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The customer-centricity imperative

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The hidden value – Lean in manufacturing and services

École des Ponts ParisTech

4.8 (219 notes) | 8.9K étudiants inscrits

Lean is a powerful methodology that enables managers and employees to shift their mindset and helps companies to keep their business sustainable by creating competitive advantage. Today, in an increasingly complex and dynamic world, where companies struggle to maintain competitive advantage, Lean is more important than ever. This course combines the experience of many senior experts and practitioners from the Boston Consulting Group and École des Ponts, and brings perspectives on Lean in manufacturing and services. It offers strong topic foundation as well as deep practical insights into the art of continuous improvement. In this course, you will learn: - why Lean is a key driver for sustainable competitive advantage - how different companies can leverage Lean to create value both in manufacturing and services - what it takes to drive a Lean transformation and build a culture of continuous improvement - how new technologies impact traditional lean practices

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Compétences que vous apprendrez

Value Stream Mapping, Lean Manufacturing, Lean Thinking, Lean Methods

Avis

4.8 (219 notes)

5 stars
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MB

Oct 17, 2017

All what you need to know full information about LEAN. Direct to the point with real world samples. Recommended !!!

WP

Jul 05, 2019

One of the best courses on Lean. Great material. It helped me to understand how to think from a Lean perspective.

À partir de la leçon

Lean as a new mindset to drive transformation

From predicting better to being better prepared4:55

The customer-centricity imperative7:54

Lean empowers creativity through standardization4:44

Lean looks at constraints as resources4:10

Enseigné par

Aurélie Delemarle, Ph.D
Academic Chair, Industrial Engineering Department
Dr. Thomas Frost
Expert Principal
Salvatore Cali
Expert Principal
Elsa Blume
Senior Learning & Development Specialist

Transcription

Last week, I was expecting a parcel to be shipped to my place.

I received the call, [FOREIGN], here's the shipping company.

Could you please let us know when you would like to receive your parcel?

I said, hello, thanks for

calling, it would be great if you could deliver it this Saturday.

I'm sorry, the person said,

that we deliver only on Monday to Friday, all right, all right, I said, okay.

Please deliver it on Monday at 1 PM, I'll set up my agenda so that I can be at home.

And the answer was, sorry again, we cannot fix the time,

it is going to be on Monday sometime between 9 AM and 6 PM.

Now, how do you think I felt as a customer?

I was upset, I felt a lack of respect to my person, and my job.

I felt frustrated because I couldn't say, you know what, in that case,

you don't need to deliver at all, I'll hire your competitor to do it.

And guess what?

Of course, nobody asked me how satisfied I was with the service.

Now, imagine that you are the operations manager of this same shipping company, and

that your bonus is based on your ability to manage costs.

Which metrics would you set up to manage your team of planners and drivers?

Probably, number of parcels delivered per day,

or number of kilometers traveled per parcel delivered,

or number of parcels delivered on the planned day.

It is obvious that these metrics can be easily optimized

with daily, rather than hourly appointment slots.

Because planners can set up more appointment, and

the driver can organize their part over the entire day.

The point is that these metrics are internal process metrics,

and drive employee-centric behaviors.

While customer metrics such as customer satisfaction, and advocacy index

would drive customer-centric processes, and enjoyable customer journeys.

Let me tell you another story from the time I was working for

a network clinics in Europe.

There was a huge difference of the percentage

of the patient no shows between two hospitals.

In the one hospital, the percentage amounted to 20%, wasting time

of doctors, in the other hospital, the percentage was close to zero.

Our first and

natural reaction was to think that the second hospital was performing better.

However, looking closely, realized that this hospital didn't have a daily agenda.

So, patients were accepted in a first come, first served order.

As a result, some of them waited up to two hours but for

that, doctors were busy the entire day.

That it shows that reality is more complex.

One hospital was efficient but employee-centric,

while the other was inefficient but customer-centric.

As you can see by these two examples,

a customer-centric mindset may appear in tension with efficiency.

And this is true in some extents because

total customer satisfaction leads to bankruptcy.

But adding the customer journey perspective to your operational

value stream promotes innovation, and improves customer retention.

So, what does it mean concretely?

As you remember from previous lessons, the customer journey is the sequence of

interactions between customers and the company.

These interactions are called customer touches.

When you want to insure your car, your customer journey starts

with a search of information about different contract features.

And continue so with the issue of the policy,

the reception of the vignette, and many other touches.

Particularly important are those touches that are moment of truth.

The touches that have a big impact on customer loyalty.

In the case of a car insurance, that could be how an accident is being handled,

how quickly you are reimbursed, and how easily you can prove your rights.

The value stream is the process to create

that value that the companies deliver in customer touches.

So, if we take at the same example, it is the series of

activities to inform the customer about the contract features.

Or the series of activities from the accident to the reimbursement.

As you may guess it is fundamental that the operation design value streams

with the customer journey perspective.

Because if they do so, they generate more transparent,

streamlined, and customer friendly processes.

Let me give you an example about this point.

In an automotive company used to have two different commercial teams for

selling new cars, and trading the used cars.

As a result, they also had the two different websites,

one dedicated to new cars, and other one dedicated to used cars.

The problem was that selling an old car very likely happened

at the same time than buying a new one in the customer journey.

So the fact that the customer had to navigate between the two websites, that

were almost not connected to each other resulted in a bad customer experience.

Lets recap the differences between employee-centric,

and customer-centric mindset.

On the one hand, the employee-centric organization have more silos, and

the processes within those silos

are designed with the little customer interaction.

On the other hand, customer-centric organization have a better

interdepartment cooperation, and they processes are design based

on end-to-end value stream, and customer journey.

Metrics and dashboards in employee-centric organization tend to

measure department performances.

Often, with the stronger focus on productivity,

while the customer-centric organization measure customer-facing

the indicators such as customer waiting time, level of advocacy.

A frequent paradox is to have all department metrics positive,

and customer metrics negative.

The employee-centric mindset is frequent in monopolies like public administration,

or capital-intensive businesses, while the customer-centric mindset

is quite frequent in high competitive markets.

Last but not the least,

employee-centric organization may generate short-term benefits.

But the customer-centric organization usually experiences sustainable growth.

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