Voice of the Business (VOB)

Understanding Voice of the Business (VOB) in Customer-Centric Management

In customer-centric management, it is crucial to balance both the Voice of the Customer (VOC) and the Voice of the Business (VOB). While the VOC represents the desires and expectations of the external customer, the VOB focuses on internal business needs, including financial objectives, operational constraints, and long-term strategic goals. Effectively integrating these two perspectives allows companies to deliver value to customers while maintaining business sustainability.

What is Voice of the Business (VOB)?

The Voice of the Business (VOB) is the internal perspective that reflects the goals, priorities, and challenges of the organization itself. This includes factors such as budget constraints, profitability targets, production capacity, cost control, and strategic initiatives. VOB helps companies ensure that internal processes, resources, and decisions align with the broader objectives of the business while still focusing on customer satisfaction.

Just as the Voice of the Customer (VOC) captures the customer’s needs and preferences, VOB captures the company’s operational realities and objectives. Understanding both sides is essential to striking a balance between delivering value to customers and achieving organizational goals.

Why is VOB Important?

Without understanding and addressing the Voice of the Business, companies risk overcommitting resources or taking on unsustainable strategies to please customers, which can result in financial strain or operational inefficiencies. Here’s why VOB matters:

1. Operational Feasibility: VOB helps determine whether customer demands can realistically be met within the current production, resource, and budget constraints.
2. Cost Management: It ensures that decisions made to satisfy customers don’t lead to excessive costs, ensuring long-term profitability.
3. Strategic Alignment: VOB ensures that customer-centric strategies align with the company’s overall long-term objectives, such as market positioning or innovation goals.
4. Risk Mitigation: By considering the business’s internal needs and limitations, companies can avoid taking on risks that could harm their financial health or operational stability.

Balancing VOB and VOC

A successful business cannot solely focus on satisfying customer needs at any cost; there has to be a balance between what the customer wants and what the business can provide. Aligning these two perspectives requires clear communication and understanding between different stakeholders within the company. Here’s how to balance VOB and VOC effectively:

• Evaluate Cost vs. Benefit: When deciding whether to meet a customer demand, evaluate the potential revenue or customer satisfaction benefit against the additional costs the business would incur. For example, accelerating production might please a customer but could increase operational costs. Can the customer absorb these costs, or would the business be willing to take on the expense?
• Engage in Transparent Communication: Businesses should communicate openly with customers about the challenges of meeting specific demands and work together to find solutions that satisfy both parties. Discussing trade-offs, such as higher costs for faster delivery or reduced features for lower pricing, helps align expectations.
• Prioritize Projects Based on VOB and VOC: Businesses need to prioritize projects that deliver both customer satisfaction and align with the organization’s strategic goals. By doing so, they avoid investing in initiatives that may please customers but strain resources.

Embracing Gemba and Genchi Genbutsu

To effectively balance VOB and VOC, businesses must gather real-time, accurate insights from both perspectives. This is where the Lean principles of Gemba and Genchi Genbutsu come into play. These concepts emphasize firsthand observation and a deep understanding of both customer needs and operational realities.

Gemba: Going to the Place of Work

Gemba refers to “the real place” where work happens, whether it’s on the shop floor, in a customer service department, or at any critical point of production or service delivery. Leaders who visit Gemba see firsthand how processes unfold and where potential disconnects between customer expectations and business operations may occur.

• Benefits of Gemba: Leaders and managers gain a clearer understanding of the challenges workers face in delivering customer value. By directly observing how work is done, management can make more informed decisions that take both VOB and VOC into account.

Genchi Genbutsu: Go and See for Yourself

Genchi Genbutsu translates to “go and see for yourself.” This principle encourages decision-makers to gather information by observing work processes and interacting with employees and customers in real time.

• Benefits of Genchi Genbutsu: By personally engaging with both internal teams and customers, management gains invaluable insights into both the internal processes and external customer needs. This firsthand information is essential for making informed, balanced decisions.

Benefits of Balancing VOB and VOC

Striking the right balance between the Voice of the Business and the Voice of the Customer can have transformative effects on a business, including:

• Increased Customer Satisfaction: Customers appreciate it when businesses can meet their needs effectively. By balancing VOC and VOB, companies ensure that customer demands are met without compromising on quality or service delivery.
• Operational Efficiency: Understanding the business’s internal limitations helps avoid overextension of resources and ensures that operations run smoothly without bottlenecks or unnecessary costs.
• Sustainable Growth: By aligning customer needs with business capabilities, companies can focus on sustainable growth strategies that enhance long-term profitability without sacrificing customer satisfaction.
• Employee Engagement: Involving employees in the process of balancing VOB and VOC, particularly through Gemba and Genchi Genbutsu, fosters a culture of continuous improvement and accountability. Employees who see their input valued are more engaged and motivated to perform.

Final Thoughts

In customer-centric management, Voice of the Business (VOB) is as crucial as the Voice of the Customer (VOC). Companies must learn to listen to both internal needs and external demands to create an environment where operational realities and customer satisfaction align seamlessly. By applying Lean principles like Gemba and Genchi Genbutsu, businesses can gather firsthand information that helps them bridge the gap between internal processes and customer expectations.

Ultimately, balancing VOB and VOC creates a more responsive, efficient, and sustainable organization—one that can serve customers well while maintaining operational health and profitability.