MEASUREMENT Moving Toward Outcomes and Targets

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					                       MINISTRY OF THE PREMIER AND CABINET

                 Moving Toward
           Outcomes and Targets

Case Study 5
Work Area 5
Guide to Work Area 5
Customer Service Tool Kit                                                                    Pdf – April 99


j. tan@ Edadmin.WA.Gov.Au                                                          Tuesday

Hi Jo,
Help!!! Just started the new job and I’m showing off my new computing skills already - think I’ll have to get
email at home - it sure beats snail mail!!!!
Had the computer training etc today and tomorrow more of the induction process - one thing about this
department they’ve got the induction process down pat - it’s a bit different to small business.
I need to pick your brains (you knew there was a reason). I need to get hold of a Customer Service Charter -
there doesn’t seem to be any around here - apparently they have some consultants in revamping it. You used
to work in this area have you got one you can fax me? There’s a coffee in it for you!!
Steph J

s.hesco@ ParkCem.WA.Gov.Au                                                 Tuesday

Hi Steph,
Sorry - Can’t help but will still meet for coffee! There’s not a standard one that you can get either - they
should all be developed to suit the Agency and its particular style of service. There are some Guidelines
around. We’ve spent a lot of effort putting ours together to match our service with the needs of our
customer and we use our Charter as the basis for measuring our service standards. I’d say most people in
this area would know it off by heart - we were all involved in putting it together - it took ages but it was
worth it.
I guess the Customer Service Charter sets the goals but the fact that we were involved and committed to
making them helped to make us move together. You know I think we were a bit like your lot before. It’s that
fear of mistakes culture.

I thought it was crazy when people told us that there were three golden rules to customer service – consult,
consult, consult but then everybody is a customer! But when we started trying to do it, I found myself going
home and telling Ed that a complaint was like a gift.

Yours Jo

j. tan@ Edadmin.WA.Gov.Au                                                          Wednesday

Hi Jo
I wish I was with you, what I found out today scares me. There’s lots of targets to meet here but I am not
sure I have a chance of doing much to make them happen. They haven’t even done any work on discovering
who their customers are and yet are talking about doing satisfaction surveys. Wondering if it’s too early to
speak out yet.

Seems to me a lot of channelling goes on here - customers passed from pillar to post until someone takes the
time to investigate the complaint or whatever.
The “boss” dropped in at Induction doesn’t look at all like her photo - apparently not one to be seen around a
lot - the place is a buzz with consultants reviewing services.
Think perhaps the staff should be looking at some benchmarks and see who has similar processes to us and
then compare ours to theirs. Only been here five minutes and already trying to find the suggestion box!!!!
Always said I liked a challenge
Cheers Steph J

Customer Service Tool Kit                                                                    Pdf – April 99

s.hesco@ ParkCem.WA.Gov.Au                                                Wednesday

Steph - Hope is what you need!
You have a heap of experience in service you just have to stand up and be heard. You know walk the talk
etc. If you make the customer the your reason for being at work then perhaps some of your colleagues will
follow. You’re in a position to make the changes - it just won’t happen overnight. You might have to go
back to the basics - that’s what we had to do and we thought we were streets ahead of the others - like most
things as soon as you make the changes something else changes and you start again.

Like your idea about benchmarking - we’re looking into it. Perhaps we could join forces. Both Agencies
offer service rather than product and I’m sure we could find private sector organisations as well as
government that would be useful.

Yours Jo

j. tan@ Edadmin.WA.Gov.Au                                                         Wednesday

Dear Jo,
Well thanks for being so positive - things around here are pretty much the opposite. When I suggest taking a
new focus everyone breathes out like it was their last breath and then shrugs their shoulders and says “we
don’t have enough staff” and anyway the customers don’t have a choice they just have to put up with it.
Please send more hope and along with that how you went about it all.
Help Steph

s.hesco@ ParkCem.WA.Gov.Au                                                Thursday

Hi Steph,
First of all we spent a lot of time in the beginning trying to sort out just who our customers were. Enough
people usually have similar needs and wants and we could group them together. We used our database for
that and found it wanting but it was better than nothing.

We held some focus groups an then followed that up with a fairly comprehensive survey - the best response
rate we’d ever had - the picture was clear about what we had and hadn’t improved since we undertook the
focus groups and clear about directions to continue. We couldn’t be everything to everybody and really had
to work at how we could deliver what was needed. For the public sector it’s not so much about exceeding
customer expectations, although there will always be those that do, it’s about consistently meeting them and
travelling with customers into the future. We used our Output Based Management and strategic plan
formats for identifying services and service quality measures to cross check what was required by
Government and our community and business customers. We aligned our costings and resource allocations
against all that. Well, have to go but talk about targets next time.

You know the drill - you can only change what is measured and that is hard when it’s all about service.
Go for it


Customer Service Tool Kit                                                                    Pdf – April 99

j. tan@ Edadmin.WA.Gov.Au                                                         Thursday

Dear Jo
Starting to think there’s not a product in sight around here. Talking with people here they believe whenever
they made improvements before they got their resources cut - I think it scares them a bit. There are lots of
contract staff here as well and they don’t get the same induction - one said to me “What Induction?” That
doesn’t help when you need to have everyone focused on the customer. Seems the internal customer is not a
concept that has been heard of around here. Well I guess I’ll just have to take it one area at a time. 3.000
people spread across the state makes it feel like one awesome task.
C Ya Steph

s.hesco@ ParkCem.WA.Gov.Au                                                        Friday

Dear Steph,
Link key players in. Start generating some rewards for the outcomes you want, and resource them. Put CS
on the bottom line of your indicators, we found we had to force the agenda a bit to start off but it soon
caught on. Publicise the measures. Get the focus off workload and onto customer needs and their feedback
about how services meet their needs. The public expect red tape - we used to give little autonomy to staff -
so they got staff with little empowerment and hence no innovative contribution. Result - lots of stories for
the media to pick up and reinforce the stereo type! Seek out your customers, re-arrange to serve them and
manage the product development process. What I do will not work for you and vice versa but I want to hear
about the best ideas your staff come up with! Remember that poster we had in the flat? It’s still on my wall
in the office here. Remember the words...

      As far as possible without surrender be on good terms with all persons. Keep
      interested in your career, however humble; it is a real possession in the changing
      fortune of time...With all its sham and drudgery and broken dreams it is still a
      beautiful world. Be careful and strive to be happy.

Have a good weekend
Yours Jo

Customer Service Tool Kit                                                                 Pdf – April 99


Outcome        Measures are developed and used to show how services meet Government and
               community needs. Measures meet requirements for Government reporting.
Output         Service Measures Profile comprising Service standards, Output quality measures and
               Effectiveness performance indicators

  Summary Matrix

                       Individual                   Group                           Workshop
  Involves:             20 mins                    40 mins                          150 mins

  Frontline      How do you know          List the ways you and        List the measurement tools available
                 whether you are          your immediate colleagues    or proposed, which would be easy for
                 meeting your             measure the service          you to use in your area. Provide this
                 customers' needs?        improvements you are         information to management.

  Managers       Identify all current     What data is missing         Consider Frontline, Manager and
                 service measures and     about customers,             Executive information and identify
                 data collection tools.   customers' needs, service    cost efficient and effective
                                          delivery and its             measurement tools to provide your
                                          resourcing? Think across     agency with relevant and timely data.
                                          divisions, agencies with     Develop service standards, output
                                          similar customers and        quality measures and effectiveness
                                          across your Minister's       performance indicators.
                                          portfolio.                   Prepare recommendations to
                                                                       Executive on the measures and the
                                                                       tools for data collection.

  Executive      What outcomes and        Broadly, how do your         Consider the recommended service
                 outputs has your         outcomes and outputs         standards, output quality measures
                 agency achieved          relate to Government         and effectiveness performance
                 relative to your         desired outcomes and         indicators which form the Service
                 targeted outcomes        outputs by agencies with a   Measures Profile. Implement
                 and outputs? What        similar Customer Profile     measurement through efficient and
                 information are you                                   effective Tools. Report externally on
                 missing?                                              Profile as required.

Customer Service Tool Kit                                                           Pdf – April 99


Frontline 1
Time                  :     20 minutes
Input                 :     Case Study Reading, Customer Service Charter
Task                  :
                            a) How do you know whether you are meeting your customers’
                            b) What standards are monitored in your organisation ie response
                               time to phones or enquiries?
                            c) Are these standards achievable?
                            d) What gets in the way of achieving the standards?

Output                :     Draft list of service standards and barriers to their achievement

Frontline 2
Time                  :     40 minutes
Input                 :     Current Service Standards
Task                  :
                            a) Think of ways you and your immediate colleagues measure the
                               service improvements you are making.
                            b) Identify standards that could be introduced which help
                               demonstrate effective customer service delivery.
                            c) Link these with the standards of service or quality of products
                               customers require

Output                :     An improved list of service standards

Frontline 3
Time                  :     150 minutes
Input                 :     Frontline 1
Task                  :     a)      List measurement tools which would be easy to use in your
                                    area to monitor progress
                            b)      Identify your internal customers (anyone who needs
                                    help/information etc from your area)
                            c)      What do they need from you to fulfil their service delivery
                            d)      What do you need from them to fulfil your service delivery
                            e)      Identify any recurring problems or complaints
                            f)      Develop standards of service to internal customers and list
                                    these with service standards to external customers

Output                :     Information to management on measurement tools and service
                            standards that can be implemented in your area.

Customer Service Tool Kit                                                         Pdf – April 99

Managers 1
Time                  :     20 minutes.
Input                 :     Case Study Reading
Task                  :
                            Identify all current service measures and data collection tools used
                            within your Agency.

Output                :     List the measurement and data collection tools and the pros and cons
                            of their uses for your needs.

Managers 2
Time                  :     40 minutes
Input                 :     Managers 1
Task                  :
                            a) What data is missing about your customers, their needs, service
                               delivery and its resourcing? (Think across divisions, agencies
                               with similar customers and across your Minister’s portfolio)
                            b) What data collection tools would help you collect and analyse this

Output                :     Information on suitable data collection methods and tools for the

Managers 3
Time                  :     150 minutes
Input                 :     Managers 1, 2 and Frontline1,2 &3

Task                  :
                            a) Consider information from Frontline 1,2,3 and Managers 1,2.
                            b) Identify the cost efficient and effective measurement tools to
                               provide your agency with relevant and timely data.
                            c) Develop draft service standards, output quality measures and
                               effectiveness performance indicators.
                            d) Prepare recommendations to Executive on the measures and the
                            tools for data collection.

Output                :     Presentation to Executive on recommended options for service
                            measures and measurement tools.

Customer Service Tool Kit                                                        Pdf – April 99

Executive 1
Time                  :     20 minutes
Input                 :     Budget statements or strategic plan, Service Delivery Profile,
                            Customer Service Charter
Task                  :
                            a) What outcomes has your agency achieved relative to target
                               outcomes and outputs?
                            b) What information is missing?

Output                :     A brief for managers on the information you need

Executive 2
Time                  :     40 minutes
Input                 :     Executive 1, Budget statements of other agencies
Task                  :
                            How do your target outcomes and outputs relate to Government
                            desired outcomes within your portfolio and outputs for agencies with
                            similar customers?

Output                      Consideration of multi agency customers, service measures and
                            measurement methods.

Executive 3
Time                  :     150 minutes
Input                 :     Executive 2
                            Managers 3
Task                  :
                            a) Consider and gain agreement on service standards, output quality
                               measures and key performance indicators of effectiveness
                            b) Gain agreement on the implementation of measurement through
                               efficient and effective tools and processes.
                            c) Report internally and externally on Service Profile as required.

Output                :     A Service Measures Profile
                            An Action Plan for measurement

Customer Service Tool Kit                                                           Pdf – April 99

    MEASUREMENT                                                                ARTICLES

Title :        All Aboard for Privatization
Author :       Tanzer, Andrew
Source :       Forbes] ISSN: 0015-6914 Vol:158 Iss:10 Date: Oct 21, 1996 p: 148-150
Abstract:      Hong Kong's Kowloon-Canton Railway Corp. Earned $115 million after-tax in
               1995 on $381 million in revenues. With a 12% return on fixed assets, the KCRC is
               probably the world's most profitable railway. KCRC is 40% unionized, but these
               unions do not have the political clout of unions in the West. The company, which
               serves 1.1 million commuters a day, carries out extensive customer satisfaction
               surveys every month and quickly acts on complaints.

Title :        The Application of Total Quality Management to the Public Sector
Authors :      Younis, Tahib, Bailey, Stephen J & Davidson, Carolyn
Source :       International Review of Administrative Sciences Vol 62, no 3, pp369-82 1996
               Continuing the quality theme, another article in the journal examines moves towards
               public sector quality management. Younis, Bailey and Davidson review quality
               developments in the United Kingdom and use the Audit Commission's "quality map"
               to evaluate these initiatives. Recognising that there are differences in applying
               TQM in the private and public sector the authors argue that the application of TQM
               in the public sector must take account of the public sector's distinctive
               characteristics and not be entrusted solely to managers. Because entitlements to
               services "arise from the substantive rights of citizens to have a say in the
               information of values and ideology" of their governments the public sector will need
               to incorporate a wider range of views and priorities than the private sector.
               Customer surveys and the powers of redress given by the Citizen Charter are

Title :        Automated Voice Response Units
Author :       Ross, Judith A
Source :       Harvard Business Review ISSN: 0017-8012
               Vol: 74 Iss: 6 Date: Nov-Dec 1996 p: 9-10
Abstract:      A study by Technical Assistance Research Programs concludes that the following
               steps should be taken to create a successful voice response unit (VRU) system: 1.
               Identify customers' points of pain. 2. Simplify the menu. 3. Inform and empower
               backup personnel. 4. Test before activating. 5. Educate VRU users. 6.
               Implement a new system in stages.

Title :        Bikers' Fumes
Author :       Machan, Dyan
Source :       Forbes [FBR] ISSN: 0015-6914 Vol: 159 Iss: 5 Date: Mar 10, 1997 p: 118
Abstract:      On February 5, 1997, American Iron magazine hosted Motor forum, a live Internet
               chat on CompuServe, seeking comments about Harley-Davidson. Some of the
               comments made during the session are presented.

Title:         Consumer Satisfaction, Performance and Accountability in the Public Sector
Authors:       Myers, Ronald & Lacey, Robert
Source:        In International Review of Administrative Sciences Vol 62, no 3, pp 331-50
               The following papers address the issue of public sector service delivery and

Customer Service Tool Kit                                                            Pdf – April 99

               customer satisfaction. The first, by Myers and Lacey examine why some countries
               have focused on customer service as a major objective of their reform agenda while
               others have not. They examine developments in New Zealand, the United Kingdom
               and Nicaragua, and illustrate their arguments with case studies from the UK and
               Nicaragua. The New Zealand and UK reforms have provided two incentives to
               motivate agencies towards greater customer orientation : increasing market
               contestability for public-service products on the one hand, and, in the "absence of
               opportunities for exit", offers to consumers of public goods and services a stronger
               voice (334).

               The case studies summarise the progress of the Citizen's Charter in the United
               Kingdom and compare it with the approach taken in Nicaragua to restructure its
               public service using institutional restructuring agreements (IRAs) and a service
               evaluation system (SES). The IRAs are being negotiated between each Nicaraguan
               ministry or institution and a government-wide coordinating unit to be approved by a
               cabinet level policy committee overseeing the entire reform process. Public sector
               performance at the institutional and broader level will be measured using statistical
               and customer surveys. The surveys will help to inculcate a new culture in the
               service and provide a baseline on which to judge future performance. The article
               gives examples from two household and client surveys, one of which revealed that
               more than half the respondents rated aspects of the ministry as "bad" or very bad.
               Despite this, there was great support for the process from both the ministry and
               their clients and steps are being taken to develop these surveys as a routine part of
               administrative practice.

               With examples from the United Kingdom and New Zealand, the authors conclude
               with a discussion on how to integrate customer satisfaction with performance
               evaluation, values and accountability and incorporate it as a public sector
               management tool.

 Title :       Customer Service in an Australian Quality Award Winning Public Sector
               Service Industry
 Authors:      Navaratnam, K K; Harris Bill
 Source:       International Journal of Public Sector Management v7n2 pp:42-49
 ISSN :        0951-3558
               The South East Queensland Electricity Board (SEQEB) is Australia's leading public
               utility, and an Australian Quality Award winner in the total quality management
               (TQM) as a common basis for incorporating contemporary management strategy
               into organisation-wide customer service. SEQEB's mission statement is based on 5
               quality management principles : 1) respect for people, 2) management by fact, 3)
               customer satisfaction, 4) teamwork, and 5) improvement through PDCA. Some
               key strategies for customer services are setting performance targets, conducting
               customer surveys, conducting staff surveys, benchmarking, sustaining customer
               satisfaction, and providing customer advice. These strategies are essential for
               establishing customer service quality in the public sector.

Title :        Developing Product on Internet Time
Author :       Iansiti, Marco; MacCormack, Alan
Source :       Harvard Business Review [HBR] ISSN: 0017-8012
               Vol: 75 Iss: 5 Date: Sep/Oct 1997 p: 108-117 Illus: Charts
Abstract:      The rise of the World Wide Web has provided one of the most challenging

Customer Service Tool Kit                                                            Pdf – April 99

               environments for product development in recent history. The market needs that a
               product is meant to satisfy and the technologies required to satisfy them can change
               radically - even as the product is under development. In response to such factors,
               many companies have replaced the traditional product-development process with a
               flexible process that allows designers to continue to define and shape products even
               after implementation has begun. This innovation enables Internet companies to
               incorporate rapidly evolving customer requirements and changing technologies into
               their designs until the last possible moment before a product is introduced to the
               market. The foundations for flexible product development exist in a wide range of
               industries where the need for responsiveness is paramount. When new competitors
               and technologies appear overnight, when standards and regulations are in flux, and
               when a company's entire customer base can easily switch to other suppliers,
               businesses do not need a development process that resists change, they need one
               that embraces it.

 Title :       Measuring and Achieving Quality Customer Service in the Public Sector
 Authors:      Nwankwo, Sonny; Richardson, Bill
 Source:       Managing Service Quality v4n6 pp:32-36
 ISSN :        0960-4529
               A value-based approach to achieving and managing customer service is advocated.
               A model implicitly acknowledges that, generally, quality perspectives among
               providers of public services are on a low-profile path. To engineer a turnaround to
               a high-profile path, the following steps are necessary : 1) ideation, 2) design, 3)
               delivery, and 4) maintenance. Some of the attitudes, systems, and behaviours
               attributed to the UK's British Telecom, a former public enterprise that is recognised
               as having managed successful change toward a customer-responsive state, are


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