Towards a More Integrated Service Improvement Approach Copyright Colin Kent (1999) For permission to reproduce this presentation please contact the author

Towards a More IntegratedService Improvement

Approach

Towards a More IntegratedService Improvement

ApproachCopyright Colin Kent (1999) For permission to reproduce this presentation please contact the authorCopyright Colin Kent (1999) For permission to reproduce this presentation please contact the author

Colin KentColin Kent

General Manager - Telemedia GroupGeneral Manager - Telemedia Group6 August 19996 August 1999

21 Henry Street21 Henry Street

Stepney SA 5069Stepney SA 5069

Ph: +61 8 8362 8188, Fx: +61 8 8362 9431Ph: +61 8 8362 8188, Fx: +61 8 8362 9431

Contents of Presentation

• Background to Service Quality Improvement.Background to Service Quality Improvement.• Keys to Success - to truly becoming a customer Keys to Success - to truly becoming a customer

focussed organisation.focussed organisation.• A comprehensive approach to service A comprehensive approach to service

improvement. A suggested model to useimprovement. A suggested model to use• Understanding customer dissatisfactionUnderstanding customer dissatisfaction• Interpreting complaints data - within a wider more Interpreting complaints data - within a wider more

integrated model.integrated model.• Conclusion.Conclusion.

Service Quality - Public Sector

• The public sector works within defined The public sector works within defined cash limits (often decreasing budgets).cash limits (often decreasing budgets).

• The public sector has to balance The public sector has to balance interest groups and the aim of the public interest groups and the aim of the public interest.interest.

Service Quality

• There are many diverse sets of disciplines or There are many diverse sets of disciplines or interest areas in the field of interest areas in the field of Service QualityService Quality including aspects of: including aspects of: – Human RightsHuman Rights– Social PolicySocial Policy– Legislation and Legal SystemsLegislation and Legal Systems– Consumer and Behaviour ScienceConsumer and Behaviour Science– Organisational PsychologyOrganisational Psychology– Human Resource ManagementHuman Resource Management– Research and AnalysisResearch and Analysis– Systems and TechnologiesSystems and Technologies– Management Theory and PracticeManagement Theory and Practice

Failings when Improving Service Quality

• Focus on one particular service Focus on one particular service initiativeinitiative

• Capture by service quality practitioners Capture by service quality practitioners whose often limited fields of expertise or whose often limited fields of expertise or experience, influences an organisation experience, influences an organisation to take a particularly narrow pathto take a particularly narrow path

Service Quality Initiatives

• Diverse range of service quality initiatives being Diverse range of service quality initiatives being presently undertaken within the Courts in presently undertaken within the Courts in Australia is impressiveAustralia is impressive

HoweverHowever• In many jurisdictions the initiatives are not part of In many jurisdictions the initiatives are not part of

a systemic and wholelistic approach to service a systemic and wholelistic approach to service quality reform.quality reform.

• They appear at times to lack support from They appear at times to lack support from management or governmentmanagement or government

Problems are not unique

• Such problems are not unique to Courts in Such problems are not unique to Courts in Australia, few organisations worldwide have Australia, few organisations worldwide have fully embraced fully embraced customer focused conceptscustomer focused concepts throughout their organisationthroughout their organisation

Service Charters in Australia

• Predominately within Government Predominately within Government – Played an important role in bringing Played an important role in bringing

customer or consumer issues to the customer or consumer issues to the forefront of management thinking.forefront of management thinking.

– Provided a broader framework to justify Provided a broader framework to justify initiatives such as service standards or initiatives such as service standards or complaint handling procedures.complaint handling procedures.

Risk of Fading Charters

Fade Out!Fade Out!Fade Out!Fade Out!

Minimum Minimum StandardsStandards

Minimum Minimum StandardsStandards

Little Little InfluenceInfluence

Little Little InfluenceInfluence

Not Not MonitoredMonitored

Not Not MonitoredMonitored

Lack of Lack of SubstanceSubstance

Lack of Lack of SubstanceSubstance

BrochuresBrochuresRun OutRun Out

BrochuresBrochuresRun OutRun OutService Service

CharterCharterService Service CharterCharter

Keys to Success

• Develop a strategic approach to Develop a strategic approach to service through planningservice through planning

• Establish comprehensive and Establish comprehensive and integrated external (customer) and integrated external (customer) and internal measurement systemsinternal measurement systems

Keys to Success

• Align all business processes, systems and Align all business processes, systems and service delivery based on customer service delivery based on customer feedbackfeedback

• Develop human resource management Develop human resource management structures and practices that support and structures and practices that support and reward both the customer focus and the reward both the customer focus and the organisational valuesorganisational values

Strategic Approach to Service Through Planning



• Visible service quality and commitment Visible service quality and commitment championed by the organisations championed by the organisations leader.leader.

• Articulated service visions and Articulated service visions and philosophies.philosophies.


• A service strategy linked to the A service strategy linked to the organisations business plan should be organisations business plan should be produced documenting the: produced documenting the: – process for service improvement to be process for service improvement to be

followed; andfollowed; and– specific initiatives to be launched or specific initiatives to be launched or

continued during the life of the plan.continued during the life of the plan.

Internal and External Measurement SystemsInternal and External

Measurement Systems

Internal and External Measurement Systems

• Establish the difference between existing Establish the difference between existing organisational performance and customer organisational performance and customer expectations or needs.expectations or needs.

• Requires:Requires:– thorough knowledge of the customer thorough knowledge of the customer – utilisation of a range of research and feedback toolsutilisation of a range of research and feedback tools– quantitative and qualitative research, consultative quantitative and qualitative research, consultative

processes, tracking surveys, satisfaction and processes, tracking surveys, satisfaction and dissatisfaction measurement, and broader opinion dissatisfaction measurement, and broader opinion and perception researchand perception research

Internal and External Measurement Systems

• Develop systems to record customer Develop systems to record customer complaints or feedback and align these complaints or feedback and align these with other customer research with other customer research instruments using a data integration instruments using a data integration model.model.

• The object being to bring all customer The object being to bring all customer inputs together into a meaningful ‘voice inputs together into a meaningful ‘voice of the customer’ approach.of the customer’ approach.

Alignment of the Business Processes & Systems



• Requires on-going design or redesign Requires on-going design or redesign of:of:– marketing and distribution strategiesmarketing and distribution strategies– business processes and proceduresbusiness processes and procedures– service delivery and supporting systemsservice delivery and supporting systems

• around the needs of its customer - around the needs of its customer - not not the needs of staff.the needs of staff.

Data Integration Model - “Voice of the Customer”

““Voice of the Voice of the Customer”Customer”ApproachApproach

““Voice of the Voice of the Customer”Customer”ApproachApproach

Distributor ResellerSatisfaction Surveys

Baseline CustomerSatisfaction/Dissatisfaction

Survey

Transaction Based Customer Surveys

Other Predictive Models

Industry Research /Benchmark

Studies

Internal ServicePerformance Data

Complaints Customer-Contact Data

Relative Value Monitor

(Predictive Model)

Structured StaffFeedback

External Sources ofdata re: Consumer Groups,

Media, etc.

Qualitative Feedback - Consumer Consultative

Panels

Other on-going Customer/Contactor Satisfaction Tracking

Monthly Poll, other ext. cust. research

Human Resource Management Practices



• Compensation should be linked to Compensation should be linked to performance.performance.

• Provide training and support on all Provide training and support on all aspects of customer service aspects of customer service

• Design business processes and Design business processes and technology solutions around front-line technology solutions around front-line needs.needs.

• Clarify and develop rolesClarify and develop roles

If these are the critical success factors for service improvement, what models can be used that reflect such a comprehensive approach?

If these are the critical success factors for service improvement, what models can be used that reflect such a comprehensive approach?

Harvard Strategic Service Chain

Profit &GrowthCustomer

Loyalty /Retention



Loyalty /Retention

Customer Satisfaction



Loyalty /Retention

Customer Satisfaction

ExternalService/Quality

Value



ValueEmployeeSatisfaction&Retention



ValueEmployeeSatisfaction&RetentionInternal

ServiceQuality


CustomerNeeds


ValueEmployeeSatisfaction&RetentionInternal

ServiceQuality


Profit &Growth

External ServiceQuality/Value

Internal Service Quality

EmployeeSatisfaction

& Retention

CustomerSatisfaction

CustomerNeeds

CustomerLoyalty/

Retention

Keys to a Customer Focused Organisation

Organisational and corporate mission

Organisational vision and values

Balanced set of corporate objectives

Business Plan

Service Strategy



Service Strategy

Profit &Growth

CustomerLoyalty/

Retention



& Retention


CustomerNeeds


Service Strategy

Profit &Growth

CustomerLoyalty/

Retention



& Retention


CustomerNeeds

Service Framework

StrategicService

Objectives

StrategicService

Objectives


Ensure we do job right the first time


Effectively managecustomer contact whenjob has not been done

right the first time




StrategicService

Objectives

StrategicService

Objectives







ServiceProcesses or

Systems

ServiceProcesses or

Systems

• Service Standards• Measure Service

Delivery against standards

• Measure broader KPIs relevant to external quality

• Customer feedback process

• Complaint management process

• Quality contact management process

• Service Recovery Process


ServiceProcesses or

Systems

ServiceInitiatives

• Service Standards• Measure Service

Delivery against standards

• Measure broader KPIs relevant to external quality

• Customer feedback process

• Complaint management process

• Quality contact management process

• Service Recovery Process• Call Centre

• Complaints software• Customer service

training initiatives

• Customer Communication Plan

• Community education initiative

• Litigants in person plan

Linkages between aspects of service

ExternalServiceQuality

ExternalServiceQuality



PreventativeFeedback

PreventativeFeedback

Conduct routinecause analysis

Conduct routinecause analysis

Integrate complaintsdata with other customer data to

determine priorities

Integrate complaintsdata with other customer data to

determine priorities

Identify the sources of Dissatisfaction

Identify the sources of Dissatisfaction

EffectiveComplaint Management

EffectiveComplaint Management

Respond toIndividual Consumers

Respond toIndividual Consumers

Doing the job rightthe first time

Doing the job rightthe first time

Understanding Consumer Behaviour and Dissatisfaction

• Customer dissatisfaction measurement Customer dissatisfaction measurement is not a measurement of complaint is not a measurement of complaint numbers. Customer dissatisfaction is numbers. Customer dissatisfaction is usually much higher than you think.usually much higher than you think.

• 75% of dissatisfied customers will fail to 75% of dissatisfied customers will fail to report their dissatisfaction in some report their dissatisfaction in some sectors.sectors.


• Uneven rate of complaint reporting Uneven rate of complaint reporting between different types of complaints as between different types of complaints as well as between different groups of well as between different groups of customerscustomers

• Complaint escalation patterns are Complaint escalation patterns are similarly effected by judgements which similarly effected by judgements which consumers make or varying degrees of consumers make or varying degrees of inertiainertia


• The main reasons Consumers do not The main reasons Consumers do not complain are:complain are:– Complaining will do no good - 52%– It is not worth the time or trouble - 38%– Do not know how or where to complain -

14%

Source: SOCAP - American Express StudySource: SOCAP - American Express Study

55%

25%

15%

Most Consumers Give up at the Front-Line

5%

Major contact point - within service providers business

Contact Senior Management/Head Office

Contact Customer Service Centre/1800 Numbers

Contact Supervisor/ Local Manager

Contact front-line Customer Service Representatives

Interpreting Complaints Data

ExternalCustomer Satisfaction/

Opinion Data

External - InternalComplaints Data

InternalService Performance

Measurement Data

Decision MakingCriteria

Priorities for Action

Statistical AnalysisData Integration

Model

SupplementaryAnalysis to determine

cause

• Normalised

• Trends over time

• Exceptions/control limits

• Cross tabulation

Complaint Data Integration - Prerequisites

• Develop a consistent classification and Develop a consistent classification and coding system to describe all aspects of coding system to describe all aspects of customer experiencecustomer experience

Hierarchical Categorisation System

Staff Unavailable

Delay beforeanswering

Put on hold

Info. not comprehensible

Inaccurate/incomplete

Access toservice

InformationQuality

Service Provision


• Develop comprehensive and descriptive Develop comprehensive and descriptive recording of complaints to enable recording of complaints to enable causal issues to be identified through causal issues to be identified through statistical analysis and supplementary statistical analysis and supplementary investigations.investigations.

The Complaint Picture

Type of problem (symptom)

Cause of complaint/problem

History of problem/complaint eg: $claim, method of contact, reason for escalation

Type of service or program

Type of process eg: application, hearing, notification, etc

Source of problem/provider of services eg: organisation, institution, division, service supplier, location (when, where, who, etc)

Type of complainant eg: defendant, witness etc and also demographics


• Conduct regular quantitative baseline Conduct regular quantitative baseline studies to identify consumer priorities and studies to identify consumer priorities and contact behaviour patterns to enable contact behaviour patterns to enable complaints data to be normalisedcomplaints data to be normalised

Summary - Key Messages

• Avoid focus on one initiative or approach - Avoid focus on one initiative or approach - develop a broader strategic framework for develop a broader strategic framework for service improvement.service improvement.

• Use models such as the Strategic Service Use models such as the Strategic Service Chain to ensure that a comprehensive Chain to ensure that a comprehensive service improvement agenda is focused service improvement agenda is focused upon.upon.

• Link the service strategy to your Link the service strategy to your organisations business planning processes.organisations business planning processes.


• Develop a comprehensive range of Develop a comprehensive range of internal and external (customer) internal and external (customer) measurement or feedback systems - measurement or feedback systems - these do not have to be elaborate or these do not have to be elaborate or overly resource hungry.overly resource hungry.

• Align and integrate all the customer Align and integrate all the customer data sources for a more coherent image data sources for a more coherent image of the service issues.of the service issues.


• Ensure that initiatives such as Service Ensure that initiatives such as Service Standards or Complaint Management Standards or Complaint Management Processes build reliable monitoring and Processes build reliable monitoring and information reporting systems - using information reporting systems - using consistent approaches.consistent approaches.

• Use measurement, gap analysis Use measurement, gap analysis techniques and qualitative feedback to techniques and qualitative feedback to identify the priorities for action.identify the priorities for action.


• Implement the service improvement Implement the service improvement agenda and support the managers and agenda and support the managers and staff to make the necessary changes to staff to make the necessary changes to processes, systems and service delivery.processes, systems and service delivery.

• Incentivise the staff, monitor and measure Incentivise the staff, monitor and measure the on-going success. In the end only the on-going success. In the end only what gets measured gets done!!! what gets measured gets done!!!

Thank YouThank You

Contact Details:Contact Details:

Telemedia Group Pty LtdTelemedia Group Pty Ltd21 Henry Street21 Henry Street

Stepney SA 5069Stepney SA 5069

Ph: +61 8 8362 8188Ph: +61 8 8362 8188

Fx: +61 8 8362 9431Fx: +61 8 8362 9431

Documents

Towards a More Integrated Service Improvement Approach Copyright Colin Kent (1999) For permission to reproduce this presentation please contact the author