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Danny B. Gant Managing Director Customer Services

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….

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Danny B. Gant Managing Director Customer Services

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  1. The FedEx Approach To A Fully Customer-Centric Culture Danny B. Gant Managing Director Customer Services

  2. 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 2

  3. the company has evolved over time… 3

  4. 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.comSupport 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 4

  5. 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 5

  6. The FedEx Brand 6

  7. Customer Loyalty is Core to Our SuccessThe Customer is at the heart of everything we do! Sustainable Growth Lower Customer Acquisition Costs Business Growth Customer LoyaltyWilling to recommend to othersIntend to continue to useHighly satisfied 7

  8. Worldwide FedEx Team Members Deliver the “Purple Promise” Daily to Strengthen Customer Loyalty The Purple Promise: “I will make every FedEx experience outstanding” 8

  9. Quality Driven Management (QDM)Drives Delivery of the Purple Promise People, Service, Profit “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 “ 9

  10. 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 1 2 3 4 5 6 Customers Define Quality Be Scientific Measure, Measure, Measure Optimize Business Performance Quality Involves Teamwork View Failures as Opportunities • Strive to understand customer requirements and expectations: • Who are our customers? • Are they satisfied with the services we provide? • What areas do they want us to improve? • Base decisions on facts and data, not guesses or opinions: • Have we gathered an adequate fact base? • Do we understand the root cause of the problem? • Will our solution address the root cause? • Measure failures, measure variation: • Do we have measurements in place? • Do we monitor measurements to identify continuous improvement opportunities? • Does the measurement tie to strategic objectives? • Minimize unnecessary effort, time, and cost: • Do we recognize value-added vs. wasteful activities? • Do we apply QDM/Waste Reduction Workshop (WRW) tools to proactively minimize waste? • See work as a collaborative process: • Have we engaged all our key stakeholders? • Have we built common understanding of our key objectives, deliverables, timeline, etc.? • Seek the truth and end the blame game: • 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 10

  11. 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 Launchthe solution successfully through careful planning and control 11

  12. 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 12

  13. 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 13

  14. Community Support Humanitarian Awards

  15. 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 15

  16. 2013 “Top 10 Most Admired Companies,” FORTUNEMagazine Selected awards and recognitions 2013 “Top 100 Best Corporate Citizens,” Corporate Responsibility Magazine 2012 “Top 10 Best Multinational Workplaces– FedEx Express,”Great Place to Work Institute 2013 “Top 15 (#12)Most Reputable U.S. Companies,”Forbes 2013 “100 Best Companies to Work For in America,” FORTUNEMagazine #8 World’s Most Admired Companies 16

  17. “Keeping the Promise” “I will make every FedEx experience outstanding” 17

  18. Take Aways Culture Matters- People Customers and Employees deserve an outstanding experience- Service Happy People and Good Service = Profit

  19. 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! 19

  20. Questions? 20

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