Customer Service provides Value

Have you ever experienced excellent customer service? I define the goal of customer service as "Making it right for the customer." Yesterday, I had a great experience with Pricepoint.com. I had received a Sette Heart Rate Monitor as a gift which was direct shipped from Pricepoint earlier this spring. After having to replace the battery several times (I diagnosed the problem as a faulty battery cover), I called to find out if there were previously reported problems with this model or it's battery cover. The gentlemen from customer service quickly located my order having only my name and shipping address. He then stated, "Then what you need is a new chest strap, is this correct?" I was amazed that he had listened so well and had identified through my rambling what was needed to make it right. He also asked if the watch (receiver) was working fine or if I thought it needed to be replaced also. After confirming all I needed was the chest strap, he finished the order and let me know that the replacement should arrive on Friday. This transaction took about 7 minutes and I was delighted with being able to resolve this problem so easily. Of note, Pricepoint's slogan is "where price is the point." I have used them in the past because price was the point, but today I learned that customer service is also their forte. "Customerservicepoint.com" would not work as well as a website address. Thank you for creating value for this customer.

Define the Customer to find Value

Just chatted with my wife about applying Lean around the house. She said "We should apply it in the garage." It was difficult for me to take the criticism as my garage is not the place for photos of Lean practices. Mind you, I do have nuts/bolts/screws in bins; magnetic tool holders for point of use storage; clear storage containers to allow simple identification and tool hangers galore. Her point is well taken, though, when I think of her as a customer of "my" garage. I have limited my perception of her use of the garage to merely a parking spot. I did not care to consider the organizational scheme and how it impacted her. Selfishly, I believed myself to be the only customer and therefore should have sole determination of what is valuable in the garage.

Suddenly, I realized I was being just like a famous automaker when he stepped away from everything Lean - "Any color car, as long as it's black." If I believed I was the only customer, I could just do it my way. This myopic view is what gets many Lean programs in trouble. Failure to consider every customer has led to the downfall of many companies, projects and possibly marriages (i.e. not considering the in-laws, not considering the kids, etc.)

I have recently discovered that this is particularly troublesome in the Health care world. With health care providers having to consider, the patient, the drug companies, the insurance companies and the government; it is amazing that they are able to stay in practice. Doctors and other health care professionals often face conflicting customer demands - the patient needs this treatment, the patient wants that treatment, the insurance company will pay for neither and the government has not yet approved the other treatment. What can we do? I believe the best option is to re-focus on the real goal of health care - improving the health of the patient.

When trying to pick the customer to define value, look to the overall goal and understand that at times we must balance the needs of many customers. Soon, I will be incorporating my wife's values in the organization of our garage.

Value and Bicycling

I have finally found a form of exercise that I enjoy. Here is the value bicycling has added to my life:

1. Spend time with family and friends

2. Lost weight

3. Seen lots of great scenery in Michigan.

4. Inspired me to raise money for JDRF

5. Met many new friends.

Little did I know what a great time I would have riding a bicycle again. Of course, bicycles have changed since the early days of my "Buzz Bike" from Western Auto and my first "All Steel" 10-speed from Sears. Fiberglass, alloy, and egg-beater pedals are a few of the changes that have been made. I must also admit that those silly spandex shorts have also become my friend. After 8 hours on a bicycle, not having your bottom hurt is a real treat. This fall I head to Killington, VT to ride 100 miles with a group of friends from West Michigan JDRF (more than 40 riders) and we will join about 350 other riders to enjoy the Vermont scenery and raise money for a wonderful cause - curing type one diabetes.

I would pay for this experience and therefore it meets my criteria for adding value. Thankfully, I have tremendous support from my friends, family and community which have helped me raise over $4100.00 to fund research for finding a cure. So far, bicycling has been safe (obey the rules of the road); increased the quality of my life (healthier and more appreciative of nature); easily accessible by just grabbing and going (delivery); and cost has been very affordable (after the sticker shock of not buying a bicycle for 20+ years).

I hope you find something that adds value to your life!

Standard Work - A Component of Lean Management

Standard Work, also called Standard Operating Procedures or SOP’s, are a goal of most organizations and a key component of Lean Management. There are many misconceptions about Standard Work that hinder the adoption of these best practices.
Here are my top 5 observed arguments against SOP’s:
1. Standard Work is too restrictive. (I don’t want to use my right hand to open the jar.)
2. Standard Work limits creativity. (If you write SOP’s the improvement stops.)
3. Standard Work is often wrong. (We don’t do it that way anymore.)
4. Standard Work is not easy to understand. (I can’t find the “help” key on the computer.)
5. Standard Work takes too long to create. (I am too busy doing my job to write it down.)
And the BONUS, and often unsaid; argument I have encountered –“If I help write Standard Work, they will replace me!”

For ease of writing and possibly ease of your reading, I will address these issues in separate articles. Let’s take on the bonus argument first. Experienced workers are often concerned about job security. Writing down what they do may sound exactly like, “Tell us what you do so we can replace you.” Oh, and by replace we mean fire you. I have met very few workers that are really interested in getting replaced, much less fired. So the real issue here has nothing to do with creating a best practice, it is all about ensuring the worker is secure in their position and employment status. For many years the efficiency and improvement efforts have specifically stated reduction of headcount as a goal. This is not very encouraging to the workers. As a former General Manager, I remember trying to reduce labor cost. The workers always saw this as headcount reduction, while I approached it as freeing employees to do more value added work. This could be the classic “glass is half full or half empty” argument.
There are two ways to overcome this misconception; the workers can trust the company’s efforts to use Standard Work are not about headcount reduction or the company can demonstrate commitment to assuring job security while implementing Standard Work. I believe the best option is to do both. I have seen contracts written in organizations that clearly state; “No employee will be eliminated as a result of the improvement achieved through Standard Work implementation.” People often base their trust in others on past experiences. If you do not have a record of demonstrating employment security in the past, a written commitment may be necessary.
There are many benefits of using Standard Work – You must include removing misconceptions in your implementation strategy.

No Longer Give Allowance

How does an allowance relate to adding value or improving?

As a child, my parents dabbled in giving me an allowance. I had a base amount given to me each week for doing assigned tasks and I could earn extra by completing additional chores. We even set up a checkbook type notebook with debits and credits. What a grand idea - until it failed.

Allowances have a basic flaw. Often allowance means giving something for nothing. Let's say you were to give your child an allowance for making their bed each day. What is the value for which you are paying? I believe it has nothing to do with making the bed, but it is about teaching accountability. When was the last time a worker was paid for cleaning their desk each day? And has anyone ever been fired for not cleaning their desk? Not cleaning your desk or making your bed is simply a symptom of lack of accountability. What you really desire is accountability.

Now, where does accountability fit into the world of value? Accountability is making oneself liable for providing value. In other words; if my son painted our house, he would be providing value - something I would gladly pay to have done. Being accountable means delivering that value within the expectations of SQDC. Without accountability, the value will disappear. Using a poor quality paint, not finishing before he heads back to college or spending $30,000 on an air sprayer system reduces the value for which I will pay my son.

Dave Ramsey has a fabulous perspective on allowances - he doesn't give them. He says, "I won't pay my children for anything I wouldn't pay another person to do." Giving you kids money for taking out the trash will only teach them to become trash men.

The next time you think about giving an allowance, ask yourself, "what is the value I am trying to receive?" If you can clearly define the value you are seeking, then paying for that value becomes easier. We are often let down when we don't define the value sought and it comes time to pay. My childhood allowance system failed because it was set up to reward me for things that did not provide value to my parents (the people paying) and was really about adding value to me (the person receiving the pay). Wouldn't that be grand - you receive the value and get paid to do it!

When searching the web for "Allowances," I came across this game called "Allowance."

I am not rushing out to buy it. The game is out of stock any way. Humorous isn't it.

Becoming a Complimenter

Optimism is often described as seeing the glass as half full of water. Pointing out things with an optimistic attitude is a path to becoming a complimenter. Not sure if that is a word or not, but that is what I will call a person who gives compliments. People with a natural ability to compliment have always amazed me. They make it seem so easy and always seem to have the compliment at the opportune time to boost the confidence of a team or individual. There have been many books that have highlighted the value of compliments (although the authors may use a different word: encouragement, positive feedback, rewards, etc.) The Inspire Project at Penn State even produced the poster shown on the right to list examples of compliments for children to use.

Compliments add value to the recepient by communicating to them the things they are doing right. It also helps build self esteem and self confidence which everyone needs to be successful. Coaching is most effective when it includes compliments. Coaches will lose effectiveness when all they do is criticize. Balancing compliments with criticism is vital to keeping students engaged. Whenever I give feedback, I end with a compliment to help the student feel successful and encourage them to come back for more feedback. A sensei is powerless if he cannot provide feedback. Growing is demonstrated when behavior changes after receiving feedback.

Beware of the darkside of complimenting. This is when a compliment is used with the intent to manipulate someone into doing what is not "the right thing." Stephen M.R. Covey would refer to this behavior as a "counterfeit" and can quickly lead to a loss of trust. Without trust, you can no longer influence others which will mean your compliments will no longer add value. A easy example of this is when an ex-friend pays you a compliment and you can hear in your head, "What is he trying to do?" or "Why is she saying that?"

I am inspired to look daily for things that others do around me and give compliments generously. It may be good service at a restraunt or just a smile at the toll booth. Practice compliments and it will become easier to be a Complimenter.

Thank you for taking the time to learn about complimenting, you are an inspiration to me.

Ideas - Continuing to Success

So, you have the idea - what you do now? An idea adds value when it is implemented. That is why I hold all rewards for ideas until after they are implemented. If you have an idea and have taken the time to write it down, now we move to the validation step. To be valid an idea must improved SQDC (see previous post for description of SQDC). If the idea is valid then you immediately move to implementation. If there is any question as to if the idea is valid just ask a fellow team member or your supervisor. It is in these discussions that the idea may be refined. For example, I might have the idea to purchase a small ladder to help me reach a shelf. A team mate may recommend a step stool because it is less expensive and lighter. Another team member may recommend building a small platform or cutting the legs down on the shelf. All three achieve the goal of helping me reach the shelf, we must just decide which to implement. I try to respect the original idea of the person as much as possible.

Once the idea is validated, then you move to implementation. Ideas that meet the low cost/no cost rule can hopefully be implemented quickly. Less than two weeks is quickly for most organizations. There are 3 key things to define in the implementation plan - who is going to do what and when. That way, when no progress is being made on the idea, you know who to go ask. Follow up on the implementation on the defined commitment dates to keep the idea on track. My experience has been that someone will stop writing up ideas if they are waiting on older ideas to be implemented.

I have seen teams implement ideas at the rate of one idea per person per week. It should be easy to sustain one idea per person per month. Think about that, for an organization with 100 employees this means 1200 ideas could be implemented a year. Wow! This level of improvement will quickly result in significant operating improvements. Remember, to be valid an idea must improve SQDC.