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What Are We Doing and What Should We Be Doing

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					                        MINISTRY OF THE PREMIER AND CABINET




 SERVICE DELIVERY
 What Are We Doing and
What Should We Be Doing?

 Case Study 3
 Work Area 3
      Frontline
      Managers
      Executive
 Guide to Work Area 3
 Articles
Customer Service Tool Kit                                                     Pdf – April 99

CASE STUDY 3
WHAT ARE WE DOING AND WHAT SHOULD WE BE DOING?

A staff meeting has been arranged to discuss the recently gathered customer feedback. Nat is
providing background information. Alex has been involved in analysing the information and has
made some conclusions that are being shared with staff. Nat opens the meeting:-

“Hi everyone - As I mentioned in the memo, I’ve asked you to this meeting today as a result of the work
we’ve all been doing on identifying how our customers perceive and value our services.”

“To help us establish what was important we held a series of focus groups with the different customer
groups. This was enlightening.”

“Basically, we asked them what were the critical things we needed to do to satisfy them. It wasn’t as
hard as we anticipated - which was a pleasant surprise. We wanted to know if what we were offering,
and how we were delivering our service, was what they wanted.”

Nat recapped the progress to date. “So far we’ve identified a number of distinct groups of customers.
It appears some groups want to access our services quite differently to others but do expect a similar
quality of service and product. They also require a range of service outcomes.”

Nat explained how Alex had used the feedback from both the customers and the staff and noted there
were some significant differences between staff and customers expectations. These Nat said
represented opportunities for improvement, adding: “There are a several areas where the customers
think we are doing really well - so it wasn’t all negative - in fact, overall, it was quite positive.”

“What we need to remember here, is this exercise and the improvements we are talking about cannot be
done in isolation - there is the need to look at the funding and budgeting issues. Since reviewing this
customer feedback we are better able to understand, and clearly articulate our “reason for being”. This
has worked in well with the Outcome Based Management approach that requires us to establish our
outcomes in relation to the community and Government expectations.”

“In addition, the feedback has clearly indicated to us the outputs which are expected by the community
(our services provided). All in all, this will make the work of reporting on these areas much easier and
we will be able to clearly justify our funding requirements.”

“What we need to do now is conduct an audit of our services and find out how closely what we are
doing matches what our customers need and value. Of course the big ask here, as we are all so close to
it, is to objectively look at what we do and determine if we offer the best service possible.”

Nat asked Alex to speak to the meeting.

“Thanks Nat! I just want to step back in time a bit and explain how we surveyed our customers in the
past.” Alex went through some of the past customer satisfaction surveys explaining that these types of
surveys measured the past but did not help them anticipate what customers actually wanted - only
measuring what they had been supplied. Nat opened up a discussion on the area of customer
perceptions and expectations and the group concluded that perhaps the rate of improvements had not
been consistent with the rate at which their customers’ expectations had risen.

With the results of the focus groups now available Alex ran through them. It was pointed out that the
customer’s priority was receiving reliable information they could act upon. “We work closely here with
the private sector, but we are not in competition with them. Correct and timely information is the
priority of our customers. In a lot of cases, they want their information urgently - especially if the
legislation is undergoing change.”
Alex pointed out that customers had offered several alternative solutions, including the use of

Service Delivery
Customer Service Tool Kit                                                  Pdf – April 99
technology for the delivery of timely information. “What they wanted was for us to anticipate their
needs before they do - a tough call but not impossible.” The group joked about their role and agreed
they were closer to the Government changes and therefore, might be expected to better anticipate the
effect of these on their customers needs.

Nat continued “Educating our customers about what to expect might alleviate the problem of customers
perceiving we don’t return their calls or get back to them in time. Perhaps we might have to look at
sharing resources to manage the demand - it’s rare when all the areas are busy at the same time.”

Alex noted that one customer was very forthright, saying not only were our reports difficult to read but
often used “boffin” language. Unfortunately for us most of those in the focus group agreed: “I guess
that stems from the fact we are a technical area but, we can do something about that. One focus group
mentioned that there seemed to be a trade-off with the quality of information relative to the time it was
needed. This made some of them question the reliability of the information.”

“Some of this,” Alex pointed out, “was overcome by the staff’s willingness to help and explain the
information. They said this engendered a certain amount of trust. When they spoke to the staff, they
felt reassured. In that area we have always come up well.”

Summing up the discussion Nat commented “The challenge for us in the upcoming months is to take
the perception and value information from the focus groups, review how the services we currently offer
match up and determine if we are in the best position to meet Government and community
requirements. That will encourage us to form specific service encounters relevant to customers needs
and expectations, where possible.”




Service Delivery
Customer Service Tool Kit                                                      Pdf – April 99
WORK AREA 3
SERVICE DELIVERY PROFILE

Outcome        Current services assessed against identified customer needs
Output :       Service Delivery Profile

  Summary Matrix

                          Individual                    Group                      Workshop
  Involves:                20 mins                     40 mins                     150 mins


  Frontline        Read Customer Service        What do your regular      Suggest improvements to
                   Charter. Think about         service users need that   the Customer Service
                   whether the services         they are not getting?     Charter. Suggest how
                   seem to match identified                               access to services could be
                   customers and their                                    improved. Suggest services
                   needs. Note gaps.                                      improvement required to
                                                                          close gaps.


  Managers         Consider the Customer        Consider gaps between     Facilitate Frontline 3
                   Service Charter in view      identified customer       Workshop with Frontline
                   of government guidelines     needs and current         officers and Mid Managers.
                   and the strategic plan.      service delivery across   Draw this together as a
                                                customer segments.        Service Delivery Profile.


  Executive        Consider services            Consider Government       Presentation to Executive
                   currently delivered to the   priorities and desired    matching Customer Profile,
                   community, business          outcomes for service      identified needs of customer
                   and government.              delivery across your      groups and of services
                   Identify the role of your    Minister's portfolio      currently provided (Service
                   services across service      and agencies with         Delivery Profile) with
                   sets and your Minister's     similar customers.        recommended service
                   portfolio.                                             improvements.




Service Delivery
Customer Service Tool Kit                                            Pdf – April 99
GUIDE TO WORK AREA 3
Frontline
Frontline 1
Time                  :     20 minutes
Input                 :     Case Study Reading, Work Area 1 & 2 Customer Profile and
                            Customer Needs Analysis, Customer Service Charter
Task                  :
                            a) Read your Customer Service Charter
                            b) Identify the services your area offers to its customers
                            c) Reflect upon your identified customers and their needs
                            d) Note the gaps between the services offered and the
                               customers’ needs.
                            e) Note the fit between the Customer Service Charter and the
                               customers’ needs.

Output                :     A list of the gaps you have noted between services offered in
                            your area and identified customer needs

Frontline 2
Time                  :     40 minutes
Input                 :     Work Area 2 Customer Needs Analysis
                            Work Area 3 Frontline 1
Task                  :
                             a) Review the identified regular users of your service and their
                                needs
                             b) In groups write down the services your regular service users
                                need
                             c) Note gaps between users’ needs and services provided
                             d) Review the gaps you have noted with other groups
                             e) Note the gaps identified in Frontline 1 and add them to the
                                gaps noted with regular users

Output                :     A comprehensive list of the service gaps in your area

Frontline 3
Time                   :    150 minutes
Input                  :    Frontline 1 & 2
Task                  :
                            a) Review Gaps noted in Frontline 2
                            b) Make suggestions on how services could be improved to
                               close the gaps
                            c) Suggest improvements for customer access to services you
                               provide
                            d) Review the level of service provided with that outlined in the
                               Customer Service Charter
                            e) Consider possible improvements

Output                :     A comprehensive list of the gaps in the provision of your
                            services with suggested improvements to access, delivery and if
                            necessary Customer Service Charter. For Managers 1-3.
Managers
Service Delivery
Customer Service Tool Kit                                             Pdf – April 99

Managers 1
Time                  :     20 minutes .
Input                 :     Case Study Three Reading
Task                  :     Customer Service Charter, Customer Profile
                            Consider the Customer Service Charter in view of government
                            guidelines and the strategic plan
                            Does your Customer Service Charter fit in well with why you
                            think that your agency exists.
                            Consider improvements that could be made to the Charter.

Output                :     Suggested improvements to the Customer Service Charter

Managers 2
Time                  :     40 minutes
Input                 :     Managers 1
                            Work Area 2 Customer Needs Analysis
Task                  :
                            With your customer groups and their needs clearly identified,
                            note the gaps that exist between these and the services your area
                            of the agency currently delivers
                            Prioritise suggested improvements

Output                :     Prioritised suggestions for resolving identified service gaps


Managers 3
Time                  :     150 minutes
Input                 :     Frontline 1,2 & 3, Managers 1 & 2

Task                  :     Facilitate Frontline 3 Workshop with frontline officers and mid
                            managers. Draw together all the information on the services you
                            deliver and noted gaps in service delivery
                            Link this information to the Customer Profile and Customer
                            Needs Analysis to develop a Service Delivery Profile

Output                :     Service Delivery Profile for presentation to the Executive
                            Action Plan for implementing improvements.




Service Delivery
Customer Service Tool Kit                                           Pdf – April 99
Executive

Executive 1
Time                  :     20 minutes
Input                 :     Case Study Three Reading
                            Customer Service Charter, strategic plan or budget statements,
                            Ministerial statements about government and portfolio direction,
                            Customer Profile, Customer Needs Analysis
                      :
Task                        Consider the services delivered to the community, business and
                            government that are related to the services delivered by your
                            agency
                            Are there similar groups of customers involved
                            Identify the role of your Agency’s services across these
                            customer groups and whether improved links with the related
                            services can help you meet the identified needs of your
                            customers

Output                :     Summary of general relationships that exist between identified
                            services, Minister’s portfolio and agency customers

Executive 2
Time                  :     40 minutes
Input                 :     Executive 1
                            Customer Needs Analysis
Task                  :
                            Consider Government priorities and desired government
                            outcomes for service delivery across your Minister’s Portfolio
                            and other Government agencies with similar customers
                            Ensure agency staff are aware of the expected outcomes for
                            service delivery and identified customer needs about related
                            services.

Output                :     Information to agency officers, managers and executive about
                            the impact on agency customers of links with related service
                            providers

Executive 3
Time                  :     150 minutes
Input                 :     Executive 1 & 2, Managers 1,2 & 3
Task                  :
                            Consider
                            a) Presentation by Managers on Customer Profile, Customer
                               Needs Analysis, services currently provided and the gaps that
                               exist.
                            b) Suggestions on improvements for closing gaps.
                            c) Action plan for implementation of improvements

Output                :     Agreed Service Delivery Profile
                            Agreed Action Plan for closing gaps between service delivery
                            and customer needs analysis.
SERVICE DELIVERY                                                         ARTICLES
Service Delivery
Customer Service Tool Kit                                                    Pdf – April 99

Title :        Behind the Scenes
Author :       Gubernick, Lisa
Source :       Forbes [FBR] ISSN: 0015-6914
Abstract:      Panavision cameras film 90% of all Hollywood movies. The company gets the
               Hollywood business because its president, John Farrand, and chairman, William Scott,
               understand that to win Hollywood customers Panavision must provide outstanding
               customer service. Considering that a typical Hollywood action film uses 8 to 10
               cameras and 30 to 40 lenses, and often other camera accessories, for a cost around
               $600,000, the extra service pays off well. Panavision discounts its prices to younger
               filmmakers, in order to win their business when they are making blockbusters. In
               November 1996, Warburg Pincus launched a $69 million public offering for 20% of
               the company, which allowed Panavision to pay down debt and cut interest expenses in
               half, to $3.9 million. It is expected that Panavision's earnings will jump to $18 million
               in 1997 - 94 cents a share - from $13 million in 1996, on a 12% increase in sales to
               $141 million.

Title :        Business Wins, Organization Kills
Author :       Davis, Stan
Source :       Forbes [FBR] ISSN: 0015-6914
               Iss: ASAP Supplement Date: Apr 7, 1997 p: 48-50
Abstract:      Too many managers confuse their business with their organization. The company that
               a manager works for is both a business and an organization, but the 2 are not the same
               thing. A business is what managers do, an organization is how they do it. In the end,
               technology should be used by managers to learn about their customers.

Title :        The Coming Battle for Customer Information
Author :       Hagel, John III; Rayport, Jeffrey F
Source :       Harvard Business Review [HBR] ISSN: 0017-8012
               Vol: 75 Iss: 1 Date: Jan/Feb 1997 p: 53-65
Abstract:      Consumers are realizing that they get very little in exchange for the information they
               divulge so freely through their commercial transactions and survey responses. Now
               new technologies such as smart cards, Web browsers, and personal financial
               management software are allowing consumers to view comprehensive profiles of their
               commercial activities - and to choose whether or not to release that information to
               companies. It is argued that consumers are going to take ownership of information
               about themselves and start demanding value in exchange. To facilitate this, consumers
               will use infomediaries who will broker information to businesses on consumers' behalf.

Title :        How Fidelity Invests in Service Professionals
Author :       McColgan, Ellyn A
Source :       Harvard Business Review [HBR] ISSN: 0017-8012
               Vol: 75 Iss: 1 Date: Jan/Feb 1997 p: 137-143
Abstract:      In 1994, Fidelity Institutional Retirement Services Co. (FIRSCo) needed to ensure that
               its rapidly expanding staff maintained the company's high levels of customer
               satisfaction. The solution was to reach out to its service associates with a powerful
               new model for training and development called Service Delivery University. SDU is a
               virtual university with a content-based core curriculum and 5 colleges that focus on
               business concepts and skills. It is driven by 3 principles: 1. All training must be
               directly aligned with the company's strategic and financial objectives and focused on
               customer needs. 2. Service delivery is a profession and should be taught as such. 3.
               Professional development should be the primary responsibility of line managers rather
               than the human resources department.

Title :        Learning from Customer Defections
Author :       Reichheld, Frederick F
Source :       Harvard Business Review [HBR] ISSN: 0017-8012
Service Delivery
Customer Service Tool Kit                                                   Pdf – April 99
               Vol: 74 Iss: 2 Date: Mar/Apr 1996 p: 56-61+ Illus: Charts
Abstract:      US corporations lose half their customers every 5 years. But most managers fail to
               address that fact head-on by striving to learn why those defectors left. They are
               making a mistake, because a climbing defection rate is a sign that a business is in
               trouble. By analyzing the causes of defection, managers can learn how to stem the
               decline and build a successful enterprise. There are mechanisms for learning from
               defections and turning failure analysis into an ongoing strategic system. A group of
               managers heading the failure-analysis program should include the CEO and others
               whose behavior will probably have to change to eliminate the causes of core-customer
               defections. Eventually, failure analysis should be made permanent, with employees'
               financial incentives tied to retention of core customers.

Title :        The Quality Improvement Customers Didn't Want
Author :       Iacobucci, Dawn; Jones, Thomas O; Bitner, Mary Jo;
               Hanselman, Eric; et al
Source :       Harvard Business Review [HBR] ISSN: 0017-8012
               Vol: 74 Iss: 1 Date: Jan/Feb 1996 p: 20-36
Abstract:      A hypothetical managerial situation of a fictitious company is presented by the
               Harvard Business Review. Six management experts examine the effect of new
               technology on customer satisfaction.

Title :        The Satisfaction Trap
Author :       Anonymous
Source :       Harvard Business Review [HBR] ISSN: 0017-8012
               Vol: 74 Iss: 2 Date: Mar/Apr 1996 p: 58-59
Abstract:      As tools for measuring the value a company delivers to its customers, satisfaction
               surveys are imperfect. As tools for predicting whether customers will purchase more
               of the company's products and services, they are grossly imperfect. Satisfaction
               surveys have two principal problems. The first is that satisfaction scores have become
               an end in themselves at many companies but scores mean nothing unless the
               satisfaction they purport to measure translates into purchases and profit. The second
               problem is that satisfaction surveys are often poorly conceived and conducted. By
               depending heavily on broad-based satisfaction surveys, companies are letting too many
               defectors slip through the cracks.

Title :        Value Innovation: The Strategic Logic of High Growth
Author :       Kim, W Chan; Mauborgne, Renee
Source :       Harvard Business Review [HBR] ISSN: 0017-8012
               Vol: 75 Iss: 1 Date: Jan/Feb 1997 p: 102-112 Illus: Charts; Graphs
Abstract:      It has been found that the difference between the high-growth companies and their less
               successful competitors was in each group's assumptions about strategy. Managers of
               less successful companies followed conventional strategic logic. Managers of the high-
               growth companies followed the logic of value innovation. Many companies take their
               industry's conditions as given; value innovators do not. Many companies let
               competitors set the parameters of their strategic thinking; value innovators do not use
               rivals as benchmarks. Rather than focus on the differences among customers, value
               innovators look for what customers value in common.

Title :        Would you Rather Do Business with a Computer?
Author :       Lubove, Seth
Source :       Forbes [FBR] ISSN: 0015-6914
               Vol: 158 Iss: 13 Date: Dec 2, 1996 p: 118-120
Abstract:      City National Bank is the leading independent bank in Los Angeles, with $3.9 billion in
               assets. If the giant banks like Wells Fargo and Bank of America replace people with
               computers and abandon personalized service, Russell Goldsmith, chairman and chief
               executive of City National, will embrace it. City National knows a lot about
               personalized service. By emphasizing this, Goldsmith is convinced City National can
Service Delivery
Customer Service Tool Kit                                                  Pdf – April 99
               grow in an environment where its bigger rivals are abandoning personal service. He
               believe there are many thousands of customers disaffected by April 1996's Wells
               Fargo-First Interstate merger and other combinations that have eliminated the friendly
               bankers they used to deal with. Goldsmith is hiring First Interstate bankers fired by
               Wells after the two banks merged. If Goldsmith's niche strategy does not work, the
               bank will almost certainly be sold.




Service Delivery

				
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