Category: Customer Service

Happy Anniversary

Happy Anniversary

It’s hard to believe that today marks our 7th anniversary.  I still remember writing that first post and wondering who would be interested in what we had to offer.

After more than 293,000 views, thousands of free downloads, and visitors from more than 120 countries, we can say that we’ve successfully helped more than a few people and companies get started with their OEE training and implementation.

We would like to thank all of our subscribers and visitors for your feedback, support, and many “thank you” notes over the years.

Your feedback matters

If you have any comments, questions, or topics you would like us to address, please feel free to leave your comment in the space below or email us at feedback@leanexecution.ca or feedback@versalytics.com.  We look forward to hearing from you and thank you for visiting.

Until Next Time – STAY lean

Versalytics >> Analytics
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Transparency – Is There An App For That?

New Marketing Strategy
New Marketing Strategy (Photo credit: Intersection Consulting)

Trust lies on the threshold of transparency. As leaders we are cognizant of the perceptions created by our words and actions beginning with the very vision that inspires them. We continually aspire to earn the trust and respect of those who choose to pursue the vision with us. We also recognize that we may quickly undermine those efforts and lose the support of our team when our intentions are not aligned in kind.

Organizations struggling to embrace and integrate change into the fabric of their culture may also find themselves lacking transparency, integrity, and ultimately trust. The world is not as it is but how it is perceived and the same is true for leadership. It is now common place in many companies to use 360 degree reviews as part of the performance appraisal process to better understand how we are perceived by our leaders, our peers, and those reporting to us.

In a parallel context, we as customers rely on the integrity of the companies that serve our needs in the form of products and services they provide. We expect, with a certain naiveté, that the company’s best intentions are to ensure that we are satisfied with our purchases. We want to trust that our needs, not those of the company, are first and foremost when we part with our hard-earned cash to pay for the solutions they have to offer.

Oh! what a tangled web we weave
When first we practice to deceive!

– Walter Scott, Marmion (1808), Canto VI. Stanza 17

Perhaps I’m being a bit petty but I have a pet peeve when it comes to the marketing strategy for some apps in the App Store. It’s the typical and annoying marketing strategy replete with hook, line, and sinker to push sales and up-sell consumers. Here’s just one recent example and the thinking that follows:

Hook: Editor’s Choice, 2012 App of the Year, (Productivity). A product doesn’t just become an editor’s choice. Clearly, there must be some value in the app to be considered for such an honour considering the incredible number of apps in the App Store. One would also expect that the “editor’s choice” would be echoed by the community of people who have used the app as well.

Line: It’s FREE. What could be better than a free app? Especially the very one that happens to be the “Editor’s Choice” and the “2012 App of the Year.”

Sinker: Of course, we quickly learn that nothing in life is free. This is especially true in this case where the app’s “Essentials” will cost you $6.99. Yes, they can be purchased at our discretion, however, they almost become immediately necessary for the app to be truly useful.

I am sensitive to the fact that many people will question whether something is really free and have often considered charging a nominal fee for the free OEE templates that we offer from our downloads page and the sidebar “box” widget. Copies of our offering are downloaded every day, around the world, free of charge – no strings attached and no obligations. Many have asked me why and I simply relate to them the story of the difficulties we endured when we tried to take OEE (Overall Equipment Effectiveness) to the next level. While our solution is simple, our intentions are to impart the knowledge we gained to allow others to educate and make informed decisions for themselves.

App Reviews

I didn’t mention the specific name of the app referenced above or the name of its developer but, if you’re a frequent visitor to Apple’s App Store, you’ll be able to figure it out fairly quickly. Does the app function as advertised? The short answer is yes but, in my opinion the free version hardly qualifies for the endorsement it received. Evernote and DropBox seem to bring more to the table, especially where cross-platform functionality is becoming a more predominant feature of today’s core apps.

Some of the reviews state that the price of the upgrades are a concern and the cash value of the app is of greater benefit for the developer than the product is for the user. Fortunately, the price and necessity for these apps is discovered in a relatively short period of time. There is likely to be a tipping point where the time vested in a project would increase the need or desire to purchase the upgrades. Of course, not everyone takes the time to submit a review and I’m quite certain that enough negative reviews will prompt an upgrade to wipe the slate clean.

Tell It Like It Is

As I’ve mentioned before, I’m not opposed to companies making money, however, I don’t have much time for those with a “hidden” agenda. If the benefits outweigh the price, then clearly state the cost structure of your product or service. The process of discovering otherwise is somewhat underhanded and perceived as deceitful.

The bottom line: People who discover and realize they are being taken for a ride to the greater benefit of the owners and the leadership are less likely to buckle up and join you on the journey.

Until Next Time – STAY lean

Vergence Analytics

Apple’s Best Kept Secrets … May Be Their Worst Enemy

English: A ridiculous line of people waiting f...
A ridiculous line of people waiting for the iPhone 3G outside of the Apple Store on 5th Ave. between 58th St. and 59th St., NYC, July 12, 2008. I was not in the line. pictured: the Apple Store entrance (Photo credit: Wikipedia)

One of the roles of leadership is to instill and foster a culture that embraces change and empowers the team to improve. This call for change is also echoed in the Plan-Do-Check-Act or PDCA cycle that serves as a typical model for driving continuous improvement in many organizations. In this regard, Apple has clearly demonstrated their commitment to develop and improve their existing products.

As I’ve written many times before, “There’s always a better way and more than one solution.” From the outside looking in, Apple appears to embrace this thinking too, as evidenced by the unveiling of the new and much rumoured iPad Mini as well as announcing a number of significant upgrades to their existing product lines.

However, as the late great management guru Peter Drucker stated, “There is no business without a customer”. When we consider the numerous and diverse range of brand advocates a business may have, we also realize and understand that customers are very much a natural extension of the business itself. In this context, I contend that Apple’s best kept secrets may just be their own worst enemy.

Timing is Everything

From a leadership perspective, transparency, respect, accountability, integrity, and trust are just a few of the defining traits of a lean organization. The vision must be clear and understood to ensure that decisions, goals, objectives, and actions are aligned accordingly. Unfortunately, as customers, we can only rely on “leaks” and “rumours” to learn of Apple’s hidden agenda and attempt to plan our purchases accordingly.

While Apple may be lean at its core, I can only wonder how much waste is generated at the consumer level. Each new product introduction is met with a host of people ready to replace their existing devices with the latest and greatest technology Apple has to offer. It begs the question, “How many people can actually afford to keep pace with the current rate of change?”

In this regard, continuing to release new products at an ever-increasing frequency is quickly becoming a deterrent for people to “buy now.” The decision to purchase is offset by the potentially greater benefit of waiting just a little while longer. I contend that this is where Apple’s strategy may soon fall short. I’m not endorsing Samsung here, however, this Samsung Galaxy S3 ad has captured the point we’re making here:

Effective leadership understands that the timing for change is as critical as the change itself. If change occurs too frequently, people will abandon their efforts to embrace any of them knowing that another is already in the making.

Chasing the Dream

This television commercial, first aired during...

As a public company, Apple is subject to tremendous market pressures to maintain its record-setting trend of higher returns for shareholders and also serves to fuel a shorter cycle of new product introductions and upgrades. This rapid injection of perceived “new” technology is equally offset by higher rates of planned obsolescence.

While some of the changes announced were much-anticipated, especially the iPad Mini, the 4th generation iPad was a complete surprise – at least it was to me. Was the release date of the 4th Generation iPad so obscure that a 3rd generation product release was required only seven short months ago?

I have become increasingly concerned over the frequency that change occurs, especially when they directly affect my pocketbook. Frequent changes leave consumers little time to absorb them and their significance is rapidly diminished by the next generation of products that follow. From a lean perspective, the PDCA cycle encourages incremental improvements to – or within – an existing process or system and this is the consistent, fundamental flaw in Apple’s product development cycle:

Existing devices cannot be upgraded.

The majority of recent changes introduced by Apple are hardware related including the release of iOS6 as a necessity to support the new offerings. The new A6X chip, an integral part of the new iPhone 5 and the recently announced 4th generation iPad, offers twice the speed and twice the graphics performance over its predecessor, the A5X chip. Hardware changes of this nature are rarely an after thought and keeps me wondering why Apple was so compelled to release the 3rd generation iPad only a few short months ago.

Loyalty, Trust, and Making Amends

Many consumers are advocates of the Apple brand and their loyalty implies that a certain element or level of trust exists. With this in mind, the changes introduced by Apple carry an even greater significance as this trust is tested with each step that Apple takes. The decision to purchase an Apple device is as significant as the price tag it carries – they are expensive. Apple clearly understands this and created the new iPad Mini to bridge the price gap in kind, although it too carries a hefty price tag.

For Apple, change may be the norm but, for consumers it’s not always that simple. Apple clearly recognizes that consumers want the latest and greatest product offering available. The questions to be answered here are two-fold:

  1. How much are consumers willing to pay for a new device? and,
  2. How OFTEN (or how soon after) are they willing to purchase its successor?
Apple I at the Smithsonian Museum
Apple I at the Smithsonian Museum (Photo credit: Wikipedia)

In light of these recent announcements, a third and perhaps even more important question begs to be asked, “What is the relevant lifespan of my new device after purchase? The 3rd generation iPad’s core chip technology became obsolete in as little as 7 months from the date it was introduced and the relative value is sure to decrease even more rapidly with each generation that follows.

As mentioned earlier, the A6X chip was an integral part of the iPhone 5 and it is highly likely that integrating it into the 4th generation iPad was a known “next step”, long before the 3rd generation iPad was even released. I would suggest that the new iPad Mini, also built on the A5X platform, will also be short-lived as an A6X upgrade or even a retina display can’t be too far behind.

A company as large as Apple must have a product development plan and I challenge the ethics of a company that would knowingly lead consumers to purchase a “new” device that will become obsolete before they even take it out of the box. To make amends with recent buyers of the 3rd generation iPad, it has been suggested that Apple plans to offer free upgrades if their product was purchased within a certain time frame prior to the announcement of the 4th generation iPad.

I’m not opposed to any company that can make a profit, especially in today’s economy. However, Apple’s profits are borne by consumers who remain hopeful that Apple may actually provide a product that can deliver real value. It is peculiar and concerning that consumers are almost too anxious and willing to abandon their current devices for the “next best thing” as though their existing devices fell short of meeting expectations.

Now Serving … Shareholders

I am convinced that Apple’s primary interest is shareholder satisfaction at the expense of consumers by convincingly giving cause for consumers to part with their hard-earned dollars in pursuit of the “Next Big Thing.” In summary, the secret to Apple’s fortunes lies in ever shorter product cycles and even more frequent changes that give rise to increased product turnover, increased revenues, significantly higher profits, and ultimately higher returns for shareholders.

As we pursue our own lean efforts, we must be cognizant of the perception created when the need for change is driven by an agenda that is contrary to the vision of the company, namely, that of the shareholders themselves. You may recall the “noise” surrounding the valuation of Facebook’s IPO and shareholder concern over the process of creating and generating revenue. Even more profound (and to be applauded) was Mark Zuckerberg’s statement that Facebook intended to make money through the IPO to make Facebook even better – it was never Mark’s intention to make shareholders rich at the expense of FaceBook users.

I am always more than a little concerned when the influence of the stock market is greater than the vision that brought the company there in the first place. RIM serves as an excellent example of a company that has managed a fine line with shareholders to make leadership changes while still pursuing the release of the much-anticipated next generation BlackBerry 10 Operating System. While the changes announced by RIM were very well received, failing to provide a release date caused stocks to decline even further. Despite their announcements of cuts to the workforce, they have remained committed to pursue the next generation hardware and software. Time will tell how the market responds now that RIM has announced a January 30, 2013, product launch.

The Next Step

iPad in Subway
iPad in Subway (Photo credit: beatak)

With many thanks to Steve Jobs, Apple certainly deserves credit for shaping how we use computers today and Apple’s ability to create consumer frenzy for “What’s Next” is to be admired. Though Apple cites rapidly changing technology as the reason for its frequent product changes, I would challenge this statement as evidenced by the seemingly lower rates of change from Apple’s competitors.

On the whole, I find Apple’s products to be of high quality – though not without flaws – and extremely overpriced. The new iPad Mini and protective cover retail at $330.00 and $45.00 respectively and serve as just one example where the price far exceeds that of it’s nearest competitor. To make matters worse, a power adapter that should cost only a few dollars to manufacture retails at almost $30.00. Apple’s sales are staggering, however, their margins on sales are even more so.

I fully appreciate the craftsmanship of the Apple product line. The machines at all levels are exceptionally crafted and the user interface – at least on “touch” devices – is to be commended. However, from a software perspective, I have yet to see a serious professional suite that rivals that of Microsoft Office (Home or Professional). The release of iOS6 did nothing to improve my experience with Apple’s existing hardware or software.

The number of available “apps” is literally overwhelming and continues to grow at a daunting rate. Although many are either free or relatively inexpensive, finding an app that meets your needs can be a real challenge. I find many apps are overrated, lacking depth beyond the simple and individual functionality they provide. As a result, I tend to gravitate toward those apps (Evernote, Dropbox) where the scope also extends to competitor products as opposed to Apple specifically. As the major players continue to define and refine available hardware platforms, the App market may still be too fresh to establish the real dominant players in certain core segments.

Rather than waiting for a truly significant product upgrade, Apple has been too fast with too many incremental product changes that may leave some consumers suffering buyer’s remorse, feeling alienated, or worse – betrayed. Although RIM may be too long in the making of its BlackBerry 10 Operating System, Microsoft’s major Operating System releases are typically far and few between too.  Certainly Windows 8 has taken the market by storm with full touch screen integration for desk top, lap top, and ultrabook computers.

Perhaps the questions to be discerned are, “How soon is too soon?” and “How long is too long?” If it hasn’t been determined yet, there must be a “Goldilocks” cycle that’s just right: worth the wait and worth the money.

In Conclusion

I contend that Apple has succumbed to a greater concern for shareholders to sustain market share at the expense of customer trust and cash. To maintain their share of the market, they have taken their suppliers and competitors, namely Samsung, to court and seem compelled to pre-empt any new product announcement from their competitors with an announcement of their own – ready or not.

Apple provides a high quality premium priced product. Yet, as I look at the tools I have at my disposal (no pun intended) – a Mac Mini, iPhone 4s, and a 3rd generation iPad – I am underwhelmed by each of them. With all of the attention to detail that Apple seems to mind, I can’t help but wonder why something like the on-screen keyboard doesn’t reflect the current shift state of the keys – like my PlayBook does.

I have already heard rumours that a new iPhone 5s may be available in the first quarter of 2013. If memory serves me correctly, that should be just in time for RIM’s launch of the new BlackBerry 10 Operating System and the launch of  Microsoft’s Surface Pro. Of course, despite the rumours, who knows what or when the next surprise will be. I’m sure it will be sometime soon.

Only time will tell how long Apple can continue to keep customers “Chasing the Dream.” As for me, like a number of Apple’s recently resigned Apple executives, that chase is over.

Until Next Time – STAY lean

Vergence Analytics

Lean Leadership: The Missing Link?

The TOYOTA wayI coined the phrase “What you see is how we think” to suggest that the principles of lean thinking are not only embraced by everyone but are also evident throughout the organization.  In this context, becoming a lean organization requires effective leadership to create and foster an environment that allows lean thinking to flourish.  Just as a teacher establishes an environment for learning in the classroom, leaders carry the responsibility for cultivating a lean culture in their organizations.

So how could it be that Lean Leadership is the missing link? I suspect and have observed that too many leaders have displaced the responsibility for lean into the middle management ranks rather than taking ownership of the initiative themselves.  These same leaders often operate on the premise that lean is simply a matter of implementing a collection of prescriptive tools to improve efficiency and cut costs. It is clear they have failed to understand the most fundamental principles and basic tenets of lean. If this sounds familiar, I recommend reading “The Toyota Way:  14 Management Principles from The World’s Greatest Manufacturer” by Jeffrey K. Liker.

So where do we turn?

Toyota is one company that exemplifies what it means to be lean and the lessons learned through their trials, tribulations, and continued successes are well documented. I admire Toyota both through first hand experience as a supplier of products to all of their operations in North America and secondly through their willingness to openly share their experiences with the rest of the world.  This is evidenced by the many books and articles that have featured them.

I recognize that Toyota has been the subject of many news stories in recent years, the most notable being the recession of 2008, the extremely high-profile recall crisis for Sudden Unintended Acceleration (SUA) in 2009, and most recently, the Japanese earthquake and tsunami. In turn however, we must also acknowledge and recognize that Toyota’s leadership was instrumental to guiding the company through these crisis and for directly addressing the diverse range of challenges they faced.

A sobering look at the crisis that challenged Toyota’s integrity and leadership as well as the many lessons learned are well documented in “Toyota Under Fire: Lessons for Turning Crisis into Opportunity” by Jeffrey K. Liker and is highly recommended reading. I am further encouraged that Toyota acknowledged that problems did exist and didn’t look to deflect blame elsewhere.  Rather, Toyota returned to the fundamental principles of “The Toyota Way” to critique, understand, and improve the company.

In the context of this post and lean leadership, I am pleased to learn of another new book “The Toyota Way to Lean Leadership:  Achieving and Sustaining Excellence Through Leadership Development” by Jeffrey K. Liker and Gary L. Convis.  As Toyota continues to evolve while remaining true to the principles of The Toyota Way, we realize again that lean is not a short-term prescription to success but a journey. My simplified definition of Lean Thinking follows:

“Lean is the pursuit of perfection and pure value through the relentless elimination of waste.”

As every lean practitioner will (or should) tell you, the process begins by defining value.  Many companies operate under the false pretense that they are already providing the value that customers want or need.  As such, they attempt to improve existing products or services by either adding features or making them faster and cheaper. From the perspective of Lean Thinking, the “secret” to making real change begins by finding:

“… a mechanism for rethinking the value of their core products to their customers.”

Lean Thinking challenges us to consider the value our customers are demanding.  Accordingly, we must ensure that our infrastructure, business practices, and methodologies deliver that value in the most efficient and effective manner possible.  Only when we focus on value from a customer perspective can we offer a solution that truly meets the customers’ needs.

Apple is one such company that continues to redefine and improve its product offerings to the point of anticipating and creating needs that never before existed.  Apple’s iPad is just one example of their unique approach to creating niche products and solutions to address speed, connectivity, portability, and features that we as customers never thought possible.

The Leadership Challenge

Leadership is challenged to define and deliver “value” to the customer in the most effective and efficient manner. This is not as simple as it sounds and having leaders within the company that understand Lean Thinking is a requisite mandate for any company wanting to compete in today’s global market.  The challenge exists for leaders to adopt lean thinking to deliver real value at prices we can all afford.

Succession planning and training leaders for the future is an ongoing effort to assure continued sustainable success. Leadership is responsible for hiring the right people and to ensure they receive the training to do their jobs correctly.  “The Toyota Way to Lean Leadership:  Achieving and Sustaining Excellence Through Leadership Development” is sure to be a welcome addition to the library of true Lean Leaders and lean practitioners.

Your Feedback Matters

We appreciate your comments and suggestions.  Remember to follow us on twitter!

Until Next Time – STAY lean!

Vergence Analytics
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Sharp Minds – On the Cutting Edge or the Cutting Board?

A wooden chopping board with a chef's knife.
Image via Wikipedia

I continue to be frustrated by the notion that the only way to reduce spending is by cutting services.  While the demand for change is high, few are willing to challenge tradition and conventional thinking to improve services and increase efficiencies that will enable us to do more with less, find new opportunities, and to create jobs instead of eliminating them.

On a global level, governments continue to grapple with increasing economic pressures brought on by the recession. Rather than demonstrating fiscal restraint however, governments have grown and spending has increased at rates that far exceed that of the public sector. The result is an unsustainable government and services that will either be cut or funded through newly created revenue streams.

Rather than challenging the infrastructure and systems that comprise the delivery of these services, the governments scramble to find new ways to reach further into our pockets to pay for inefficiencies, high paid union labour, and questionable entitlements.  In some instances, services have been abandoned only to be properly managed by the private sector.

For example, when we consider the delivery of health care in Canada, we find a system plagued by excessive wait times and ever rising costs.  Doctors and specialists continue to operate as a fragmented community of service providers, adding layers of bureaucracy, greater inefficiencies, and more cost.

These inefficiencies are further evidenced by patients who are sent into a frenzied schedule of appointments and tests in various locations without regard for the many inconveniences and disruptions they may incur in their personal lives.

On the other hand, emergency rooms do not present the same constraints and, though some waiting may be required, patients are examined and assessed immediately, a prognosis is determined, priorities are established, and resources are made available on demand as required.

Expedience does not jeopardize the level of care provided.  While the emergency room may not present the ideal case, it is radically different from “standard” care.

In stark contrast to the government-political processes that continue to insult our intelligence, I am always encouraged by the innovative and entrepreneurial spirit of individuals who prove that there is always a better way and more than one solution:

Where do we start?

The quicker we realize that truly radical changes are necessary, the sooner we can abandon traditional cost cutting practices and apply Lean Thinking to improve society as we know it, not cut it to shreds.  My simplified definition of Lean Thinking follows:

Lean is the pursuit of perfection and pure value through the relentless elimination of waste.

As every lean practitioner will tell you, the process begins by defining value.  Unfortunately, many governments and companies alike start by falsely assuming that they are already providing the value that customers want or need.  As such, they attempt to improve existing products or services by either adding features or making them faster and cheaper. From the perspective of Lean Thinking, the “secret” to making real change begins by finding:

“… a mechanism for rethinking the value of their core products to their customers.”

In this same context, consider how our desire to “travel from Point A to Point B in the shortest time” has evolved and transformed our personal modes of transportation / communication into the following “value” propositions:

  • Personal:  Crawl > Walk > Run > Tricycle > Bicycle
  • Roadways:  Bicycle, Motorcycles, Cars, Buses
  • Railways:  Passenger and Freight Trains
  • Seaways:  Boats, Ships
  • Airways:  Helicopters, Planes, Jets, Rockets
  • Telephone:  Phones, Faxes, Internet (email, social media)

Each mode of transportation presents a unique solution to address a shared common value:  “Short Travel Time”.  Although changing technologies is inferred, lean does not require an investment in new technologies to be successful.  To the contrary, Lean Thinking simply challenges us to consider the value our customers are demanding.  Accordingly, we must ensure that our infrastructure, business practices, and methodologies deliver that value in the most efficient and effective manner possible.

Only when we focus on “value” from a customer perspective can we offer a solution that truly meets the customer’s needs.  When we consider the premise for this example, the need to travel is implied.  It does not answer the question “Why do we travel?

If the reason for traveling is simply to “communicate” with friends and family, then we can see that the telephone becomes a viable solution to eliminate the need to travel at all.  From a similar perspective, fax machines and the internet were created to expedite data transfers and to communicate with the world in real-time.

The Challenge is On

It is time for all levels of government, business, unions, and society as a whole to acknowledge that our economy is in a state of crisis and demands real action. Real people are hurting at a time when others are pursuing their own agendas for self-preservation – all at the expense of society.  We can not simply assume that everything is “just fine – only more expensive”.

Lean Thinking is a requisite mandate for any company wanting to compete in today’s global market.  In this regard, the same challenges exist for governments and businesses alike to adopt lean thinking to deliver real value to the people they serve at prices we can all afford.

The Globe And Mail featured an article titled “ What Ottawa can do to help manufacturers excel globally – Globe And Mail” href=”http://www.theglobeandmail.com/report-on-business/economy/manufacturing/what-ottawa-can-do-to-help-manufacturers-excel-globally/article2060854/” target=”_blank”>What Ottawa can do to help manufacturers excel globally” that cites feedback for improvements from manufacturers and businesses in various industries. Unemployment in the United States is hovering at 9% and, as this video “Focus On Jobs or Spending Cuts” demonstrates, the challenge to deliver new jobs is also in jeopardy.

Unless government spending is brought under control and services are delivered effectively and efficiently, the system is sure to implode.  It’s time for an extreme make over, engaging the best and sharpest minds to bring us to the cutting edge in business and technology, not to the cutting board where nothing remains but shattered hopes and dreams.

Your Feedback Matters

We appreciate your comments and suggestions.  Remember to follow us on twitter!

Until Next Time – STAY lean!

Vergence Analytics
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Toyota #1 for a Reason

Experience is often gained by making mistakes, however, we don’t have to repeat them for the sake of experience.  This is one of the reasons I decided to read “Toyota Under Fire” by Jeffrey K. Liker and Timothy N. Ogden.  Aside from the many positive reviews this book has already received, it claims to present “The definitive inside account of Toyota’s greatest crisis – and lesson you can apply to your own company.”

Just as interesting though are two very strong statements or “subtitles” that appear on the front cover.  At first I thought these statements were quite bold considering that Toyota’s most troubling times are not that far behind us:

  1. Lessons For Turning Crisis Into Opportunity, and
  2. How Toyota Faced the Challenges of the Recall and the Recession to Come Out Stronger

I don’t think any company would savor the opportunity to experience the crises that Toyota has been subjected to over the past few years.  It is certainly easier and much cheaper to learn from the experiences and “mistakes” of others.  Each crisis that Toyota faced was compounded by the presence of new ones,  namely,

  1. Sudden Acceleration concerns and the recall of over 10 million vehicles,
  2. Enduring significant media and government scrutiny while being subject to the most intensive investigation in many years,
  3. Defamation of the Toyota brand and loss of consumer confidence in the company and it’s products, and
  4. An economic downturn that affected every manufacturer around the world.

These were certainly very difficult times and the lessons to be learned from them are sure to be of value to every business.  In the typical Toyota style, they once again have opened the doors to share their lessons learned – an opportunity that few companies dare to offer.

Endorsements

The statements supporting this book imply that successes have already been realized.  I, like you, would be more than a little concerned if these were Self-Proclaimed statements issued by Toyota’s leadership.  The good news is they aren’t.

An article published in the Toronto Star, “Toyota Bags 3rd Consecutive Reader’s Digest ‘Most Trusted Brand’ Award“, presents the best endorsement of all – it’s from us – the consumer.  The Reader’s Digest Trusted Brands program awarded Toyota ‘Most Trusted Passenger Car Brand” for the third year in a row and the 2011 Most Trusted Hybrid Brand.

Toyota is the number selling car brand in Canada and is recognized for having the most fuel-efficient car fleet and providing the greatest value to customers.  I was surprised to learn that 80% of Toyota’s sold in the past 20 years are still on the road.

Respect is Earned

As the expression goes, “Respect is Earned”.  I contend that the same is true for Trust.  Perhaps the realization that Toyota is as concerned about people, employees and customers alike, that the very culture that defines the company has extended to its customers as well.

As such, Toyota’s resilience and sustainability through these crises is further evidence of the unique and powerful culture upon which the company itself was founded.  I’m excited by the opportunity to learn more about this amazing company.  Toyota Under Fire will certainly prove to be a good read.

Until Next Time – STAY lean!

Vergence Analytics
Twitter:  @Versalytics

1 Way to Exceed Expectations

Always a Line at Tim Horton's
Image by caribb via Flickr

Although I’m still not sure that it’s possible to exceed customer expectations, something happened last night that may have given me a slightly different perspective on this matter.  In November of 2009 I published an article titled, “10 Ways to Enhance Customer Satisfaction“, on the very premise that the best we could do was enhance the customer’s experience based on a very short and loose definition of what customers expect:

  1. 100% Quality Products or Service
  2. On Time Delivery – In Full
  3. Lowest Possible Cost

In the manufacturing sector, quality is a given, early or late is never good, and, because of the first two, price becomes the discerning factor for future business.  So, aside from making these experiences more satisfying, how can these expectations possibly be exceeded?

The Unexpected Difference

When I pulled up to the drive through window at our local Tim Hortons, I recognized the person at the window who was about to serve me with my order.  When the window opened, we exchanged our usual greetings but this time was different – nothing really significant, but certainly different.  After taking my money, there was an ever so slight pause where, for a very brief moment in time, I felt as though I was being “studied” much in the same way a passing glance suddenly turns to more of a stare when someone looks familiar to you.

Then the unexpected happened.  When I was handed my coffee, I was also given a Quickpay Timcard that read:  “Thank you for being our customer – Compliments of your local Tim Hortons”.  I was surprised by this token of appreciation especially considering that the 2011 “Roll up the rim to win” contest just started again.  What added to the experience is that the exchange was genuine and sincere.

Although contingency planning teaches us to expect the unexpected, I must admit that this time my guard was down.  Although it could be argued that this is yet another marketing ploy to ensure my continued loyalty, the best I could do was express my gratitude in return.

Surprise Me

In the business world, I don’t like surprises – usually because they’re not the enjoyable kind.  In this particular case, however, Tim Hortons managed to surprise me in a positive way.  As a customer, I actually appreciated the recognition.  The monetary value of the card isn’t that significant, but, as they say, “It’s the thought that counts.”  That is something that exceeded my expectations.

I recognize that “gifting” is frowned upon and in some companies may even cost you your job if accepted.  This is  especially true when it is linked to the award of new business.  But somehow, this time and in this context, it seemed appropriate.  Of course, the free advertising that Tim Hortons is now receiving can only help to offset the small investment they made through their act of kindness.

Are there other ways that we can exceed customer expectations without gifting?  I’m sure that new features, technologies, and innovative ideas that improve a customer’s competitive position or enhances their product or service can also exceed customer expectations and may even offer the same element of surprise for the unexpected.

Until Next Time – STAY lean!

Vergence Analytics
Twitter:  @Versalytics