View
134
Download
0
Category
Preview:
Citation preview
A Case for An Ethics-Centric
Operational Model for a Service Organization
Dr.Shrikant ParikhSPJIMR, Mumbai, India
July 29th, 2015HSSE, Las Vegas
What this model is all about ? What it seeks to achieve ? Goals: Assist in improving - Ethical Standards in general - Ethical behaviour of the front office employees Assist upper management with - Figuring out, which factors impact most, a given
organization from ethical standard perspective - Hiring/terminating decisions - Organizational decisions which may leads to a more
ethical organization: enable a decision making process which factors-in ethics related considerations
- How branches really work from the ethics perspective and what are influencers
Establish links between Ethical standard of an organization, customer perception of ethics and Customer Sat
Why this approach ?
- it is quantitative, hands-on, ACTIONABLE- it is data driven, leverages standard
psycho-metric/stats techniques - therefore tends to be more believable,
trustworthy
Techniques used- data analytics, stats, psycho metric tool :
EQ Map, a System Engineering view- inspired by operational analysis approach to
understand computer system performance
Questions, management should ask (“soul searching”): How does the company benchmark itself ? How does the company design incentives ? How does company judge its success
(parameters ?) By financials ? By perception in general public : By TRUSTWORTHINESS ?What type of people it attracts and hires? (how
much emphasis on ethics ?)What is the “core” it refuses to compromise ?Are the service products “WYSIWYG” ?
This model helps create a “background of information” needed to answer these fundamental questions
Specific details of the model, approachAssumptions - “Trustworthiness of an organization”
from the point of a customer is used as a proxy for “perception of ethical-ness” of an organization- assume no interaction between “predictor” factors
- for the purpose of this discussion : a nationwide car rental company with hundreds of branches is used as an example
Phase 1 : Data Collection Goal of Phase 1: Identify a short
listed predictor variables (“factors”) which correlate most with the
1) Trustworthiness (from a customer’s perspective)
2) The ethical profile of the frontline service professional
Part 1-aWhich factors have maximum impact on the
organization being studied ? What are driving variables (“real” levers)? Find TOP 5 from the following for a subsequent parsimonious stat. Analysis
Continuous measurements recommended to be performed over a long period (1-3+ years) of the following
Measure- Service professional’s profile (from EQ Map)- CEO’s profile (do)- Branch Manager’s profile (do)- Immediate colleagues’ profile (do)- Profile of the rest of organization (do)
Phase 1-a contd.- employee satisfaction with the incentive
program- employee satisfaction with the training- employee sat. with the ambience of the location Customer oriented measurements - Customer perception (“Trustworthiness”)
before and after each service delivery episode - Customer Sat after each service delivery episode - For each professional, her performance in terms
of C.Sat, perception of Trustworthiness - Overall “average” customer sat for a branch and
organization score over a period of time - Overall “business volume” over a period of time
Phase 1-b Track impact of each of the following factors after 3, 6, 9,
12 months on the dependent variables : 1 : “customer’s rating of the trustworthiness of the organization”) 2: EP of the front line service professional (latency effects)
(for the predictor variables 1) Immediate colleagues’ profile 2) Culture (ethical profile of the rest of organization), the latency is assumed to 3 months )
- for each event above identify the most appropriate latency period for that variable
Phase 1-c Identify top 5 predictor variables from regression
analysis of data collected over 1-3 years period and their respective latency periods
Phase 2 : Ongoing Data Collection Group A It is hypothesised that “dominant genes” are going to be
the following predictor variables - CEO’s profile - Branch Manager’s profile - Service professional’s profile - “Average” Ethical index (“integrity”) of the immediate
colleagues - “Average Ethical Index” of Branch - “Average Ethical Index” of the rest of organization - Satisfaction with training - Satisfaction with incentivesCustomer centric critical measurements to be made - Customer rating of perception of the organization
(“trustworthiness”) before and after the service delivery episode. Customer rating of C.Sat.
This smaller set of measurements for above factors can be collected less frequently . E.g. once every month
Phase 2 : Group BService Professionals’ Survey to be conducted once every month
- Who is my “role model” in the branch- Who do I trust most in the branch- What is the “Type” of each branch : T0, T1, T2, T3 ?- Therefore who is most influential on
me : colleagues at the same level or supervisor or branch manager ?
Phase 3 (a) Making sense from the data collected in Phase 2 Step 1 : MULTIVARIABLE REGRESSION ANALYSIS BETWEEN THE
PREDICTOR VARIABLES AND THE “ULTIMATE” VARIABLE : TRUSTWORTHINESS of an organization
Which factors (predictor variables) have a maximum impact on Trustworthiness ?
Step 2 : MULTIVARIABLE REGRESSION ANALYSIS BETWEEN THE PREDICTOR VARIABLES AND THE ETHICAL PROFILE OF THE PROFESSIONAL
Which factors (predictor variables) have a maximum impact on the ethical profile of the professional ?
Step 3 : MULTIVARIABLE REGRESSION ANALYSIS BETWEEN THE PREDICTOR VARIABLES AND THE AVERAGE ETHICAL PROFILE OF THE BRANCH
Which factors (predictor variables) have a maximum impact on the average ethical profile of the branch ?
Which factors (predictor variables) have a maximum impact on the average ethical profile of the service professional of a branch ?
BASED ON THE ANALYSIS OF BRANCH LEVEL VARIABLES, FOLLOWING CAN BE ANSWERED
Group A -What influenced most the customer perception of
trustworthiness -What influenced most the ethical profile of front-line
service professional - What drives most the average ethical profile of the
branch - What is the “type” of branch (T0, T1, T2, T3) Therefore what are “pointers” for “fixing” a particular
branch - What is difference between ethical profile of a branch
with that of the rest of org (“sub culture”) - What are differences between profiles of different
branches ? Is there a significant variation ?
Group B Key questions this analysis will answer: - Ethical persona of service professional (“integrity”) - before he joins ? - in middle of his journey with the organization : after 1Q, 2Q, 3Q, ... - at time of separation - His perception of organization before he joined, at time of
separation - What organization “did” to the professional while she was
there - What Impacts the professional most, from all these factors - With passage of time, how service professionals have
changed ethically ? - who is overpowering who ? the organization or the service
professional ? - what is effectiveness of training programs - how effective is the company’s hiring policy and its
impact on Trustworthiness ?
Group C- What are the real levers for changing ethics and
changing customer perception ?- Where to focus for ethical improvement of org. ?- How to make specific interventions to improve
the ethical perception of the company.- in a measurable manner- in a manner which is data-driven- in a manner whereby the results can be measured
- what are the long term customer perception trends?
- what has been variation in the customers’ perception of the company over time
- how to “fix” a particular branch, - how to align (fix)incentives ?
Group D
- How strong are Co’s professed culture/values (v/v Ethics)
- What type of people it attracts ?- What is “my” Ethics Dividend- Is there a difference in the staff’s (all
levels) perception of service being delivered and customer perception of the service received
- if yes, then it is a cause of concern- Are the services “WYSIWYG” ?
How this model helps : More pointers
- Help in Hiring- Comparison with competition- Help in deciding where to give
more discretionary decision making powers : to which level in the organization ? (Depending on the ethical standard of a particular level)
- categorization by “type” of Branch has additional applications
Final comments on the model
- These are long term strategies
- Rely on intense data driven techniques
...they yield results after 2-3+ years
BUT TO BE ABLE TO MAKE AN OBJECTIVE, DATA DRIVEN IMPACT , WE DO NOT SEE ANY OTHER OPTION
Future work
- Identify more drivers of ethics- add to DB with more data- Create profiles of different
companies- Create models for different
industries : derive industry specific models
Thanks !
Questions....
Literature survey/other works
Recommended