 YTD
$0.024
$0.020
$0.022
$0.024
$0.026
$0.028
$0.030
Cost Per Copy
.025
Mar97.0%
April99.0%
May, 98.7%
YTD97.8%
95.0%
96.0%
97.0%
98.0%
99.0%
100.0%
User Satisfaction
98.5%
Mar9.0%
April15.0%
May, 12.0%
YTD11.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Device Utilization Rate
11.0%
QualityQualityQualityQuality
CostCost
ReliabilityReliability
TurnaroundTurnaroundTurnaroundTurnaround
ConvenienceConvenienceConvenienceConvenience
Fleet ScorecardMar
97.0%
April99.0%
May, 98.7%
YTD97.8%
95.0%
96.0%
97.0%
98.0%
99.0%
100.0%
Uptime
98.0%
Employee toDevice Ratio
6.6 to 1
2.0
4.0
6.0
8.0
10.0
12.0
8:1
$815
$697 $678
$780
500
600
700
800
900
1000
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Spend per Employee
Linear (Spend per Employee)
Desk-top
22.0%
Fleet78.0%
$0.042
$0.043 $0.040$0.038
$0.025
$0.02
$0.03
$0.04
$0.05
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Incurred
Contract
Metrics Gathered For Control And Future ImprovementsMetrics Gathered For Control And Future Improvements
DMAICCustomer Scorecard
Aligning Customer & Internal Goals
Customer Satisfaction
Quality DeliveryPrice/Value
CTQ – Critical to QualityCTD – Critical to DeliveryCTP – Critical to Price/Value
Products
CTP1 – Critical to Process 1
CTP2 – Critical to Process 2
CTP3 – Critical to Process 3
ProcessesOrganization
Goals
DefectsCycle Time Cost
2005 Focus
• Customer-focused Six Sigma training– 60 Green Belt trained: Client Care, Sales and Business
Consultants
– Emphasis on VOC, transactional tools
• Executive bridging– Taking the message to the top
– Speaking in National Forums (Financial & Healthcare)
• “For the Customer” Six Sigma projects– Project work by SR Green/Black Belts to help solve Customer
reduce their costs
– On-site projects to assist customers in maximizing value from SR products/services
– PathForward Consultants utilizing six sigma methodology
Customer Focused Six Sigma Training
Champion(Account Executives)
Green Belt(Account Managers)
Yellow Belt(Sales Associates)
2 Days
6-9 Days
2 Hours
Account Teams Build Six Sigma Capability
• Account managers build executive level credibility and analytical problem solving skills by becoming Green Belts and leading customer focused improvement teams
• Sales managers implement Six Sigma Management discipline in their management processes
• Client service specialists become Green & Black Belts to provide sales with advanced analysis and to drive improvements in service performance.
“For the Customer” Process
• Engage customers in a discovery dialogue
– Develop Customer Scorecards + VOC Surveys
– Identify & define opportunities (win-win)
• Establish collaborative improvement teams to establish baseline measurements & formalized team structure
• Drive analysis, improve project execution, and demonstrate impact on desired results
• Transfer Six Sigma Capability to customer
– Develop control plans and monitoring systems
– Optimize the process
Customer Facing Six Sigma Teams
Utilizing the right teams & tools to drive improvements at our customers
Imp
act
Difficulty/Complexity
Action Work Out
Teams
Kaizen Blitz Teams or
Action Work Out Teams
DMAIC / Lean
Teams
DMAIC/ DMADV
Teams
AVOID
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Business Excellence Briefing:
Six Sigma Project: Six Sigma Project:
Sales VOC to ActionSales VOC to Action
Strategic AccountsStandard Register Company
Sales VOC to Action ProjectDEFINE MEASURE
ANALYZE DESIGN VALIDATE
Problem:
The project objective was to develop a process for which each Strategic Account team could analyze the VOC data, validate critical issues, identify root causes and effectively track progress of each team.
Ultimately by achieving the objective, we will drive more revenue because customers will view us a TRUSTED partner in our efforts to improve our performance in areas they deem important
•No process for using annual VOC data to drive Customer improvements
•Only 20% of Strategic Accounts had action plans for 2004
•SRC Strategic Account teams are not actively engaged with the Voice of the Customer initiative
Customer: Strategic Account Sr. VP
Completed: July 2005
Objective:
•Design is efficient and capable
Project Summary:
Yes
Collect VOC data
Break down VOC data by Strategic
Cusotmer
Analyze VOC data using Gap Analysis
Set Up VOC Customer Meeting
Conduct Customer VOC
Meeting
Validate Critical Issues and
Identify Root Causes w/Customer
Implement Solutions while
informing Customer
Does Customer See Improvement
No
Annotate Customer validated
improvement
Develop Solution(s) for each identified
root cause
The project objective was achieved by:
•establishing a gap analysis tool for VOC data
•establishing a process to validate critical issues
•implementing a schedule to meet with each customer to discuss the VOC data, critical issues, root causes and any other critical issues not identified by VOC data
•standardizing the process for tracking the progress of each account team
PROJECT COMPONENTS
Customer Needs (CTQs):
•Need a process to analysis VOC data•VOC to Action process that does not take away from Account Teams sale time•A tracking process which is easy to manage from leadership perspective•Develop a VOC to Action process that will drive revenue •Increase the Secure Customer Index for Strategic Accounts
Tools Used:
•CTQ Matrix•Kano Analysis•Affinity Diagram•Structure Tree
Macro Flowchart:
House of Quality:
•Whats – Efficient process, analyze VOC data, focus account teams, measurable results and easily tracked process•Hows –Customer follow up meetings, action item templates, gap analysis, validate and identification critical issues and root cause identification
Detailed Design:
•Outcome Indicator (Y) – Detailed Action Plan
•Upstream Indicators (X) – Customer Meeting, VOC “gap” analysis and root cause identification
Pilot Results:
•Tested detailed design on Strategic customer from the financial industry and the results were:
•8 “gap” issues were identified from VOC data•4 out of 8 critical issues were validated by the customer through our customer follow up meeting•Root causes were collected for the 4 critical issues •An additional critical issue was noted (not highlighted during our “gap” analysis)•Account teams integrated the VOC customer meeting with an existing sales meeting•Account team within 2 weeks has developed an action plan to address the root causes•Customer offered feedback on ways to possibly improve the participation in the VOC survey
•The control system is in place and all teams have been trained.
Project Components
Customer: Strategic Account Sr. VP
Completed: July 2005
The project objective was achieved by:
1. Establishing a gap analysis tool for VOC data2. Establishing a process to validate critical issues3. Implementing a schedule to meet with each
customer to discuss: • the VOC data• critical issues• root causes• any other critical issues not identified by VOC
data4. Standardizing the process for tracking the
progress of each account team
Project Summary:
Define
Problem:
The project objective was to develop a Strategic account team VOC process to:
• analyze the VOC data• validate critical issues• identify root causes• effectively track progress of each team.
Ultimately by achieving the objective, we will drive more revenue because customers will view us as a TRUSTED partner in our efforts to improve our performance in areas they deem important
• No structured sales process for using annual VOC data to drive Customer improvements within the sales force
• Only 20% of Strategic Accounts achieved VOC Improvement action plans for 2004
• Need to increase Strategic Account teams participation in the Voice of the Customer initiative (increase understanding and corrective action on customer specific issues)
• No structured process for tracking VOC corrective actions
Objective:
Measure
Customer Needs (CTQs):
• Need a process to analysis VOC data
• VOC to Action process that does not take away from Account Teams sale time
• A tracking process which is easy to manage from leadership perspective
• Develop a VOC to Action process that will drive revenue
• Increase the Secure Customer Index for Strategic Accounts
Tools Used:• CTQ Matrix
• Kano Analysis
• Affinity Diagram
• Structure Tree
Analyze
Yes
Collect VOC data
Break down VOC data by Strategic
Cusotmer
Analyze VOC data using Gap Analysis
Set Up VOC Customer Meeting
Conduct Customer VOC
Meeting
Validate Critical Issues and
Identify Root Causes w/Customer
Implement Solutions while
informing Customer
Does Customer See Improvement
No
Annotate Customer validated
improvement
Develop Solution(s) for each identified
root cause
Macro Flowchart:
House of Quality:
• What(s) – Efficient process, analyze VOC data, focus account teams, measurable results and easily tracked process
• How(s) – Customer follow up meetings, action item templates, gap analysis, validate and identification critical issues and root cause identification
Issue Prioritization
1
2 3
4
5
6
7
8
9
10
11
12
13
14
15
161718
19
2021
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
Percent of Customers Perceiving a Deficiency
Lower
Higher
AttributeImpact
CriticalIssues
CriticalIssues
MaintenanceIssues
MaintenanceIssues
Less CriticalIssues
Less CriticalIssues
SecondaryIssues
SecondaryIssues
Below Average(BETTER Performance)
Above Average(WORSE Performance)
Design
• Design is efficient and capable
Detailed Design:
• Outcome Indicator (Y) – Detailed Action Plan
• Upstream Indicators (X) – Customer Meeting, VOC “gap” analysis and root cause identification
Actual VOC Data
Action Item Tracking/Planning Template
Validate
Pilot Results:
• Tested detailed design on Strategic customer from the financial industry and the results were:
• 8 “gap” issues were identified from VOC data
• 4 out of 8 critical issues were validated by the customer through our customer follow up meeting and root causes were collected for the 4 critical issues
• An additional critical issue was noted (not highlighted during our “gap” analysis)
• Account teams integrated the VOC customer meeting with an existing sales meeting and within 2 weeks developed an action plan to address the root causes
• Customer offered feedback on ways to possibly improve the participation in the VOC survey
• The control system is being completed by using a FMEA and Control Plan.
“VOC to Action” Six Sigma Project
• Summary
– Strategic Accounts needed a process for analyzing the VOC data, validating the critical issues, identifying root causes and implementing solutions without burdening the Strategic Account teams while increasing the Secure Customer Index
– Developed process for “gap” analysis for VOC data
– Instituted customer meetings to explain our VOC purpose, validate “gap” issues (critical issues), identified root causes and identify any “other” performance issues not highlighted during “gap” analysis
– Developed an action item tracking template for each Strategic account team (standardization)
– Developed a process for leadership to track and focus the Strategic account teams on customer important issues
– Each customer meeting has lead to identifying additional business opportunities and improvements to SRC’s conducting of the VOC survey
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Thank You!
www.standardregister.com
© Copyright 2004 Standard Register. All rights reserved.© Copyright 2004 Standard Register. All rights reserved.