Aligning the process with the people.

IF THE CLIENT/SERVER PROCESS IS NOT ALIGNED WITH THE PEOPLE, THE PEOPLE WILL THWART THE PROCESS.

Economic and technological forces have come together to make a growing number of existing information technology structures unworkable. The economic issue of global competition is forcing companies to become more flexible and client-oriented, while demanding that they simultaneously lower costs. Technologically, the emergence of the PC and other desktop devices can help them meet these challenges by fostering communications, lowering costs, and promoting quality.

The convergence of these forces has created a unique event in the evolution of work and the tools people use to shape their world. Client/server computing uniquely empowers end users. Never before has a tool been so capable of closely modeling the way people work. Instead of requiring people to accommodate the tool, client/server computing allows people to work the way they want to. Only now, they can do it more easily, leveraging the inherent intelligence, initiative, and energy of human beings.

But there's a catch. Before client/server can empower the end user, the end user must be involved. This is a radical shift from the traditional way applications are developed. No longer can engineers design tools in isolation from the people they are intended to serve. Precisely because client/server so perfectly mirrors the way end users work, end users must be involved in defining the system, prototyping it, and testing it.

With the improved desktop tools, users at all levels now take on the attributes of true knowledge workers instead of simply data-entry clerks. Putting the necessary graphics and processing power into the hands of such workers can do wonders for a business, enabling users to leverage the company's information assets to be more competitive.

Users have become more sophisticated in their demand for colorful, easy-to-use interfaces. Never again will users accept unforgiving systems that require arcane commands that must be typed and thick manuals that must be studied. They want a successful out-of-box-experience. They don't care about the underlying technology, but if they did, they would specify client/server as the enabling technology.

As organizations evolve away from a centralized computing environment, a new way of thinking about systems is required. A client/server architecture consists of a client process and a server process that are distinct, yet typically operate seamlessly on separate computer platforms. In a client/server environment, the lines between traditional mainframe, midrange, and workstation capabilities are often irrelevant. Programmers no longer can take a holistic approach to developing applications, but rather must split functionality between the client and server, consciously thinking of each one's role.

PEOPLE HAVE TO WIN OR THE SYSTEM WILL LOSE

If the process is not aligned with the people, the people will thwart the process. This truth is illustrated by the experience of a large soft drink bottling company that thought it identified an opportunity to save money by using a laptop-based client/server system. Company auditors noticed that company truck drivers sat idle as their trucks were being loaded and manifests prepared. Auditors also saw that the delivery records manually maintained by warehouse people often took three or four days to get to headquarters where they would be keyed into the computer. What if the idle drivers, equipped with laptops, could complete the delivery records while their trucks were loaded?

The theory was sound, promising relief in two areas: decreasing the time needed to load trucks and reducing errors in bills of lading. So the company equipped the truck drivers with laptop computers. While the trucks were being loaded, the drivers could enter the data and instantly update the central computer by electronic messaging. The system seemed perfect: a sequential process replaced by a parallel process, one-time entry of shipping records, electronic data interchange, time compression. The company calculated it would save three hours per driver per shift, because trucks could be turned around faster.

The system was installed, and while information flow and accuracy improved as estimated, the projected time savings simply did not materialize. The soft drink trucks took as much time as before to turn around. Perplexed, the company retained Atre Associates, a Port Chester, NY-based consultant, to investigate the situation and recommend modifications. Was the laptop the problem or was it communications software?

The consultant observed the truck drivers for a day, made one call to human resources, and explained the situation. There was nothing wrong with the technology. It was simply that the truck drivers were paid by the hour. As hourly employees, they had a powerful disincentive to use the system, because for every hour they finished early, they received an hour's less wages. The consultant suggested a way to share the savings with the drivers, in other words, aligning the people with the process. Immediately, the company saw the productivity benefits it originally had anticipated.

Successful applications of client/server have two things in common: aligning the automation with the way people actually work and promoting dedication to customer service. Let's look at client/server in action at a few world-class companies.

FEDEX: CUSTOMER SERVICE WITHOUT LIMITS

Federal Express in Memphis, TN, has deployed client/server technology to enable over 70,000 small shippers to choose the time and manner of accessing FedEX services. Installed at no cost to customers shipping as few as three packages per day, these automated shipping systems redefine the way FedEx provides services. Powership is a client/server extension of FedEx's global information system. Customers use it to reduce shipping paperwork, streamline billing, and track shipments in real time. "The best service occurs when customers can do business with FedEx as they see fit, when they see fit, and how they see fit," says Frederick W. Smith, president and CEO.

Powership, an information technology system based on client/server, is a good example of how information technology is erasing the seams between companies and their customers and suppliers. "We don't believe there should be edges between the customer and the company," Smith says. "We are working like crazy to create a seamless interface between our customers, suppliers, and Federal Express. The more we can remove the edges from these processes, the more successful we will be."

No one at FedEx pretends client/server computing will save money. In fact, that's a futile argument, says FedEx CIO Dennis H. Jones. The power of client/server lies not in its promise to reduce costs, but in its ability to deliver services that are available in no other way. "The benefits client/server can bring to the business are huge and enormous in scope," Jones says. The technology, he adds, has demonstrably contributed to all three of the company's strategic business objectives: reducing unit costs, expanding markets, and improving total customer satisfaction.

Reduced unit costs? In 1994, the company's domestic average cost per package declined 1.5 percent. Some of this reduction can be traced to more efficient transportation systems. But client/server technology makes realistic the company's goal of reducing its average per-package cost by one-third by the end of the decade. Powership contributes by shifting from FedEx to the customer many services FedEx used to underwrite. But in the same way that many customers prefer the convenience of using ATMs to human tellers, FedEx customers appreciate the complete freedom they now have in dealing with FedEx.

Applications such as Powership long have been shown to expand market share by making it easier to deal with a company. Today, it's simpler than ever to print a FedEx label, schedule a pickup, track a package, and capture billing. Thus, because it's so easy, companies that used to ship three packages a day soon end up shipping six; a 100 percent increase in shipping volume is not uncommon after Powership is installed. Moreover, client/server technology makes it possible for FedEx customers to install the system themselves and use it immediately without training. To underscore this point, you just have to look at the support requirements for the previous version of Powership, which does not exploit client/server technology. A FedEx technician must install this earlier version of the automated shipping system, and a FedEx trainer must provide on-site training before it can be used.

During the 1993 holiday season, almost 30 percent more packages were pumped through the FedEx pipeline than the year before. The packages went through without a major hiccup, but for the first time, almost more importantly, FedEx kept up with the administrative accounting process. This is a major accomplishment that FedEx attributes to having two-thirds of its customer interactions online through its Powership network. "Not too long ago, it could take us several months [after high holiday season volumes] to be able to bill completely for the business we actually generated," Jones says. "This time, after record volumes, we were current a week after the holiday season, and, more important, our customers were current. This was an enormous business advantage to both ourselves and our customers." The ability to stay current is a critical aspect of total customer satisfaction, because most transactions cannot be closed until FedEx - as an intermediary between shippers and receivers - closes them.

CLUBCORP. INTERNATIONAL: MANAGING RELATIONSHIPS

The maitre d' at your private dining club anticipated your every preference. He knew exactly what table you desired. He knew that when you took your secretary for lunch on her birthday, the table setting should include a white rose and a box of raspberry truffles. Now he has been transferred. Will you and the new maitre d' have to start from scratch?

Not if you're a member of a club managed by ClubCorp. International, a $1.2 billion manager of 250 private country clubs, dining clubs, and public resorts around the globe. ClubCorp. recognizes that staff turnover threatens the delivery of the personalized attention members expect. ClubCorp.'s response? A pilot client/server-based customer service system, called the Club Management System, captures information about members and their preferences and makes it easily available to other service providers.

Private dining clubs face competition from hotels, banquet facilities, and tony restaurants. ClubCorp.'s client/server system creates opportunities to make its 225,000 members feel special. "The main reason people join private clubs is for personal service and individual recognition," says Dan Barth, ClubCorp.'s CIO. The system allows ClubCorp. to be more sensitive to members during the moments of truth - the encounters between members and reservations staff, maitres d', chefs, and service staff. "The system leverages these opportunities to provide more personalized services," Barth says.

Like most service industries, private clubs face a high level of turnover among front-line employees, who have the highest impact on the perception of service. This imposes two challenges. First, the system must be easy to understand and learn. Second, the system must institutionalize the knowledge in the heads of employees and make it available to new workers to lessen the impact of turnover.

ClubCorp.'s client/server system meets both these challenges. In appearance, the initial Club Management System screen looks like typical reservations sheets. The metaphor for the system is a three-ring binder. Using a mouse, receptionists, food and beverage managers, and service staff click on one of 11 divider tabs to call up the screen they want. New receptionists routinely learn to use the system in less than 30 minutes.

Technology is no substitute for personal attention, but the system encourages service providers to be even more attentive. For example, a receptionist can quickly call up the reservations sheet for the evening. If the receptionist doesn't immediately recognize the name on a reservation, a click of the mouse brings up details about the member, including a digital photo, so he or she can be called by name on arrival. This is particularly important when members visit out-of-town associate clubs.

Client/server technology allowed the system to be rolled out quickly and less expensively than traditional approaches. At the initial test site, the Tower Club in Fort Lauderdale, FL, the Club Management System was deployed in less than 15 weeks at a total software development cost of $168,000. The development cycle would have lasted at least a year and cost many times that amount had ClubCorp. not adopted a client/server infrastructure combined with reuse of software components, according to Barth. Best of all, increased service and revenues already are paying for the cost of the system.

SEARS, ROEBUCK & CO.: PROMPTING RESPONSIVENESS

Retailing is war. Victory belongs to the retailer that is first to glean intelligence out of data and make the necessary changes. Until recently, responsiveness has not been a term people automatically associated with Sears, Roebuck & Co. in Chicago, but thanks to new leadership and new systems, Sears is fighting the good fight. In 1994, Sears Merchandise Group posted net income of $752 million on sales of $26.2 billion, compared with a loss of $2.98 billion in 1993.

The chief architect of this turn-around is Arthur C. Martinez, presently chief executive of Sears Merchandise Group and soon to be named CEO of Sears, Roebuck & Co. Since coming on board in 1992, Martinez has closed 113 stores; abandoned the money-losing catalog business; and rebuilt Sears' battered image with more attractive stores, improved customer service, and better information technology. Altogether, the changes deliver the responsiveness required to combat competitors such as systems-savvy Wal-Mart.

Client/server technology plays an important role in Sears' strategy. "In the past two years, Sears has deployed a number of client/server systems ranging from merchandise and vendor performance systems to marketing and new credit account processing," Martinez notes. For example, when a customer purchases an appliance for home delivery, Sears associates now can schedule that delivery right from the register. Client/server technology makes the goal of same-day delivery possible.

Or take another example. Using the client/server-based Rapid Credit system, Sears associates can authorize credit for new Customers from the register, usually within 12 seconds. In that time, the system takes basic customer information, communicates with all the credit bureaus, scores the application, and determines the credit limit. Such capabilities could not have been developed using a traditional approach. Even if they could, the sales associates could not use systems based on these capabilities without considerable training.

But ease of use is just one of the benefits Sears is squeezing from its investments in client/server computing. "Client/server provides us with an opportunity to review how our business is conducted and, therefore, to develop Systems that streamline our processes and leverage investments through packaged software," Martinez says. "My using these systems tells me they require less training and provide our associates with easier access to information."