Working with a major national service business, we developed a Target Operating Model (TOM) which has fundamentally re-defined the customer relationship and expectation of value, whilst at the same time re-setting the industry standard of excellence. As a result:
- Additional value-add services are being delivered, increasing both revenue and retention
- Customer response times have been drastically reduced, with a more consistent positive user experience and at lower cost
- Work in progress has been virtually eliminated, resulting in lower cost and reduced working capital
- Back office costs have been reduced by over 60% whilst improving customer satisfaction
- Reliance on individuals and retained knowledge has been eliminated
To do this we undertook a fundamental review of what customers really wanted and how existing processes contributed or detracted from this. Using this analysis we were able to identify that there was a fundamental mismatch of expectations, which was industry-wide. We also realised that the processes in place were not sustainable within existing ways of working, leading to excessive stress levels, increased churn and low levels of productivity. Having framed the problem and defined the desired outcome, we deployed a collaborative approach to build the solution.
We knew that the only choice was #KillingComplexity©. We did this by applying each of our four perspectives.
Through our Customer and User Experience perspective we focussed on speed to fulfilment and effective communication (not cost per hour as was the perceived wisdom) as this allowed our clients’ customers to utilise their assets for longer and reduce their customer disruption. We used the Digital and Data perspective to demonstrate there was real value in collecting trend analysis, which could then be used to support pro-active maintenance.
This was supported by the Commercial perspective which not only drove the payment terms from hourly rates, estimated in advance, validated afterwards and billed monthly, to fixed price work packages authorised in advance and billed on completion, but also allowed the creation of trend analysis for defined work packages which simply wasn’t possible when all that had been previously captured was the number of hours charged. And finally we looked holistically at what was detracting from performance and motivation using the Organisational Development and Behaviours perspective.
Our client now has a discernibly differentiated offering, has established an industry “new norm” which it is exploiting through 1st mover advantage, and is rapidly creating clear blue water between itself and other industry players.