Page 415 - Operations Strategy

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390 case study 3 • carglass : Building and sustaining a customer-centric organisation
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exhibit 7 Carglass financial information
2000 2004 2007 2009
Revenues (000 Euro) 69.507 92.839 132.632 168.006
Operating profit (000 Euro) 3.241 4.860 6.607 12.455
Profit after tax (000 Euro) 1.384 1.728 4.547 29.395*
Profit margin (%) 4.66% 5.23% 4.98% 7.41%
Return on equity (ROE at) (%) 14.51% 13.58% 1.88% 11.58%
*In 2009, the company had exceptional revenues of more than 21 million Euro.
Source: Company information.

Equally impressive is how the surveys and figures are utilised. The employees in the
Customer Delight Centers receive a weekly report of the past results every Monday
12 o’clock. These results are then discussed with their manager. Carglass® is very trans-
parent about the scores of all Customer Delight Centers and managers see how well
their center has performed relative to the other Customer Delight Centers. Not only
does the company report a weekly ranking, the scores are also used to calculate the team
bonus of the Customer Delight Centers employees.
The teams at the Customer Delight Centers are incentivised based on customer sat-
isfaction scores and quality scores, and not on financial results. Quality is measured
by looking at the number of jobs done in a particular time period and by subtracting
the costs of complaint handling and reworks. Customer Delight Centers also measure
resource utilisation; the resource utilisation index measures how much of the available
time is productive and unproductive time. Employees are encouraged to find ways to
increase the productive time. All this is graphically represented to make it clear for the
employees how well they are doing and where there is room for improvement. Carglass®
can also benefit from initiatives launched in Belron® as there is a dedicated corporate
team of innovators, thinkers and doers who are all focused on driving technical stand-
ards and developing ground breaking innovations in vehicle glass repair and replace-
ment. An example is the group’s development of cutting and lifting tools that do the
job better, safer and more efficiently.
Carglass® also provides its Customer Delight Centers with all the complaints of the
past week. The manager discusses these complaints and together with employees looks
for ways to solve particular problems.
The other departments within Carglass® measure their performance as extensively
as the Customer Delight Centers. Customer satisfaction and quality are the key
components of the performance measurement system and the bonus system in all
departments.

recognition and communication

Carglass® uses its performance measurement system not only to give bonuses but to
identify best practices. The company recognises its best performers. COO Stefaan Her-
mans brings an energy box to the best-performing Customer Delight Center every
month. The energy box is a box full of candies and sweets. The best-performing team
at the end of the year gets a VIP arrangement to one of the Formula 1 Grand Prix races.

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