The Benefits of Business Improvement Programs
Many businesses have undertaken to improve their customer experience through business improvement programs. These are usually defined by a series of measurable objectives that, if achieved, will lead to an improved customer experience.
A business improvement program can be an effective way for a company to set its overall goals, establish the right vision and culture for the future, and increase employee engagement towards operational success.
Everyday Commerce has put together this post with tips on everything from creating your first plan of action, what you should do long-term , how it works in practice . We've also listed some examples of companies who have previously implemented business improvement programs successfully.
To keep things simple, we have divided this post into the following parts (or "chapters") according to the main functions of a business improvement program:
Chapter 1: The main benefits of a business improvement program.
Chapter 2: How should BMPs be designed?
Chapter 3: The long-term benefits of BMPs.
Chapter 4: Examples of companies who have implemented BIPs successfully.
1. The main benefits of a business improvement program.
Businesses today continuously strive to provide more value to their customers and this is done by investing in improved operational processes, customer loyalty programs and more recent initiatives such as free WiFi zones, customer rewards schemes etc.
The initiative to improve the customer experience is one of the most important reasons behind business improvement programs.
To maximise the benefits from a BIP and get maximum value for money, there are a number of steps to follow:
Businesses that have implemented BIPs have experienced some significant benefits. These include:
2. How should they be designed?
Business improvement programs can often be executed in three distinct phases - implementation, maintenance and improvement (see diagram below). However, there are many variations in how these phases are drawn up and each business will manage its own program in its own way. Also, both the types of business improvement programs available at different companies can vary considerably.
The two most common types of BIP are:
Some companies implement BIPs within their own business and other companies partner with external businesses to deliver these programs.
BIPs can be implemented in a number of ways, for example:
The first step is to establish objectives for your business improvement program (see diagram above). You then need to define which measures are going to be taken to reach these objectives. The measures you take can be internal or external and there are many options available depending on the type of business or the size and nature of the problem.
BIPs are usually not completed in one fell swoop but rather a series of sequential steps are undertaken over time to improve a company's operational processes. As a result, it is essential that the plan designed by the business manager is well thought-out and carefully structured so that each step can be executed effectively.
The plan in its most basic form would include the following stages:
The plan should highlight the key metrics which are being measured to determine whether all objectives have been met or exceeded. For example:
Once all objectives have been reached or exceeded, you need to look at what measures and actions need to be taken to maintain those levels of performance, as well as designing new objectives for further improvements.
This may be done in a number of ways including:
The ultimate benefit of a BIP is that it can bring about marked improvements in customer satisfaction and retention. However, this takes time and the benefits are both immediate and long-term.
Because of this, it is important to measure the success of your business improvement program to ensure that changes that have been made are effective at improving customer experience. Some examples of the key metrics that you should be tracking include:
Chapter 4: Examples of companies who have implemented BIPs successfully
Coca-Cola Company - Since 1989 Coca-Cola has had their global business improvement program named "Better Coke. Better World". This program is an integral part of Coca-Cola's worldwide operations. It aims to improve their customer service levels and overall satisfaction with products and services.
P&G - In the US, Proctor & Gamble has the CUSO (Customer Understanding System of Operations) BIP which they implemented in 2005. The goal is to improve customer understanding by increasing awareness of customer needs and preferences, ensuring that every associate understands them, and maintaining consistency across all departments.
Mercedes-Benz USA - Before Mercedes-Benz launched their BIP, they conducted surveys to determine what customers wanted from dealer experiences. They also held focus groups to get feedback on how they can make it better for the customer. The result of this was that they were able to reduce their customer service complaints by 54%.
Nestle SA - Nestle have a BIP called "Customer First" which was designed to improve the customer experience levels, re-invest in the company and address any issues. This resulted in a 5% reduction in complaints and an increase in customer satisfaction by 19%.
BIPs can be implemented for various reasons and for various purposes but when it comes down to it, after all is said and done the biggest benefit of a business improvement program is to ultimately achieve one key goal: to get customers (and employees) on board.
BIPs are a great way to get things going but it is only through strong management and leadership that they can be maintained and improved over time. For this reason, the success of your BIP will depend largely on the skills and capabilities of the people in place to oversee your program.
3. The long-term benefits of BIPs.
The long-term benefits from a business improvement program are many and varied but there are six key areas where noticeable improvements can be seen:
The effects of business improvement programs can be hard to see after only a short period, especially when they are carried out within an already successful company.
However, when you look over a longer period of time, the results are there for all to see. Businesses that have implemented business improvement programs have seen increases in sales, profitability and customer satisfaction as well as reductions in expenses.
Businesses that have implemented BIPs have experienced some notable improvements:
4. The key roles in leading and managing a BIP
The most important requirement for successfully implementing and managing a business improvement program is to develop an understanding of your company's business processes and procedures. It is also vital that you understand how the processes interact with each other and how they can be improved upon to deliver better customer experience levels.
For this reason, it is important to recruit and retain the following key people in your company:
5. The benefits of implementing BIPs as a manager/business owner.
As a business owner, there are many benefits of implementing BIPs within your company. Some of these include:
BIPs work best when they encompass an entire organisation, not just one department or division and this means that you'll need to lead by example if you want others to get behind your program. In order for you to be seen as an effective business improvement leader, you will need to adhere to some important principles:
6.
Conclusion: BIPs are a sound investment in your company's future.
As a business owner, it is imperative that you implement and manage a business improvement program because it will ensure that your company has the necessary skills, capabilities and resources to compete in today's competitive market, unlike what was available when you first started out.
BIPs are expensive but they offer long-term benefits for all those involved in your company and benefit customers as well. They can also help build better relationships between employees and your customers, as well as increasing employee satisfaction.