00004-01-01 Customer Driven Organisation

7/21/2019 00004-01-01 Customer Driven Organisation

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Fundamental Concepts

Customer Driven Organisation

Developed by:

Stephen P. DAlessandro

M.A. (Mrktg), B.A. (Hons.) Bus. Mang, FIM, MCIM, TEP, MIOD

Clive Scerri

B.Com. (Hons.), MIM, MAWOP

This module has been level-rated at MQF Level 5 by the Malta Qualifications Council according to the

European Credit System for Vocational Education & Training - ECVET.


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Living the Customer Care Philosophy

Customer Care is all about listening and

understanding a customer's needs and takingpositive action to help a customer meet theseneeds.

It is the basic building block for any

organisation in the service industry

Irrespective of the status, appearance or

nationality of the customer, the level of service tobe given must be at a par, if not superior to thatprovided by other firms in the service industry


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Customers expectations can be very high, often

not even realistic, and yet the challenge is tomeet and indeed exceed customer expectations

Customer care is one of the main factors whichin today's fast-changing business climate has the

potential to provide positive competitiveadvantage

Service quality is determined by the degree towhich a customer's initial expectations arefulfilled - whether real contact with the companyis better than expected, as expected, or less thanexpected


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To succeed, organisations must therefore ensure

that all members of staff are committed to a valid

Customer-Oriented Philosophy

Who is the customer? Is it really anybody who calls upon the

services of the company?

Can we segment this market?

What are the criteria to be used to differentiatebetween one customer group and another?


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The meaning of Quality

Total Quality means continually meeting and

exceeding the needs and expectations of

customers - both inside and outside of

organisation

It must become second nature in everything

an organisation does, indeed it must be seen

in every facet of operations


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As competition becomes more fierce, looking

after existing customers is itself a challenge

There are always plenty of organisations which

are prepared to go to all the trouble and effort ittakes to meet and exceed the customers'

expectations


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Quality evolution

The first stage of quality, and therefore the initial

focus of quality programmes, was to stop poor

products going to customers This required control - quality control - and the

effort was internal

Quality inspectors were the key players whose

job was to find defects after production


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Quality evolution

It is a reactive approach to quality, but does

provide useful feedback on areas of deficiency

and non-conformity, so that improvements canbe made.

It also introduced the concept of the definition of

a quality standard and measurement against this

standard


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Quality evolution

At this stage, quality awareness within an

organisation is basic

It is the first level in most organisations quest forquality improvement programmes


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Quality evolution

The growth of quality awareness moves some

companies from quality control to quality

assurance This seeks to avoid customers receiving

products or services of inferior or substandard

quality


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Quality evolution

A quality assurance programme is a more

proactive approach, focusing on processes

rather than product It requires definition and execution of systematic

actions in order to ensure that a product or

service will satisfy its quality requirements

This is often called 'designing quality in' At this stage quality is still in the province of

experts - 100% of the quality responsibility lies

with 5% of the work force


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Quality evolution

Over the past 30 years, leading-edge firms

implemented Total Quality programmes, where

the responsibility for quality is with the wholework force

Each employee is responsible for the quality of

their own job, their own actions

A TQM programme empowers and rewardsevery person to add value to a company's

products and services


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Quality evolution

It unites all groups with a common goal and a

common language, and it provides a common

framework for the company to sustaindifferentiation

Each approach builds on the successful practice

of the preceding approaches


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What is Quality?

What is really meant by quality and how can it be

achieved?

One of the obstacles in implementing qualityprogrammes is the differing ideas of what

quality means.

It is not just "meeting the specification" or

"fitness for use" It is not even "being the best"


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What is Quality?

What is really meant by quality and how can it be

achieved? (cont.)

Of course all these elements may be involved,but the marketing context of quality is

understanding what your customers want and

exceeding their expectations

And its' not something that only applies to theend products or services, quality is of value in

all activities within the company


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What is Quality?

Achieving excellence is a never-ending process.

Customers expect even better service so

organisations improve their service, which in turnraises customer expectations even higher.

This means the changes that take place will

become routine and systematicsome

changes will be achieved rapidly, other willtake longer


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What is Quality?

Tom Peters' and Nancy Austin's seminal work, A

Passion for Excellence, explain that winners

compete by delivering a product that supplies

superior value, rather that one that costs less

Source: Peters T., Austin N. 1994, A Passion for ExcellenceThe Leadership Difference,

Profile Books


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What is Quality?

In markets that are full of players, products and

services become commodities - there is little

opportunity for companies to make themselves

stand out

The only successful long-term differentiator is

sustained quality and this is compounded by

customers' changing expectations

What may have been acceptable a few years

ago is no longer acceptable today


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What is Quality?

The development of better and more consistent

quality products raises customers expectations

Quality ideals and actions bring many benefits -

improved image, improved productivity, cost

reductions, improved morale, more effective

services to customers - which all lead to higher

customer satisfaction and therefore morecommitted customers who buy time and again


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What is Quality?

Improving personal standards of performance is

the best investment.

An essential element is the ability to create a

culture within the firm where people aim to

have the satisfaction of saying, I did my best

and the customer was fully satisfied with the

service Keeping the highest standards of performance is

an achievement and calls for recognition


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What is Quality?

Frontline staff need to learn to be nice to

themselves and look after their positive can do

attitudes

Its hard to be nice to customers, if you cant

be nice to yourself

00004-01-01 Customer Driven Organisation

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