Quantifying the Cost of Confusion
Mark Biss
Wellington | November 4
Session Outline
• Sources of confusion
• Consequences of confusion
• Can / should we measure confusion?
The greatest cost you don’t know you have…
Definition
Uncertainty about what is happening or required …
… prevents or delays objectives being reached
Clarity – a sound business investment
Why measure Confusion?
• The problem is acknowledged, and
• People are motivated to solve problems…
• Enabling…
• sustainable, repeatable processes…
• improved customer experience
Beef Cheeks ….. Bouillabaisse?
… then carefully deglaze the pan with the red wine …
this will cause the crustations on the pan to come free …
and incorporate in to the cooking liquid with will help intensify the
flavour
Errors distract
Sources
• Unclear objectives
• Sub-standard analysis
• Substandard language
• syntax
• lard - (Professor Emeritus Richard Lanham)
Found in
Creates Variance
Strategy
Intended Outcome
Policy
Process
WIs
Actual Outcome
KPIs threatened
Increased Costs and Risks
At Risk:
Intended Outcome
= Costs & Risks
Actual Outcome
Introduced risks = waste
• Customer Experience
• Reputation
• Supplier relationships
Minimise Variance
Intended Outcome
Actual Outcome
• Logic – hard analysis
• Plain language – crystal clear
Analyse and communicate
Customer – Staff Interface…
Frustrates staff and customers
Lose focus – lose customers – lose staff – lose revenue
Reputational risk, lower morale
Opportunity Cost
The more competitive the market, the higher the opportunity cost of:
- removing the confusion you created, and
- replacing the confusion with clarity
Scarce resources misallocated
Zero Tolerance
Achievable Benchmarks
Scenario
80 frontline staff – sales & queries – $900 per week
Induction - 3 days p.a.; refresher 2 days p.a.
One supervisor – $1,000 per week – 20 staff
Staff turnover 15% p.a.
Sales and product / billing queries – 6 mins per call
Systems generate errors - staff manuals are confusing
New products every 3-4 months
• brochures/online help confuse staff and customers
• 20% of calls are repeats
• previous response(s) have mislead customers
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Assumptions
• Training effective?
• Repeated queries?
• Lost customers?
• Re-work?
$ cost
•?
Hidden or obvious?
Not there yet
“Every interaction we have with our customers will be simpler, better and faster”
Customers
 Consistent
and simple
customer
experience
People
 Simpler
processes and
training needs
“Simplicity - the ultimate sophistication”
Business
 Simplified,
streamlined
business
processes
Thank You
“Truth is ever to be found in simplicity, and not in the multiplicity and
confusion of things”. Isaac Newton
CLARITY RULES