Posted by Colin Weatherby 260 words
There have been a number of posts on services and customer service, with the most recent by Lancing Farrell . Each post has explored a different aspect of service or customer service. This post looks at customer experience using two excellent articles from the Harvard Business Review as a guide; the first is ‘Understanding Customer Experience’ by Christopher Meyer and Andre Schwager, and the second is ‘Lean consumption’ by James Womack and Daniel Jones.
In their article, Meyer and Schwager describe the customer experience as encompassing
“… every aspect of a company’s offering the quality of customer care, of course, but also advertising, packaging, product and service features, ease of use, and reliability.’
They make the point that in many organisations few of the people responsible for each of these activities have thought about how their separate decisions contribute to the overall customer experience. Worse still, if they do think about it, they all have different ideas and there is no one senior who oversees everyone’s efforts to bring agreement on what needs to be done. This is local government’s problem with service delivery in a nutshell.
Womack and Jones define ‘lean consumption’ as ‘minimising customers’ time and effort and delivering exactly what they want when and where they want it’. They see it as transforming consumption in the same way that lean production transformed manufacturing. It involves customers and service providers collaborating to ‘reduce total cost and wasted time and create new value’.
How are these two ideas relevant to the local government customer experience? Read on …
Posted by Colin Weatherby 830 words
I recently found a new and interesting blog called ‘Squire to the Giants’. Much like thinkpurpose.com this blog site is aimed at people who have an interest in improving their organisation through systems thinking. A recent post talks about the ‘giants’ that have influenced the Squire’s thinking. I am familiar with some of the ‘giants’ and have others of my own.
The Squire lists the following giants:
Regular readers of this blog will be familiar with the work of Peter Scholtes and John Seddon. Both have influenced the thinking of writers. The biographical pieces written by the Squire are worth a look.
I have decided to produce a blog on one of my giants.
Professor Mark H. Moore
First some background. Mark H. Moore is the Hauser Professor of Nonprofit Organisations and director of the Hauser Centre for Nonprofit Organisations, at the John F. Kennedy School of Government at Harvard University.
His research interests include public management and leadership, civil society and community mobilization, and criminal justice policy and management. Continue reading
Posted by Colin Weatherby 2200 words
John Seddon won the first Harvard Business Review/ McKinsey Management Innovation Prize for ‘Reinventing Leadership’ in 2010 for this paper. The prize was awarded for:
“ … the best story (a real-world case study of management innovation) or hack (a bold idea for tackling a critical management challenge) around … redefining the work of leadership, increasing trust (reducing fear), and taking the work out of work.”
As the title suggests it is a provocative paper. In his usual way, Seddon provides challenging ideas supported by practical evidence.
The context for the story is Owen Buckwell, the head of housing at Portsmouth City Council in England. Over 40,000 people rely on him for warm, safe and comfortable homes. Each year he is responsible for dealing with 17,000 blocked toilets and 100,000 dripping taps in the 17,000 council houses.
Owen has been managing housing for 6 years. Seddon describes him as a curious man who likes to get to the bottom of things.
What does Owen do?
Posted by Lancing Farrell 1100 words
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
Posted by Colin Weatherby 670 words
Lancing Farrell recently posted on value-led management. There is increasing demand for improved performance in delivering local government services that are responsive, efficient and fair. Communities want change. Councils today operate in much the same way as they did 30 years ago, despite some radical legislative reforms, and it is time for a re-think of how council operations are designed to deliver value to communities. In this post I have added to the ideas introduced by Lancing Farrell.
Value is often mentioned in local government when talking about services, particularly ‘best value’. However, there is often inadequate understanding about the different types of value, the difference between private and public value, and how value is actually created. The concept of public value, as conceived by Professor Mark H. Moore, is extremely relevant in local government.
“Unless there is a clear understanding of the value to be produced, how can you design operations to produce it or measure performance in delivering it? “
Value-led management is a management approach to improving organisational systems and the value they produce. It focuses on the service recipient and value to be created in service delivery. In public services value is created along a continuum from essentially private value, similar to the concept of customer value, through to public value that reflects the aggregate desires of citizens. Continue reading
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
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
Posted by Lancing Farrell 740 words
There is a lot of talk in the public sector about measurement. Some people say that you ‘can’t manage what you can’t measure’ or, ‘what gets measured, gets done’. There is no doubt that measurement is inextricably linked to the pursuit of better performance and greater accountability. In local government, we seem to be desperately looking for things we can measure that will tell us how well we are doing. But are we measuring the things that count? Continue reading
Posted by Colin Weatherby 950 words
In the previous post, I discussed economies of scale and the cost savings possible through shared services. This post continues the discussion, starting with the implications of front and back office separation.
The history of ‘back office’ and ‘front office’ separation is worth some discussion. According to Seddon, it began with an article by Richard Chase in the Harvard Business Review in 1978. In the article, Chase recommends separating the ‘high customer contact’ and ‘low customer contact’ elements of the service system because of the different operations involved. Low customer contact operations are more efficient and, as a result, have lower costs and it makes sense to isolate them from the disruptive effects of customer interactions if it can be done without sacrificing service effectiveness. However, service effectiveness is exactly what Seddon believes has been lost in many of the cases he cites. Continue reading
Posted by Colin Weatherby 620 words
The Victorian state government plan to cap municipal rates has revived discussion about shared services. Some leaders see shared services as a silver bullet to reduce costs. What potential do shared services have to help councils respond to rate capping?
The article Government shared service back in vogue notes that shared services are usually justified by business cases promising operational efficiencies and cost savings. However, the article cites numerous examples of shared services that have failed to deliver.
In 2011, the West Australian government disbanded its Office of Shared Services centre after an Economic Regulation Authority review found the project was over budget and unlikely to deliver promised savings of $57 million a year. Instead the project had cost $401 million and achieved minimal savings.
The Queensland Health payroll upgrade was developed under the auspices of a shared services group. Originally with a budget of $98 million, and due for completion in July 2008, the project was the subject of a royal commission last year and is expected to cost taxpayers $1.2 billion by 2020.
In The Whitehall Effect John Seddon documents examples of similar failures in the United Kingdom. The track record of failure suggests that there are significant risks associated with shared services. So why are they regularly on the public sector reform agenda? Continue reading