Final case study sharpe bmw

Sharpe BMW Case of Organization Design

1. Sharpe BMW http://www.youtube.com/watch?v=uj0z792OE2M

2. Background Location: Grand Rapids, Michigan Clarifying OD Issue: Problems with Service Department Previous Service Dept. Manager Left Revenues have declined Customer Service Ratings (CSI) have dropped

3. Condensed Org. Chart

4. Customer Service Index BMW Rewards dealers who score higher than 91% on CSI surveys BMW sends financial rewards BMW sends “New Release” vehicles to dealers Sharpe BMW – scored below 91% recently CSI is 8 question survey

5. Customer Service Questions/Ratings Ease of obtaining a service appointment Greeted promptly when vehicle dropped off Respectful and courteous treatment Vehicle ready at time promised Waited on promptly at vehicle pickup Paperwork completed/accurate at pick up Explanation of service work performed Satisfaction with work performance Excellent: 100 points Good: 80 points Fair: 60 points Poor: 0 points

6. New Plan - Suggested by Management Bob Deshane submitted “New Plan” to George Sharpe Monthly bonus paid to service technician if CSI rating is above 91% Attempt to motivate technicians to perform better customer service Happier customer means repeat customer Repeat customer means more revenue Higher CSI scores means more financial rewards to dealership Monthly bonus ranges from 2% - 3% of hourly pay

7. Technicians Thoughts on New Plan Tom Dunn interviewed technicians to get their feedback on new plan Overall, technicians were not satisfied with plan Bonus showed dealer was willing to reward technicians Bonus was only marginal at best

8. Our Intervention Plan Our Plan: Large Group Intervention – To discuss problems, formulate solution Goal Setting – Need to align company goals with Technician goals

9. Our Plan Continued Need Better Collecting and Feeding Back Data BMW contracts with Sky Allend to administer Customer Survey Need more robust customer service data - Interview with customer Why is the score Excellent? Why is the score Good? Why is the score Fair? Why is the score Poor?

10. iNTERVENTIONS

11. LARGE GROUP INTERVENTIONS BMW tried small group interventions Limited information received Large Group Intervention is a system-wide process intervention PROS Empowers and involves more employees Will get information from several points of view CONS Hard to keep meeting on topic with a large group Some employees may not participate or talk at meetings

12. Preparing For The Meeting Outline of what will be discussed For BMW is to focus on how to increase CSI and Revenue Broad or Narrow a Focus as Chose Develop a pre-survey to narrow ideas and information for agenda Decide on who should attend Those who are committed to change For BMW it would be senior management and technicians Relevant tasks to address conference theme Use an agenda to formulate why we’re there Look at current CSI and Revenue Numbers Could break employees out into 2 groups: CSI and Revenue

13. Pre-Survey What Information Do We Want to Gather? Do You Know What Customer Service Index is? Do You Understand Your Role in Customer Service? Do You Understand Your Role as it relates to BMW Revenue? Metric System Rating of 1-5 1 -- Don’t understand above ideas 5 -- Fully Aware of Role as relates to above ideas

14. Conducting the Meeting Positive Method/Appreciative Inquiry (AI) Summit Discover the Organization’s positive core Dream about a more desired future Design the systems that will support the vision Create specific actions plans

15. Following up on the Outcomes Develop Post Meeting Survey Do You Know What Customer Service Index is? Do You Understand Your Role in Customer Service? Do You Understand Your Role as it relates to BMW Revenue? Compare this data to the Pre-Meeting Survey How Effective was the Large-Group Meeting?

16. Communicate Most Important part of Large-Group Intervention : Communicate Survey Results Communicate Large-Group Findings to Organization Communicate Plans for change

17. Intervention 2: Goal Setting Goal Of Company: Align company goals ( increase revenue, high rating CSI) with technicians goals. Increasing sales of vehicles with local customers . Aggressively seeking business . Career advancement of technicians. Proposed “New P lan” 2% to 3% bonus to technicians. High CSI rating for technicians. Score higher than 90% in CSI.

18. Pros & Cons Pros: Align company goals and technician goals through compensation Allows technicians to raise their voice in the company through goal setting. Provides counselling and support to employees. (Manager Involvement with technicians ).

19. Pros & Cons Cons: What if technicians and management don’t come to agreement in goal setting. Provide difficult to meet specific goals . Lack of participation may occur. Find difficult to give real opinion during large group intervention

20. INSPIRATIONAL CASE STUDY Case Study 17.1- Siebel Systems It was leading CRM (Customer Relationship Management) software provider Seibel focused on Customer relationship . Emphasis on ERM (Employee Relationship Management) called “ my Siebel” which provide planning and performance management, training content management, workforce collaboration & employee support.

21. Based on Siebel’s core value, customer satisfaction was shared objective for everyone so there was clear understanding among all employees . Bonuses were tied to achievement of quarterly objectives . Due to “information system architecture” employees get suggested training opportunities for work and career paths

22. Leadership/Evaluation/Institutionalization

23. Leadership Concepts Motivating Change: How will Dunn address resistance? Creating Vision: What is the future state of service department? Sustaining Momentum Build support system New skills and competencies Staying the course

24. Evaluation “ Implementation and evaluation feedback” In chapter 11, Pg. 190, A ssess employee’s reaction Measure customer service Measure their revenue

25. Evaluation: New Reward System How much better is the new reward system compared to the old reward system?

26. Institutionalization Education management Deliver New Process Training Monitor changes in procedures