service excellence by balancing operational quality

ISLA Conference, Frankfurt, May 2014 / Service Excellence © Siemens AG 2014. All rights reserved

Service Excellenceby balancing operational qualityRonny WeinigSiemens Switzerland Ltd.


…and how the human factor influences customersatisfactionan approach for transparency and measurable optimization

Leverage Service @ Siemens Agenda

The meaning of Service and its business impact for Siemens

Corporate Leverage Service @ Siemens Program


Siemens AG – Facts and Figures

Orders received: € 82.4 billion

Revenue: € 75.9 billion

Profit after tax: € 4.4 billion

Research and Developmentinvestment: € 4.3 billion

362 000 employees globally in approx. 190 countries

Figures per 30.09.2013


Sector Organization of Siemens todayDedicated service organizations in Sectors

Attractive markets driven by megatrends

Globalization UrbanizationClimate change Demographic change

Fossil Power Generation

Wind Power

Power Transmission

Oil & Gas

Energy Service

Imaging & Therapy

Clinical Products

Customer Solutions

Diagnostics

Industry Automation

Drive Technologies

Customer Services

Rail Systems

Mobility and Logistics

Smart Grid

Low & Medium Voltage

Building Technologies

IndustryEnergy Healthcare Infrastructure & Cities

Dedicated Service Organization with P&L


Business Impact of Service for Siemens

BusinessImpact

Service is our main interface to our customers

Service as key differentiator for us and our customers

Creates broad installed base with high growth potential

Service is high margin business

Innovation driven by lifecycle data from installed base


Motivation

1 increase revenue

2 boost productivity

3 enhance customer satisfaction

Service Business… Go for it !


Our Customers need knowledge to generate value and stay competitive

We supply our Customers with required knowledge for improved business decisions and business innovation

We create required knowledge based on advanced data analytics

How to turn Knowledge into Customer Value ?

It is the Customer needs that drive Service Excellence and Innovation

CustomerView

BusinessView

TechnologyView

Value Generation

Business Innovation

Business Intelligence

Data Analytics

Data

Processes

Market demands


Scope of Leverage Service @ Siemens10 Corporate focus areas to drive innovation & expand service business

Processes

Business Innovation

Value Generation

Data

Business Intelligence

Data Analytics

TechnologyView

BusinessView

CustomerView

Business Model & Operational Setup

Service Technologies

Service Parts Logistics

Service Culture & Customer Intimacy

Service Processes

Service Communication

Remote Service

Service Transparency

Sales Excellence / Consultative Selling

Project Mgmt @ Siemens


Lean Processes are the Basis

Clearly defined Service Processes are the basis for successful Service Management


Is there a common Process Framework for Service in place?

ServiceManagement

Service Marketing

ServiceSales

ServiceCare

Project Processing

Service Delivery

Service Lifecycle Support (HW/SW)

Serv. Portfolio Evalua-tion & Developm.

Service Support

Management

Support

SCM

PLM

CRM

Questions for a successful Service business

Management:How do we plan services?How do we want our service reporting to look like?What does our service market look like?

CRMHow do we sell services?How do we manage long-term customer relations?

SCMHow to supply cost-effective services that meets quality needs? How can we supply or support our services on a global level?

PLMHow can we introduce innovations into our services?Which services do we want / plan to offer?What kind of product design do we have for our services?

SupportHow do we monitor and manage our installed base? How do we establish a successful competence management system for services?

Core processes for Services


Improved performance by process optimizationover a “closed loop” process

Management Control & Performance / Quality Optimization

Service Settlement

ServiceExecution &Reporting

Job Planning& Dispatch

Maintenance Planning

On-callClarification

On-call TicketCreation

Cost allocation & Invoice Module

Mobile Front EndWork Scheduling Module

Commercial AdministratorCoordinator / Dispatcher Field Service Engineer

Peop

lePr

oces

sTo

ols

Analysis and Interpretation of

KPIs Reports

ERP System

Process KPI Reports


Methodical analysis to ensure reliable results

Coordination:tbd

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Sou rce : SE RVO R ® Imp rov eme nt Le ve r W o rksh op s RC Ca na da & C T P P4 – 0 9.-2 5. Au gu st 2 00 4, Toro n to

€

• Agreed Areasof Improvement

Identificationof Improvement Areas

Identificationof Improvement Levers

Quantification of Improvement Levers

• Agreed financialimpact ofImprovement Levers

Hypothesis for Areas of Improvement

Hypothesis forImprovement Levers (activities)

Calculation Models Potentials and interdependencies of Improvement Levers

Create condition based maintenance plan

Createpredetermined maintenanceplan

Create automated condition based maintenance program

InvoicingJob Planning& Dispatch

Dispatch ofcustomer

Dispatch ofSupportEngineer

Dispatch ofcorrection

Dispatch ofservice part

Reporting & TicketClosure

ClarificationMaintenance, Solution Finding and Repair

Perform off-sitesolutionfinding

Maintenance StrategySet up

Maintenance PlanSet up

TicketCreation

Invoic e se rvic es not covered by contract

Dispatch ofthird party

Clarifyproblem by re moteconnectionwith system

Performr emotemaintenance,solution finding& repair

Createticket by pre-dete rminedmaint. plan

Evaluation

Invoic e se rvic es covered by contract

Dispatch ofField ServiceEngineer

Report r esults, close ticke t technica lly

Clarifyproblem with-out remoteconnectionwith system

Performon-sitemaintenance,solution finding& repair

Definemainte nanc estr ategy

Createticket byunscheduledincident

Evaluatefieldexperience

Dispatch ofcustomerpreparation

Dispatch ofmaintenancefacility

Perform on-site inspection

Define corre ctive maintenance actions

Createticket byconditionbasedmaint. plan

Perform r emoteinspection

ImprovementLever

Conse-quenceConse-quence

Area ofImprovementArea ofImprovement Conse-

quenceConse-quence

Area ofImprovementArea ofImprovement


Area of ImprovementArea of Improvement





ImprovementLever

ImprovementLever

• Mapped processes• Analyzed

geographical & organizationalprocesses and roles

• Analyzed Process Metrics

Process & Metrics/KPI Analysis

• Agreed ImprovementLevers (activities)

• Defined impacts, actions, period for implementation and IT relevance

Set-up of Implementation Roadmap

• Defined Road Map for Implementation

Final Presentation

ISLA Conference, Frankfurt, May 2014 / Service Excellence © Siemens AG 2014. All rights reservedPage 13

Creating sustainable value for our customers and Siemens

EmployeeOrientation

BusinessOrientation

CustomerOrientationCustomerOrientation

ServiceCulture

Definition:“A customer-focused service culture is the sum of values,

traits, behavior & communication of the organization and is very much fostered by a widely established employee-

oriented company culture.

All service activities need to be carried out in order to meet and exceed the customer’s expectations in the

best possible way and to leave an outstanding service experience.

Combined with a trustful relationship and highengagement levels this contributes to

sustainable customer loyalty and a highly profitable business.”

The Siemens Service Culture FrameOur answer to establish a solid foundation for profitable service businesses


Customer

Employee

Business

Employee Motivation and Satisfaction

Stage Director Backstage AudienceStage BoxOffice

Perceived Expectations

Strategic Set-upMission VisionStrategy

Portfolio Business ModelBranding

Operational Set-upProcessesOrganizationTechnology

Work EnvironmentPeople / Competencies

New AudienceAdvertisement Other

TheatresThe Line-Up:

Page 14

The Service StageThe Service StageThe Service TheatreThe Service StageThe Service StageThe Service StageThe Service Theatre

Customer Expectations

CustomerSatisfaction

CustomerLoyalty

Service Delivery

Service Sales

Employee Retention

Employee Productivity and Behavior

Profit-ability up

RevenueGrowth

Service Development

ServiceManagement

Perceived Customer Value

1 2

3

4

5

6

78

10

11

129

PotentialGap

The Siemens Service Value Model12 Gaps identified with potential for improvement


NPS Driver Tree – a strong “tool” to higher customer loyalty

Drivers „operational & emotional“Result Key SuccessFactors

Employee Motivation

Processes &Tools

Org. Set-Up

Skills &Competences

…

KPI

KPI

KPI

KPI

KPI

KPI

KPI

KPI

KPI

KPI

KPI

Customer Loyalty

Customer Satisfaction

ExpectedService

ExperiencedService

CustomerInvestment

Results /Quality

Experience withCompetitors

Value for Money

Price

Ease of doingBusiness

Appearance

Reliability

Responsiveness

Assurance

Empathy

RelationshipStabilizers

BusinessTerms/Conditions

Trust

Tangibles

Intangibles

+-

Consistency

Care &Communication

NPS


Operational Customer Satisfaction Survey

Two level improvement program

Customer-related Follow-up

Follow-up on Rating and

Contact Alerts

Documentation & tracking

in SMART

Definition ofaction items

in follow-up calls

Process-related Follow-up

Definition of improvement

areas

Success tracking of measure

implementation

Implementation of measures

Definition & evaluation of

measures

Closed loop process and follow-up approaches

Customer Satisfaction Management

Improvement activities are the core part of the customer satisfaction closed loop process

Internal processes and methodology for improvement programs based on customer feedback have to be in place

Rating and Contact Alert

Improve-ment areas


Identical structure, KPIs and questions across all services to achieve maximum comparability

Solution Time

Range of Information

Quality of Information

Repair Service

Service-specific Satisfaction Drivers

Online Support Technical Support Field Services / Service Contracts

Recommendation / NPSOverall Satisfaction with the Service

Solution Time (TS)

Solution Quality (TS)Competence (TS)

Spare Parts

Transparency of Quotation

Competence

Solution Time

Competence

Transparency of Service Report

Quotation Lead Time

Delivery Time

Response Time

Reporting & Ticket Closure

Maintenance /Solution Finding

/ Delivery/Repair

Clarification

“Entry Channel”

Ticket Creation

Competence (Dispatch)

Response Time

Competence

Information Process about Arrival Time

Accessibility to Repair Center

Response Time

Transparency of Quotation

Quotation Lead Time

Competence

Repair Time

Accessibility to Spare Parts Sales

Accessibility to Field Service Coordination

Accessibility (Dispatch)

Job Planning / Dispatching

Quality of informationCoverage of technical

information for products

Application examples

Page layout and clarity

Navigation

Search function

Callback Time

KPI Fulfillment

Depth of information per product

Social competence (Dispatch)

Online Support Request

Support Request

Social Competence and Accountability of Siemens Contacts

Improvement Potential

Contact Request

Data Privacy Statement


Improvement Lever Repository47 improvement levers collected and documented to address the 12 gaps

Description

Related Areafor Improvement

Main Activities

Effects / Benefits

Good Practices / Contacts

Implementation Timeframe

SuccessFactors

MeasurableImpacts

Addressed Gaps

47 ImprovementLevers


Major Improvement Levers to improve Service Culture10 Levers have been prioritized by the expert group

Assignment of best possible resources (competence instead of names)

Proactive customer communication

Top-down alignment of dedicated service strategy with clear communication

Customer-Lifecycle oriented business model

Transparent service career paths

Clear decision making authority for service employees (entrepreneurship)

EmployeeOrientation

BusinessOrientation

ServiceCulture

CustomerOrientationCustomerOrientation

Defined service core processes with efficient escalation / support structures (Regionalization Strategy)

Regular and systematic feedback mechanisms

Recognition and rewards

Alignment of internal KPI-Structures and customer motives


Summary

…declare service as top priority

…enable and motivate the teams by being a good example

…design the right processes and keep measuring

…design and infuse a common service culture

…live all of it !!

Now it is time to work for a living service excellence experience and …


Thanks for your interest on Excellence in Service

Ronny WeinigCustomer Services Industry

Questions?

service excellence by balancing operational quality

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