trans_m AG

Management of Change and Development Leadership – Performance – Customer Focus

news June 2008

2 Customer Focus Cost Driver or Revenue Generator ?

3 Customer Focus C‘est le ton qui fait la musique…

4 Inside trans_m

Is the Customer a Nuisance ?

Leadership at Work in Customer Relations Is the customer a nuisance? Nobody really dares answer with a „Yes” or even ask the question. And yet, as a customer, you sometimes get the feeling to be a nuisance or not exactly to be welcome.

Why is trans_m picking up this matter? So far, we have used this publication to update you on expert management of change and development as well as our services for individuals and organisations. Why the sudden change of perspective?

Companies and executives often describe customers as the focus of their services and the most valuable corporate asset. They claim that their customer relationship management (CRM), customer help desk etc. are the perfect tools for excellent customer management. In addition, they will probably have provided training in this field. And yet, it seems to be very rare to encounter well-defined and orchestrated customer management practised in a pro-active manner…

display the new type of behaviour to make the defined customer focus come true and to give it a shape customers will recognise, thus building it into a competitive edge.

This is not accomplished in a simple training session. It requires a comprehensive process of change whose sustainability is ensured by the organisation itself. Such change starts at the top of an organisation or a unit and embraces all staff.

It involves the defining of objectives and the reviewing of them by means of a feedback mechanism. Objectives are defined very specifically.

They are based on business goals and must be measurable. If conducted successfully, consistently and with stamina, such a customer focus initiative will eventually have a sustainable impact on the bottom line!

With a view to achieving sustainable results, trans_m offers a specific procedure, tools and a methodology aimed at meeting the demand for true customer focus.

Often, true customer focus can be achieved only by a real change of behaviour of organisations Rolf Erny, MBA and their staff. Such change of behaviour is not Managing Director – r.erny@transm.ch limited to the launch of a CRM system or to the persons directly involved in customer relations.

Much rather it is a project that starts at the top management level! „Customer focus at work” is not merely a buzzword; it is a culture devised and implemented consistently to achieve a sustainable competitive edge. It is driven by people, both executives and staff. All of them are required to

trans_m AG Querstrasse 4 CH-8304 Wallisellen E-mail office@transm.ch

Editor’s Comment You are holding the new trans_m news in your hands: In terms of content, the central theme is customer focus. The design is a consistent follow-up on our Newsletters available since 2001.

The new design symbolises change, the widening of our services portfolio, internationalisation and the continuous improvement on our services such as the new assessment report or the structure of individual-assessment offers.

A new look is something not to be taken lightly. How is it going to represent our core values? How are we going to leave a credible and lasting impression conveying our message of being a professional, skilled and innovative partner for management of change and development in the areas of − customer focus, − leadership and − performance?

Are we happy with the new look? Is it up to expectations? Does it represent the business aspects? Does it make us feel at ease? How do we deal with it?

How do we apply it?

Our new look is both an obligation and an incentive. We strive to do even better in satisfying your raised requirements!

Yours truly, Rolf Erny

Newsletter June 2008

2

Customer Focus Cost Driver or Revenue Generator ?

Customer retention and customer satisfaction depend not only on the perfect product but also on a company’s customer focus, i.e. friendly customer relations, responsiveness to individual needs, and the customer’s experience with the company. trans_m supports companies in developing successful and sustainable customer focus.

We will be pleased to answer any further questions.

Call us at +41 43 233 32 13.

How much customer focus is worth Admission fees in entertainment parks $250

$200

Difference in price = Value of differentiation through Customer Focus

+42%

$150

$100

$50

+150%

Disney Other

+15% Disney: Other:

$71 $60

Disney: $140 Other: $80

Disney: $208 Other: $80

$0 1-day admission

2-day admission

3-day admission

In the 1990s, customer relationship manage- Sustainable success with customer focus ment (CRM) started to be viewed as the key The Disney Corporation is an uncontested leader driver of success in the battle for customers. As when it comes to customer focus. All entertaina result, companies began to gradually set their ment park staff are „cast members”, and the ulsights on the customer. However, customers of- timate cause of all strategies is the customer’s ten found themselves left alone and standing experience. Thanks to consistent implementation in the way. High and ever higher amounts of of this approach, the Disney entertainment parks money are spent for the latest tools to divide in Florida are in a position to charge markedly the customer base up into yet more specific higher admission fees despite the fact that their segments and to make even more customer-$250 roller coasters and restaurants are not the best Difference in price specific products. Technological development (see chart on the = left). +150% has optimised production plants, the call cen-$200 Value of differentiation through Customer Focus tre has been equipped with the latest VOIP Customer focus is not a strategy switchboard, and customer relations uses loy- but a matter of culture… +42% $150 alty data stored in customer portfolios in an at- …and it is a long and winding road to a change of Disney tempt to tie customers. In a nutshell: the prod- corporate culture. The potential buildingOther blocks $100 uct is perfect. of successful and sustainable customer focus are +15% consistent leadership, role-model behaviour and reward for the right kind of behaviour.

But is this really what the customer wants? Why $50 Disney: $71 Disney: $140 Disney: $208 do statistics tell us that the majority of CRM imOther: $60 Other: $80 Other: $80 plementations generate only a fragment of the $0 What are your building blocks for a customersuccess they promised while swallowing up a focused culture? Try to answer this question or 1-day admission 2-day admission 3-day admission multiple of the cost budgeted? Could it be that put it to us. We will be pleased to support you on an important factor, i.e. the customer as a human the road to your customers. being, was left out of the equation?

Gerhard Romanescu, Certified Sales Manager Brand management and corporate governance Sales Director – g.romanescu@transm.ch constitute another pivotal area of increasing significance. Customers want to know how a company treats the environment and its employees, and what ethical principles it applies. However, Factors driving perceived intense brand management will not really be suscustomer satisfaction tainable as long as the third facet remains unatBrand tended too, and this is the customer’s experience with the company. „Do” Possibility

Brand

Perceived satisfaction Product

2

Points of Interaction

What’s the use of a perfect view from the most beautiful room, if you get an unfriendly welcome at the reception desk? Every human encounter is Triangle of action a „moment of truth” putting at stake all efforts „Can” „Want” Ability Motivation taken by the entire organisation.

trans_m AG Querstrasse 4 CH-8304 Wallisellen E-mail office@transm.ch

Perceived satisfaction Product

Points of Interaction

Newsletter June 2008

Customer Focus C’est le ton qui fait la musique… … but there’s no way of playing a sonata beautifully when the piano’s out of tune. So what does it take to strike the right note consistently?

For example, take this CEO of an international chain of hotels who took on the management of the company when it was doing worse and worse because of guests staying away from many of the approx. 60 upper mid-range city hotels and holiday resorts. The new man at the helm decided to leave most of the infrastructure in all locations unchanged to retain the unmistakable atmosphere prevailing in those hotels and resorts. He also took over his predecessor’s restaurant strategy. As a result, there was hardly any visible change at all.

And, make no mistake, the company is flourishing.

In the city hotels, occupancy by business guests and sightseers has risen considerably while the holiday resorts boast a rich variety of guests ranging from single persons through families to

married couples of senior citizens. What’s the secret to this success? And why did the predecessor fail to tap into the obvious market potential? It is due neither to enhanced infrastructure nor to a new offer of culinary delights.

positive attitude and will be warm and mindful even when things get a little hectic. This is the key attribute which guests failed to encounter in those hotels previously.

The key to this success is customer-friendliness!

Any guest entering one of these hotels is welcomed by a receptionist with a friendly smile. The hotel manager will try and take time to meet groups and tourists for a personal welcome.

Waiters and cleaners pay attention to guest preferences and will cater to them with small gifts.

Requests for a change of room or menu are processed readily. Special functions such as conferences or banquets are prepared in a dialogue with the customer to make them an unforgettable experience for everyone involved. Round-theclock availability of small meals is highly appreciated by sightseers returning late from their outings. The company rewards guests for their loyalty. Staff are encouraged by their superiors’

When asked about the secret to his success, the CEO replies, „I chose to practise my personal values consistently right from the beginning. I like my guests and I aspire to afford them an unforgettable experience!”

This piano is in tune, and the sonata will come across beautifully!

Philipp Lutz, MSc UZH, Senior Consultant – p.lutz@transm.ch

Interview Customer Focus – Change of Culture Required Anita Panzer interviewing Gerry Romanescu, Certified Sales Manager and Sales Director of trans_m AG, in the departure hall of Zurich airport minutes before departure of flight LX 724 to Amsterdam

What do you think is required Gerry Romanescu, for successful implementation ?

Certified Sales Manager The most important thing is management commitSales Director ment. Unless the executive management become trans_m AG role models, the change project will merely be seen as just another one of those projects nobody www.transm.ch really knows what they’re meant to do because there’s no change after all. More than 70 per cent of all change projects fail because the manageWhat does your customer aim to achieve ?

The ultimate objective is a change of culture in ment’s commitment was only lip service.

LX 724 is being called… One final question. How much time is such the company. Each customer is to be given a sense a project expected to take ? of being understood and getting their needs met. What are the criteria for successful A change of culture is a long-term unIt is not sufficient to offer the perfect product. customer behaviour ?

You also need to provide a unique customer Our customers are telling us! There are various dertaking. Initial results may become experience to make sure your customer won’t indicators such as the number of new customers visible within one year, but for a susdrop you just for peanuts when times get difficult acquired, reduction of customers lost, positive tainable transformation of the entire economically. As far as human resources are con- feedback from customers, word-of-mouth rec- organisation you’re looking at a period cerned, the company wants to be in a position to ommendations, number of mentions in trade- of up to three years’ time. select the best from among the suitable candi- magazine articles, etc. The same goes for internal dates. This is how best practice becomes normal criteria such as employee motivation and satis- Mr Romanescu, I thank you practice. faction, the number of high-quality job applica- for this interview and wish you tions, the number of departures, etc. a pleasant flight.

Mr Romanescu, you are going to fly to Amsterdam for an important meeting on Customer Focus with a large international company.

Correct. I will support the introduction of a change initiative focusing on behaviour in both external customer relations and internal exchange between departments and across hierarchical levels.

trans_m AG Querstrasse 4 CH-8304 Wallisellen E-mail office@transm.ch

Newsletter June 2008

3

Inside trans_m Practising Change and Preserving Values trans_m Out in the Snow Team Day at Toggenburg Top performance can only be achieved in and with an efficient and homogeneous $250 team. This is true for us Difference too. It wasininprice this = +150% spirit that we set out together to spend Value of differentiation a special day$200 out in the wonderful setting through Customer Focus of the Wildhaus snow-sports paradise below mount Gamserrugg, a member +42% $150 chain. All participants of the Churfirsten Upon addingDisney to the number of staff and followsmall and tall were treated to a perfect Other ing expansion of our portfolio by what we now day in splendid winter weather. $100

$50

+15%

Disney: Other:

$71 $60

$0 1-day admission

to their success. We have given our portfolio of services an even more specific profile: Our priorities will be on leadership, customer focus and performance first and foremost.

Change always requires a balance between motivation and willingness on the one hand and the skills and abilities available on the other. Change is effective only if plans are put into practice and inspired with life. Our activities are driven by and focused on behaviour. Any effective and sustainable change is focused on and driven by people.

The decisive driver is always what you actually do.

To get momentum going, you need to strike a balance between what you are able to do, what you want to do and what you actually do. We will be more than pleased to support you in all three respects!

offer with regard to customer focus, we gathered for a strategy meeting to define trans_m’s business policy until 2012. The retreat meeting Disney: $140 Disney: $208 was Rolf Erny and attended by his Other: $80 chaired Other: by $80 management team as well as trans_m partners who were engaged in strategy development. The 2-day admission 3-day admission wonderful setting of HOF Seminare & Kulinarik at Oberembrach, Switzerland, provided just the Simon C. Hardegger, MSc UZH, right kind of inspiration.

Psychologist and Adult Educator Head of the Professional Service Center The biggest challenge probably was to evaluate s.hardegger@transm.ch trans_m’s current strategic policy and to transform it effectively and smoothly into the future one. The process of evaluation and development was guided by a structured procedure (sensu SKU) including creative components by Gerry „Do” Romanescu.

Possibility

Brand

Product

Focus on people Going forward, we intend to attach greater significance to the subject of growth. In doing so, Perceived we aim at promoting national and international satisfactionbusinessPoints policies. As a provider of services, we of Interaction would like to continue to support organisations and executives in the management of change and development by making a sustainable contribution

„Can” Ability

Triangle of action

trans_m AG Querstrasse 4 CH-8304 Wallisellen Switzerland phone fax e-mail url 4

+41 43 233 32 13 +41 43 233 32 15 office@transm.ch www.transm.ch

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„Want” Motivation