# Presentation: 327582

## Defining and Creating Success

- The 2003 DOE Contractor
- Travel Managers Meeting
- Michael O. Mosby
- Lawrence Livermore National Laboratory
- April 15, 2003

## It Has Become Critical for Organizations to Validate Their Existence Through Proper Performance Management and Measurement Systems

- “ If you work just for the money, you’ll never make it, but if you love what you’re doing and you always put the customer first, success will be yours.”

*Ray Kroc, Founder of McDonald’s *
*First McDonald’s restaurant opened April 15, 1955*

## How Would You Answer the Following Question?

- How Do You Know Your Organization is a Success?

- How would you prove your success?

- What evidence would you use?

- If your existence was predicated on demonstrating success, would you survive?

## Organizations with a High Customer Satisfaction (Success) Level Excel

- Facts from the American Customer Satisfaction Index (ACSI)
- “The top 50% of ACSI companies have generated much more shareholder wealth than the bottom 50%”
- Changes in customer satisfaction don’t merely shift consumer preference from one company to another, but they also affect the general willingness of households to buy.”

- Taken from Quality Progress magazine, February 2003, “Boost Stock Performance, Nation’s Economy,” written by Claes Fornell

## Being Able to Define “Success” in an Unambiguous Manner Has Become Crucial to the Survival of Organizations

- How Do You Define “Success?” There are very important questions that must be answered before you can begin to get your arms around it.

- What is the purpose of your organization?

- What do your customers think is the purpose for your organization?

- What do your customers hope to achieve by working with you?

- Who are your real customers?

- Who has the power to change the design of your products?

- What do you do?

**Knowing what you produce, who you produce it for, and what they want empowers you with the opportunity to define “success.”**

## When Attempting to Define “Success” , Begin by Identifying Outcomes

- Why begin at outcomes?

- “This business trip will take you less than 30 minutes to book!” – Performance Expectation

- “This business trip can be booked quickly!” – Perception Expectation

- “You will have a successful business trip!” – Outcome Expectation

## “Welcome to Princeton Travel, How May I Make Your Trip Successful?”

- Internal Assessment
- Organizational Outcomes
- Vision Statement
- Mission Statement
- Target Products
- Customer Groups
- Everyone on the left side of the room are employees of Princeton Travel

- Customer Assessment
- Customer Outcomes
- Customer Expectations of Target Products
- Identification of Target Products
- Everyone on the right side of the room are customers of Princeton Travel

## Determining Outcomes Helps Organizations Find and Hit the Mark in Delivering Satisfaction

- Please complete the following phrases from your point of view (customers and employees):

- “A Successful Princeton Travel Organization Will Result In __________________.”

- A Successful Princeton Travel Organization Will Not Result In _________________.”

## Products are the Meeting Place for Customers and Producers

- Producers produce products for customers to use to achieve a desired outcome

## Customers Play Different Roles Depending on Their Relationship to the Product

- Customer Roles:

- End User – Personally uses the product

- Broker – Doesn’t personally use the product, but passes it along to someone who will

- Fixer – Fixes, repairs, modifies the product for the benefit of the end user

- Who has the power to change the design of the product?

- Who should have the power to affect change in the design of the product?

- How do you empower end users?

## When Gathering Information from Customers, Remember that Wants, Expectations, and Needs are Different

- 3 Simple Phrases to Determining Customer Priorities:

- A Satisfying (Product) Results In ________________. (WANTS)

- A Satisfying (Product) Is ____________________. (EXPECTATIONS)

- A Satisfying (Product) Has ____________________. (NEEDS)

## A Performance Management and Measurement System to Define and Create Success Can Now Be Developed in Partnership with Customers

- Align Organizational and Customer Outcomes
- Determine Target Products that have the Highest Impact on Customer Satisfaction
- Determine Measures Based on Information from Customer Focus Groups and Partnering with Customers
- Identify Key Internal Processes that Support the Priority Measures – Operational Leading Indicators
- Partner with Customers to Establish a Feedback System, e.g., meetings, surveys, user groups, etc.
- Identify Initiatives to Improve Performance (Including Cost Efficiencies)
- Develop Workplace Measures for Organizational Agility, e.g., training and development, safety, etc.

## Let’s Compare Our Model to the LLNL Travel Services “Gauge” Model

## McDonald’s Became #1 in the Fast Food Industry by Concentrating on Outcomes

- Ray Kroc defined “success” as Quality, Service, Cleanliness, and Value for a customer that wanted to eat not to dine!
- Mike Roberts, President of McDonald’s USA

- McDonald’s still holds #1 market share in the fast food industry with 30,000 restaurants in 118 countries serving 46 million customers a day!

- Go and Do Your Own Investigation on Defining and Creating “Success”!