Transcript Quality Driven Management (QDM)

The FedEx Approach To A
Fully Customer-Centric
Culture
Danny B. Gant
Managing Director
Customer Services
Over 40 years ago, FedEx was built
around a single focus…
The core philosophy that governs every activity at FedEx is People-Service-Profit (PSP): Take
care of our people; they in turn will deliver impeccable service demanded by our customers, who
will reward us with the profitability necessary to secure our future. –Frederick W Smith
P-S-P
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the company has evolved over time…
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T
• More than 300,000 team members worldwide
• Handle more than 10 million shipments per day for express, ground,
freight and expedited delivery services
• Serve more than 220 countries and territories, including every address
in the United States
• fedex.com
Support over 32 million unique visitors monthly; more than 6.5 million
package tracking requests daily and more than 20 million labels
generated via FedEx Ship Manager monthly
• Annual Revenue – Approximately $46 Billion
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• 649 aircraft; 375 airports served worldwide
• More than 100,000 motorized vehicles for express, ground, freight and
expedited delivery service
Dropoff Locations
• 690 FedEx World Service Centers
• 1,750 FedEx Office locations
• 6,300 FedEx Authorized ShipCenters® and Alliance Partners
• 37,000 FedEx Drop Boxes
Operating Facilities
• Express: 1,200 stations; 10 air express hubs
• Ground: 33 ground hubs; over 500 pickup/delivery terminals
• Freight: Approximately 370 service centers
• Office: More than 1,800 locations
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The FedEx Brand
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Customer Loyalty is Core to Our Success
The Customer is at the heart of everything we do!
Sustainable Growth
Lower Customer Acquisition Costs
Business Growth
Customer Loyalty
Willing to recommend to others
Intend to continue to use
Highly satisfied
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Worldwide FedEx Team Members Deliver the “Purple
Promise” Daily to Strengthen Customer Loyalty
The Purple Promise: “I will make every FedEx
experience outstanding”
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Quality Driven Management (QDM) Drives Delivery of
the Purple Promise
People, Service, Profit
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“QDM will give us common ways to improve Quality across our entire enterprise. For the first time, we will all
use the same language, tools, and metrics to analyze the causes of problems and plan corrective actions. QDM
is the way FedEx will manage our business to drive Quality and brand loyalty to new heights.”
Fred Smith
Chairman, President and CEO
FedEx Corporation
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Institutionalizing QDM Principles within our culture
is critical to a holistic adoption
QDM Principles are designed to drive desired organization behaviors
Behaviors demonstrate what a culture values
What a culture values guides decision-making on a day-to-day basis
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Customers Define
Quality
Be Scientific
Measure, Measure,
Measure
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Optimize Business
Performance
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Quality Involves
Teamwork
View Failures as
Opportunities
Strive to understand
customer requirements
and expectations:
Base decisions on facts
and data, not guesses or
opinions:
Measure failures,
measure variation:
Minimize unnecessary
effort, time, and cost:
See work as a
collaborative process:
Seek the truth and end
the blame game:
• Who are our customers?
• Are they satisfied with the
services we provide?
• What areas do they want
us to improve?
• Have we gathered an
adequate fact base?
• Do we understand the
root cause of the problem?
• Will our solution address
the root cause?
• Do we have
measurements in place?
• Do we monitor
measurements to identify
continuous improvement
opportunities?
• Does the measurement
tie to strategic objectives?
• Do we recognize
value-added vs. wasteful
activities?
• Do we apply QDM/Waste
Reduction Workshop
(WRW) tools to proactively
minimize waste?
• Have we engaged all our
key stakeholders?
• Have we built common
understanding of our key
objectives, deliverables,
timeline, etc.?
• Do we appreciate those
who identified the failures
• Do we understand root
causes of the failures and
do we gather learning to
confirm our hypotheses?
• Do we develop action
plans?
• Do we share learning?
QDM: The Way We Work At FedEx
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Quality Action Teams (QAT) use the ABLE Quality
Improvement Process
Assess opportunities to improve
the customer experience or
business performance
Evaluate the
implementation to
confirm its
real-world success
Build understanding
of the Quality issue,
build a solution for
addressing its root cause,
and build the business case
Launch the solution
successfully through
careful planning and control
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Connecting with the Customer
“Customer Service is not a Department”
• FedEx OneCall
• Customer Advocate Team
• Executive Services
• Social Media
• Couriers/Sales/Technicians
• 1-800-Go-FedEx
• Moments of Truth/Focus Sessions
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Connecting with the Employee
• REACH Program– Reps Engaged And Connected At Home
• Employee Surveys
– Leadership, Culture, Service
• Pay and Benefits/Tuition Reimbursement
– Competitive, Attract and Retain!
• Recognition Programs
– Bonus Programs-All Levels!
– Bravo Zulu
– PP Award
• Celebrations!
– Births, Graduations, Weddings, Service Awards
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Community Support
Humanitarian Awards
Living P-S-P
 I contribute to a positive FedEx Spirit
 I act accountably to support our Living PSP Culture
 I am a vital link in the chain of success
 I am committed to personal growth
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SELECTED AWARDS AND RECOGNITIONS
2013 “Top 10
Most Admired
Companies,”
FORTUNE
Magazine
2013 “100 Best
Companies to
Work For in
America,”
FORTUNE
Magazine
2012 “Top 10
Best Multinational
Workplaces –
FedEx Express,”
Great Place to
Work Institute
2013 “Top 100 Best
Corporate
Citizens,”
Corporate
Responsibility
Magazine
2013 “Top 15
(#12) Most
Reputable U.S.
Companies,”
Forbes
#8 World’s Most Admired Companies
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“Keeping the Promise”
“I will make every FedEx
experience outstanding”
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Take Aways
Culture Matters- People
Customers and Employees deserve an
outstanding experience- Service
Happy People and Good Service = Profit
Over 40 years ago, FedEx was built
around a single focus…
The core philosophy that governs every activity at FedEx is People-Service-Profit (PSP): Take
care of our people; they in turn will deliver impeccable service demanded by our customers, who
will reward us with the profitability necessary to secure our future. –Frederick W Smith
It still works!
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Questions?
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