Good day everyone, I am danna c.

barredo and I am going to talk about the holistic management for

First, customer focus, what is customer focus? I think all of us are familiar with this words such as
“customer first” or “customer is always right” but why is customer so important? Well, the customer are
the purchaser of our products, they are the one who make up our company’s profit. So without them, a
company will not exist. So, how can we make the customer buy from us, attract them and how can we
make them loyal? The answer is a customer focused organization.

Let me give you an example. Customer B checks into a hotel. The worker behind the desk greets him
with a smile, and gives him his room key in seconds – they’ve been expecting him. He get a delicious,
piping-hot coffee from the Starbucks in the lobby, and it is just what he needs after a long flight. He
walks into a clean, comfortable hotel room, and plops himself down on his bed. The front desk
attendant calls him to see if he needs anything else – but he’s covered for the night. He leaves the hotel
the next morning, impressed with the service he received – and more loyal to the hotel brand, and more
likely to use their facilities in the future.

In short, the first step in attracting and making the customers stay in your company is to hire people
who have personalities and core values aligned with the company’s vision and mission. After that,
company should spend time and money to employees. Because if the employees are happy and fulfilled
they can deliver better service, and build customer relationship and that’s how they put the customers
first.

The second step is customer value analysis. After focusing on employees, we will move to the
customer’s perception. So, how will you do a value analysis, are you guys familiar with restaurants giving
us paper on how you perceive their service and product to serve as feedback to them? Well that’s how
value analysis works.

This is how toyoda failed to do. In 1957, they decided to bring their affordable cars in America, they
expected for a rush of customers however it was a disaster as less than 300 cars were only sold in the
first year. Their car maybe successful in japan but because they lack value analysis on what American
people need for their cars, their expectation was not reached.

That’s why it is important to conduct a value analysis because the results would reflect not only how
consumers feel about your organization and product but also how they feel about competitors and
other distributors. These numerical findings will help the organization to develop a system to track
progress as well as consumer satisfaction.
Now that the employees are already shape by the company and conducted value analysis on customers,
we will now learn how to maximize customer services. There are three primary factors which contribute
to the total revenues that any particular customer will generate are time (how long the customer
remains an active customer), purchase frequency (how often the customer purchases something from a
company) and monetary value of purchases (how much money the customer spends with the company).

So, how will you achieve these three factors: their only opportunities to try increase income from their
existing customers are via email, telephone or on-page messaging. For example is sending customers
who have not made a purchase for some length of time an email containing a discount coupon to entice
the customer to return and make a purchase.

Why are we suddenly watching a race between a tortoise and a haire? Well because we are done in
customer focus and we will move on to continuous improvement. If you do not want your company to
left behind, you have to move forward and show consistency just like what the tortoise did. But there is
a Japanese word for continuous improvement and that is called kaizen. Kai means change and zen
means good, GOOD CHANGE. So, does improvement means huge improvement? No, even a small
improvement can be considered as good change. Did you know that 80% of potential improvements
come from the frontlines employees? So even if this one employee contribute small things for company
but inside an organization, there are a lot of them, if you combine them all, small things should not be
underestimated. Remember in the movie of ‘modern chairs’ by Charlie chaplin?, at first they only form
one line to pass the chairs next to them to make stacks but they improve as they decided to form two
lines instead of one line for them to be able to produce more work in a day, that’s also an example of
continuous improvement.

Lastly, strategic quality planning. Swot analysis stands for strength, weaknesses, opportunities and
threats. Since we are all familiar in this, let’s applied it in practice using starbucks, a well known US
coffee company. STRENGHT, I think we can all agree that it has a strong brand recognition because of its
premium coffee and premium brand which is also coherent with its strategy in pricing. Clients say they
love the atmosphere, they can use wifi. Starbucks also own a lot of outlets around the world so you can
find it when you travel overseas. Supply chain management, strabucks are careful in choosing their
supplier for its better quality. Next is weaknesses, people have different tastes and it argues that it is not
customized for local taste. Also, since not all of workers have a high income, some people cannot afford
to buy it. Another weakness is a high employee turnover. Next is opportunities, since they are a
recognized coffee company, they are easy to access to other countries. One great opportunity was also
being included in movie productions. Moving to the threats is the saturation of US market where most
of its outlets operates. Lastly, people are now investing in a healthier lifestyle. By doing this analysis,
company will be able to know what they do best, what they need to avoid, and what areas are they
weak. By undergoing SWOT analysis, companies can better compete in their industries.

Strategic plans means creating a different future and that future can be seen in the vision statement. A
vision statement answers question of “where”. In a company you one should know where will they go.
For example: we envision every kid in our community excelling academically through high and beyond.
By 2025 we will: (1) be the partner in education, (2) expand our footprint and (3) achieve financial
stability. On the other hand, the mission statement answer question like “why do we exist” for example:
google’s mission is to organize the world’s information to make it universally accessible and useful.

We have been focusing on the management and employees. Which are one the elements of internal,
the others are called shareholders, culture, structure, and etc., but right now we will start to analyze in
more general look using the PESTLE ANALYSIS. The pestle analysis focuses on the external elements.
Pestle stands for political, economic, social, technological and environmental. Let us now look in each
factors that need to be taken into account when assessing a market. Political has government policy,
political (in)stability, corruption, foreign trade policies and tax policies. Next is economic, this include
economic growth, unemployment rate, interest rate, inflation rate and exchange rate, this impact to the
purchasing power of consumers, also to the price of product and services. Social represent the
population on which the business operates, this also include income levels, cultural barriers and age
distribution. Technological, these factor may influence decision whether to enter or not in industry.
Environmental, one of the reasons companies became corporate social responsibility. Legal it is
important to know what is legal and not legal, patent laws, anti trust laws, employment laws,
discrimination laws and etc.

Through pestle analysis, businesses can easily know step by step on where do they want to focus or
which factor is the most important in your business. For example, environmental is an important factor
for oil and automobile industry.

So these are the foundation of holistic management for world class performance excellence. Thank you
for listening