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SALES STRATEGY


Setting productivity goals: Healthtrax’s main objective was to reduce the people cost per new membership sold by 25 per cent


of the Lean journey and is used to help guide the entire process from start to finish. As you will see, our main goal at Healthtrax was to reduce our people cost per new membership by 25 per cent, from an average of US$160 to an average of US$120.


Mapping the future A team of employees deemed to be subject matter experts is then handpicked to conduct a VSM workshop, to begin the task of more closely analysing the problem as well as identifying the solution(s). The selection of this team is one of


the most critical steps in the entire process: each participant should be very committed to, and heavily engaged in, the process and highly motivated to achieve the desired results. The team should consist mostly of hands-on staff involved in all or most of the procedures to be reviewed, with varying degrees of experience, and should rarely include anyone from the executive management team, or anyone with much ownership over the existing standard work. The value stream mapping process


begins with the identification of the customer or the entity that will benefit most from the Lean transformation. This is not always an obvious choice. For example, if the goal is to improve membership sales productivity – as


50 was the case at Healthtrax – then the


HEALTHTRAX VSM CHARTER PROBLEM STATEMENT


Healthtrax is convinced that its membership sales productivity suffers from an overly complicated and expensive sales process and sales management system. This challenge to productivity also affects sales associate earnings, morale and retention.


IN-SCOPE


All 18 HF&W centres Marketing department Sales associate talent management Corporate overhead GOAL STATEMENT


Improve sales productivity, resulting in a 25 per cent reduction of ‘people cost per new’ – from 18-centre average of US$160 to US$120 per new membership.


Improve sales associate retention by 50 per cent in each centre for FYE 2012.


OUT-OF-SCOPE Work-Fit Personal coaching Programming


Read Health Club Management online at healthclubmanagement.co.uk/digital


‘customer’ is quite likely the membership sales associate. The entire Lean project will then focus on all the operating factors that can affect the productivity of the sales associate. The VSM team reviews each and


every activity required to complete the standard work carried out by the sales associate within the existing sales process. A Current State Value Stream Map is drawn up to analyse the quality and effectiveness of each step currently used, and identify specific areas for improvement. This is the discovery part of the process. Once the current state has been


mapped, the VSM team then begins to map the Future State – the way the business would ideally like the process to work. This is where the fun and creativity begins! If the right team has been selected, the Future State VSM results in a remarkably improved process with little clutter or waste.


Delivering the future Next, a Value Stream Plan is created which details each new process in the Future State VSM, and the goals and objectives of the Standard Operating Procedures (SOPs) which should deliver these processes. One Kaizen manager – Kaizen is


Japanese, meaning ‘change for the better’ September 2013 © Cybertrek 2013


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