Customer Dynamics

World class companies distinguish themselves in how well they do Strategic Planning, People and Teams, Total Quality and Continuous Improvement, New Product Development, and Plan­ning and Control. Poor performance in only one or two of these will pull a company down to the mediocrity level.

• Strategic Planning maintains a long range business plan that includes a vision and/or mission statement. It articulates the commitment to excellence with an over-riding importance for customer satisfaction. A successful strategic plan is one that leads the business in a direction that gains significant compet­itive advantages.

At its best, it's an ongoing process that drives all important operating decisions and actions; and all levels of employees share the company's mission. At worst, the process is either nonexistent or not connected to the operation of the business.

• People/Teams means treating people with trust, openness, and honesty. People are considered the strength of the company: teams are used to multiply their effectiveness.

At best, this process creates a sense of pride for doing one's job in the best possible manner and being proud to belong to the company. At worst, the employee/employer relationship is neutral or sometimes negative.

• Total Quality & Continuous Improvement focuses on customer satisfaction, employee development, deliveries, innovation, improved quality, reduced costs and increased velocity. An aggressive ongoing effort involving everyone contributes to improvements in these areas. 

At best, it has become a way of life not only for employees but for suppliers and customers as well. At worst, the process is not established or exists but little headway is being made.

• New Product Development is a commitment to excel in the innovation, effectiveness, and spread of new product develop­ment. All functions actively support the process.

At best, requirements are derived from careful understanding of customer needs; internal and external suppliers are pan of the team; products are brought to the marketplace swiftly and within original projections for revenues and margins. At worst, new products consistently do not match schedule dates, performance, costs, quality, or reliability; there is a lack of cross-functional teams and external supplier involvement.

• Planning & Control is a commitment to have valid schedules and trustworthy numbers so good that people can use them to run the business.

At best, they are effectively used company-wide and generate significant improvements in customer service, productivity, inventory, and costs. At worst, the information is inaccurate or poorly understood by the users; little help is gained in running the business.

From best to worst, these are the qualitative boundaries for describing these five processes. To become world class, you need to know where you are within the boundaries and then layout an effective action plan leading to the best.

 

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