Going the Extra Mile for Customer Service

Össur is a global leader in non-invasive orthopedics. From its headquarters in Iceland, the company maintains a presence in the Americas, Europe, Asia, and beyond where its mantra of “Life Without Limitations” is embraced by some 2,200 employees. Its pioneering of advanced technology improves mobility and with it, the quality of life for millions of people. Össur’s expertise includes silicone, carbon composites, mechatronics, textiles, and, most recently, the skills and know-how to produce cutting-edge lower-limb bionic technology—arguably the most significant advance to date in the global orthopedic arena.
 
Both a manufacturer and distributor, Össur grew rapidly from 2001 to 2008. Thirteen acquisitions resulted in an increase in annual revenue from $25 million to $350 million. Profits have been stable since but economies of scale were not materializing. Management recognized there was room to improve services, streamline processes, and improve IT architecture to achieve scalability and increase future profits.
 
In 2011, Össur established a Global Process Development (GPD) program and a BPM team consisting of project managers and process analysts. Among the first wave of projects identified from the initial 250 ideas submitted was the customer feedback (CF) process. With the aim of creating value for customers, work advancement for staff, and increasing profitability, the CF project was commissioned as one of five processes from a shortlist of seventeen.
 
Identifying the Problem
A period of rapid growth from acquisitions had seen an expansion in product lines and with it, increased complexity. The CF process had not been updated to keep up with these and other changes resulting in a declining capture rate, complicated registration process, and much too long of response times to customers. The CF project’s goals were to capture more feedback, improve CF registration time, and speed-up internal investigation and resolution while gathering information from the CF process for product development and R&D. Ambitious targets of an increase in feedback capture by 100 percent and a decrease in resolution time by 60 percent were set.
 
Putting the Pieces in Place
The proposed customer feedback process was presented to multiple stakeholders to ensure early buy-in and gather feedback on the outcome. Internal development work was accomplished in Microsoft Dynamics Nav for the initial registration process while PNMsoft Sequence, an iBPMS (intelligent business process management suite) was implemented for the resolution workflows.
 
Project Phases
Össur’s GPD program used a blend of BPM and agile methodologies where internal process could be split into seven phases: Planning, AS-IS, TO-BE, IT Selection, Design & Development, Rollout, and Closure.
 
After the planning phase, the projects started with the AS IS process mapping in all relevant locations, information gathered from the actual users of the process, and the current process mapped in iGrafx. Change agents were chosen in each location to play an important role in change management throughout the project. The TO BE Process was designed in a three-day face-to-face workshop with a selected group of relevant managers and users. The workshop was facilitated by a team of BPM and IT experts to ensure a deep understanding of process and IT thinking in the TO BE process. The TO BE process was then approved by all change agents and other relevant stakeholders.
 
The IT Selection was driven by the requirements gathered and process design.
 
In the Design & Development phase, agile methodologies (SCRUM) were used in all development to make sure the TO BE process design was followed and change management protocols were observed.
 
In the rollout phase, the project teams focused on supporting process leaders/champions at each site to lead the training and rollout. These leaders then supported the global process owner team for future development and improvements of the process.
 
In the closure phase, the process was formally handed over to the global process owner team.
 
Business Outcomes and Benefits
Results stemming from a new CF process included:

• Reduction in registration time for customer service from five minutes to under one minute.
• Doubling of feedback capture based on the new CF process/system.
• 70 percent reduction in resolution time when Össur receives product for inspection.
• Easier monitoring of the new CF process with process metrics monitored from dashboards that are part of the PNMsoft Sequence solution.
• More in-depth reporting from Sequence’s BI capabilities.
• Evaluation codes used for resolution of parts of the process provided the employee direction on where and how to inspect the product. The increase in feedback gathered was extremely valuable to address broken processes through on-going CI initiatives as well as for new product development.

 
Example results from the other projects within the program:

• Global Planning: Inventory level lowered by 13 percent, decreasing inventory carrying cost.
• Order Entry: Employees on average were 20 percent faster to enter orders with the customer on the phone.
• Distribution: Payroll per shipment decreased by 10 percent.
• Product Services: Estimated 30 percent reduction in cost of future loaner equipment.

 
Conclusion
For Össur, process discipline and governance has increased within the company as a result of the increased BPM focus. Its adoption of a BPM methodology enjoys the full support of the executive team and is now being used fully or in part in many projects.
 
Össur’s goal is profitable market share growth. The three pillars of the Össur strategy house are innovation, efficiency, and growth. The GPD Program is one of the global strategic initiatives within the efficiency pillar. Although the projects are focused on efficiency, the goal with the program is to build the foundation for future growth by aligning key processes and increasing customer satisfaction.
 
The program is governed by Össur’s executive team with the Director of BPM reporting on program progress and having the opportunity to show the solutions, report on results, and familiarize the team of the methodology of the program. As a result, new process improvement opportunities have surfaced and the terminology of AS-IS and TO-BE is widely known within the company as the fundamental parts of a successful project.
 
Össur’s BPM and IT teams have worked closely together on GPD projects. As an indication of this is the recent promotion of the Director of BPM to the VP of BPM and IT, which highlights the strong process perspective in projects and the focus to continue the beneficial business and IT cooperation in future projects.
 
James Luxford is PNMsoft’s Global CTO, responsible for both product strategy and global presales. He works with customers, business and technology partners, and the industry to provide global direction for PNMsoft’s Business Process Management product suite, Sequence. James joined PNMsoft in September 2007 from Ceridian, where he worked as a Business Solutions Group Manager.