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At DHL, workers take on pivotal decision roles

By Amy R. Remo
Philippine Daily Inquirer
First Posted 19:53:00 11/21/2009

Filed Under: Economy and Business and Finance, Employees

SINGAPORE ? Becoming the first brand of choice of every customer requires a great deal of hard work and painstaking effort on the part of a company. And most firms, particularly those in the service industry, have largely focused all their resources to achieve this goal.

But only a handful of firms can truly claim to have done so.

Logistics firm Deutsche Post DHL is, however, confident that it will attain the top spot in customer loyalty worldwide as early as 2012, as it banks on the ?unleashed? potential of its employees, and its so-called First Choice program.

?First Choice is not a program but a mindset. We want to build a culture where excellence and constant improvement are second nature. First Choice aims to enable each employee across all levels of the organization,? says Hermann Ude, CEO of DHL Global Forwarding, Freight.

Ude explains that First Choice is actually a five-step program that will train, equip and empower DHL employees to analyze their own work procedures, identify problems in processes and systematically develop solutions to improve their efficiency.

To uniformly manage the introduction of individual initiatives and projects worldwide, DHL defines the program through a methodology called the DMAIC circle.

DMAIC refers to Define (what is the customer?s problem?); Measure (how big is the problem?); Analyze (what are the root causes of the problem?); Improve (how can we improve/solve the problem?); and Control (how do we measure improvements?).

Under the First Choice program, the employees themselves would be carrying out these processes in their respective divisions. DHL is effectively passing on a huge responsibility to its employees, allowing them to come up with their own initiatives and implement these as well?a move few companies may risk to take.

Ude stresses that the success of First Choice?in terms of being able to produce significant improvements in DHL?will rest in the hands of its almost 500,000 employees.

DHL believes that if a company wants to put something into motion at an international business group, it will need motivated and dedicated employees, as well as powerful tools, that will enable each individual to optimally contribute his or her experience.

?This is where First Choice comes in: The service offensive systematically taps the problem-solving potential of almost 500,000 employees to achieve a lasting level of service and customer focus,? Ude said.

This approach is based on the idea that every employee is an expert in his or her job and, as a result, has the deepest insights into any potential for improvements. Thus, the employee is empowered to create and contribute solutions that will further improve the service levels of DHL.

Started in 2007, the First Choice methodology was initially tested and improved in eight pilot projects.

Since the test phase was concluded, 225 group units?representing more than 80 percent of the company?s consolidated revenues?have been implementing the First Choice program. Over 3,000 initiatives have already been carried out and 6,200 workshops, conducted.

?The spectrum of the improvements implemented until today ranges from better delivery schedules in the Express division and upgraded complaint management in DHL Global Forwarding to more efficient warehousing solutions at DHL Supply Chain,? Ude adds.

In the Philippines, DHL cited a specific case where the First Choice team was able to devise an innovative buddy system, slashing invoice turnaround time from 3.7 days to only one day.

According to DHL, invoicing must be a straightforward process, but this has not been the case for DHL Global Forwarding Philippines.

The local air freight team took almost four days to generate an invoice and to pass this to the finance department.

A First Choice initiative had helped employees cut their turnaround time by an impressive 73 percent, DHL data showed.

During the workshops conducted, employees uncovered several redundant processes and had revealed that some of the employees were unsure of their responsibilities. These also showed that a few simple rearrangements were the key to becoming more efficient at work.

?By simplifying many of the steps, setting individual invoicing responsibilities and rearranging the printer location and working environment, it was relatively easy to resolve the root causes,? the document quotes Judith Antaran, process improvement advisor of DHL Philippines, as saying.

Ude meanwhile says that the First Choice philosophy pays off not only for customers (for improved services), but for investors as well.

?After all, the world?s largest logistics group must deliver the best possible service to remain the market leader. Only those customers who receive optimal service to go along with high quality work performance will develop strong ties to their logistics providers,? Ude explains.

?At the same time, the chances of customers recommending Deutsche Post DHL to other potential customers will increase?one of the most critical requirements for continued business growth and the group?s appeal to investors.?



Copyright 2012 Philippine Daily Inquirer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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