Archive for Quality

I had the pleasure of discussing the mission and expertise of the Juran Institute, Inc. with their CEO, Joe DeFeo. The Institute provides research and pragmatic solutions to enable organizations from any industry to learn the tools and techniques for managing quality and performance excellence. As a result of this discussion, I think you will take away some different views on the subject of quality and how they apply to your organization. This is not quality for the sake of quality. This is quality for the sake of business improvement. 

The Juran’s Quality Handbook: The Complete Guide to Performance Excellence 6/e , was co-authored by Joe DeFeo and the late Dr. Joseph M. Juran. This authoritative resource shows how to apply universal methods for delivering superior results and organizational excellence in any organization, industry, country or process. In the podcast, Joe will give two people the opportunity to win a copy of the handbook.

P.S. What do you talk about before a podcast begins? I left some beginning remarks in place. However, I have to correct a statement that was made, WKRP was in Cincinnati.

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Upcoming Events: Juran is conducting blended Lean Six Sigma workshops for Green Belt and Black Belt certification beginning in April 2011. The workshops begin with required online independent study of e-learning modules. The estimated 24 hours of independent study must be completed by the start of the onsite, instructor-led portion of the workshop. The onsite workshop training, held in Southbury, Connecticut, will expand upon the topics covered in the e-learning modules. Training will be interactive with group case study exercises, problem analysis and statistics practice. Here is a list of all the workshops Juran currently has scheduled for 2011:

To register, or for more information, please call 800-338-7726, or email Tina@juran.com.

Related Information:
Juran Institute Website
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Integrating Value Networks
Understand Scrum, Understand Implementing PDCA
Why does sales and marketing operate to a different quality standard?

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After reviewing the new edition of Juran’s Quality Handbook: The Complete Guide to Performance Excellence 6/e,  I wondered why companies hold the entire company to such a high quality standard but leave Sales and Marketing off the hook. Technological measures of quality has existed on shop floors for many years, but measures of quality have not existed in sales and marketing. It has been difficult for organizations to recognize this need as they may have lacked the necessary alarm signals.  As an increasing number of companies have become commoditized and market share dwindles, these alarms are now going off all over country. It is simply a lack of demand.  

The good news is that the methods, tools and know-how now exist to use quality in your process to drive market share and increase revenue. Sales and Marketing needs to become part of the quality process within your company. Not only to improve their own methods but to lead their companies out of this dilemma of surviving in an economy of an overabundance of supply. What’s not in place is the culture of continuous improvement and the ability to understand the changing perception of customer value.

In the new Juran Quality Handbook, they listed the lessons learned by organizations that were successful in their quality initiatives. Their analysis showed that despite differences among the organizations, there was much commonality. These common strategies follow:

  1. Customers and quality have top priority. Thus customer satisfaction was the chief operating goal embedded in the vision and strategic plans. This was written into
    corporate policies and scorecards.
  2. Create a performance excellence system. All organizations that attained superior results did so with a change program or a systematic model for change. This model enables
    organizational breakthroughs to occur.
  3. Do strategic planning for quality. The business plan was opened up to include quality goals and balanced scorecards, year after year.
  4. Benchmark best practices. This approach was adopted to set goals based on superior results already achieved by others.
  5. Engage in continuous innovation and process improvement. The business plan was opened up to include goals for improvement. It was recognized that quality is a moving target; therefore there is no end to improving processes.
  6. Offer training in managing for quality, the methods and tools. Training was extended beyond the quality department to all functions and levels, including upper managers.
  7. Create an organization-wide assurance focus. This focus is on improving and ,ensuring that all goods, services, processes, and functions in an organization are of high quality.
  8. Project by project, create multifunctional teams. Multifunctional teams, adopted to give priority to organization results rather than to functional goals, and later extended to include suppliers and customers, are key to creating breakthroughs in current performance. They focus on the “vital few” opportunities for improvement.
  9. Empower employees. This includes training and empowering the workforce to participate in planning and improvement of the “useful many” opportunities. Motivation was supplied through extending the use of recognition and rewards for responding to the changes demanded by the quality revolution. Measurements were developed to enable upper managers to follow progress toward providing customer satisfaction, meeting competition, improving quality, and so on. Upper managers took charge of managing for quality by recognizing that certain responsibilities were not something you could delegate—they were to be carried out by the upper managers, personally.
  10. Build an adaptable and sustainable organization. Quality is defined by the customers. Customers are driven by societal problems. Quality now includes safety, no harm to the environment, low cost, ease of use, etc. To succeed, all organizations must focus on attaining sustainable organizations.

Your organization may be doing many of these things very well. I challenge even the most successful companies to rate their sales and marketing by the same standards. What would you find? Just citing one area, do you measure improvements of processes, or do you compensate people? These ten strategies are possible in sales and marketing. However, quality improvements are seldom obtained without a methodology. The installation of a methodology, a process is required for improvement. Ultimately a different culture has to be developed for quality to be truly achieved.

This is why I believe the Future of Marketing is Lean!

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Feb
15

evaluate your Customer Needs

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How do you increase speed in your marketing? It actually is very easy. You must target your market. Most professionals lose jobs because they do not make their offers crystal clear to their prospect. The prospects must understand completely, without a doubt what benefits they will receive and what the outcomes will be from working with you or using your product. You must be crystal clear in your definition. However, are you crystal clear in what you will be offering?

I have recently started using the Kano model in providing a better definition for my clients of putting their product and features not only perspective but defining that clarity issue. The Kano model relates to three factors:

Basic or must be or the expected needs. Without these the customer would be dissatisfied. This sounds very straight forward but if these are not adequately defined during the marketing process they are simply deal breakers and questions that either party may ever asked.

The second aspect is the performance factor and to define that performance think about the term, “more is better.” The more this performance is met, the more the prospect is satisfied. This is the area that the customer measures the value of the product or service they are receiving. In a few cases, these features are the ones that have meaning to some clients and others could care less. They even may cause dissatisfaction to some. Herein lays a great opportunity to improve these areas which many times can be done at relatively inexpensive option. Or, you may even be able to remove them completely for a few of your target segments. If you can, are these segments really your target customer?

Another way to leverage the performance factor segment is to have a better definition of your target market and how it relates to these factors. You may find that making these an option or even using them in a way of further segmenting your customer base may ultimately give you an advantage over the competition either through price or features.

The third factor is the delighters. If these are absent, they will not cause any dissatisfaction at all. The customer does not even expect these. But when they are there, they cause extreme happiness. OK, maybe that is a bit much. An interesting side note that needs to be recognized about the delighters is typically they do not increase the value in the product or the service. Seldom will you get paid more because of them. The delighters may also in time, even become a basic need. What is a delighter today, may be an expectation tomorrow.

Kano The Kano Model is constantly shifting but it is a great method to use to gain a better understanding of your prospects values that are critical to success and to prioritize the requirements for further development activities. Just as importantly, I think it really lends itself to understanding your market segment characteristics better. And if you divide your marketing segments better, you will increase throughput and develop better budgets as a result.

By the way: Another important feature of the Kano Model is that it gives you a better understanding on what  tradeoffs you might have in your marketing cycles. You certainly could not trade off a basic need, but you might be able to reduce the level of a performance factor.

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I had the pleasure of interviewing Anthony Bennet editor of the new book, THE BIG BOOK OF MARKETING released in January 2010 by McGraw-Hill on the Business901 Podcast. The book is based on material developed for one of Georgetown University Business School’s most popular marketing courses, THE BIG BOOK OF MARKETING is a unique and comprehensive guide to essential marketing practices from the world’s best marketers. The 86 companies represented in the book are industry leaders representing a range of goods and services, high-tech and low-tech industries, and industrial and consumer fields. Each chapter offers their real-life lessons and practical takeaways on every topic necessary for marketers to master today.Anthony Bennett

As Tony said in the podcast it is not a book filled with ideas from PHD’s. It is a book filled with authors that have CEO, V.P after their names and companies from Boeing to Atlas Air and BzzAgent to Ogilvy. What I found interesting in the book is the diversity of the content. I called it a book of short stories! Great reading, Great knowledge of information.

Anthony G. Bennett (Washington, D.C.) has worked in marketing for over 22 years, including as an international marketing research analyst with Union Camp (now International Paper), general manager/vice president for Hunt-Marmillion Public Relations (now Ogilvy), Special Assistant promoting the first Bush administration’s National Energy Strategy, and marketing consultant to small companies and national organizations. He now teaches marketing at Georgetown University.


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