Customer Focus Engineering

The Iceberg of Ignorance
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This internationally acclaimed study conducted by Sidney Yoshida, was initially presented at the International Quality Symposium, Mexico city, 1989. It indicated how management's failure to understand its processes and practices from the perspective of its customers, suppressed the company's profits by as much as 40%. 

Top management was aware of only 4% of the problems that customers had with the company

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This classic study of a typical manufacturing company in Japan, revealed that top management was aware of only 4% of the problems with the company's processes and policies that inhibited customers from doing business. Conversely, rank and file employees were, in aggregate, aware of virtually all the significant issues.

"Managers are tasked with ensuring that the organization adds value at each and every contact with the customer without incurring substantial cost. And guess what the best cost-containment driver is? ..Give up? Hint: They pay your salary. Thats right: Customers!

Sounds like an awful lot of common sense, but there are plenty of Profit and Loss statements floating around that would look a heck of a lot better if actual customer data were included in the financial analysis"
Mary Helen Gillespie, The Savvy Manager,
Boston Sunday Globe, August 18, 2002, pg. G2

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