Compressed Air Best Practices - May 2008 - (Page 40)

| 05/08 Compressed Air Indus mpressed Industry AUTOMOTIVE ASSEM TOMOTIVE ASSEMBLY | BEYOND THE “CUSTOMER-CENTRIC” BUZZWORD: SIX TRUTHS YOU NEED TO KNOW ABOUT REALLY PUTTING THE CUSTOMER FIRST TRUTH #4: To stay viable in today’s business world, you must cut the value chain and hop on the “customer-critical path.” As you might have guessed, your customers are your partners on this path. And they must start their journey before they even become your customers — while they are still prospects, in other words. It isn’t always easy for a company to think along these new lines, but consider what a new client would need if they approached your organization for the first time. Ask yourself questions such as: What do they really need? Why did they choose to approach us and not our competitor? Are they approaching just us, or everyone in the market, and what will set us apart? Once the customer perspective becomes clear, natural customer groupings will emerge. It is your job to strive to see things from the perspective of these natural customer market segments. From this initial entry point, the organization can methodically walk along the customer-critical path through each major step that these new customer segments must go through in order to become happy, paying customers. “This is the true value chain of the organization — a string of processes that become critical because they directly affect the customer, regardless of the product, service, organizational chart, academic degree or bias,” says Giannetto. “Find the customer-critical path and you can guide your customer through your organization in the way that is most meaningful, and profitable, to both them and you.” TRUTH #6: Adopting the customer-critical path can transform every aspect of your company. The customer-critical path approach offers a significant value for organizations that adopt it, says Giannetto. It allows them to better understand their customers, so that they can be segmented and targeted by products or services with more effective value propositions. This drives the bottom line in several ways. A stronger value proposition increases appeal, driving revenue. Better service and customer interaction improve the customer experience and increase customer loyalty, driving customer lifetime value. “The customer-critical path also becomes a vital decision-making tool for management,” says Giannetto. “It provides a clear and unbiased perspective on where resources should, and should not, be spent. It defines the relative worth of projects, assets and expenditures, painting a clear picture of what results will be if the customer-critical path is not properly maintained.” “If your mission and vision statements say you are customer-centric, follow the words up with real action,” says Giannetto. “You’ll make your strategic plan actionable, setting your organization on a path towards true differentiation and market leadership. Properly crafted, the customer-critical path becomes a pleasant stroll through the park for your customers, and also happens to be the most profitable path for your organization.” About the Authors: TRUTH #5: The customer-critical path offers more options for your customers. Any business leader knows that not every customer’s needs are the same. This remains true even within an industry that has only one real product, like a power utility. The customer-critical path may start in several places in its efforts to meet the needs of several different types of customers — from household customers that simply need power turned on to major projects that require significant project management and preplanning. “Eventually these starting paths merge,” says Giannetto. “It will occur at the point at which all customers are happy. From there they may take a different path. That is the great thing about being customer-centric. There isn’t one narrowly focused value chain confining your customers. The customer-critical path allows you to easily adapt to your customers’ needs so that your company can be useful to them long-term.” David F. Giannetto is considered one of the most experienced practitioners and a true thought leader in the Enterprise and Business Performance Management arena. He is the director of Cohn Consulting Group's Enterprise Performance Management Practice, and has been with J.H. Cohn LLP since 1999. He is responsible for helping client organizations improve operation efficiency, management effectiveness, customer satisfaction and systems integration through the implementation of the latest performance management methodologies. Prior to this, he was an operations manager and quality auditor for Airborne Express Freight Corporation (currently DHL) at locations throughout northern New Jersey and New York City. Anthony Zecca is the partner-in-charge of Cohn Consulting Group, a division of J.H. Cohn LLP, one of the country's largest accounting and consulting firms. Tony is an expert in driving corporate performance, developing business intelligence systems, and creating highly functional management teams. He has worked with top management to assess overall organizational effectiveness and strategic alignment, and to improve management effectiveness, profitability and cash flow. Tony is an accomplished financial and management professional and a seasoned strategist focused on helping clients develop and implement growth and profit strategies that obtain breakthrough results within varying economic and market environments. He has served as the chief operating officer (COO) for several companies on the strategies and concepts consultants talk about, but rarely implement. About the Book: “The Performance Power Grid: The Proven Method to Create and Sustain Superior Organizational Performance” (Wiley, 2006, ISBN: 0-470-05144-2, $27.95) is available at bookstores nationwide, major online booksellers or direct from the publisher by calling 800-225-5945. In Canada, call 800-567-4797. For more information, please visit performancepowergrid.com. 40 www.airbestpractices.com http://www.performancepowergrid.com http://www.airbestpractices.com

Table of Contents Feed for the Digital Edition of Compressed Air Best Practices - May 2008

Compressed Air Best Practices - May 2008 Contents From the Editor Utility-Air News The Compressed Air Audit of the Month Pneumatics Real World Best Practices Delta Industries: Doing What is Right for Customers Delta Industries: Six Truths You Need to Know about Really Putting the Customer First Power Supply Industries Resources for Energy Engineers Wall Street Watch Advertiser Index Job Market

Compressed Air Best Practices - May 2008

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