This is Part IV of Fixing the Leaks, a 4 Part Workshop on Improving Profitability in small and medium sized businesses and not-for-profits. How Can You Fix the Leaks explains how to move forward once you have made the decision to address profitability issues in your organization.

1. Section IV
In theory, there is no difference between theory and
practice. In practice, there is. - Yogi Berra
Copyright @ 2014, Ron Ryan & Associates, LLC 1

2. But Isn’t This Just Common
Sense?
“Constant
Improvement
Should Be Part
of Our Culture”
“ But we can’t
afford to do this
now; we’re in
survival mode.”
The Reality:
Discipline Is
Difficult To Build
& Maintain
Copyright @ 2014, Ron Ryan & Associates, LLC
2
Yes. How
To Fix The Leaks?

3. How To Get Started?
Outside
Consultant(s)
Leadership
Commitment
<Either Way>
Inside Task
Force
Start Here
And
Work Your
Way Out
How
To Fix The Leaks?
Copyright @ 2014, Ron Ryan & Associates, LLC 3

4. Why Bother With A Task Force?
 No CEO direct
reports;
 Middle Managers
Are Best:
 Multi-departmental
point of view;
 Objectivity;
 Independence and
intellectual honesty;
 Customer-focused
rather than
department-focused.
How
To Fix The Leaks?
Copyright @ 2014, Ron Ryan & Associates, LLC 4

5. Make Sure You Are Looking
With New Eyes
If it ain’t is
broken don’t
go fix it!
How
To Fix The Leaks?
Copyright @ 2014, Ron Ryan & Associates, LLC 5

6. 6 Sigma Ninja’s Helpful But Not Required -
A Check List For Change Teams
 Smart – big picture
person comfortable with
ambiguity
 Understands company
and how it works
 Analytical - not afraid of
numbers
 Plays well with others - is
well respected by peers
 Has strong domain
expertise in his/her field
 Willing to work hard
How
To Fix The Leaks?
Copyright @ 2014, Ron Ryan & Associates, LLC 6

7. How To? Buy Books Not
Dogma
Customer Analytics
• How to Measure and Improve In-Store Buyer Experience (Underhill)
• How to Measure and Improve Internet Experience and Ecommerce
(Kaushik)
• How to Measure and Manage In-Bound Call Center Customer
Experience (Cleveland)
Customer Satisfaction Measurement And Management
• How to Conduct Meaningful Satisfaction Surveys (Hayes)
• Net Promoter Score (Reichold)
• Experience And Interaction Economies (Pine, Gallup)
• How (Nudges) Can Affect Buying Behaviors (Thaler, Sunstein)
Process Improvement
• Six Sigma (Pande et al.)
• Lean (Womack, George, Seddon)
• Reengineering (Hammer)
Copyright @ 2014, Ron Ryan & Associates, LLC
7
No Single Approach Does It All How
To Fix The Leaks?

8. Where Should You Start?
Online
Sales
Process
1 in 20
Buy
Call Center
1 in 5 buy
Fulfillment
8 or 9 out
of10 Keep
What You
Sold Them
Repeat
Purchase
(Or
Renewal)
Between 5
and 9 Out of
10 Buy
again
How
To Fix The Leaks?
Copyright @ 2014, Ron Ryan & Associates, LLC 8

9. The Higher You Start In Your Funnel, The
Greater The Impact Of The Change…
Sales
Center
Online
Lead
Generation
& Sales
Fulfillment
& Service
…But also the more controversial,
risky, and difficult to measure.
How
To Fix The Leaks?
Copyright @ 2014, Ron Ryan & Associates, LLC 9

10. Where Should You Start?
Online
Sales
Process
1 in 20 buy
Call Center
1 in 5 buy
Fulfillment &
Service
8 or 9 out of
10 Keep
What You
Sold Them
Repeat
Purchase
(Or
Renewal)
Between 5
and 9 Out of
10
Buy again
Start with a system or process you control. Fix it first.
The further back in the value chain you start, the safer
you will be. How
To Fix The Leaks?
Copyright @ 2014, Ron Ryan & Associates, LLC 10

11. Summary – Fixing The
Leaks
 About making incremental
improvements;
 Reduces customer attrition;
 Has High ROI;
 Creates Incremental
Revenue;
 This Revenue falls straight
to the bottom line;
 Improves customer
experience and brand;
 Improves job satisfaction;
 Makes your organization
better.
Copyright @ 2014, Ron Ryan & Associates, LLC 11