In the world of Lean Six Sigma, the Define phase serves as the foundation for any successful process improvement project. Two critical concepts that often emerge during this phase are the Voice of Business (VOB) and the Voice of Customer (VOC). Understanding the distinction between these two perspectives, and more importantly, learning how to balance them effectively, can mean the difference between project success and failure.
What is the Voice of Customer?
The Voice of Customer represents the expressed and unexpressed needs, requirements, and expectations of your customers regarding your products or services. It encompasses everything your customers communicate about their experience with your organization, whether directly through feedback channels or indirectly through their behavior and choices. You might also enjoy reading about Define Phase in Healthcare: Applying Six Sigma to Patient Care Improvement Projects.
VOC goes beyond simple satisfaction surveys. It includes complaints, compliments, feature requests, usage patterns, and even the reasons why customers choose competitors. The primary goal of capturing VOC is to understand what truly matters to customers and translate those insights into actionable improvements. You might also enjoy reading about How to Conduct Customer Interviews for Six Sigma VOC Analysis: A Complete Guide.
Methods of Capturing Voice of Customer
Organizations employ various techniques to gather VOC data effectively. These methods include customer interviews, focus groups, surveys, social media monitoring, customer service interactions, and direct observation of product usage. Each method provides unique insights into customer needs and expectations.
For example, a regional hospital system seeking to improve patient satisfaction conducted structured interviews with 200 recent patients. They discovered that while medical care quality was assumed to be excellent, patients expressed significant frustration with appointment scheduling processes, wait times, and communication about test results. The data revealed that 68% of patients waited more than 30 minutes beyond their scheduled appointment time, and 45% reported confusion about how to access their lab results.
What is the Voice of Business?
The Voice of Business represents the strategic goals, financial objectives, operational constraints, and regulatory requirements of the organization. VOB reflects what the business needs to achieve to remain competitive, profitable, and sustainable in the marketplace. This includes factors such as cost reduction targets, revenue growth objectives, compliance requirements, market share goals, and operational efficiency metrics.
Unlike VOC, which focuses externally on customer needs, VOB looks internally at organizational capabilities, limitations, and strategic direction. It answers questions such as: What can we realistically achieve? What resources are available? What are our competitive advantages? What regulations must we comply with?
Components of Voice of Business
VOB typically includes financial metrics like return on investment, profit margins, and cost per unit. It encompasses operational metrics such as cycle time, defect rates, and capacity utilization. Strategic elements include market positioning, brand reputation, and long term growth objectives. Regulatory and compliance requirements also form a crucial part of VOB, particularly in heavily regulated industries like healthcare, finance, and manufacturing.
Consider a mid-sized software company that identified customer requests for extensive customization options in their product. While the VOC clearly indicated demand for this feature, the VOB revealed significant constraints. The development team had limited resources, the company needed to maintain a 40% profit margin to satisfy investors, and the product roadmap already included critical security updates required for regulatory compliance. The estimated cost of implementing full customization was $2.3 million, which would reduce profit margins by 12% and delay compliance updates by six months.
The Critical Balance Between VOB and VOC
The art of successful process improvement lies in finding the optimal balance between Voice of Customer and Voice of Business. Projects that focus exclusively on VOC may develop solutions that delight customers but bankrupt the company. Conversely, projects driven solely by VOB may achieve internal metrics while losing customers to more responsive competitors.
During the Define phase of a Lean Six Sigma project, practitioners must carefully analyze both voices to identify the “sweet spot” where customer needs align with business capabilities and objectives. This alignment ensures that improvement efforts create value for both customers and the organization.
Real World Example: Retail Chain Improvement Project
A national retail chain undertook a Lean Six Sigma project to improve customer experience while controlling costs. Their Define phase analysis revealed interesting tensions between VOB and VOC.
The Voice of Customer data, collected from 5,000 customer surveys and 1,200 direct interviews, indicated the following priorities:
- Shorter checkout wait times (mentioned by 78% of respondents)
- More knowledgeable staff assistance (mentioned by 64% of respondents)
- Better product availability (mentioned by 52% of respondents)
- Extended store hours (mentioned by 41% of respondents)
- Lower prices (mentioned by 89% of respondents)
The Voice of Business analysis revealed different priorities and constraints:
- Labor costs must decrease by 8% to meet quarterly targets
- Current checkout technology was recently upgraded at significant expense
- Inventory carrying costs needed reduction to improve cash flow
- Extended hours would increase overhead costs by 15%
- Profit margins were already compressed in a competitive market
The project team faced an apparent conflict. Customers wanted improvements that would require increased investment, while the business needed cost reduction. Through careful analysis, they identified a solution that addressed both voices.
By implementing a self-checkout system expansion and mobile payment options, they reduced average checkout time from 8.5 minutes to 3.2 minutes while actually reducing staffing costs by 6%. The freed-up staff members were redeployed to the sales floor, improving product knowledge assistance without increasing labor costs. Improved inventory management systems reduced stockouts by 34% while simultaneously decreasing carrying costs by 11%.
This solution addressed the top customer concerns while meeting business financial objectives, demonstrating the power of properly balancing VOB and VOC.
Practical Steps for Analyzing VOB and VOC in the Define Phase
When beginning a Lean Six Sigma project, follow these structured steps to capture and analyze both voices effectively.
Step 1: Establish Clear Data Collection Methods
For VOC, design multiple data collection channels to capture diverse customer perspectives. Quantitative surveys provide statistical significance, while qualitative interviews offer depth and context. Analyze existing data sources such as customer service logs, return patterns, and online reviews.
For VOB, engage stakeholders across departments including finance, operations, marketing, and executive leadership. Review strategic plans, financial reports, operational dashboards, and regulatory requirements to understand business constraints and objectives.
Step 2: Translate Raw Data into Actionable Requirements
Customer feedback often comes in unstructured formats. A customer might say “your website is frustrating,” which needs translation into specific, measurable requirements such as “reduce checkout process from seven steps to three steps” or “decrease page load time from 4.5 seconds to under 2 seconds.”
Similarly, translate business objectives into concrete metrics. “Improve profitability” becomes “increase profit margin from 18% to 22%” or “reduce operating costs by $500,000 annually.”
Step 3: Identify Conflicts and Synergies
Map VOC requirements against VOB constraints to identify areas of conflict and alignment. Some customer needs may align perfectly with business objectives, creating obvious priorities. Others may conflict, requiring creative solutions or trade-off decisions.
Step 4: Develop Integrated Solutions
The most successful Lean Six Sigma projects find innovative ways to satisfy both voices simultaneously. This requires thinking beyond obvious solutions and considering how process improvements, technology adoption, or business model changes might create win-win outcomes.
Common Pitfalls to Avoid
Many organizations make critical errors when balancing VOB and VOC. One common mistake is assuming you already know what customers want without rigorous data collection. Another is allowing internal politics to override genuine customer needs. Some organizations collect extensive VOC data but fail to consider business constraints, leading to unrealistic project scopes.
Perhaps the most dangerous pitfall is treating VOB and VOC as competing forces rather than complementary perspectives. Organizations that view these voices as adversarial often implement suboptimal solutions that fail to satisfy either constituency fully.
The Strategic Advantage of Proper VOB and VOC Integration
Organizations that excel at balancing Voice of Business and Voice of Customer gain significant competitive advantages. They develop customer-focused solutions that remain financially sustainable. They avoid costly mistakes by validating customer assumptions with data. They create internal alignment by demonstrating how customer satisfaction drives business results.
In the Define phase of Lean Six Sigma projects, this balance establishes the foundation for everything that follows. Clear understanding of both voices enables precise problem statements, appropriate scope definition, and measurable goals that matter to all stakeholders.
Conclusion
The Define phase of Lean Six Sigma requires careful attention to both Voice of Business and Voice of Customer. These perspectives provide complementary insights that, when properly balanced, lead to powerful process improvements. Successful practitioners recognize that these voices are not opposing forces but rather two essential components of a complete picture.
By systematically collecting, analyzing, and integrating VOB and VOC data, organizations can design improvement projects that deliver genuine customer value while advancing strategic business objectives. This balanced approach transforms process improvement from a series of isolated projects into a strategic capability that drives sustainable competitive advantage.
Understanding and applying these concepts effectively requires proper training and practical experience. The principles are straightforward, but their application in complex organizational environments demands both knowledge and skill.
Are you ready to master these critical Lean Six Sigma concepts and drive meaningful improvement in your organization? Enrol in Lean Six Sigma Training Today and gain the skills, tools, and certification you need to lead successful process improvement projects. Our comprehensive training programs provide hands-on experience with real-world scenarios, expert instruction, and globally recognized certification. Don’t just learn about VOB and VOC – learn how to apply these powerful concepts to create measurable results. Transform your career and your organization. Enrol in Lean Six Sigma Training Today.
