The Credit Professional Fall 2015 | Page 21

continued from page 20 When a mistake is made in an account, the customer is unhappy. If it happens again, the customer starts to look for a new provider. Are you keeping track of your mistakes? If so, do you learn from them? In the Define phase, Voice of Customer is one of the most important tools. Once you know what your customer seeks, you can measure to see how well you are meeting their expectations. is discussing continuous improvement, which can hold the root cause: People, Process, Technology, and/or Communication. pain points that are experienced by themselves and the customer. In the Analyze phase, the front-line employee is a key Frequently, companies blame ingredient in the facilitation of the people for the mistakes. an Ishikawa diagram (Cause “The people are just here for a and Effect Analysis, Fishbone paycheck.” “These young Diagram, Root Cause Analysis). people do not understand the In many projects, the employee importance of customer participation in the Ishikawa service.” Quotes such as tool starts the change these abound. management process in their The next phase is Measure. minds. The employees have When I ask the questions from In reality, it is a tiny percentage become part of building the the previous paragraph of my of problems that are actually solution. If the employees feel clients, they usually do not caused by the employees. The like a part of the solution, have the numbers. Institutions employee just happens to be instead of being told they are know how many accounts were the face of the defect. While part of the problem, those opened last year, the profit and many front-line employees employees will adopt and loss, the number of employees, have a misguided belief that promote the changes necessary and a myriad of other numbers Lean Six Sigma will result in for the process and culture that run a business from an an elimination of their job, my change needed for a accounting and financial personal experience of working lasting improvement. perspective. However, the in the world of financial number of defects in the services, has meant that the Many managers are concerned processes and how these are employee is recognized for about involving the employees impacting operations will affect knowing how to solve the in projects and how it will the accounting and financial problems because they are the reflect on their ability to lead. numbers over time. people that interact with the I am writing this article to customers and know of the advocate that employee Defects are a leading indicator of future losses. The losses are the lagging indicator. When I start with a new client, they usually tell me all about the problems that they are experiencing. In the measure phase, the company works to accept, reject, or update the hypothesis that was built in define. It is only after we start measuring and analyzing the issues that the root cause of the problem becomes apparent. After we baseline the measure, we start the Analyze phase. There are three or four things, dependent on which expert Continued on page 22 The Credit Professional 21 October 2015