Tuesday, September 30, 2008

The Customer Needs to be the Focus

Successful companies are continually looking to the customer to measure their success and are focused on improving the customers’ experience in order to improve revenue and profitability. According to Aberdeen Research, 75% of Best-in-Class companies proactively manage the customers’ experience through specific review programs. In so doing, they continually review business processes throughout the organization to assure that all processes are tied to satisfying the customer.

Aberdeen found that within those that are Best-in-Class companies:

  • 90% had year-over-year increase in customer retention
  • 84% had year-over-year increase in customer satisfaction
  • 68% had year-over-year increase in customer profitability
  • 67% regularly incorporate the customers’ experience into management decision making
  • 53% perform regular review of all customer-facing business processes as well as other processes in the organization

In order to achieve Best-in-Class performance, companies need to:

  • Perform regular review of all processes to assure they are in sync with the needs and desires of the customer.
  • Implement a set of metrics and measures that tie the business processes to the satisfaction of the customer.
  • Establish a mind set of continuous improvement so that the organization can change as the customer demands change.

Are you Best-in-Class?

Monday, September 15, 2008

Defining the Value of Quality Management

The process of quality management has evolved of the years with increasing pressure from customers, government and shareholders driving manufacturers to produce higher quality products while reducing the cost of quality. Aberdeen Research has determined that Best-in-Class companies have a significantly lower cost of quality with:

  • 9% less revenue lost due to internal failures
  • 6% less revenue lost due to external failures
  • 2% less revenue lost due to assurance costs
  • 2 % less revenue lost due to prevention costs

    Totaling 19% less revenue lost due to cost of quality

In order to achieve these Best-in-Class performance levels, companies need to:

  • Create/Improve visibility of quality processes across the entire manufacturing operation and suppliers
  • Implement Quality Management Systems (QMS) at an enterprise wide level
  • Establish real-time or near real time links between QMS and other technologies implemented across the value chain

Are you Best-in-Class?

Tuesday, September 9, 2008

Indiana Ranks Well in National Economic Performance

For many years, national media outlets, not-for-profit organizations and higher education institutions have ranked states’ performances in several important areas which impact business growth. Many of these studies have an impact on a state’s ability to grow its economy and be competitive. In addition, these studies also reflect trends or behaviors which factor into site selection decisions. While rankings are not the be-all and end-all of economic vitality, they provide key insights into how a state approaches issues which impact business operations.

CNBC: “America’s Top States for Business 2008”
Indiana is ranked #13 overall and placed in the Top Ten for cost of doing business, transportation and business friendliness. Indiana improved 13 spots from the previous year’s ranking.

Forbes Magazine: “2008 The Best States for Business”
Indiana is ranked 25th and ranked highest of all neighboring states in the Midwest.

Chief Executive Magazine: “2008 Annual Best & Worst States for Business”
Indiana is ranked 8th. The Hoosier State was the highest-ranked state outside of the Sun Belt, based upon response from 605 top corporate executives.

Site Selection Magazine: “Annual State Business Climate Rankings”
Indiana is ranked 11th and showed improvement in several areas of the survey, including corporate executives’ opinions of the state. Changes made to Indiana’s tax structure have been well-received by corporate decision makers.

Governing Magazine: “Grading the States ’08: A Management Report Card”
Indiana is ranked 9th and scored highest in: financial controls/reporting, structural financial balance, hiring talented team members, managing employee performance, infrastructure maintenance, infrastructure intergovernmental coordination, infrastructure internal coordination, and managing for performance. Indiana ranked higher than all but one of its neighboring states in overall performance.

source: www.insideindianabusiness.com