A MEASURE OF DELIGHT:

THE PURSUIT OF QUALITY

• The seven core company values are :-customer delight, continuous improvement, sense of
urgency, commitment, trust and integrity, mutual respect, teamwork
• With the help of best quality process they have gained the competitive advantage and that
quality comes from the execution of above mentioned values which is inculcated in each and
every employee at the UCS.
They train their employees in such a way that they handle each customer efficiently.
They believe in “Delighting Customers”.
And they believe that whenever a customer contacts UCS it’s time to either make relationship or
destroy it. So the employees give their 100% to solve the customer’s problem.
In this way they stand apart from their competitors.
 Q2- WHAT WERE THE SURVEY INSTRUMENTS
DESIGNED BY THE QUALITY TEAM AT UCS?

• Rob Davis and his Quality team developed two extensive surveys. First survey was
focused upon to gather market research data on what the company termed “customer
satisfiers” and the product and its price and customer service that cardholder cared about
most. They conducted outside market research in which they talking to 400 competitors’
customers and 200 UCS customers each month.
• Second survey was the customer contractor survey in which The UCS team targeted each
month polled more than 3,000 randomly selected customers. UCS’s survey team
administered 10 to 15 different Contactor Surveys, depending on whether a customer had
called or written, and on the customer’s particular reason for contact, such as to get
account information or to challenge a bill.
 Q 3 - E XP L A I N T H E M E A S U R E M E NT S Y S T E M AT U C S
A N D H O W T H E Y L I N K E D I T TO T H E C O M P E N S AT I O N
S Y S T E M . D O Y O U T H I N K T HE S Y S T E M WA S FAI R ?
• UCS’s measurement system was advanced and multifaceted which focused on targeting a lot of areas and processes
to measure performance. The measurement system was developed keeping in mind to track everyday activities that
were undertaken in order to satisfy the customers.
• About 100 internal and supplier measures were assembled in the beginning and later in the measures also focused on
key production, service and support processes from every aspect of the company. Vice President Jean Collins and
her relationship Excellence team, were working with about 120 measures, some were confidential. For example, the
indicators showed various aspects like how quick the Human resource team is in terms of recruitment and
paychecks and how the computer system is functioning.
• The employees were duly compensated for meeting with the required expectations which were measured regularly.
The set of measures were linked with compensation and if the company as a whole on a certain day met the quality
criteria 95% of the time, all associates—or non-managerial employee received recognition, that is they “earned
quality” for their work.
• Each “quality day” resulted in a monetary incentive, which was paid out quarterly.
•  
• The system seems to be fair as it will duly reward for the correct and quality actions undertaken by the employees
and it will result in about 20% above base salary income for them.
 Q 4 - W H AT W E R E T H E VA R I O U S S T E P S T H E C O M PA N Y T O O K T O
M O T I VAT E T H E A S S O C I AT E S ? W H AT W E R E T H E P O S I T I V E I M PA C T S
O F T H E E M P O W E R M E N T A N D R E C O G N I T I O N B E N E F I T S AT U C S ?

• To receive quality work from the associates, UCS had to undertake certain efforts in order to motivate them.
A lot of departments in the organization made sure that the associates did not have any problem while
working and the process was smooth for them. For example,
• The Information Services group, made U-WIN, the Information management system regularly updated and
catered to the requirements of the telephone associates. Mangers also had a quick access to the customer’s
data through U-KNOW system which was a database containing financial, operational and any other data
that would be required.
• An automatic calling up system was also there which would function while the calls were being connected.
• The opinion and voice of the associates were also taken into consideration by the top management to get a
view on if any changes are required or anything else that the company could do. They were also encouraged to
ask questions at the monthly business reviews and the quarterly question answer sessions known as the
“Lakeside Chats”.
• The efforts really seemed to work. According to the annual employee opinion survey, employees were satisfied
by the help and motivation they were provided. Employee absenteeism and attrition were significantly low.
 Q 5 - W H Y D O YO U T H I N K T H E C O N T I N U O U S
IM P R O V E M E N T C U LT U R E AT U C S H A D I T S
‘ L A R G E LY U N AV O I D A B L E D O W N S I D E S ’ ?

• At UCS the continuous improvement culture had its largely unavoidable downsides because –
• Where many established companies that have struggled to superimpose ‘quality’ on an existing
corporate culture, UCS had the luxury of establishing quality as an inclusionary goal from the
start. In UCS quality was less a goal than an obsession. The seven core UCS’s values –
customer delight, continuous improvement, sense of urgency, commitment, trust and integrity,
mutual respect, and teamwork were illuminated on everything from wall plaques to T-shirts and
coasters.
• Also, the senior management was convinced that quality processes with the end result of
superior customer service and efficiency would give UCS a key competitive in the crowed
credit card marketplace.
 Q 6 - W H Y D O Y O U T H I N K I N L AT E 1 9 9 1 T H E B U S I N E S S
T E A M C O N S I D E R E D M A K I N G T H E Q U A L I T Y S TA N D A R D S
TIGHTER EVEN AFTER UCS PERFORMED SO WELL?

• I think in late 1991 the Business Team considered making the quality standards tighter
even after UCS performed so well because –
• In 1991, associates had made quality at least 25 days out of every month and in August
they had earned quality every day, often achieving 97 % or more of the indicators.
Managers were also doing well. Davis explained, “We wanted to take it up”, because of
their strong commitment to continuous improvement. Marine Brown the vice president of
Customer Relationships also stated that “Everything was going fine, but if you look at
perfect service every day, they weren’t giving perfect service and they are more concerned
about giving perfect service every day. In respect to that Kahn sent a letter to all
employees on December 26, just five days before the change was to take effect.
 Q7 - W H AT WA S T H E E F F E C T O F ‘ RA I S I N G T H E B A R ’
A N D M A K I N G A S S O C I AT E D C H A N GE S I N T H E
M E A S U R E M E N T- C O M P E N S AT I O N S Y S T E M ?

• During 1991, associates had made quality at least 25 days out of every month, and in August they had
earned quality every day, they often achieving 97% or more of the indicators. Managers were also
doing well before raising the bar.
• But when company replace 48 indicators with 46 new one, then performance of associates and
managers goes sharply down. Associates earn only 13 quality days in January and 16 in February.
They performed worst day by day due to raising the bars which doubles the challenge and also their
dream of Baldrige award looks very tough.
• Instead of backing down the raising the bar, the team came up with Triple quality team challenge to
increase the performance of associates. Triple quality team challenge is the kind of incentive bonus for
associates and managers, if they gave 22 quality days then they will be credited with 26 quality days.
 Q8- COMMENT ON THE TRIPLE QUALITY CHALLENGE AND OTHER
E F F O RT S O F U C S T O D O AWAY W I T H T H E N E G AT I V E I M PA C T S O F
‘ R A I S I N G T H E B A R ’ A N D A L S O T O M O T I VAT E T H E A S S O C I AT E S .

• Triple Quality Challenge was the excellent initiative taken by company for the wellbeing
of the associates and managers but as this incentive was applicable if they earn 22 quality
days with new sets of indicators which was very tough to achieve. Associates and
managers were only achieved 13 and 16 in January, February respectively, that’s why it
was tough to achieve 22 quality days and hence this challenge was worthless for associates
and managers.
• To motivate the associates, team should had gave some ease in new sets of indicators then
this challenge would be worth for them.
 Q9- WHY DO YOU THINK UCS HAD TO THINK OF CHANGING ITS
MEASURING SYSTEM BY 1993? DO YOU THINK ADOPTING
“CUSTOMER CENTRIC MEASURES” LIKE FEDERAL EXPRESS
WOULD BE BENEFICIAL TO UCS?

• Employee morale has been low since the firm modified its measurement criteria, resulting
in lower quality days and even failure to fulfil the 96 percent objective put out. Associates
were afraid that increasing efficiency requirements would not transfer into better service,
and that their prospects of receiving regular incentives would be harmed.
• Adopting Consumer Centric Measures would be a bad idea for UCS since it was difficult
for UCS personnel to analyze the data. It did not result in a lot of buy-in. Its measures
were more concerned with raw statistics than with presenting data in a meaningful way. It
also cut down on the number of important procedures required to satisfy customers. There
was a potential that a significant number of persons and processes would go unmeasured.
There were also concerns about the compensation mechanism.
 Q10- COMMENT ON THE APPLICABILITY OF SPC
IN A SERVICE ORGANIZATION LIKE UCS.

Statistical Process Control, while having numerous instruments for monitoring process
controls and variations, such as cause and effect diagrams and Pareto charts, was never
employed in the services industry. However, an associate's capacity to see the impact of one
of his acts on another would benefit them in evaluating their own performance. It's not
designed for tasks that can't be measured in terms of statistics or shown graphically.
 Q 11 - S U G G E S T T O T H E S E N I O R M A N A G E R S O F U C S W H AT T Y P E
AND EXTENT OF CHANGES NEED TO BE MADE IN THE EXISTING
P E R F O R M A N C E M E A S U R E M E N T A N D C O M P E N S AT I O N S Y S T E M AT
UCS. GIVE PROPER REASONS FOR YOUR ANSWER.
 Q12- WHICH ONE OR MORE OF THE FOUR EMPLOYEES
DO YOU THINK [DESCRIBED IN MEASURE OF DELIGHT
( B ) ] S H O U L D R E C E I V E T H E P O W E R O F O N E AWA R D ?

The Power of One award should be given to two employees. First, there was the lady
associate who assisted in getting the elderly gentleman a new cordless telephone despite the
fact that he lived in a high-crime neighborhood. Second, UCS telephone team leader who
assisted a woman with her split personality problem and prevented her from committing
suicide.