Baldrige Framework: (3) Customers Domain
Creating Customer Value drives financial viability, but as previously stated, is often assumed instead of quantitatively analyzed. When organizations have clarity in purpose, even customers can connect with the hoshin to become loyal followers.
1. Customer Listening, Satisfaction, and Engagement
How does the organization obtain feedback from both current and potential customers, integrate that feedback into product offerings, and differentiate itself from competitors (Framework, 2017)?
When used in conjunction with focus groups, customer surveys, and/or interviews, the Kano Analysis enables organizations to thoroughly understand the market’s requirements and unmet needs. This should be adjusted by market segment and assessed regularly using quantitative data whenever available.
As stated in the Strategy section, subsection 1, customer feedback should drive innovation to both optimizing current offerings and exploring potential blue oceans. O’Reilly and Tushman refer to this as the ability to “explore and exploit” in their book Lead and Disrupt (O’Reilly, 2016).
2. Customer Relationships
How does the organization build, manage, and recover customer relationships (Framework, 2017)?
Implementing a solid Voice of Customer strategy and tracking metrics related to that strategy through organizational action plans creates speed and agility when it comes to service recovery and customer management. These factors are defined in the Organizational Hierarchy of Needs and emphasized in the Strategize and Recalibrate stages of the SES.