Coach Wallet Betty Discount

Experience Excellence World-Class Service

Experience Excellence World-Class Service

U.S. Tourist Service Excellence November 2001

The incentive to continue

This tour has excellent credentials - which has been running annually for many years under the auspices of the Manchester Business School. Sister is a UK tour.

For us, the visit was part of an ongoing professional development program, a sort of MBA experience - visiting world-class companies. Interestingly, and rightly CEO of Federal Express a video I saw said

"The most important thing is to invest in yourself."

It was also an opportunity to spend time with a group of high-level people from diverse backgrounds and understand some of the business challenges they face. traveling companions were the directors and senior executives companies such as Sky, Argos, Legal & General, at the national level, Alliance & Leicester and Bristol Airport.

The Goal

The hypothesis is that the reputation of excellence in service is the result of how companies align their strategic approach, key processes and people effectively delivery of its proposal to the client.

Program Experiences

Elizabethtown Water Monday Stew Leonard

Ritz-Carlton Tuesday Night Visit FedEx Hub

Wednesday FedEx Express

USAA Thursday Nordstrom Sewell Village Cadillac

Friday Southwest Airlines

Make Sense of it all

The concept of "line of sight" through a company's activities has been chosen to analyze both the experience and help to the surface of any alignment gaps can be (see below).

In true marketing fashion to the starting point must be with the client. In narrative terms, however, the flow is better from the context that is important for two reasons. First, to help businesses understand how they got where are today. Second, because the implications for culture and leadership style was likely to experience.

Business model is used instead Strategic Initiative because it has commercial connotations. In short how will these companies money due to Service Excellence ratings? What there were advantages and disadvantages?

Among the business model and the customer, many companies have processes and products made the design so that staff caught between a rock and a hard place, as between that company and its customers - 'Company Push'. How are staff encouraged to behave?

Finally there was evidence of an open and timely dialogue with customers? How did you hear about companies to their customers? What were they doing about it? What evidence that the client states that affect what the company was doing? - "Customer Pull.

Inevitably some visits were more successful than others in providing inputs for the analysis and much information had to be taken at face value. Data quantitative yield was almost universally absent.

The Visitors

Stew Leonard

Format of Visit

• Tour of the store with the introduction of the heads of the sections (cafe, bakery, fish, etc)
• Classroom presentation of the Stew Leonard's daughter
• Noon time
• Location: Yonkers, New York

Context

• Founded 1969
• Graduated from the doorstep milk
• the total investment to finance the first store
• Mom & Pop to the world-class store quoted by Tom Peters
• Three shops of all family now
• great personality of Stew Leonard wrote great across the enterprise
• In the Guinness Book of Records for sales per square foot

Business Model

• Limited range of products - 1000 only items
• Focus on fresh products where margins are typically higher (if the waste is very achieved)
• Concept of time value of life
• No premium for the service open

Processes

• Individual single-aisle way for customers as a guided tour round
• Section heads treated as small business owners to buy and fix prices
• Frequent, immediate and highlighting various internal communications staff performance
• Behind considered logistic

Product variables

• A bulk purchase of the benefits of cost-sharing with customers to generate higher volumes still
• The freshness and perceived value for money reviews
• Rapid (days) of trial and error product development process
• Only recently introduced section of the wine has been very successful
• Disney-style entertainment of a function

Personal Management

• Department heads presented their respective areas with walk-through
• We talked with customers and floor staff - good eye contact

• frontline staff encouraged to offer a scandal (see story)
• Vacation attitude - use of psychometrics to measure - three interviews
• Focus on self support teams, attention to poor performance
• Promote from within
• Written signals recognition of outstanding performance - "a roaring, le '
• Fund the stories that make heroes staff and demonstrate exceptional customer service
• Strive to create an atmosphere of smiles
• Staff had time to visit the competitors but to be followed by an improvement in 72 hours
• Use tours as a source of income but also excited staff

Customer Dialogue

• Upon entering the shop is a "rock of commitment" that says:
  "Article 1-The customer is always right
  "Section 2 - If the customer is always wrong, reread rule
• tangible customer engagement and entertainment; Factory Outlet / Market feel
• Encouraged staff to imagine that the customer is
• As in a theater, the customer is an integral part of the interaction
• consistent product sampling as immediate response
• Instant Refund Policy
• Customer Suggestion Box - responded to all whether it was or not
• Panels Customer Management Team Store
• Customers encouraged to comment on the personal
• Satisfaction Surveys

Commentary

• The "Line of sight" was very clear throughout the store in particular, the behavior of customer-facing staff and the level of immediate and permanent dialogue.
• This experience should be relatively easy to design and deliver, but there is no comparison between the experience sterile robotics and many supermarkets in the UK and the vitality of Stew Leonard's.
• His biggest challenge - to recognize - is scalability.
• There is nothing that needs to be increased in size - "right size" has a number of connotations and can be the size now.
• The show is the velvet glove of a very focused business model, but its people are accustomed and encouraged to make a difference
• Delete "On starting point "approach.
• Had recently introduced a department store wine in Yonkers, which was very well suggesting that the flexibility maybe a corporate against prevailing paternalism.
• There seems to be a virtuous cycle, competitive prices, with the participation of service standards higher volumes and win-win for the distribution of benefits between company and customer.

Some Delegate Comments

Sell to all five senses (sight, smell, hearing, taste, touch)

Summarizes all the learning that is necessary to create a "wow" in any company

Effective staff orientation can result in excellent service, but may slogans have a story "

Stew Leonard's - A history of service excellence

Within five minutes before closing on a Sunday night, a customer told the cashier Betty Mucci, "Just got back from vacation and are so happy you're open. Our refrigerator is empty, and we needed this bread and milk for breakfast and in the future the child's school lunches. When the total rang up $ 37.12, customers panicked and said, 'Oh God, I forgot my wallet. I have no money! '

Betsy just smiled and said: "That's fine, just give me your name and direction. "Betsy wrote the information down, place the empty drawer slide in the record, and said, 'Do not worry, the next Once you're in the store you can pay for their purchases. "The customer asked, 'Do you have the authority to let me leave without paying for all these foods?" Betsy said yes, but the client was not convinced and asked to see the manager.

When the manager appeared and the customer explains the problem, he said, "When it comes to keeping our customers happy, we have very strict rules. Each of us has the authority to use our best view and treat every customer the way We want to be treated our 'self.

Two weeks later, Stew Leonard met a friend at a local restaurant. Stewart approached all excited and said: "Stew is not going to believe this story!" He proceeded to tell his wife how he had been the customer who forgot his wallet, and how he had been telling the story to everyone he met. "But I do not understand," he said, is how you can afford to do so. Are not you afraid to use cash poor trial and lose the money? '

Stew said, "How not afford to do that?" Ninety-nine percent of people in our store at any given time are repeat customers. They're back because the last time satisfied shopping with us. Our attitude is that everyone is honest if occasionally you meet someone who is not, just take it on the chin. But the important point is that 999 of 1,000 customers are honest. We simply refuse to let a dishonest customer to determine how we will treat the other 999.

Source: American Management Review

Elizabethtown Water

Format of Visit

• Talks

Andrew M. Chapman, President -

Derek Stroud, vice president of Customer Relationship Management

Neafy Beth, the Change Project Team Leader

Professor Bruce Hawthorn, external consultant the design process

• Time: 2 hours
• Place: New Jersey Westfield

Context

• The water company seventh largest U.S. with over 500 staff serving over 1 million customers in New Jersey
• In November 2000 became a wholly owned subsidiary of Thames Water
• Regulated monopoly, have to ask the Public Utilities Board to increase rates
• Company historically consisted of three silos different sites on the distribution of water and waste management, engineers and sales
• From current general director appointed in 1997 have gone through major process and organizational change program to deliver a more customer-focused organization.
• Director General also found that customer satisfaction can be a positive differentiator as an acquisition tool responsible municipal management water industry should be deregulated
• Also estimated that fewer complaints lead to happy staff and therefore, the lower staff turnover.
• The implementation of a SAP CCS Customer billing and account management system (the first of its kind in a U.S. utility.)

Model Business

• Formed by the rules
• Pricing model is a more cost
• Historical sanctions if Customer satisfaction criteria are not met

Processes

• IT Strategic Review identified opportunities to bring together the activities of the silos
• Customer Relationship Management is defined as a single point of view of the client operating
• Used throughout the SAP System redefine business processes
• Highlights of the revenue management process, ie meter reading to the receipt of funds

The Product variables

• Responsibility is only to supply water to property line. On the way to property is the responsibility of owner

Personnel Management

• Exemplified by the internal team approach to process re-design - led by very credible member of long serving staff
• Quote "People up to their actions"
• Need to customer representatives the ability to re-solve problems (think improved) and understand the issues related to water quality (chemistry) and pressure (Engineering) - described as getting the team ready to run the new vessel

Customer Dialogue

• There little evidence that customers have had an input in the design process and change management program
• Industry satisfaction measures prescribed a particular customer even though they were trying to redefine them.
• Implicit customer frustration due to the fragmented delivery across silos Historical

Commentary

• A different context Stew Leonard's and visits from other
• The impetus for the change was driven solely by the vision of the CEO - that there were external factors - could be said that the company was ahead of the curve.
• It emerged the conversation the heads of business silos had acted as a brake on the process of refocusing proposal.
• The pace of change accelerated program with the arrival of an executive of Thames Water UK about eighteen months ago
• The orthodox view would be that the processes must be redesigned before applied although one could argue that the approach was appropriate context
• Lack of customer information in the re-design suggests that a provider mentality still prevails and therefore potentially a serious line of sight misalignment.
• Because the form is signed rate increases, provided that the regulator agreement, the customer, of course actually paid for the exchange program.

Some Delegate Comments

The similarities to our current and interesting to see the mechanisms and structures established to manage the change transition

The Change is always difficult, especially when colleagues nozzle only

Place a longtime employee with respect of his teammates with a visionary leader is a recipe for success

Elizabethtown Water

Customer Service Vision

To provide an adequate level of service to every customer that they value, appreciate and choose in an open market.

Customer Mission

To provide value to our customers by providing a safe, adequate and appropriate to the cheaper cost for continuous improvement of our facilities, our work processes and the ability of our employees.

Customer Service Strategy

• Turnover: provide accurate and timely accounts that our customers understand

• Payment: to collect all the money in a timely manner using all reasonable means
• Billing Contact: Any contact with a client must bring added value in terms of money, image or both
• Contacts: provide a level of service that eliminates the need for customers to contact the company more than once and that the value of customers.

Source: Posters meeting

Ritz-Carlton

Format of Visit

• Introducing Stephanie Thomas Training Manager
  Back of House Tour
• Time: Noon
• Location: Buckhead

Context

• Group founded by Horst Schulze 1983
• Based on the legendary Ritz Carlton in Boston, which revolutionized hotels in the United States by creating a luxury environment
• Now 40 hotels worldwide, 22,000 men and women
• Winner of Malcolm Baldrige National Quality Award .. First, and organize host only to win, for the first time in 1992 and again in 1999
• Only three hotels owned by the company - owned by independent break but use of systems and processes Ritz Carlton
• In 1995, Marriott International purchased 49% interest. Three years later increased to 99%.

Business Model

• Superior environment and the psychology of comfort a critical part of the experience - the mystique of the Ritz Carlton
• Niche market is basically corporate business travelers
• Premium
• Occupancy and revenue per room (RevPAR) key metrics

Processes

• Set of core values collectively called The Gold Standards: The Creed, the three steps of service, motto, and the Twenty Basics captured in the pocket card in the hands of all staff
• Departmental Journal "alignments" participation of all employees, including senior executives involved in one of the 20 fundamentals of each day.
• Using project teams to review continuously key processes and also the solution of problems of self-directed work teams
• Computerised record guest preferences (a observation often) - Personal Preference complete personal notes
• Room Incident Action Forms
• Much attention is the psychological attributes of comfort - the furniture, the quality of the robes, towels and bedding etc.
• Backstage photos of table designs, areas in the room with dust and repeat cycles are on display - this helps the ethnic diversity of staff

Product Variables

• Quality Hotels
• Club Lounge, Room Service, Casual restaurant, Food Facilities, Recreation / Fitness

• Luxury residential condominiums located in the Ritz-Carlton hotels and resorts.
• The Ritz-Carlton Instituteopen learning to executives from other companies who want to learn and adapt the principles of service and leadership to their own organizations.

Management Personal

• Slogan "We are ladies and gentlemen serving ladies and gentlemen
• Intensive orientation for new employees - 2 days to guide and select, review, 21 days, 30 days Certification Program
• As psychometrics covering empathy, care, accuracy, professionalism, complimentary and positive
• Encouraged staff to take ownership of problems - $ 2000 for "recovery" option evaluation
• Claims script "I apologize" - trying to make the problem really small - move the client out of public areas
• Recognition - 'Five Star Employee of the Quarter "

Customer Dialogue

• By observing
• Satisfaction surveys
• JD Powers rating

Commentary

• Ritz-Carlton is an operation high quality. Was the tangible atmosphere in the hotel? - Yes the quality was evident in the Club Lounge and bedroom? - Yes Was the high palpable service people? - No uniform.
• Ritz Carlton is a process dominated, in principle, just as McDonald's - another franchise operation. The scope of application is, of course, broader.
• Inevitably, the franchise must be rules based on time and much effort and will incorporate these into workers - despite what has been called a cult from time to time.
• While higher price for the service, they still face the challenges of occupation as all hotels for heads in beds. It is unclear whether their model is more resistant or how they have fared after 11 September.
• Behind the scenes there was no evidence of rhetoric break - Ladies and gentlemen referred to as "employees" in the notes, for example. Staff offices were very close - not a case of treating their employees and treat your customers.
• There was some evidence of staff trying to bring spontaneity in daily routines prescribed.
• Understanding customer preferences and invading your privacy is a fine line that hotels are careful not to cross.
• About paper, using a 80/20 basis of the alignment was strong. However, it is not clear how open the dialogue with customers and how to report improved Ritz Carlton processes that take place.
• It was also unclear what criteria would trigger that employees use their personal criteria of $ 2000.

Some Delegate Comments

"All that glitters is gold." It is easy to present a veneer, but very difficult to integrate performance values in some environments

Reinforcement through "over the top program of communication works well

A simple message to staff in relation to the "values" can cover an entire culture and consequent behavior

Ritz Carlton

Vision 7 years

• To be the premier worldwide, a provider of luxury travel products and Hospitality Industry and Services

2 Year Mission

• Product and profit dominance

Vital Few goals

• Improving Employee Pride and Joy
• Improve customer loyalty
• Reduce customer problems
• Enlarge REVPAR
• Improve the profitability of hotel

Method

• TQM - Application of Quality Science
• Baldridge Quality Award Criteria

Foundation

• Values and Philosophy
• Gold Standards
• Creed
• Slogan
• The three steps of service
  - A warm and sincere congratulations. Use the guest name, as long as possible
  - Anticipation and compliance needs with guest
  - Fond farewell. Give them a warm farewell and the use of their names, provided and when possible.
• Basics

The Employee Promise

• The Ritz-Carlton, our Ladies and Gentlemen are the most important resource in our service commitment to our guests.
• By applying the principles of trust, honesty, respect, integrity and commitment, discipline and talent to maximize the benefit of every individual and business.
• The Ritz-Carlton fosters a work environment where diversity is valued, quality of life is higher, individual aspirations are fulfilled, and the Ritz-Carlton mystique is strengthened.

Ritz-Carlton - An excellent service history

Enrique, a bell hop, he realized that a woman customer had trouble closing the case - tried to help but in fact the catch is broken and there was no way to secure the bag. The guest was due to leave shortly and there was no time to go to the mall to buy a replacement. Shortly after that Henry was out of service but remains concerned about the guest. He went home, took a suitcase he had recently bought a holiday of your closet and returned immediately to the hotel to give the guest.

Source: Presentation Ritz Carlton

Federal Express

Format of Visit

• In the evening visit to Memphis SuperHub
• Half-day workshop
• Speakers:
  Myron Archery: Corporate Communications Manager
  Kathy Bergeson: Quality Process Manager
• Location: Peabody Memphis Hotel

Context

• Founded in 1971 at the age of 27 W by Fred Smith, former U.S. Marines who traveled Corp 230 combat missions in Vietnam and based on a paper on the logistics he wrote as a student at Yale University (marked C)
• Quote from Fred Smith Company history and Fedex is a virtual case study in how American business should work '
• Created the modern air / ground express industry; invented delivery overnight packages: first to offer online shipment tracking
• Pioneer center and spoke approach
• 1983 first company U.S. to reach revenues of $ 1bn without merger or acquisition
• 1990 First Service Baldridge award winning company
• 215K employees worldwide Worldwide, more than 600 aircraft
• Currently shipping on 1998 levels

Business Model

• Philosophy "Take care of your people. In turn, deliver the outstanding service our customers demand we reward you with the returns needed to ensure our Future
• Have been redefined from airplane packages Information Technology Company
• Have a number of companies within the group 'operate independently, compete collectively
• FedEx 2001 Annual Report quotes' Just keep focused on a single business model - to operate each company independently, focused on the specific needs of each customer segment, but also to compete together capitalizing on our greatest strength, the power of the FedEx brand and information technology. "

Processes

• See the following model
• 1990 Baldrige Award, but now ISO reference driver
• Activity of a mixture of low-skilled highly skilled labor (making the bar code on the packages is facing up to the readers) and highly automated (bar code classification)
• International scanning package of 11 times that provides data for monitoring and tracking system
• Very strong focus on "scientific" process analysis problem
• Use the actual numbers of defects% s' because even one is too
• Heavy investment in FedEx TV as a means of internal communication
• Have a high level analysis and review weekly (WAR) Committee
• 98% response to the annual survey Employees - the results published in a matter of hour time limit
• 12 meteorologists use to help with the routing of flights

Product Variables

• FedEx Express: time-definite global express package and freight delivery
• FedEx Ground: ground small package services including home delivery
• FedEx Freight: regional freight deliveries less than truckload
• FedEx Custom Critical urgent door to door exclusive
• FedEx Trade Networks: Office of customs and trade facilitation systems
• Recently invested in the presence of U.S. ground like losing UPS
• Recently won the U.S. Postal Services from airport to airport contract

Personnel Management

• Hub has 60% of staff t /
• Focus on experience (85%) instead of training face (15%)
• Recently retired "in situ" reward system (Bravo Zulu - a term the U.S. Navy for 'Well Done ') and belt-tightening move
• Ascending evaluation process outputs a large company Leadership Index has improved year year since the start
• SQIs used as a basis for bonuses at all levels.

Customer Dialogue

• No single customer view and value
• Your Service Quality Index is weighted and varies from year to year depending on what customers think it is important
• Have used television advertising extensively demonstrating a sense of humor participation

Commentary

• The visit of the cube is a classic example of what the tour is about. An intellectual understanding of what was happening was not the preparation of energy rough rock cacophony of noise and pure hard metal facing us.
• Fedex is a giant operation and what they were seeing was only the tip of the iceberg the process. The service chain includes door to door collection and delivery of packages on arrival.
• As a sportsman class is apparently professionalism effortlessly - there was also a sense of the speed of hand to fool the eye!
• In terms of alignment it was interesting that FedEx says they have no vision only consists of a customer relationship despite their SQI form factors measured by clients was a particular point.
• The withdrawal of the Bravo Zulu - on the incentive system of land - was contentious. It appears as a much-needed opportunity to tidy up the system, but there was a feeling which could be interpreted negatively by staff. Excellent service should be rewarded at all times.
• It is also suspected that may have been used to get around a flexible remuneration system.

Some Delegate Comments

How to change a transport company to a provider of intelligent services

Good effective process management is possible. The operation was very impressive

The operation is more important than staff (process in front of people)

Night Visit to Memphis SuperHub

Enter the center was like going to a football match. At 10 pm there were long lines snaking behind checkpoints. On any given night over 8,000 people could be of service. It was a wet and windy night, and since many employees work in the open loading and unloading the planes that were involved such as Michelin men (and women of course).

From the observation tower we could see the planes lined up to land. - 85 per hour. On landing, the aircraft was moved to quickly and efficiently to their berths, where within minutes the doors opened and the specially designed containers - that mimic the shape of the airplane-load. We were told that planes could be emptied in 17 minutes. Container trains pulled by small tractors - or tug as they are called "gracefully left the congestion of - On this night of heavy rain and persistent.

Here the letters, parcels and packets transmitted along the conveyor belts to be divided among the teams Workers whose role is to convert the packages in a vertical position so that the scanning system could make the automatic. Plots then track along a series of conveyor belts that computer-controlled weapons sent to the distribution point on the right. Besides the classes would be separated express priority packages and destinations close by cities and even suburbs of large cities. Shortly after the planes were unloaded, the screens across the complex show projected at the time the class is full.

Disaggregated and re-packaged as it were, the packages were reloaded containers and again in the planes then left. Memphis may be treated with up to two million shipments (overnight - 30% of total volume in the FedEx system.

As the shaft rotates, the small teams of men were awaiting maintenance, such as rapid response units in case of sparking machinery. Indeed such contingency planning is that the spare aircraft in the air in case of mechanical difficulties.

FedEx - A history of service excellence

The call of a large medical laboratory in Phoenix was urgent. Shipments of amniotic fluid from two high-risk pregnancies had failed arrive for the test. If you do not come soon, the mothers who have to endure the difficult procedure again. Senior customer service representative Brenda got on the phone Currey and found the items in a truck near Dallas. With the help of FedEx operations staff, she had stopped the truck and 20,000 pounds of cargo for discharge recover the two samples. "Make Phoenix and I'll take care of them," said manager Dallas ramp Currey. She met the flight carrying shipments at 11 pm, stored in the refrigerator as shown in the laboratory, and personally delivered the next day. "Why did you do this?" Asked the technical laboratory. "We need to do," said Currey. "And I was there." Three days later the lab called to check Currey their efforts had been worthwhile. Samples should only be fine. (Brenda Currey has been with FedEx since 1985.)

Source: "How time flies - Fedex offers the 21 st Century

USAA

Format of Visit

• Half day visit
• Speakers:
  Donna Wildey Manage planning
• Joe Bruha VP Brand Management
• Customer Beverly McClure Relationship Management NE Region

• Location: San Antonio Corporate Headquarters

Context

• Founded by William Garrison Army Staff in 1922
• USAA (United Services Automobile Association) serves current and former members of the U.S. military and their families
• A leading U.S. insurance and financial services companies, 4.7 million customers, 23,500 employees, assets $ 62.4bn
• President and CEO of the most decorated combat veteran to lead USAA. Chairman of the Board withdrew from the U.S. Air Force general and former vice president of four Stars president of the U.S. Joint Chiefs
• Essentially a straightforward operation with most business done by phone, mail and web web
• Slogan "We know what it means to serve"
• E-biggest U.S. company and the third largest in the world

Business Model

• The association's mission is to facilitate the financial security of its members, associates and their families by providing a full range of financial products and services highly competitive, in so doing, USAA seeks to be the supplier of choice for the military community.
• Has expanded the target market definition to include soldiers, but still remained within the military affinity

Processes

• Use Balanced Scorecard
  Market Performance 35% The financial performance of 35%
  Projects 20% Making Mission 10%
• Performance within the market lost members = 50% of score
• View details of key result areas below
• Key service principles
  - Trust and reliability - Simplify the process
  - Multiple Access - Guest Reviews
• Try to what they call the "Wizard of Oz effect" that is, the illusion of simplicity
• The evidence that the planning process is used for drilling for understanding within the company

Product variables

• Wide range of insurance and financial products including: property and casualty insurance, life insurance and health, annuities, mutual funds, discount brokerage, credit cards, banking, services Travel and Services Alliance
• They had a wheel diagram adds six business divisions, ten major life events and products ten to 600 potential segments.

Personnel Management

• Should a / the largest employer in San Antonio
• The highly personalized workspaces with heavy use of the American flag, military memorabilia in public spaces

• Head offices San Antonio has three fitness centers, health centers and cafes offering food to take home.
• There is also a sophisticated system to interact with staff and have never had to lay off staff.
• One third of employees have university education sponsored by USAA.
• Have a transition Workforce Team workers are integrated for 12 months if the job disappears through re-structuring, etc.
• Managers have their own restaurant and bathrooms - shades of the officers and soldiers

Customer Dialogue

• No real-time single view of IT snapshots of customers, but newspapers gave it a rating of 5.10 on the current capacity
• Realign products and support areas customer-focused centers of excellence
• Customer number doubles every 10 years
• Minimalist marks and advertising - rely on word of mouth point close military communities
• 98% claim 'loyalty', 4.97 per household products, less than 2% turnover
• Have only recently introduced rules for direct mail volumes - two pieces per member per month
• seen as key marketing tasks
  Withholding - - Prospecting - Brand Management - Life Event Management - Product Design and Delivery of Brand Management
• Extensive feedback circuits customer based on their place with formalized processes of research, a key retention
• One of his secrets is 140 personal characteristics that have maintain the reputation of each client about

Commentary

• USAA affinity have monopolized the market pending the U.S. military. Its focus on family and community is reflected in how customer value and loyalty of staff.
• While there has broadened its definition of segment, for example, to include men in the list, and have a rich heritage, there must be a suspicion that he might be heading towards a dead end because of an aging customer base and lower numbers of conscription in general.
• His tone can be characterized as a euphemism for quiet - no doubt the brand is low in personality.
• Many of their practices and processes currently seem familiar and direct approach to advertising is dated. Clearly it was not possible to compare prices, but this along with the range of products and features should be a fundamental part of its bid.
• It was interesting that despite the strength of the brand in the target market that there was no evidence of stretch mark beyond financial services.

Some Delegate Comments

Niche markets are wonderful things, especially if there is a emotional tug

Customer loyalty confidence and attract higher profits

Understand your target market

USAA - Key Result Areas

Service Objectives

• Confidence and reliability
• Simplify processes
• Customer access and delivery
• High levels of persistent
• Assess trends in loss of limbs
• Use member feedback to improve processes and services
• Community Outreach
• Legislative and regulatory flexibility
• Industry Affairs
• The justice reform
• Public education
• Educational outreach
• Loss of control
• The synergy between the business lines
• Expand the breadth and depth of the list of members
• Cultivating member feedback
• Educate members
• Strengthen community affinity
• Build strategic alliances
• Promote customized solutions
• Sufficient net worth and liquidity
• Strongest possible rating
• Maintain capital adequacy
• USAA optimize portfolio
• Migration losses
• Improving our operations on the environment
• Implement efficient business practices and solutions
• Quality of financial products
• coordinated packages of products
• Measurement information
• Increase the penetration of core markets

Outreach Objectives Public

Relationship Building Goals

Force Financial Goals

Value Product Objectives

Objectives Support Mission

• Facilitate response value, added services response
• Promoting productivity, health, safety and welfare USAA employees
• Providing high quality facilities and services
• Diverse, flexible, motivated workforce, multi-purpose
• Encourage high ethical standards
• value the diversity of employees as the value of diversity of members
• Growing feedback Employee
• Educate employees about the products and issues USAA
• Encourage the development of auto workers
• Integrate information technology architecture
• Develop and manage common information technology systems
• Improving infrastructure data

Strategic Assets - People

Strategic assets - Technology

Source: CD-ROM "Take a trip USAA quality "12/98

Nordstrom

Format of Visit

• 1 hour lunch Length of visit
• Presenter: Cindy Mahan Store General Manager
• Location: Dallas Store

Context

• In 1901, John W. Nordstrom - who emigrated from Sweden age 16 used $ 5000 of their participation in the Alaska gold rush to open a small shoe store in Seattle, Washington
• Shop later became the children and grandchildren and Nordstrom is still family owned
• Expanded shoes in 1960 and is now one of retailers in the nation's leading fashion, with 132 stores in 25 states

Business Model

• management family, values and accessibility
• entrepreneurial approach to personal income largely commission based on sales - have own business
• Successful salespeople can earn more than senior management team
• The sales staff build and manage customers' own portfolios

Processes

• Examined the underlying logistic

Product variables

• The perception of a special price created by the environment and the higher price environment but not by itself
• We aspire to be never out of stock of any size one of the shoes is an accommodation with exceptional widths and lengths
• Important environment - wide aisles and lower shelves so you can see the length of floor

Personnel Management

• employee handbook is a double sided card with one message "Use his good sense in all situations, "see below
• Look at people 'nice' recruiting
• frequent performance recognition ceremonies and celebrations

Customer Dialogue

• Quality and frequency essentially in the hands of sales people who handle strategy with your own contact and thank you notes, etc.

Commentary

• We had the opportunity to see their corporate video tracing the history of the company and a brief chat with the manager of the store in Dallas - a lady who had been a buyer with them.
• A staff member (see article below) are raised 1.5 million dollars in sales a year and earn more than the store manager.
• confirmed later purchases appeal of the environment and the environment compared with other major U.S. retailers
• The staff was friendly and helpful particularly appropriate for launch the sales process. The prices were comparable with other major retailers in the Mall.

Some Delegate Comments

Natural confidence that comes from the empowerment

The pride in their work is noticed and appreciated by its customers (and rewarded for their company)

Empowerment of key staff works for the baseline (regardless of condition) - asking people to do what is good

WELCOME TO NORDSTROM

We are happy to have that withour Company.

Our goal is to provide exceptional customer service

Set your personal and professional goals high.

We have great confidence in their ability to achieve them.

Nordstrom Regulation

Rule # 1: Use common sense in all situations

There will be no additional rules.

Please feel free to ask

The department manager, store manager or division general manager, any concerns

anytime

Nordstrom

Nordstrom Stories of Service Excellence

• Nordstrom is famous for the refund policy. The archetypal story said Tom Peters is a customer who returns two tires to a shop for the customer was given the money. Nordstrom does not sell tires, but apparently had a garage on the site before Nordstrom arrived.
• A male customer arrived with a bag of about fifty pairs of socks in the Dallas store. Emptied OTC socks and requested a refund on the basis that they were uncomfortable. The seller - relatively new - started saying they would have to see the income and Then a senior colleague took over. A full refund will be processed and learned that the socks had not been installed correctly. An environment that they found and the next day the customer came to buy 1,000 dollars worth of shirts. The seller of high-level question grossing $ 1.5 million in sales!
• The Store Manager Dallas was having a difficult time in a piece of jewelry worth $ 10000. The circumstances were not made in the store manager, but decided to personally ring Nordstrom family member responsible for this product line. "You know, 'he said," we knew this was an area products difficult to find in what was our decision not yours. You do what you feel is right for this client and you will have my support. "The cost of the jewelry was returned.

Source: Dallas Store Manager

Sewell Village Cadillac ( www.sewell.com )

Format of Visit

• 2 hour visit to two showrooms
• Guide: Besio chip sales and Director of Marketing
• Location: Dallas

Context

• When Carl Sewell joined his father's car dealership in 1967 he set out to do better in the world.
• Thirty years later, the company has grown turnover of U.S. $ 10 million to $ 500 million
• At four locations in Dallas, Fort Worth, San Antonio and New Orleans
• Co-wrote the book "Customer for Life"

Business Model

• Exponent of the value of life time
• Mission: We will provide the best vehicle sales and service experience for our customers. We will do in a way that promotes continuous improvement of our people and our company. We will be a high performance organization, really professional and neat in everything we do.
• The first to recognize that the purchase of car (minor) part of the potential revenue stream - Review of the part, and the second significant part car sales

Processes

• This is engineering integrated total customer experience that each employee contributes
• Have computer terminal in the garage so when a car mechanic falls can enter to see where the next job is to minimize downtime and therefore
• German parties automated storage system
• McDonalds tiles guy on the ground - justified by business case
• Clients are left with the director of service / equipment

Product variables

• Cadillac, Hummer, Lexus, Saab, GMC, Chevrolet, Pontiac Oldsmobile, Infiniti
• Use the physical signs that indicate the quality and care - leather couches, private working areas for customers, candles and flowers, tile shop floors, chrome
• It is worth bearing line cut grass more often than companies would

Personal Management

• psychologist used to select same personnel over the past 25 years - then the workers are asking candidates to eat as part of the selection process - if staff do not want to spend time with The applicant then customers probably will not either.
• service personnel are self - correcting faulty work on the technical Leisure

Customer Dialogue

• after purchase / service surveys
• Mystery shopping

Commentary

• It is often said that "retail is detail and this is an impressive example of the" line of sight "factors have been designed to create a total customer experience memorable.
• It also highlights once again the product key role in the overall experience and benefits tangibility added missing in most contexts services.
• In the Dallas suburb that is Sewell, who has three showrooms substantial and workshops within say 500 yards - a saturation strategy.

Some Delegate Comments

Need for further innovation. Differentiation is always key. Understand the nuances of your market

Environment is important - it helps to attract good staff and encourages as

Engineer of the total benefits package to offer a superior customer experience.

The Ten Commandments Customer Service

1. Bring Em Back Alive

Ask customers what they want and give it to them again and again

2. Systems, not smiles

Say "please and thank you guarantee that you will not get the job done right the first Once, at all times. Only systems that ensure that.

3. Underpromise, overdeliver

Customers expect you keep your word. Above it.

4. When the customer asks, the answer is always yes

Period.

5. Fire inspectors and customer relations departments

Every employee who deals with customers must have the authority to handle complaints.

6. No complaints? Something is wrong

Encourage your customers to say what 're doing it wrong

7. Measure all

Baseball teams do. Basketball teams do it. You should also

8. Wages are unfair

Pay people as partners

9. Her mother was right

Show respect for people. Be polite. Work.

10. The Japanese

Learn how the best really do, their systems of their own. Then, get better.

WARNING: These ten rules are not worth a damn ... .. unless they make a profit. You have to earn money to stay in business and provide good service.

Source: "Customers for Life" by Carl Sewell and Paul B. Brown

Cadillac Village Sewells

Beliefs and Values

1. We will be at the top when compared to standards business and adequate performance in every function, every department in every performance.
2. We will pursue quality and profitability in order to stay in business and provide jobs for our people.
3. The development of our people is essential to our growth and future success. We will provide training and education to promote long-term employment and professional advancement of all our associates.
4. We will win and win back the goodwill of trust and confidence of our customers and colleagues every day.
5. Our suppliers are important to our success. We will establish long term relationships with suppliers whose values and quality are consistent with ours.
6. The highest ethical standards guide everything we do.
7. We strive to constantly improve and innovation in everything we do.

Sewell Village Cadillac - History of Service Excellence

Some of our clients are more grateful people who have gone to buy a Jaguar, Mercedes or BMW and experienced customer service distributors offer.

I have a great memory to pick the president of a company here in Dallas who was in the waiting Mercedes dealership a taxi to take him to work. I had to call a taxi because he could not get a ride from anyone in the Mercedes dealership. I was driving down the street, and I saw him waiting there, so I picked it up and took him to his office. Along the way, shook his head and said: Do not know why I left. "Twp years Later, when it came to trade in their Mercedes, which are negotiated with us and bought a Cadillac. He said the Mercedes was a good car but not worth the hassle of getting it serviced.

Source: "Customers for Life Carl Sewell and Paul B. Brown

Southwest Airlines

Format of Visit

• Day visit
• Presenters: Pat Jansen
  Career Coach Brian Allen
• Location Southwest Airlines University of Dallas People

Context

• Non-profit for 28 consecutive years
• No layoffs announced before or after 09/11, stock prices fell only 24.1% v 43.2% United
• A few days after September 11 had transferred the benefit of the Fund staff share a trust account for the funds would be there to distribute
• Facing years of legal battles and obstruction of established players and vested interests
• Has a history of moving quickly if a new business expansion opportunity presents for example the failure of a competitor, the availability of the gate at an airport convenient - the scenario-based planning
• Stock symbol Exchange is LUV
• Marketed as the LUV airline
• 33,000 employees, 84% unionized
• Strongly associated with personality Herb Kelleher, who is frequently quoted about the company - which once resolved a significant legal dispute by arm wrestling - and lost!
• Described by Tom Peters "Greatest Show on Earth Air Transport", as

Business Model

• Low cost domestic airlines
  - Fly only from 737 to 15 minutes programmed to turn round without reservation fee - no meals
  - The reusable plastic boarding passes-no center - one city to another only - firstly the use of two levels peak and peak prices
  - The use of not less than the city international airport
• Improved niche for short trips daily flights cheap 10.5 industry average of 8.0 out the door v; plane flying 11.5 hours per day typical industry average of 8.6 v
• Each station operates as an independent business unit

Processes

• Percentage "on time" arrivals is displayed on a live computer screens all

Product variables

• Frankly University looks like a nursery. The walls are unfinished. It is decorated with murals representing the cities and places in the U.S. - Are proud of what little money they spent and the symbol unfinished nature of minds are always under construction
• Has a program of "Games of the door" when flights are delayed

Personnel Management

• Talk about the E 4 - Employment, Training, Environment and enjoyment. Encourage staff to ask for forgiveness no permission. Promote okay to be "Younique"
• Staff encouraged to own "their share of business
• Look for Spirits Warrior (see below)
• Career coaches are and Culture Committees
• Put your staff before your customers - the customer is not always reason
• The family spirit is sustained by the environment as the spontaneity and frequent personal events - pizza parties, barbecues, etc.
• Casual clothing is a fact - not limited to specific day

Customer Dialogue

• Suggestion Box N - challenge managers to interact with staff and staff with customers
• JD Powers scores strong

Commentary

• At any point of view was an extraordinary experience - a business model applied rigor that has been copied many times, but not replicate its total success;
• They have always stuck to the knitting and has not been absorbed by other areas of value destruction;
• Emotion, passion and fun are used as active strategic. The family card is played with great force. Public will make their staff before your customers.

• It is often noted that people park their brains when they come to work, but personality is also important;

• Succession in a company where there has been a dominant personality is always a challenge. The sense is that the culture is so well established is going to live anyway;
• Soutwest just another face challenge is the current economic climate - the culture would not be hurt if the company had to lay off staff? Once again we could be sure that historically given the rigor have faced that could earn through this too.

Some Delegate Comments

The most powerful force for excellence in service is its people and how you try and bring

The importance of holding the attitude of life and values to create a truly innovative

Culture is at the heart of organizational success - Which is at least as important as the process

You are the spirit of Southwest Airlines

S ervice - are positively scandalous

roductivity P - always give your personal best

I ndividuality - you can make a difference positive

R esponsibility - hold yourself accountable first

I magination - create a little fun at work

T eamwork - together we can achieve great things

Southwest Airlines History Service Excellence

In midsummer, a young man boarded a flight in shorts and shirt. He took his seat, but as the plane taxied away from the base - and against of Civil Aviation rules - quickly ran to the bathroom. The flight attendant knocked on the door and protested with him to return to his seat. When timidly opened the door asked what was the problem - too much beer suspect. Embarrassed and red in the face, admitted, "My balls are on fire!" "Sorry" she said. Was repeated and explained that someone had left some dried jalapeno peppers in your seat and they have made their way into his shorts. The wizard flight, removing the need to laugh, took over and immediately bought the necessary first aid - a towel, a bag of ice and a blanket.

Source: Presentation

The British are coming

The day we arrived in the southwest of the University was the day George Harrison died, the meeting started with one of their songs being played in the Hi-Fi system. As representatives of the United Kingdom who were given the presentation of the teams of condolence.

The same day was the graduation of some 200 cabin crew. That was down from 90,000 applicants first phase and 200,000 in general.

They had been in training for five weeks without pay and (this was the end of November) would not get their first payment until early January. They invited us to down - with the singing of the Brits are coming - and meet them - and what was an experience! Ten minutes 'Hello' became an hour exchange long cultural.

The excitement of the energy, enthusiasm and positive in the room was palpable. Reserved for us British people was a bit of a program Oprah Winfrey in her office. We were paraded in front and heard as a personal tribute to Southwest Airlines family, and community spirit for young and old wine, color and black and male and female. Individuals stood up and personally told why they were proud to be part of the family of the Southwest with accompanying cheers, whistling and clapping.

Such was the nature of infectious enthusiasm that we have responded by making a tour of 'high-fiving the chamber as many people as we could.

Personal story telling and spiritual commitment seems to be a feature of the company. It happened again when we sit with team training as a recruit relatively new recounted how he had been fired from their last three jobs and had been expecting the same again due to difficulties in the airline industry as a whole. So far, the SWA has dismissed any employee.

In summary the findings

A quantitative assessment in order to rank the company was considered. However, taking into account the different formats visits, data collection has been uneven and this approach was therefore discounted.

Dealing then with the line of sight 'components turn:

Context

• An important part of context is the concept of the American dream and a society of equal opportunities. Many companies in this player, with its repeated 'rags to riches "story dynastic corporate endless stories, Mark Twain type of aphorisms, and a focus on friends, family and community. In the context of UK companies, which are also relatively young.
• The tour took place in the U.S. economy was in a recession and after 11 September. There was evidence that companies are tightening their belts and trading conditions were more difficult. To many, the welfare of their company was under threat.

Business Models

• Business models were always well-defined niches ranging from the widespread "mom and pop" store Stew Leonard's with the low cost model of Southwest Airlines.
• In all where its origins were in a definition of innovation markets were in, customers are served and how they chose to deliver his proposal.
• In some cases, these models appeared to be tiring and strategic renewal was becoming a necessity. There was a sense, too, that some of the risk models increasingly tired, although no concrete evidence of consumer reaction so far.
• Well connected and shared values are an explicit part business models. These leaders embodied and placed great emphasis on eliminating the perception and actual deficiencies among the leadership, ownership and management. In many cases, this meant that the levels of the resulting model with an entrepreneurial spirit and high personal involvement of staff to think and act like owners.
• While Service Excellence is a unifying goal for the companies visited, this was not a blank check and investment had to be justified by corporate earnings.

Key Processes

• In most cases the stories told by the companies we visited were similar to case studies well rehearsed. Its wide operating models were well established company and in the time available it was difficult to find the gaps.
• Exposure Baldridge and other systems for measuring quality management has made the process very scientific and detailed, but in a way that is very accessible and understandable to most staff. As a result, participating actively in the process redesign and continuous improvement of its own and deliver the results.
• The processes are fundamental because in the same ways that foster alignment can also engineer misalignment and higher operating costs. Switching of the companies made a point of reverse engineering understanding of customer needs in the organization (as shown in the Pull Customer feedback "loops in the previous "Line of sight" diagram) - and keeping it simple.
• One tends to think of processes that have a connotation of manufacture or production. However, many of the tools used by companies in personnel management, such as internal communications was as rigorously structured and focused.

Product variables

• functional value and competitiveness of commodities remain a key element.
• No evidence of premium pricing in general - although this may have varied from individual product lines - (apart from Ritz Carlton) benefits services or the environment.
• In a given volume, usually the margin to be negotiated depending on the volume to share the benefits with customers and provide increased incremental revenue.

Personnel Management

• Most companies have developed their own psychometric recruitment models with a focus on good personal qualities and positive attitude rather than academic skills.
• Programs were training a lot to do with the culture and ethos as technical skills. There were frequent opportunities to reinforce personal and cultural adjustment.
• There a strong emphasis on personal responsibility reinforced by family, team and community values. Employees are encouraged about their feelings.

• business models prevailed and was reflected in the process of measurement and reward - "Go big or go home!".

• Promotion from inside is a regular occurrence, companies have worked hard to become an employer of choice.

• Staff are encouraged to bring their personalities individual work and see things through the eyes of the customer.
• Fun and excitement are seen as strategic assets in the delivery of WOW facto

About the Author

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