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What do Customers Buy: Experience or Product? 0

Part 1 of 2 with John Goodman

Customer Experience 3.0: High-Profit Strategies in the Age of Techno Service is John Goodman new book and my guest this week on the podcast. John has managed more than 1,000 separate customer service studies, including the White House sponsored evaluation of complaint handling practices in government and business and studies of word of mouth and the bottom-line impact of consumer education sponsored by Coca-Cola USA. John Goodman

John has taught service quality and service re-engineering courses at Wharton Business School’s executive education program.  He has appeared on “Good Morning America”, the ABC Evening News, The Discovery Channel, National Public Radio and as a panelist on the PBS show, “The Editors.”John is the Vice Chairman of Customer Care Measurement and Consulting (CCMC).

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Next week will be the 2nd part.

Lean Service Design Program Offer 0

Lean Service Design changes the way you think about business. No longer can companies focus their efforts on process improvements. Instead, they must engage the customer in use of their product/service rather than analyzing tasks for improvement. We no longer build and hope that there is a demand. We must create demand through the services that we offer and Lean Service Design is the enabler of this process. It changes our mindset of thinking about design at the end of the supply chain to make it look good and add a few appealing features.Lean Service Design Instead, it moves Design and the user themselves to co-create or co-produce the desired experience to the beginning of the supply chain.

Or, purchase the Lean Service Design Program!

Purchase the 130 page PDF for download, Lean Service Design

The umbrella of Lean offers Service Design a method of entry into a well-established market. Lean has been very successful in Services and Design through traditional practices. However, we must move away from these traditions and institute a wider scope of Design to Services. This download contains a 130-page PDF book, workbook with forms, PDFs and training videos.

Table of Contents

  • Chapter 1 – Lean (SDCA)
  • Chapter 2 – Service (PDCA)
  • Chapter 3 – Design (EDCA)
  • Chapter 4 – Trilogy

In addition, for a limited time, I have included 2 popular eBooks from the Marketing with Lean Series:

  1. Lean Engagement Team (More Info): The ability to share and create knowledge with your customer is the strongest marketing tool possible.
  2. CAP-Do (More Info): What makes CAP-Do so attractive is that it assumes we do not have the answers. It allows us to create a systematic way to address the problems (pain) or opportunities (gain) from the use of our products and services.

Or, purchase the Lean Service Design Program!

Purchase the 130 page PDF for download, Lean Service Design

Connect with Me on LinkedIn and Mention the Date of the Blog Post

I will send you a Free PDF of The Lean Marketing House

A few reasons to consider the Lean Marketing House book:

  1. Is there a reason to use Lean in Sales and Marketing?
  2. Do you have to be practicing Lean in the rest of the company?
  3. Is Lean Marketing the same as Agile Marketing?
  4. How does A3 problem solving relate to Marketing?
  5. Why is Social Media so Lean?
  6. Can your company ever complete a Lean Transformation without Sales on board?
  7. What does Knowledge Creation have to do with Lean?
  8. Develop stronger partnerships with your customers?
  9. Provide a methodology to become more precise in your sales and marketing?
  10. Begin a continuous improvement program in your sales and marketing?

Book Description: When you first hear the terms Lean and Value Stream most of our minds think about manufacturing processes and waste. Putting the words marketing behind both of them is hardly creative. Whether Marketing meets Lean under this name or another it will be very close to the Lean methodologies develop in software primarily under the Agile connotation. This book is about bridging that gap. It may not bring all the pieces in place, but it is a starting point for creating true iterative marketing cycles based on not only Lean principles but more importantly Customer Value.

Or, purchase the Lean Service Design Program!

Purchase the 130 page PDF for download, Lean Service Design

Don’t Add Functionality, Take Away Functionality 0

The American Management Association published John Goodman’s book, Strategic Customer Service, in May, 2009 and I think I have used it every week or at least every month since then. John is my guest tomorrow and next week on the podcast to discuss his new book, Customer Experience 3.0: High-Profit Strategies in the Age of Techno Service. John is the Vice Chairman of Customer Care Measurement and Consulting (CCMC) and has published scores of articles including “Using Service to Grow the Top Line” in the AMA Journal, 8 articles in Quality Progress as well as BrandWeek, the American Banker and Marketing News.

Below is part of our conversation before the podcast started.

Simplicity

Courtesy of http://www.interaction-design.org/

Joe Dager: Your first book was a I kept back on my bookshelf, dog eared, highlighted, tried different things out of it and used it as a reference material. This book, it makes me want to go back and re-read certain sections again. I certainly did not get everything out of it reading it cover to cover.

John Goodman: In fact in a number of areas, I sort of raised issues but for brevity don’t necessarily fully answer them or fully blow them out. I guess that’s one of the challenges is I was trying to cover so much, you know, all the new technology and everything like that, the evolution of the market and customers which are becoming more and more fragmented to the point where one, there was at least twice as much material that could’ve gotten in the book, had wanted to do a 700-page book which no one would want to read, but so that’s one of the challenges.

Joe: Every time you go deal with, I go deal with a client, they have a whole different software products that they use because it’s the best thing since, sliced bread. There’s just so many different things out there to be able to be used that it’s not uncommon anymore that you find people using 10% of 20 different products out there.

John: On top of that, even the broad technology areas, for instance, online communities or Gamification or video. There’re so many different ways each of those can be used. For instance, I just started advising a startup that streams video from your iPhone. If you’ve been in an auto accident, rather than them sending an adjuster out, they send you this App and then you walk around the car and show them all of the different views of the car and, you know, sort of exactly the same thing the adjuster would see with his eyes and they’re recording it. They basically can adjudicate 95% of claims without ever sending the adjuster out and I’m now doing the same thing with a construction company, where rather than send the estimator out to give you an idea of what the job would cost to redo your kitchen, this can now be done using this mobile app. So, that’s one example of video, but on the other end videos used for educating people and setting proper expectations and everything else, so each of those technologies has 20 possible applications and what I did was I sort of hit, “Here are the 3 big ones and here are the 3 big mistakes,” but literally writing some new articles on online communities and on Gamification. We’re now sort of expanding on that stuff.

Joe: Like, it’s never ending, what you can do right now. I always go back and I always reference Apple and remember that every person in the world can practically name all of Apple’s products and they all can sit on the kitchen table and everybody’s defined at what they do and they’re one of the most profitable companies in the world.

John: That goes back to simplification which another interesting thing we may want to just talk about very briefly is Siegel and Gale just came out with a study. They’ve now created what they call the Simplification Index. I heard about it because Toyota was the simplest car and it goes back to the Steve Jobs thing of ‘don’t add functionality, take away functionality so that only the key functions are there.’

Transcription and Podcast with Siegel and Gale author: 3 Steps of Simplification

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A Linear Process for Right-Brain Thinkers 0

Timothy W. Fowler is a visual-spatial thinker who designed President Obama’s Air Force One secure inspection and re-fueling process and is also the founding Director of Super Bowl Champion Coach Joe Gibbs Youth For Tomorrow. In a past podcast, he introduced me to RIGHT technique.

Read, Inquire, Glimpse, Highlight and Trend

Related Podcast and Transcription: Does Leadership Need Right Brainers?

An excerpt from the podcast:

Joe:  That’s a good way to put it because that’s very much Dr. Deming’s motto. I look at the problem-solving as a key to different things and you need the right-brain influence. But don’t you need some structure when you go through that process?

Timothy:  That’s a great question. Absolutely. We have a five-step process. It’s very structured. It’s very linear, but it allows for a right-brain influence in each phase, and we just happen to use the acronym of RIGHT, R-I-G-H-T. The first thing we need to do is we need to read or observe, read the situation holistically, and that would include the problem, specifically. But it would also include things like the environment, the interactions of people and some of the symptoms that you see around the problem. Secondly, we would want to inquire or question, inquire as to the inputs to that problem, the ripple effect of that problem, some of the intangibles and root causes.

Then “G,” we want to get a glimpse or a depiction of what the future would look like if the problem were solved, beginning with the end in mind as a kind of the flavor of the glimpse phase.

Next, we go to “H”, we would want to highlight, and that’s our examination phase. That’s where we test tube the solution and kind of track the process.

Lastly, “T,” we want to trend it or the application phase where we apply the change in real life. Subsequently, we read the situation again for continuous improvement. So that’s our five-step right-brain problem-solving methodology.

Joe:  Could you just go over that acronym, just start with R-I-G-H-T for someone who’s just listening?

Timothy:  Absolutely. R would be the observe phase, you read the situation holistically. I would be the inquire phase where you question the inputs and the ripple effect. G, you take a glimpse or a depiction of what the future state would look like, beginning with the end in mind. H, you highlight or examine your improvements that you put into place in real life. You basically test tube the solution. And then, T, you trend. You apply the application things where you apply that change in real life. And then you read it again, and that’s the cycle of continuous process improvements. So it’s Read, Inquire, Glimpse, Highlight and Trend.

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A Few Hints When Starting with Lean 0

Natalie J. Sayer is the owner of I-Emerge, an Arizona-based global consultancy, and co-author of  Lean For Dummies. She has traveled the world extensively, working with leaders in English and Spanish, to improve their daily lives, businesses and results.  Natalie began studying and applying Lean in the automotive industry, in the US and Mexico before it was formally known as Lean. She has trained, coached, mentored and rolled up her sleeves to implement Lean in organizations ranging from Fortune 130 companies to micro-businesses.

Related Podcast and Transcription: Applying the Principles of Lean

An excerpt from a past podcast with Natalie:

Joe:   What would you then warn someone about before they would attempt Lean?

Natalie:    I wouldn’t say maybe warn. I would say advise them. That is to find a project that will have an impact on your customer if you improve. Two, get the leadership on board and get their support. Have your idea of the first place you’d want to start, have an idea. If you’ve read the whole book, then you might have an idea of what tools might be appropriate for that project and the scope of the project, and get your leadership onboard. If you just want to start in your own work area, start small. Maybe it’s something that will help you to be able to do your work more effectively. Workplace organization is a good place to start.

I have a home office, and it’s kind of funny because if I start abusing the systems that I have in place of not following them, it’s amazing how much time you waste looking for things. It’s not where in you expect it. We’re all human. There is no Lean robot perfection, so there will be times that you put something in place and then you, yourself, don’t have the discipline to follow-up. Then when you don’t follow it and you waste a lot of time looking for something. Let’s talk about your keys. How many times do people lay their keys down somewhere and then can’t find them? As a matter of fact, there’s a kind of a funny little spaghetti diagram in the book around, where the heck did I put my keys? There’s tracing the path looking for them.

I would say, to succinctly say that, start small. Start with a place that can affect your abilities to deliver to your customer. Get your leadership onboard. Get the ear of someone in leadership, and try a pilot.

The other thing I think that is kind of a warning for companies try to avoid the big launch event. It’s almost like that sets a company up for failure, because people expected then, “When are we going to get there?” like kids going on a destination, “Are we there yet? Are we there yet? Are we there yet?” Then you lose momentum because you’ve put this big, ‘Yahoo. We’re going Lean’ banner or cry out there. I kind of am a supporter of stealth.

Start talking about in your strategy, where can it fit; a leadership decision to move the direction. What does it mean on building capability, serving the customer, and understanding value streams? Then just start with projects and start with behaviors. Train as you go don’t just send a bunch of people to Lean classes to get Lean certified as we’ve already talked about, when, in fact, they don’t have a project that they’re going to immediately implement on.

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Interaction Design Foundation Making Technology More User-Friendly 0

I have been actively engaged the past month and taking my self-study efforts from a new organization, Interaction Design Foundation. At the present time I am participating in two classes,  Design Thinking and The Psychology of Online Sales. I have been enjoying and learning from both. I encourage you to read the press release from the organization and browse the website.

Non-Profit Gives Designers Free Educational Materials: If you feel like a dunce whenever you try to decipher the instructions to a new microwave, format a paragraph in the latest version of Word, or coax a wireless printer into talking to a computer, Mads Soegaard has a message for you: “It’s not your fault.? It’s the technology that’s dumb, not you.” The 37-year-old former IT worker is so convinced that better tech design will improve everyone’s quality of life that he and his wife Rikke sold their car, mortgaged their home and lived on a semi-deserted island for a time in order to re-launch www.interaction-design.org — a nonprofit organization dedicated to distributing educational materials to industry, academia and individuals across the globe — free of charge. Interaction Design

Interaction-Design.org wants to democratize knowledge by distributing free materials produced by the world’s leading technology designers, professors, futurists and bestselling authors.? Two contributing authors are Clayton Christensen, the Harvard professor praised as “brilliant” by New York Mayor Michael R. Bloomberg, as well as Steve Mann, known as the father of wearable computing and the inspiration for Google’s high-profile “Project Glass.” Unlike nonprofits such as the Khan Academy, however, Interaction-Design.org also aims to democratize the usability of technology through improved product designs.

“We’re leading a battle against frustrating and time-consuming technology — poor designs that drain our productivity, our dignity and sometimes our sanity,” says Soegaard.? “Too many PCs, mobile devices, household appliances and software applications are designed with engineers in mind, not consumers.? In fact, study after study shows that computers are the leading cause of lost productivity.? One survey revealed that crashes, printer jams and network problems cost the average UK employee 48 minutes per day.? That’s one reason why we’re reaching out to the next generation of tech designers with free, world-class educational materials.”

Interaction-Design.org currently distributes (and constantly updates) The Encyclopedia of Human-Computer Interaction, a magnum opus featuring 30 chapters on topics ranging from “User Experience and Experience Design” to “Wearable Computing,” “Visual Aesthetics” and “Semiotics.”

Since its founding in 2002, the organization has helped to modernize the publishing industry by:

  • Freeing readers from restrictive copyrights that prohibit re-use of materials for commercial purposes.? “We’ve designed our copyright strategy for the author and the reader, not the publisher and the profit,” says Mads. ?“As long as you credit the author, you’re free to use our materials — even for commercial purposes.”
  • Reinventing educational materials as a genre, mixing HD video interviews, interactive illustrations, online integration of basic research and regular text, and focusing on tablets and ebook-readers over printed materials.
  • Providing aid for educational institutions and companies in developing countries, giving them free access to materials that would otherwise be unaffordable. ?Twenty percent of readers hail from developing countries.

About The Interaction Design Foundation: Headquartered in Arhus, Denmark, the primary goals of Interaction-Design.org are to:

  1. Create and publish free and open educational materials for industry, academia and individual technology designers — materials written and produced by leading designers, professors, futurists and bestselling authors from around the globe.
  2. Enhance the design, function and usability of technology by helping to educate the next generation of user interface designers, user experience managers and product designers.

Says Interaction-Design.org founder Mads Soegaard: “Every day, I hear people say, ‘I’m not tech-savvy. ?I should take a course to learn this. ?I must not have read the manual properly.’ ?People should know that their frustrations with technology are not symptoms of their own intellectual inadequacy, but symptoms of badly designed technology.? Technology shouldn’t need a manual. ?If you need to include a manual, you haven’t designed the product properly.? One of our goals is to create a more people-oriented generation of designers and programmers.? We want them to reimagine high-tech products that are intuitive and easy to use.”

Through multimedia materials such as The Encyclopedia of Human-Computer Interaction, the organization’s authors, editorial team and advisory board are working to create a publishing venue tailored to authors and readers instead of profits. Already, Interaction-Design.org’s free online approach to publishing has helped authors reach 20,000% more readers than their previous records, which is quite an achievement when you consider that only best-selling technology and design authors have submitted materials.

For more information, contact Mads Soegaard at mads@interaction-design.org or visit www.Interaction-Design.org.

What’s DIRF? 0

John Goodman, Vice Chairman of Customer Care Measurement and Consulting (CCMC), has published scores of articles including “Using Service to Grow the Top Line” in the AMA Journal, 8 articles in Quality Progress as well as BrandWeek, the American Banker and Marketing News. Business Week credits John’s research for creation of the GE Answer Center, the original customer satisfaction contact center, as well as instigation of service initiatives at American Express, Coors and Toyota. The American Management Association published his book, Strategic Customer Service, in May, 2009. John is my guest next week on the podcast and to discuss his new book, Customer Experience 3.0: High-Profit Strategies in the Age of Techno Service.

An excerpt from the podcast:

Joe: What’s DIRF? Did you mention that in your book and could you explain that a little bit? Customer Experience 3.0

John: It’s called Do It Right the First Time which means delivering your product in a way that there are no unpleasant surprises. A key part of that and this is the part that I think, you know, both marketing and sales people find the hardest to deliver on is setting proper expectations. It is not in the DNA of marketing and sales people to talk about the limitations of a product and in fact I had a CEO in the session yesterday who said that they do military goods for the most part but they had come up with this bag that was very tough but it had sort of a rough outside that could scrape your skin. But, again, for combat soldiers it worked perfectly. They then started selling a consumer version of it. The staff was saying, “We need to warn the soccer moms that this is a really rough surface that could, you know, scrape your skin.” And, some of the marketing people said, “Oh, we really, you know, we don’t want to point out the limitation.” and the CEO was a woman who said, “No. We’re going to be upfront about it and we’re going to tell them we’re making an outer cover that will go over it to protect your skin.” And, it all of a sudden became a very positive thing in the blogosphere and social media, people were saying, “Oh, yes, this is an issue but they’ve recognized it. This originally was done for combat soldiers and now it’s being done for soccer moms and so they’re making it much snazzier, smoother and everything like that.” And, she said that they had been very, very reticent to talk about this limitation, but it was embraced and welcomed by the marketplace. It’s sort of “Hey, you’re telling me the truth.”

Joe: So, transparency is still alive and well?

John: Although, again, marketing and sales people cringe, another good example of this was an insurance company. They had a standard homeowner’s policy had a limitation of $3,000 on guns and jewelry. And, in this particular state, the average customer had $6,000 worth of guns. People were having claims denied and then they would say, “Well, why didn’t you tell me there was a limitation?” And, “Well, didn’t you read your policy?” “No one reads their policy.” So, a welcome letter said, “Welcome to the family. We have a $3,000 limit on guns and jewelry.” And, the sales guys hated it. It was, “Oh, this is going to create a problem.” Well, the customer reads it and says, “Oh, well I have more than that. I guess I need to buy a rider. Can I give you some more money?” So, in fact, by raising the issue, you generated more revenue. No one was unhappy about it but you also avoided the later potential occurrence of ‘We denied the claim” and “You guys slid it by me because you didn’t tell me you’re a bunch of crooks.”