Learning to Sense and Respond - the Fujitsu Service Case
1. Learning to Sense and Respond
Stephen Parry.
Former Head of Strategy and Change
Fujitsu Customer Services
Independent Lean Service Strategist and Practitioner.
CASE STUDY MATERIAL AND CONTACT DETAILS
www.stephen-parry.co.uk
Tel: +44 7838 114 997 sgparry@aol.com
New Cranfield School of Management Case Study available.
2. Stephen Parry’s career in service centre operations spans
over 15 years, during which time he has been responsible for
building and operating large scale international call centres in
various sectors; IT Services, Retail Direct-Marketing and
Financial Services.
He has extensive experience in the areas of customer service strategy,
proposition development, organisational development, business process
alignment, technology introduction, change and turnaround management.
Most recent role was Head of European Strategy and Operational
Development for Fujitsu. In 2001 he was awarded both the European Call
Centre of the Year award for Innovation and Creativity, and the European Call
Centre of the Year award for best people development program.
In 2002 he took Fujitsu to the finals of the UK National Business awards for
Customer Focus and they became winners of the 2003 National Business
Awards for the Best Customer Service Strategy.
3. Feasible parts creating an infeasible whole.
Functional units with functional goals and targets
F1 F2 F3 FnF4
Independent
Solutions
Designed to
Meet functional
Targets and
Goals.
S1 S2 S3 SnS4
Customer Throughput process
Its not unusual
to have thirty
or more
solutions lining
up
for the attention
of Senior
Management
How concerned is your customer with internal targets and goals?’
4. Feasible parts creating an infeasible whole.
Functional units with functional goals and targets
F1 F2 F3 FnF4
Independent
Solutions
Designed to
Meet functional
Targets and
Goals.
S1 S2 S3 SnS4
Its not unusual
to have thirty
or more
solutions lining
up
for the attention
of Senior
Management
Improved Customer Experience ?
How concerned is your customer with internal targets and goals?’
5. Mass production legacy
Today, service delivery issues are emergent features of the
Mass production paradigm
Organisations are headed by “Command and Control”,
“Productivity and Profit” based thinkers
Middle managers are tasked with representing their
departments in terms their bosses will understand
Line managers are taught to measure and control their teams
using comparative methods, regardless of the work performed.
“It is not necessary for any one department to know what any other department is
doing.
It is the business of those who plan the entire work to see that all of the departments
are working … towards the same end.” Henry Ford.
• This has had its day…..….
6. Issues.
How do you create cross-functional unity?
How do you measure service from the customers’
perspective?
How do you identify and remove the causes of costs?
How do you innovate new service offerings?
How do you create a differentiated business?
7. Issues.
How do you identify new opportunities with existing
customers?
How do you realise the knowledge potential of your
staff?
How do you identify critical intangible assets?
How do you create customer success?
9. Change initiatives:
(Theory to performance model)
Quality movement, TQM
Fish
Re-engineering
Core-competencies
Outsourcing
Lean Manufacturing and Service
Fifth Discipline
High Performance Teams
People Centred Leadership
Balanced Scorecard
Six-Sigma
CRM
MBWA MBO
Don’t do the ‘wrong-things’ righter!
Without a change in
THINKING
these initiatives become
Management Fads
Theory
Principles
Thinking
Design
Operation
Behaviour
Culture
Performance
Emergentproperties
10. Case Study: Fujitsu.
Consult, Design, Build and Operate IT infrastructures.
165,000 employees in over 65 countries
65,000 people in software and services
12,500 consultants worldwide
Leading in IT services
Asia Pacific #1
Worldwide #3
UK #3
Ranked in top fifty international companies*
* Forbes International 500 2002
Worldwide IT
Services Revenue
$35.0B
$21.5B
$15.6B
$14.0B
Source: McDonald Equity Research – IT Services (15/10/2002)ASK FUJITSU…
Contact us on +44(0) 870 242 7998
Or Visit:www.uk.fujitsu.com
11. Case Study: Endorsement. Massachusetts Institute of
Technology.
‘Through Sense and Respond, Fujitsu has achieved remarkable
mastery in the use of staff and client knowledge to drive continuous
improvement. In particular, they have converted customer
knowledge into powerful drivers of business strategy.’
Dr. Joel Cutcher-Gershenfeld
Senior Research Scientist
Engineering Systems Division and Sloan School of Management, MIT
Co-Author of Knowledge-Driven Work (Oxford University Press, 1998)
12. Case Study: Sense and Respond wins best customer service
strategy.
The judges at the 2003 National Business Awards praised
Fujitsu for demonstrating an entire cultural change
around the needs of its customers and could, as a result
of its customer service strategy, demonstrate business
growth, innovation and success.
13. It’s not about IT, it’s about the flying passenger. Customer
benefits driven by the call centre
“I can’t print”
Ticketing,
Boarding Passes,
Bag Tags.
Flying Passenger impact.
Queues at ticket office.
Queues at check in,
Boarding delays
Missed connections
Customer dissatisfaction
Customer perception of bmi
It’s about making our clients successful.
14. It’s not about IT, it’s about flying aircraft. Customer benefits
driven by the call centre
“I can’t access”
Parts ordering,
Staff allocation system
Finance system.
e-mail system.
Impact on bmi staff.
Aircraft repair delays
Unable to schedule Aircrew
Missed air slots
Head office administration
delays
It’s about real people doing real jobs.
15. It’s not about IT, it’s about creating business value.
‘Fujitsu are enabling bmi to
provide added value to its
flying customers’.
‘Using its sense and respond
approach, in the past two years
Fujitsu has reduced the level of calls
to the bmi help desk by 40%. The
time to fix has also reduced by 70%,
both as a result of increased
knowledge of the customer's
business’
Richard Dawson
CIO bmi
The Purpose:
To keep bmi passengers flying
through the provision of an
effective, efficient IT
infrastructure.
It’s about making clients successful.
16. Case Study: Customer service strategy: Background summary.
Drivers for change.
In 1999, losing business (just meeting contractual obligations).
High staff attrition, losing market share with no differentiator.
Challenge.
To transform the organisation in order to understand and meet
customer needs.
Critical barriers to overcome.
Traditional organisational thinking, silo design, performance
measurement, efficiency fixation.
Targeting the unthinkable. – this was not a quick fix solution.
Transforming organisational performance, thinking, learning
and measurement.
Educating the marketplace to have higher expectations.
17. Choice
Freedom
Power
Performance is a matter of having
which is a matter of
with
the
Role Design
Processes and
Procedures
Performance
Measures
Policy
Technology
The organisation is a hindrance to both
employees and customers.
Matter of Design
Organisational
Transformation
to do.
18. What is Sense & Respond ?
A philosophy
A different management approach
A complete logic
A new set of operating principles
A way of measuring the service from the customers
perspective
It allows operations to take control of operations
It works on People, People, People
Greatest distinction is the use of human intelligence
It is now a core competency in a ‘better way of thinking’
19. Sense and Respond operating principles.
Deliver against customer purpose in every step of the value
chain.
Apply end-to-end measures along the value chain.
Manage the organisation as ‘one system’.
Measure individual performance against customer success.
Measure front-line staff on creating value, managers on
creating capability.
Engage in the relentless elimination of corporate waste.
20. Three important areas for a truly
customer-focussed organisation.
Buildrelationship
ShareKnowledge
Buildrelationship
Captureknowledge
SENSE what matters
to customers
People
1.
People
2.
People
3.
DRIVE the service
Adapt – Evolve – Inform – Innovate
RESPOND
Clients and their
customers
Front-line
staff
Support
organisation
21. Where is the customer value ?
1. 2. 3.
Why the transaction. How we transact. How we innovate.
What matters
to customers.
Business intelligence.
Measuring client
business-impact,
cost and benefits.
Innovate new services.
Develop client account.
End-to-end measurement
of service performance
in terms of:
•Customer success
•Costs
•Revenue
•Type, time, frequency
•Forecasting customer
satisfaction.
VALUE
(Optimise)
OPPORTUNITY
(Innovate)
FAILURE
(Remove)
INSTITUTIONALISED
(Re-think)
Customer environment Front-line staff Support organisation
22. Demand Profile: Which company is being successful?
VALUE
(Optimise)
OPPORTUNITY
(Innovate)
FAILURE
(Remove)
INSTITUTIONALISED
(Re-think)
Company A Company B
Traditional assessments might indicate these two companies perform equally
24. Value Demand data drives the entire organisation.
Consumers
or
Customers
Front-line
Operation
Training
and
HR
Sales
and
Marketing
3rd
Parties
Technology Commercial
1. 2. 3.
Product
Development
Demand ActionDemand Action
Value Optimise
Innovate
Remove
Re-think
Opportunity
Failure
Institutional
25. Sense and Respond transformation starts with understanding the
user context.
Transformation begins at the user interface by
understanding why customers transact and to what
purpose they use your goods and services.
Then identify how end-to-end service provision
creates value for users.
Only when you understand what value looks like
from the customers perspective, can meaningful
action can be taken.
26. 2.
People
Understand how front
line add value.
Measure the business
against what matters
to customers.
Demand Analysis.
1.
People
Gather business
intelligence and build
system map.
Understand what
matters to users and
their customers.
Understand their
environment.
Sense and Respond: What matters to customers?
Business intelligence map is then linked to the service.
3.
People
Develop
organisational
support activities,
technology,
processes, job roles,
training, and people.
27. Sense and Respond: What matters to customers?
Business intelligence map is then linked to the service.
28. Sense and Respond: Putting it all together.
Front-line staff gathering business intelligence.
30. Where do your Customer and People
measures fit in?
Leading-Predictive MeasuresFunctionalEnd-to-End
No Matters to Customers Yes
Resourcing and
ZERO DEFECT SLA
AHT
Calls/Man/Day
Customer
Survey
First Time
Fix
Total Elapsed
Time by demand type
Value SLA
Critical Customer
Success Factors
Av Speed of Answer
Lagging Measures
Sense and
Respond
SLAs are based on
what creates
Value
Todays SLAs are
mostly based on a
Zero Defect
Mentality
31. Transformational approach.
1. 2. 3.
Understand what matters
to customers
Understand how the
organisation responds
Remove organisational waste,
optimise delivery
Develop new customer
opportunities
Learning to
sense
Learning to
respond
Enterprise
Value
Framework
Mobilisation
Leadership
Accreditation
The transformation objective is to align the service to the real
needs of users while optimising the value chain
32. Internal Fujitsu Service. Headcount 2000/2003
End of 1999 = 125 people End of 2003 = 30 people
30
40
50
60
70
80
JulyAugust
Septem
berOctober
Novem
ber
Decem
berJanuaryFebruaryM
arch
April
M
ay
June
Month
Headcount
(FTE)
2000/01
2001/02
2002/03
33. Internal Fujitsu Service. Monthly Costs 2000/2003
80
100
120
140
160
180
200
220
JulyAugust
Septem
berO
ctober
Novem
ber
Decem
berJanuaryFebruary
M
arch
April
M
ay
June
Month
£(000)
2000/01
2001/02
2002/03
34. Internal Fujitsu Service.
Demands (Calls + e-mails) 2000/2003
7,000
10,000
13,000
16,000
19,000
22,000
25,000
JulyAugust
Septem
berO
ctober
Novem
ber
Decem
berJanuaryFebruaryM
arch
April
M
ay
June
Month
Volume
2000/01
2001/02
2002/03
35. Internal Fujitsu Service. Demands per Advisor
2000/2002
350
550
750
950
July
August
Septem
ber
O
ctober
Novem
ber
Decem
ber
January
February
M
arch
April
M
ay
June
Month
Demands
/Advisor
2000/01
2001/02
2002/03
36. Leveraging Value for Business Benefit
1-5%
MC
100% Profit
Opportunities:
Increase Sales
Revenue
Decrease Business
Expense
Reduce Service
Costs
37. Benefit areas: Traditional Helpdesk Solution
Lower transaction costs
Lower Total cost
Decrease in sites and
Headcount
Quicker critical mass
Client
Customers
Client
Users
3rd Party
Support
Support
Functions
Helpdesk
Client Benefit Areas.
Increased Customer
Satisfaction.
Increased Employee
Satisfaction.
Increased Revenue.
Reduced Infrastructure
Costs.
Reduced Business
Costs.
38. Benefit areas: Sense and Respond Management Centre
Client Benefit Areas.
Lower transaction
volume
End-to-end process time
reduction
Increased productivity
Higher skill levels
Client
Customers
Client
Users
3rd Party
Support
Support
Functions
Management
Centre
Increased Customer
Satisfaction.
Increased Employee
Satisfaction.
Increased Revenue.
Reduced Infrastructure
Costs.
Reduced Business
Costs.
Increased user
productivity
Greater technology
utilisation
Appropriate self help
User requirements
identified
Business intelligence
Service alignment
Alignment to customer
purpose
Decrease sites and
headcount
Go to market
propositions
Performance
Management
Best Value
Risk reduction
People
1.
clients and their customers
People
2.
Front-line staff
People
3.
Support organisation
39. Make and
Sell
Organisational Behaviour: Old to New
Sense and
Respond
Measures related to
the customer
Functional management
to systems thinking
From blamestorming to
brainstorming
Management to
leadership
Making the numbers
No freedom to act
Customers come 2nd
Managers tell,
workers do
Crisis management
No communication
Mass production
thinking
Leadership and
Re-education
Open culture
End-to-end
measures
New measures related
to purpose
True customer focus
Deliver what matters
Deliver customer IT
strategy
Leaders and
empowered staff
Mechanistic
Hired hands
Fixed product
Organic
Hired minds
Product innovation
Thinking
Operation
Performance
From panicking ahead to
planning ahead
40. Quotes: From the Industry.
‘What makes these call centres stand head and shoulders above
others is their management method. It's generated an incredibly high
level of commitment and motivation amongst the staff.’
Gary Fisher, Research Fellow. Centre for Economic Performance
Aston Business School
‘The Sense and Respond process has proved itself with very real
benefits, not only to the clients but internally to the people involved,
by way of job satisfaction, and by breaking down inter-department
barriers.’
Alan Hughes, Client Manager. British Standards Institute, Management
Systems
‘In essence, Sense and Respond helps to re-engineer customer
support. Through a disciplined regime of continuous improvement,
benefits have been realised in quality, costs and performance.’
Roger Camrass, Director, Client Business Transformation. Fujitsu Services
41. Quotes: From the Staff.
It [Sense and Respond] provided a total shift in my way of thinking, getting into the
customer’s business and absorbing it. Putting the customer’s needs first, each
time. Getting rid of the waste and concentrating on delivering what matters.
It [Sense and Respond] has allowed me to approach things from a different angle,
look at the facts and disregard opinions and stories.
I now have the courage to stand up and present data and facts to show reality and to
be committed to providing opportunities for others.
I have become much calmer. I can see the impact I can make without all the noise
and drama.
It [Sense and Respond] has given me a much broader perspective and a new focus. I
now see happy customers. I can now see what will make them happy. I am
learning what matters.
I discovered a new way of thinking for myself and about the role I perform and that
using relevant data can assist in changing people’s attitudes.