Business Research,

Abt Associates Business Research, and Consulting Soultions Abt Associates Inc. Solving problems, guiding decisions – worldwide Abt Associates applies rigorous research and consulting techniques and technical assistance expertise to a wide range of issues in social and economic policy, international health and economic development, business research and consulting, and clinical trials and registries. Clients include U.S. federal, state, and local governments; foreign governments; international organizations; foundations; nonprofit associations and institutions; and business and industry. Founded in 1965, Abt Associates has seven corporate offices in the United States and more than 40 project offices in 25 foreign countries. Project Office Locations Albania Armenia Bolivia Democratic Republic of Congo Dominican Republic Egypt El Salvador Ethiopia Ghana Guatemala Honduras Iraq Jordan Kazakhstan Kyrgyzstan Mali Panama Peru Rwanda Senegal South Africa Tajikistan Turkmenistan Uzbekistan Zambia Corporate Offices Cambridge, MA 55 Wheeler Street Cambridge, MA 02138-1168 617.492.7100 Bethesda, MD Hampden Square Building 4800 Montgomery Lane Suite 600 Bethesda, MD 20814-3460 301.913.0500 Washington, DC 1110 Vermont Avenue, NW Suite 610 Washington, DC 20005-3544 202.263.1800 Chicago, IL 640 North LaSalle Street Suite 400 Chicago, IL 60610-3781 312.867.4000 Hadley, MA Mass Venture Center 100 Venture Way Suite 100 Hadley, MA 01035-9462 413.586.8635 Lexington, MA 181 Spring Street Lexington, MA 02421-8030 781.372.6500 Old Greenwich, CT 1445 East Putnam Avenue Old Greenwich, CT 06870-1379 203.637.9995 www.abtassociates.com Solving problems, guiding decisions – worldwide Abt Associates Inc. Experience. Creativity. Vision. Commitment. Sound information and careful analysis underlie intelligent, strategic decisions. At Abt Associates, we apply rigorous research and consulting techniques and technical assistance expertise to a wide range of issues in social and economic policy, international health and economic development, business research and consulting, and clinical trials and registries. Our capabilities include cost-benefit analysis, economic analysis, evaluation, information technology, market research, new product development, performance measurement, policy analysis, program monitoring, statistical analysis, survey research, technical assistance, and training. One of the largest for-profit government and business research and consulting firms in the world, Abt Associates delivers practical, measurable, high-value-added solutions. Our clients include U.S. federal, state, and local governments; foreign governments; international organizations; foundations; nonprofit associations and institutions; and business and industry. Abt Associates was founded in 1965 by Clark Abt. A truly global company, Abt Associates has seven corporate offices in the United States and more than 40 project offices in 25 foreign countries. For the fiscal year that ended March 28, 2003, our gross revenue was approximately $184 million. A client-focused, mission-driven, employee-owned company, Abt Associates is committed to hiring and retaining a diverse staff, providing an intellectually challenging work environment, and addressing client problems insightfully. The 1,000-plus employees of Abt Associates are responsible, proactive citizens of their local, national, and international communities. www.abtassociates.com 2 Creating Competitive Advantage New technologies give businesses the potential to capture massive amounts of raw data about their customers and every customer interaction with an organization. Although companies invest billions of dollars to collect this information, they frequently lack the critical ability to use it for competitive advantage. Abt Associates works with business clients to bridge the gap between unrefined data and strategic programs by helping clients understand what drives customer behavior. With knowledge extracted from company resources and surveys, we analyze and evaluate the impact of customer behavior on critical financial measures such as revenue, profitability, brand equity, and market share. With expertise in customer behavior analysis, we devise successful customer retention, acquisition, and penetration strategies. Simply put, we help enterprises translate information about customer behavior and needs into programs that improve the bottom line and the quality of goods and services provided to their customers. Translating data into results. Abt Associates identifies opportunities for competitive advantage by combining research methodologies with industry and consulting expertise. We quantify customer commitment and customer satisfaction to determine what customers value. Our consultants design detailed roadmaps for aligning customers and organizational capabilities in the financial services, technology, insurance, consumer goods, pharmaceutical, and healthcare industries. Understanding buyer behavior. A critical factor in market positioning for any product or service is creating an understanding of buyer behavior. Abt Associates helped a leading technology provider understand how potential customers were making purchasing decisions for E-business software. We analyzed how distribution channels affected customer decision-making, as well as the impact of third-party influencers, such as analysts and consultants. By identifying the elements of the purchasing decision process, we helped the client develop a plan for positioning the product advantageously with end users and channel partners. Analyzing channel effectiveness. A major financial institution that sought to encourage customers to use its on-line channel asked Abt Associates to evaluate the effectiveness of the channel and identify barriers to increased usage. We conducted more than 10,000 on-line interviews to quantify customers’ experience and target areas for improvement. Our research revealed that the company should focus on channel integration, rather than channel migration, as a strategy to retain and expand customer relationships. Abt Associates consultants identified and prioritized specific improvements and developed a tracking program to monitor their effectiveness. Competing for position. The highly competitive banking industry demands that institutions differentiate themselves in a crowded marketplace. Abt Associates worked with a large bank to improve its market position in a major product area by analyzing the impact of service quality issues and product features on product usage. Our consultants also helped the client capitalize on their customer relationships to cross-sell and up-sell, with direct positive impact on revenues and profits. Analyzing data to understand customer behavior is a complex task. The still greater challenge is making the connection between customer behavior and revenue consequences. At Abt Associates, we apply a unique combination of research and analytical skills, along with an understanding of core business issues, to deliver customer management solutions that create competitive advantage. Author susan r. windham-bannister, ph.d., Business Research and Consulting Area 3 Abt Associates www.abtassociates.com 4 Driving Performance Management Public and private enterprises around the world seek systematic, fact-based methods of improving performance in order to advance their missions. Whether an organization’s goal is to improve quality of life, enhance service delivery, or maximize revenue, Abt Associates helps clients clarify their objectives and achieve their goals through performance improvements. Putting Feedback to Work Abt Associates consultants help organizations build the capacity to incorporate feedback, a critical tool for driving better performance. We guide clients through a multi-step process that has proven successful in a wide range of enterprises with diverse goals. Improving standards. Public agencies often seek to match organizational goals and clients’ needs. Abt Associates is working with the U.S. Office of Juvenile Justice and Delinquency Prevention and the Council of Juvenile Corrections Administrators to improve safety and conditions of confinement in juvenile training schools and detention centers. The project uses a secure Web site to collect data, issue performance reports, and provide technical assistance to improve performance. During the past year, more than 100 facilities in 23 states have participated; the project will expand to more than 300 facilities by 2004. Changing focus. Performance improvement is a core strategy for seasoned companies responding to change in the marketplace. Abt Associates worked with a global medical technology firm to shift its focus from product to customer, in order to counter lower demand and price pressures. To make the transition, we helped the client understand customers’ needs and then created a customer metrics platform that the entire staff could apply to its activities to increase customer value and loyalty. We helped the client identify investment priorities to advance performance goals, developed an action plan, and devised a tracking program to monitor its effectiveness. Advancing quality. Abt Associates worked with a super-regional bank to improve its services by designing and implementing a comprehensive customer-satisfaction program. We helped the client determine the components of high-quality branch service from the customer perspective and evaluate the impact of customer satisfaction on revenue-related activities such as account closings, cross sales, and average balances. Feedback programs were designed to keep branch managers aware of customer satisfaction levels. Customer service scores became part of the bank’s incentive compensation plan. In the third year of the program, we worked to extend the quality improvement system to include better ATM, phone, and on-line services. Investing in the Process Creating a useful performance-feedback loop is a logical endeavor, but not a self-evident one. It requires careful analysis, planning, and implementation. Abt Associates collaborates with clients at all phases of the process to: Identify desired outcomes. Outcomes may be imposed externally — by a legislature or shareholders — or they may be driven internally. Outcomes may be profit-driven or service-driven. Define performance measures. Standardized units of performance are defined in order to make comparisons across different parts of the organization, against competitors, or over time. Obtain data. We help determine the best ways to obtain the data needed to compute all the measurable variables that contribute to performance. Analyze data and report findings. End-user systems are created to query the data and to generate custom reports. Plan and implement changes. We identify the points where performance breaks down, then develop and implement improvement plans. Reassess performance. Performance monitoring becomes a routine management tool embedded in management information systems, performance reports, and as an element of recruitment, training, and performance rewards. Abt Associates’ approach to performance management guides clients through the steps of identifying objectives, mapping and implementing strategies, troubleshooting, and continually monitoring progress in order to attain well-defined goals central to their missions. Authors susanna ginsburg, Health Services Research and Evaluation Area jean layzer, Education and Family Support Area dale g. parent, Law and Public Policy Area susan r. windham-bannister, ph.d., Business Research and Consulting Area www.abtassociates.com 5 Abt Associates 6