S100 Leading by Example

Underperforming Key Performance Indicators (KPIs)

Key Performance Indicators (KPIs) are metrics that organizations monitor. When certain KPIs consistently fall short of targets, they indicate a problem that requires attention. These can include metrics such as cycle time, defect rates, customer satisfaction scores, cost per unit, or employee errors. They serve as clear signals of processes that aren’t functioning optimally.

Focus on: KPIs that show a negative trend or are far from their desired state. These are clear indicators of processes that aren’t performing optimally.

Voice of the Customer (VOC)

Voice of the Customer (VOC) is a cornerstone of Lean principles. It refers to gathering insights from customers (internal or external) to understand their needs, frustrations, delays, quality issues, or unmet expectations. The customer is considered the ultimate judge of value, and their feedback is crucial for identifying opportunities for improvement.

VOC directly relates to the five principles of Lean Management:

1. Define Value (from the customer’s perspective): This first principle emphasizes that value is what the customer is willing to pay for. VOC is essential here because it directly tells you what the customer values. By understanding their needs and pain points, you can accurately define what constitutes “value” in your products or services.
2. Map the Value Stream: Once value is defined, you map out all the steps involved in delivering that value. VOC helps identify which steps truly add value from the customer’s perspective and which are waste. If a step doesn’t contribute to what the customer values, it’s a candidate for elimination.
3. Create Flow: This principle focuses on making the value-creating steps flow smoothly without interruptions. VOC helps pinpoint where customers experience delays, bottlenecks, or handoffs that cause friction. Addressing these issues creates a more seamless experience for the customer.
4. Establish Pull: Instead of pushing products or services onto customers, Lean aims to “pull” them based on actual demand. VOC is critical for understanding this demand and ensuring that production or service delivery is aligned with what the customer actually needs, when they need it.
5. Seek Perfection: Lean is a continuous journey of improvement. VOC provides ongoing feedback that fuels this pursuit of perfection. By continuously listening to customers, organizations can identify new opportunities to eliminate waste, improve quality, and deliver even greater value.

Gather feedback through Surveys, interviews, complaint logs, social media comments, or direct conversations and listen for frustrations, delays, quality issues, or unmet needs. Their pain points are your opportunities for improvement.