Category Archives: customers

106 – Some of the seldom asked questions in local government. What are they?

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Posted by Whistler                                                                                          390 words

the thinker

I am sure these are not the only great unasked questions. But they are questions that frequently come to mind when you are in one of those interminable meetings talking about the same old topics.

  1. How does this add value? This is a question that often runs through my mind but it never seems appropriate to ask it. It just doesn’t seem relevant. As much as we say that we are serving the community, we choose to do it in our own way. What the community sees as value, and how they want it to be delivered, isn’t something we question enough.
  2. Am I the best person to do this? I like this question and have regularly asked it of my direct reports and encouraged them to ask it. My Group Manager has never asked it. As officer, we seem to like spending time doing things that we know how to do well, or that make us feel good because we have ‘saved the day’, or because it is just easier than the effort required in getting someone else to do it properly. Looking for the work that only you can do, and then doing it, can take you out of your comfort zone.
  3. What can we do to act on the customer survey? Each year, councils in Victoria participate in sector wide customer satisfaction monitoring. The survey results are made public and daily media report on the state wide results. Through this process it is possible to be identified as the worst performing council and this places a high level of pressure on councils. But does it lead to serious questioning of what can be done to act on the survey and really make a difference? Not often. There will be discussion about the results. A lot of time will be spent discussing the shortcomings of the methodology. But really trying to understand the results and act to improve customer or community satisfaction by taking some risks to improve value? I don’t think so.

After writing them, I found that there was a theme to these questions – we need to question what we are doing to make sure that we are adding value by doing what needs to be done to satisfy purpose or meet need or create value. Call it what you like, just do it.

105 – Some characteristics of services demands that are important.

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Posted by Lancing Farrell                                                              1100 words

operations typology 2

Image from Operations Management, 1998.

Some time ago I posted on high performance job design using four characteristics or spans; control, accountability, influence and support. At the time I linked the concept to the operations typology describing four characteristics of design of operations for high performance. This post picks up that discussion to look at the characteristics of demands that it is essential to understand if you want to design and manage your operations for high performance or excellence in local government.

A number of recent books on public sector management have discussed demands and how it is essential to understand them in public services because payment is not made at the time of service consumption and, therefore, price does not directly influence the amount and nature of demands placed on the system.

In his Vanguard Method John Seddon describes the importance of fulfilling purpose if failure demand is to be avoided. He also talks about understanding flow in relation to how work enters a system. Both of these ideas relate to demands. If purpose (i.e. the value sought by someone or their demand on the system) is not correctly understood the work system will not meet their need. They will come back.

Mark H. Moore includes operational capacity in his ‘strategic triangle’ concept linking decisions from the authorising environment to the public value provided. An organisation must have the operating capacity (or capability as Moore describes it in his earlier book Creating Public Value) to deliver on the political commitment to create particular public value. Continue reading →

97 – A question: What if we treated the community the way we treat internal customers?

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Posted by Whistler                                                                                          400 words

bins in street

Colin Weatherby’s post about corporate services reminded me about a video clip that I saw some time ago showing what life might be like if the airlines ran like the health service. It was an interesting way to challenge accepted standards and made the whole system look out of touch. Colin’s post about our corporate services colleagues made me think that a similar parody might be needed to highlight the lack of respect internal service providers within councils often show for their customers.

Here goes.

Customer Service Officer (CSO) sitting in call centre answers the telephone to incoming call from a resident.

CSO:                      Hello, how can I help you?

Resident:             Hello. I put my bin out for collection on Monday and it hasn’t been collected. It is now Wednesday and I am wondering what is happening.

CSO:                      Did you put it out the front?

Resident:             Yes. I put it where I always put it on the nature strip.

CSO:                      Ah. There is your problem.

Resident:             I don’t understand.

CSO:                    Well, we no longer collect bins from out the front of houses. It is a new cost saving measure that will save lots of money. We won’t have to increase your rates by nearly as much this year. It will save at least $5 a week per household.

Resident:             But no one told me.

CSO:                     That’s because it would have cost us a lot of money to tell people. We don’t want to waste money.

Resident:             So what will happen now?

CSO:                      That depends. Do you still want your bin emptied? Continue reading →

73 – ‘Social media changes the rules of engagement’ , The Age, 4 April 2015

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Posted by Colin Weatherby                                                                         730 words

multi channel

This article contains a healthy warning for local government about the need to design services with the customer in mind, and to look ‘outwards-in’. There have been a number of previous posts on services (see here, here, here and here). Disgruntled customers of councils are just as likely to use social media to vent their anger and concerns.

“Customers want influence over the contents of what they’re buying; they customise the muesli they order online; stream entertainment that is tailored to their interests, and pitch ideas to software companies as they develop new products.”

In this environment, councils that just continue to offer the same old services, or who alter services in ways that make them less responsive to customers, or more responsive but less reliable, are likely to frustrate people using those services. Continue reading →

53 – Coffee, basketball and privatisation. What significance could they have for Australian local government?

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Posted by Colin Weatherby                                                                                    1000 words

the barista economy

Image from The Age, 11 March 2015

On the 11 March 2015 there were three articles in the Melbourne Age newspaper on different topics that each held a message of potential relevance for local government.

The first was ‘Welcome to the barista economy’. The article is based on a speech by Christopher Kent from the Reserve Bank of Australia (RBA) who looked at changes in household expenditure patterns over the past 30 years.

One thing is clear: we are spending a lot more on ‘services’ than we are on ‘stuff’. The share of household spending on services is up from 53 per cent to 65 per cent of household consumption.

The RBA explains the increased spending on services as a result of cheaper goods because of better productivity and more goods coming from ‘emerging economies’. The world has become better at producing goods and people now have more money to buy services, which in effect is buying time. We can afford to employ someone to perform tasks when our time is better spent on other activities, we don’t have the skills, or it improves our quality of life (e.g. leisure).

The barista connection highlights the growth in service industry jobs. Coffee shops are everywhere. Having a coffee has become part of every outing.

I think that the significance for local government is twofold. Continue reading →

46 – Labor’s rate cap to hurt services and infrastructure, ratings agency warns’. The Age, 27 February 2015.

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Posted by Colin Weatherby                                                         900 words

 slices of cake
Image from http://www.that-is-good-crap.com

This article follows an earlier piece in The Age,  ‘Plan to cap council rates at inflation could lead to service cuts and job losses in Victoria’ on 23 February 2015. Both articles are about the planned legislation in Victoria to restrict councils to rate increases at or below the Consumer Price Index from 2016 unless they seek an exemption from the Essential Service Commission. Some councils have already started to cut jobs to reduce expenditure ahead of rate capping. Others are forecasting cuts to their services and reduced maintenance or renewal of community infrastructure.

This is occurring at the same time that the State government is shifting more costs onto councils and national grants to councils are being frozen. I have previously posted on rate capping (see here , here and here). As you can imagine, rate capping is dominating talk within local government circles. Continue reading →

42 – How do you listen to the ‘voice of the customer’ in local government? It can be done.

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Posted by Lancing Farrell                                                                                              740 words

This post follows an earlier post Customer, client, citizen, resident or ratepayer. Who are we dealing with? It takes the concept of value further by proposing some tools that can be used to understand what customers expect and whether those expectations have been met.

I will start with Peter R. Scholtes and his views on the ‘customer-in mentality’, which he says is characterised by ‘thoughtfulness, responsiveness, empathy and altruism’. Customer-in thinking increases the likelihood that customers will get what they need – and need what they get. Listening to the customer is the beginning. Scholtes says we can start to do this by paying attention to what customers say when they contact us to make complaints, ask questions, or request services. Councils typically count the number of resident contacts. Some differentiate between service requests and complaints. Few actively evaluate what customers are asking about or saying to obtain qualitative data to guide service improvement.

Alternatively, or in addition, we can initiate contact with the customer to solicit information through surveys, interview or focus groups. Continue reading →

41 – ‘Where does the customer fit into a service operation?’ A brief discussion of the work of Richard B. Chase.

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Posted by Lancing Farrell                                                                                                     1200 words

In 1978 Richard B. Chase published his paper Where does the customer fit into a service operation? John Seddon says this article began the separation of front and back office operations; something that he believes has created many problems in public sector service delivery today. Maybe he is right. But when you read the article, what Chase is advocating makes sense and I can’t help thinking that it isn’t necessarily a bad idea, rather it is an idea that has been used badly.

Chase is an operations manager. By 1978 he had already co-authored a popular operations management text. He starts his paper stating that a manager needs to understand the ‘operating characteristics that set one service system apart from another’ in order to make improvements. Continue reading →

37 – Risk delegation. Who has it at your council?

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Posted by Colin Weatherby                                                                                         480 words

Have you ever wondered who has the formal delegation to accept risk on behalf of the organisation? I know that you probably spend most of your time dealing with systems that seek to reduce or eliminate risk, but what happens when risks must be taken? How do you assess and accept those risks?

My bet is that there is no system to accept risk and that your organisation has little understanding of the risks that are being taken by managers each day. I think that the absence of a system to formally assess and accept risks is the reason there are endless systems to get rid of it. I am not talking about the Risk Register and the big strategic or operational risks that are obvious to everyone. I am talking about the daily risks that arise when something hasn’t worked out the way you would like it to but work must go on. Continue reading →

33 – Developing an organisational performance measurement system. Some ideas.

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Posted by Lancing Farrell                                                                                     820 words

I have been thumbing through ‘Improving Performance – How to Manage the White Space on the Organisation Chart’ by Geary A. Rummler and Alan P. Brache, in particular the chapter about performance measurement. In it they describe measurement is the single greatest determinant of an organisation’s effectiveness as a system, and as the primary tool for ‘communicating direction, establishing accountability, defining roles, allocating resources, monitoring/evaluating performance, and taking improvement action’.

I haven’t seen a local government that has actively used performance measurement this way. Instead, it tends to be driven by external accountability requirements. We use the performance measurement that we do to convince others that we are doing what we should. Continue reading →