Is your business ready? Ready
for what? - Anything, really.
One of our colleagues has this cautionary tale to share:
"... One Saturday morning I went
into a local kitchen shop to buy a potato masher. The item
was cheap, about £2.75 ($4.40 or € 4.40). I went
to the checkout and offered £3.00 in coins.
The shop had a new computer-based cash register and it suffered a "blue
screen of death". It needed rebooting, the sales assistant said.
Can I come back in a few minutes? I went shopping in the supermarket
and was back in 20 minutes, it was about 9:45 in the morning.
We cannot reboot the computer, the sales assistant said. I offered
to pay by credit card, they said no, machine’s down and can’t
scan your card either. Have you got a cheque? I said I no longer carry
a cheque book in these days of plastic. They sighed, I sighed. They
cannot open the cash register because of the computer crash locked
the entire system.
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As it was a Saturday,
they cannot get a service engineer out until mid-afternoon
at the earliest.
The shop had to close for business that day at 10AM. I did not get the
masher, they lost a day’s sales.
It was bad business and it was avoidable.
Why didn’t they have a backup? A simple cash box with
a note pad to log the sales will suffice, they can then get
some cash from the bank and do some business..."
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Being ready is not always having the latest technology or the best
business plan. It also means being ready to cope with the unexpected.
Think of it in terms of fire engines - you don’t really want
to see them in use, but if an emergency arises - you will need them
to be ready.
And how can you best do that? How do you plan for the unknown?
One way to make sure you address things that may go wrong is by carrying
out a process mapping. By mapping all the stages of the business process,
it is possible then to explore potential areas where things can go
wrong. In the case of the kitchen shop, they can map several processes,
for example:
- Customer Purchase
- Purchase Transaction
Customer Purchase
The customer finding the required product in the shop as well as the necessary
information (price, warranties etc) that goes with it.
Using the simple SIPOC process outlined in the Six
Sigma Periscope File, the following mapping can take place:
Suppliers: People who
make the product- delivery stock, warranty, price
Input: Getting the product
in the shop where the customer can access it; provide sufficient product
information for the customers
Process: Customer must be able to find the product in a short/reasonable
period of time
Outputs: Customer
purchase decision- is there sufficient incentive (promotions,
attractive labeling, product information, price) to purchase
Customer: People who
buy the product; after sales service
Once this map is produced, the shop team needs to look that where things can
go wrong at every point of the process map. These can then be ranked in terms
of their impact on customers and then addressed.
When the customer has made the purchase decision, then a process map
for the Purchase Transaction can
be plotted.
Suppliers: make equipment
that allows Purchase Transaction to take place (cash register, bar
code, stock management software etc.)
Inputs: Customer/ Product/
Product information (price/ warranty
Process: Carries out
the purchase transaction
Outputs: Successful
transaction (retailer receives cash, credit card receipts, cheques
etc)
Customer: Takes purchase
away
When the team asks questions on what can go wrong at the Process
stage- one of those can be "a non-recoverable crash of the cash
register". This can then be examined by looking all the possible
solutions that will allow the shop to stay in business until the problem
is rectified.
"Being ready" is
made easier when you know what can go wrong and have policies and procedures
in place.
Further Reading
There are many books on customer service management, one particular fun read
is by the man who invented Business Class on airlines:
Moments of Truth by
Jan Carlzon, Perennial 1989; ISBN: 0060915803 |