Process and Performance Improvement

Process and Performance Improvement

The Issue - Competition!

In many parts of the telecommunications industry, the first real effects of competition are being felt:

  • Satellite providers are now viable threats to video cable providers, as they offer similar products and services at lower fees.
  • Telephony providers compete among themselves for services in voice and high speed internet, lowering costs to consumers—and lowering profits to these companies, traditionally bureaucratic, with a monopoly point-of-view.
  • And when we think of competition, it’s not just the usual suspects anymore. As Starbuck’s—a coffee company—makes plans to the threaten the music industry with its “Hear Music Cafes”, wireless providers are making plans to take over the wired world.

All this pressuring an industry that before now has not, in general, been forced by market economics to operate with high efficiency and deliver excellence in customer service. Even those who stand out among their peers by setting high standards for customer care are “good but not GREAT companies.” *

*A reference to Jim Collins’ bestseller, “Good to GREAT: Why Some Companies Make the Leap …and Others Don’t”

Many forward thinking leaders, such as our client in this case, believe the way to meet these enormous challenges is to tap the hearts and minds—the brainpower and motivation—of all the employees in the organization. The philosophy that those closest to the customer, those doing the work of the business, are the ones who can eliminate non-value added work, streamline processes, and fix problems, all with the goal of lowering costs, adding value, and improving the customer’s experience. All are essentials for survival in many business sectors today.

The Solution

  • Create a culture of urgency & employee involvement.
  • Become fast & responsive to current business needs.
  • Build the capacity of the organization.

How to do this? Design and implement a GE-inspired “JumpShop” process.

    The JumpShop process is based upon a process-improvement intervention developed at General Electric during the 1980’s. The objective of this intervention is to eliminate non-value-added work in a way that is fast and generates tangible benefits. It is a vehicle for cultural change. There are three distinguishing features of this process:

  1. The improvement teams selected for the process consist of people closest
    to the work (the front line.)
  2. Decisions on ideas and solutions created by the team are made on the
    spot during the session.
  3. Solutions and ideas can be implemented within 90 days, and participants
    have the primary responsibility for implementation.

The basic objective of a JumpShop is to develop specific action plans that focus on these core strategic activities:

  • Improving service to customers.
  • Improving work processes so that resources are utilized as efficiently as possible.
  • Cutting costs to achieve targeted business results.

At the foundation of the JumpShop process lie basic assumptions about employees and the leaders:

  • The people closest to the work are the most knowledgeable about operational issues and problems, and they are in the best position to design solutions and implement actions to improve work processes.
  • Leaders must redefine their role from controller/implementer of solutions to supporter/resource provider to an empowered front line.
  • The cultural goal is to foster speed, simplicity and self-confidence.

Results from a JumpShop are achieved by:

  • Eliminating boundaries to decision making typically associated with large organizations.
  • Increasing the self-confidence and empowerment of employees by involving them in process improvements.
  • Simplifying work processes.
  • Maximizing the level of customer service and efficient use of company resources.

The Result (so far)
Jumpshops are a process improvement tool, and the processes our client chose are linked to the achievement of key business goals. The JumpShop teams have clear, measurable goals and specific action plans. When these goals are met, they translate into revenue generation or cost savings. Period. Measurable results to date include:

  • Reduced customer churn.
  • Fewer vehicle accidents.
  • Improved utilization of e-transactions.
  • Reduced turnaround time for commercial customers.

What will sustain it are the intangible results we are seeing. These are “cultural elements” such as cross-functional communication, cross- functional problem-solving, and of course genuine empowerment at all levels, with the learned accountability and personal responsibility required for empowerment to prevail.

At this client company, the word is out: employee ideas are welcome. Leaders are redefining their roles to that of change agent and obstacle-buster.

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