iSixSigma

How to measure my Baseline Performance

Six Sigma – iSixSigma Forums Old Forums General How to measure my Baseline Performance

Viewing 17 posts - 1 through 17 (of 17 total)
  • Author
    Posts
  • #49257

    BL BB
    Participant

    Hi there,
    I am not having a project which is to look into our project sales process (process from “customer enquiry received” to “contract signed”.
    I try to measure my baseline performance but I encouter some problems:
    1. we don’t have any contract sign in last 12 months
    2. one process may take upto 18 months to complete
    3. If we go back to last 2-3 years, oru population size is 7.  However, due to internal reason (incl. sales turnover, merged with other company, etc.), not even one sample data is completed.
    In the able senario, how can I measure the Baseline Perfomance?  Can I have a DMAIC project purely based on customer’s voice?
    Please advise.
    Cheers,
    BL BB 

    0
    #168117

    JimmyJam
    Participant

    You dont seem to have a very stable process to begin with.  I am surprised your company is still in business.  Your company needs to start with the basics….replace that underperforming sales force.  You could probably do some basic process analysis and try to see where/ why the contracts arent getting completed. 

    0
    #168118

    BL BB
    Participant

    Thanks JimmyJam,
    In terms of process analysis, do you think customer’s input will be crucial. 
    Cheers,
    BL BB

    0
    #168119

    JimmyJam
    Participant

    Definitely…yes, I would get input from both the sales force and the end customers…if possible include customers of the 7 data points you have.  

    0
    #168126

    Gastala
    Participant

    How many enquiries are there that did not result in a contract? Is that a big enough sample to do anything with?

    0
    #168129

    6Sigma Below The Belt
    Participant

    You can still push through with your baseline performance provided that you have defined your VOC well. If no VOC is available as a metric, focus on VOB.
    Consider having metrics such as % of enquiries turned to contract as one of your lagging then check also your leadng metrics such as retention rate for sales, among others.

    0
    #168145

    Mike Carnell
    Participant

    BL BB,
    “In the able senario, how can I measure the Baseline Perfomance?  Can I have a DMAIC project purely based on customer’s voice?”
    At the risk of sounding a little jaded your questions do not make any sense. You are picking fly sh_t out of the pepper. You haven’t signed a contract in 12 months. Do something. At this point it doesn’t really matter about sample size or who’s input you are taking. You aren’t going to screw this up any worse than the people running it now. You will be sitting there quietly doing your analysis when the lights go out and they chain the door.
    Just my opinion.

    0
    #168153

    Chris Seider
    Participant

    Consider other submetrics to use for your DMAIC project.  Those submetrics could best be identified by your process owners but they may include “cycle time to bid”, “cycle time to respond to an inquiry”, etc. 

    0
    #168159

    SiggySig
    Member

    Have to agree with Mike – don’t wait to get going on this. Get a workout scheduled asap with the sales leaders and people involved in the sales process. There has to be something fairly glaring and obvious for those kinds of delays (unless of course you are in a slow sales cycle kind of business)Either way, don’t wait for a perfect baseline, process, data – get going!

    0
    #168169

    BL BB
    Participant

    Hi Glen,
    Enquiries received around 10-12 since last July.  The constrain is, the conversion time normally can take upto 18 months, therefore, it is hard to look into the root causes in the whole process.
    Instead, I broke the whole process into few sub-processes.  These 12 enquiries will definitely be the sample for some sub-processes.
    BL BB

    0
    #168421

    Fontanilla
    Participant

    Maybe you should give us a little insight into the business and the size of these contracts.  If one contract sustains you for 12-18 months, then maybe you’re just treading water or even growing, not looking at foreclosure as some responders assume.  You can keep the name confidential if you’d like, but a better sense as to what your products and structure are will make responses to your post more meaningful.

    0
    #168425

    Deanb
    Participant

    BL,Hold on everybody! We may be getting ahead of ourselves on this one.The problem BL is you have not stated any problem to fix, any “bad” to minimize, or any “good” to maximize. Your original post never indicated you had a sales problem. We all just assumed that (and you know what assumptions get you). Just because you have a long sales cycle, and no new contracts for 12 months, doesn’t mean squat. That could be perfectly normal and sufficient for your business. No meaningful judgments on our end can be made from the info given.Your only stated objective is “to look into our sales process.” Are you trying to solve a known problem, or just looking for opportunities for improvement “thru the data”? If the latter, process analysis is not relevant in absence of the expectation context. Statistical metrics have little meaning unless we know what is “good” and what is “bad” before we start. High variation could be good. We can’t judge any statistics without an objective and subjective context. Are organizational objectives being met? What is going well and what is not? Does performance in some areas need to be better? Once these general questions are answered, process analysis can make sense.

    0
    #168454

    BL BB
    Participant

    Hi all,
    In fact, our company is the market leader and we have over 30% market share globally.  Yes, Dan you are right.  Our one deal is talking about $100million thus we can afford to have 1 or 2 deal for one year.
    The reason we need to improve our sales process is our customer is not happy.  Also, our competitive advantage (technology) will be catched up by competitor in 3-5 years.  Therefore, R&D and service excellence will definitely be our focus to strengthen ourselves.  However, repeated VOCs are we are too slow and inflexible.  We have threat to lose our repeated customer therefore lose our market share.  That’s why we want to look into our sales process to improve customer satisfaction.
    Hope the above information may help.
    BL BB

    0
    #168458

    Deanb
    Participant

    BL,It strikes me that you actually have two objectives: one is to get ready to compete for new customers (due to an anticipated loss if technology edge), and the other is to reduce customer dissatisfaction wherever it is caused. If so, you may be talking about more than just a sales process initiative. The first is a market maturing problem: sales processes are a small part of this problem. The latter is potentially an org-wide initiative to change the way you satisfy your customers.

    0
    #168459

    BL BB
    Participant

    Hi Deanb,
    Yes you are true.  We have few initiatives undergoing to tackle both problems.  However, my project is only focus on Sales Process.
    Cheers,
    BL BB

    0
    #168462

    Deanb
    Participant

    BL,Since you have no relevant data to analyze, and since your business model is expected to change, unless I am missing something your project is not really a SS style project. IMHO, this is a market planning and sales development project. Good luck.

    0
    #168494

    Deanb
    Participant

    BL,Since you are really in a market planning and development project, your tracking horizon probably needs to be adjusted to provide the kind of baseline data you need to support market planning decisions.In addition to documenting “customer enquiry received to contract signed”, you may wish to consider adding more items to watch and evaluate, such as: -Target customer segments or clusters (demand potential)
    -Target customer rankings (Customer potential)
    -Ability to obtain inquiries (sales difficulty)
    -Inquiries received
    -Bid on time (Y/N)
    -Feedback
    -Result (who won it and why)
    -Position Status (will or will not see future inquiries)
    -Recommended adjustments for next bid.

    0
Viewing 17 posts - 1 through 17 (of 17 total)

The forum ‘General’ is closed to new topics and replies.