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    CUSTOMIZING THE SERVICE MODEL TO ALIGN WITH ORGANIZATION OBJECTIVES.ppt

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    CUSTOMIZING THE SERVICE MODEL TO ALIGN WITH ORGANIZATION OBJECTIVES.ppt

    CUSTOMIZING THE SERVICE MODEL TO ALIGN WITH ORGANIZATION OBJECTIVESCNIs Journey,Mistakes,and Lessons LearnedKenny OngCNI Holdings Berhad,Contents:,Before we startIdentify Business ObjectivesAlign Service ModelInternal Customer IndicatorsNotes,Problems,IssuesStarting Up,Intro:CNI,18 years oldCore Business:MLMOthers:Contract Manufacturing,Export/Trading,eCommerceMalaysia,Singapore,Brunei,Indonesia,India,China,Hong Kong,Philippines,Italy,TaiwanStaff force:500Distributors:250,000Products:Consumer Goods and Services,Intro:CNI,CNIs Shared Services backgroundCNI MalaysiaCNI GlobalKey Elite,A.Before we start,“in the past 18 months,we have heard that profit is more important than revenue,quality is more important that profit,people are more important than profit,customers are more important than our people,big customers are more important than small customers,and that growth is the key to our success.No wonder our performance is inconsistent,CEO,Anonymous,Before we start,In the old days of HRAverage training hours per staff%of staff attending training#of training programs%of training programs conductedTraining needs analysis conductedCompetency models developedTraining budget as%of payroll,Whats wrong with this picture?,Before we start,Moral of the storyInnovation:Business modelsProductsServices Market LeadershipCompetitive differentiation,Get the picture?,“What is the moral of the story?”,B.Understanding the Business Objectives,Strategy and Intent,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Strategy:Value Disciplines,Operational ExcellenceCompetitive priceError free,reliableFast(on demand)SimpleResponsiveConsistent information for allTransactionalOnce and Done,Customer IntimacyManagement by FactEasy to do business withHave it your way(customization)Market segments of oneProactive,flexibleRelationship and consultative sellingCross selling,Product LeadershipNew,state of the art products or servicesRisk takersMeet volatile customer needsFast concept-to-counterNever satisfied-obsolete own and competitors productsLearning organization,Strategy:Value Disciplines,Sample KPIs for Each Discipline,Operational ExcellencePriceSelectionConvenienceZero DefectsGrowth,Customer IntimacyCustomer KnowledgeSolutions OfferedPenetrationCustomer DataCustomer-success focus,Product LeadershipMarketingFunctionality#of Successes#of FailuresLearn from key usersInterdisciplinary teamsPipeline,Operational ExcellenceMove know-how from top performing units to othersBenchmark against best in classEnsure operations training for all employeesUse disciplines like TQM for continuous learning to reduce costs and improve quality,Strategy:Value Disciplines,Strategy:Value Disciplines,Customer IntimacyCapture knowledge about customersUnderstand customer needsEmpower front line employeesEnsure that everyone knows the customerMake company knowledge available to customers,Product LeadershipReduce time to marketCommercialize new products fastEnsure that ideas flowReuse what other parts of the company have already learnedEnsure there are multiple sources of funding,Strategy:Value Disciplines,The McPlaybook*,Make it easy to eat50%drive-thruMeals held in one hand,Make it easy to prepareHigh TurnoverTasks simple to learn&repeat,Make it quick“Fast Food”Tests new products for Cooking Times,Make what customers wantProwls market for new productsMonitored field tests,*Adapted from:Businessweek,Februrary 5th 2007,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Strategy:Value Disciplines,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Strategy:Value Disciplines,Financial Shared Services,Strategy and Intent of the Business?FSS role in the strategy?FSS Strategy and Intent?Objectives of FSS?FSS Service Model?,C.Aligning the Service Model,Aligning Service Model,Role of FSSObjectives of FSS4-Wheels,Alignment:4-Wheels Service Model,Principles,Corporate Objective,FSS Role&Objectives,FSS Role?,Financial Shared Services,SBUs,Divs,Depts,Corporate Center,Strategy,Results,Request,Service,Policies,Service,FSS Objectives?,Transactional,Cost reduction,Efficiency,Agility,Fast Copy,AP,General Ledger,B/S analysis,Accounting,Fixed Assets,AR,Facilities,Open&Hidden Objectives,Eliminate redundanciesRemove no value-adding activitiesCost SavingsFocus on CoreEconomies of ScaleCompete with external vendorsSpecialized skill sets Move from staff to lineSalary BandCareer Path,Manage external vendorsB.U.s appreciate servicesAdditional revenue w/o interfering coreDivestment/IPOMSC tax breakMake accountable to SBU vs.HQUndertake large infra projects,Alignment:Framework,Price TransparencyBusiness ManagementMarket ResponsivenessBest Practice Process StandardizationService Culture,Principles,Alignment:Framework,Org StructureJob DesignPolicies&proceduresGovernanceManagement SystemsBSC and KPIsBenchmarkingA.B.C.,Alignment:Service Structure,Corporate Center,Financial Shared Services,Alignment:Internal Structure,Alignment:Internal Structure,Migrate processes to standard platforms,scaled migration,joint-process ownership,Alignment:Internal Structure,SLAs,Audit Compliance,Business Controls,records Management,service request processing,digitization,Alignment:Internal Structure,identify processes to migrate,customer relationships,value migration,CS interviews,performance evaluations,Alignment:Framework,ToolsICT SystemsDigitizationSelf ServiceWorkflowPhysical facilities,In-source?Co-source?JV?BPO?,Strategy:Framework,Customer focusedAttentive to market standardsCostsServiceBest practicesAccountable for SLAs,ISLIsBuild relationships with BUsBottom line managementTradeoff between Cost vs.Value,Alignment:Framework,Specialist Career LaddersStaff-FrontlineTeam-basedDuplicationStandard or Creative?SS vs.Staff mindsetSourcingC&B,Retention,In-source?Co-source?JV?BPO?,Alignment:Framework,Principles,Corporate Objective,FSS Role&Objectives,D.Internal Customer Indicators,Measurement&Satisfaction,“In business after business,60%to 80%of lost customers reported on a survey just prior to defecting that they were satisfied or very satisfied.”,HBR March/April 1996,Financial“To satisfy our stakeholders,what Financial objectives must we accomplish?”,Corporate-level BSC,Corporate Objectives,FSS-level BSC,ISLI,ISLI=Internal Service Level Index.,Services and Levels,Expectations,Priorities,Improvement Plans,Service Costs,Relationship=Expectations,ISLI Matrix,Customer Intimacy,Product Leadership,Operational Excellence,Transactional,Value-added,Best Practices,Transformation,Standard,ISLI,Transactional,Cost reduction,Efficiency,Agility,Fast Copy,Value-added,Best Practices,Consistency,Analysis,Value,Process improvement,service innovation,secondary KPIs,internal customers,Transformation,Direct Business Impact,primary KPIs,external customers,TimeCostQuantityQuality,ISLI,Transactional,Cost reduction,Efficiency,Agility,Fast Copy,Value-added,Best Practices,Consistency,Analysis,Value creation,customization,Process improvement,service innovation,secondary KPIs,internal customers,Transformation,Direct Business Impact,primary KPIs,external customers,TimeCostQuantityQuality,InnovationService,ISLI,Transactional,Cost reduction,Efficiency,Agility,Fast Copy,Value-added,Best Practices,Consistency,Analysis,Value,Process improvement,service innovation,secondary KPIs,internal customers,Transformation,Direct Business Impact,primary KPIs,external customers,TimeCostQuantityQuality,InnovationServiceKPI,ISLI,Transactional,Cost reduction,Efficiency,Agility,Fast Copy,Value-added,Best Practices,Consistency,Analysis,Value,Process improvement,service innovation,secondary KPIs,internal customers,Transformation,Direct Business Impact,primary KPIs,external customers,TimeCostQuantityQuality,InnovationServiceKPIImpact,E.Notes,Problems,Issues,Notes,Problems,Issues,FSS viewed as simply Cost CuttingNo change in C&B structure“Shadow”services at BUsIncongruent with Company StrategyHO allocationJust consolidate,no RedesignComplicated,Legal-jargon SLAs,FSS leadership turnoverFSS staff competent than BU staffWho should bear external party costs?Infra ownershipSLA yes,but ISLI noStaff unwilling to go to FSSFSS taking orders from Big Boss vs.BUs,F.Starting Up,Starting Up,Strategy and Intent of the Business?FSS role in the strategy?Objectives of FSS?FSS Service Model?,Thank You.,soft copy of slides:,

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