Understanding service needs

Understanding Service Needs Buy Share Do

To examine the context of service delivery in local government To examine how we can understand service needs To look at techniques for understanding service costs and demand patterns To revisit stakeholder consultation in the light of political initiatives such as Localism and the Big Society To examine stools for service delivery optimisation Objectives

This programme is the 1st Module in a series covering every aspect of the Do Buy Share approach Completion of all the modules will provide the knowledge required for the ILM Level 3 Award in Service Improvement A work based assignment is required to be awarded the qualification Further details will be available on the Do Buy Share website A link will be mailed to you shortly Links to other procurement programmes

5 Modules Benchmarked to: National Occupational Standards for Purchasing Full attendance plus completion of assessment leads to ILM Level 3 Award in Service Improvement Learning Materials Programme supported by Workbooks and elearning via iLearn Dedicated Client service manager Contract Relationship Management Contracting Solution Provision Commercial Assessment Identity Service Need

Change Evolution? Revolution? Adaption?

Machiavelli “ There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things”

Sir Winston Churchill “ To improve is to change; to be perfect is to change often”

Where are we now? SPECTRE ANALYSIS Social Political Economic Customer Technological Regulatory Environmental

“ We trained hard, but it seemed that every time we were beginning to form up into teams we would be reorganised. I was to learn later in life that we tend to meet any new situation by reorganising, and a wonderful method it can be for creating the illusion of progress, while producing confusion, inefficiency and demoralisation.” Caius Petronius AD 66

Single loop learning tries to keep up!

Double Loop Learning – seeks to create

Demand Mapping How can we make the service fit the demand? Understanding patterns in demand SMART resourcing Thinking outside the square

RUN chart or Time series analysis Use to examine patterns in a a service or process and play back to the delivery team to identity frequency, scale, trends and ownership.

Business Process Mapping What does the service look like? What happens first, what happens next? From the providers view From the Customers view Get input from all and get people to draw simple flow charts Compare them, discuss the differences Decide what it needs to be against what it is now (Gap analysis) Draw the improved process

The Service Chain – looking for the weak links

The Kano Questionnaire What value is added at each stage of the process?

Triaging work Cost of 5 minute interview with middle manager in an interview room Cost of dealing with transaction by email Cost of dealing with transaction by phone Cost of dealing transaction by website +COST- -SPEED+

The Pareto Principle 80% of queries handled at 1 st point of contact 20% escalated

The Concept of Fast Fixes Organisations may have several departments that have direct interaction with the customer. These include : Those on the front line - 1st level support Those who try to fix the problem initially – 2nd level support Those to whom the problem is sent if it can't be fixed- 3rd level support Managers who may get involved if the customer is irate Design for minimum customer handling – Why can’t the first point of contact fix the problem ?

Golden rules of Focus or User Groups Make sure group is representative Convenient venue for the participants Ideally around 10 – 12 Around 90 minutes long You’ll need a facilitator and note taker Open questions – one at a time to speak Around 6 topics- let participants know what they are in advance Send copies of notes and thanks afterwards

Make sure sample is representative One side of A4 printed on yellow paper Minimum questions to increase response, ideally 10 Measure degrees of satisfaction and dissatisfaction (disagree strongly/disagree/agree/agree strongly) Use 4 tick boxes per question - simple language Allow room for comment Design for easy compilation of results Golden Rules of Surveys

A Questionable Questionnaire Suppose that a summer camp director had prepared the following questionnaire to use in interviewing the parents of prospective campers. 1. What is your income to the nearest £100 ? People don’t usually know their income to the nearest 100 nor do they want to reveal their income that closely. Moreover, a researcher should never open a questionnaire with such a personal question. 2. Are you a strong or weak supporter of overnight summer camping for your children ? What do strong and weak mean ?

A Questionable Questionnaire 2 3. Do your children behave themselves well at summer camp? Yes ( ) No ( ) Behave is a relative term. Furthermore, are ‘yes’ and ‘no’ the best responses to allow for this question? Besides, will people want to answer this? Why ask the question in the first place ? 4. How many camps mailed literature to you last April ? This April ? Who can remember this? 5. What are the most salient and determinant attributes in your evaluation of summer camps ? What are ‘salient’ and ‘determinant’ attributes? Don’t use big words 6. Do you think it is right to deprive your child of the opportunity to grow into a mature person through experience of summer camping? A loaded question. Given the bias, how can any parent answer ‘yes’

Impressions About your organisation What would you like your customers to say about your organisation and the way it deals with them ? About You What would you like your customers to say about you and the way you deal with them ?

Behavioural Standards for Barpersons Acknowledges customers arriving at the bar within 30 seconds Smiles and greets in a polite and friendly manner Serves customers in strict order of arrival Works from left to right in each segment of the bar Serves right drink with right change in 3-4 minutes

Why do customers leave?– What the research says 14% are attracted by other suppliers (where they have a choice ) 14% are dissatisfied with the service itself Sources : British Quality Foundation Institute for Customer Service 68% are dissatisfied with the indifferent attitude of just one member of staff

Individual behaviour makes the   It is a myth that service quality is the major influence on customer satisfaction – it’s just one! Every individual makes a significant impact customer experience & on the organisations service reputation difference!

Why are people and organisations often resistant to change?

The Transition Curve 1. SHOCK Shock overwhelmed mismatch between high expectations and reality 6. NEW MODELS Internalisation Seeking understanding why things are different Not until people get out of activity do they understand their lives better 5. EXPERIMENTATION New behaviours, new approaches Tendency here to stereotype i.e. the way things should be done Lot of energy Begin to deal with new reality Lot of anger and frustration 4. LETTING GO "Letting go of past" comfortable attitudes and behaviours 3. FRUSTRATION Awareness that change is necessary Frustration phase How to deal with change 2. FALSE HOPE Temporary retreat Disbelief 7. NEW BEHAVIOUR Incorporate meanings into new behaviours Time Beginning of transition

Understanding how some senior managers feel It’s best not to give information about ‘work in progress’ It’s best not to say, “I don’t know”. Don’t be the bearer of bad news. Don’t give information unless absolutely necessary. Secrets must be guarded The average employee cannot handle difficult information. Information should be dispensed on a “need to know” basis

Transition Period Issues Uncertainty and anxiety felt about the eventual outcome of the change People asking questions to which managers do not have the answers Resistance if the change seems threatening Rumour Uncertainty and ambiguity about roles and responsibilities Maintaining the initial surge of energy and enthusiasm for change Constant re-appraisal of objectives and priorities People looking for opportunities & advantages Planning the desired future state Difficulty maintaining morale and commitment Physical upheaval Maintaining comfort zones

Understanding Driving & Restraining Forces Force Field Analysis - Lewin RESTRAINING FORCES DRIVING FORCES DESIRED STATE PRESENT STATE UNDESIRED STATE

What's in it for me? Pay-Offs The behaviourist approach - Skinner behaviour Cues trigger leads to Pay-Offs

Freeze/Unfreeze/Refreeze If you were a water molecule...... Understanding how it feels

External & Internal Research and feedback Present state – Desired future state External trends and drivers Moving from the Present state to the Desired state through empowerment . Using a practical model to drive change SPECTRE (Pestle) STAKEHOLDER Analysis & Research GAP analysis SWOT Where are we now? Where do we need to be?

Where Are We Now ? Using SWOT Analysis dynamically to plan the change

The Moebus Strip – puts us all on the same side ‘ People do not resist their own ideas’ - Rowley & Rogers

The ADKAR Model – shifting to fast download for maximum speed of adoption The components A wareness of the need for change D esire to support and participate in the change K nowledge of how to change A bility to implement new skills & behaviours R einforcement to sustain the change Fast Download gets 50% speed up in adoption (Prosci Consulting study of 1600 companies in 20 countries)

Where Are We Going? “ Our ongoing mission, to seek out new worlds and new civilisations. To boldly go where no one has gone before!”

Rich Pictures What does your ideal future look like?

Tools for Change – Lean Six Sigma Lean Born out of manufacturing but applicable to service delivery, processes and systems Coined in 90’s Mostly derived from the Toyota production system Focuses on eliminating the 7 wastes Six Sigma Developed by Motorola in 1986 but drawing on many other established approaches from the previous 50 years Can be applied to manufacturing or service industries Designed to reduce error and waste, improve service and reduce cost Involves all stakeholders

Inspired by the work of Dr Deming The PDCA cycle Plan Do Check Act

Develop problem description and project goals Collect customer data Review historical data Map the current process Set up a team and define its remit Identify critical quality requirements Evaluate current measurement system Develop a better one if found wanting Collect data Identify process steps that add value Identify root cause for problem areas Target waste Prioritize root causes Map the future state Develop potential solutions Review best practice and adopt if sound Set criteria for selecting solutions Pilot solutions Roll out solutions Document the new process Map the process Set up monitoring & review Train staff Identify lessons learned. DMAIC – Improving existing processes or services Define Measure Analyse Improve Control

The 7 Wastes Poor quality = Defects In service Rework Travel Over supply Access Waiting Inventory Complexity More supply than demand Cost of delivery - Reduce Idle stock, Kit, or space Internal Or external delay Dead time - Reduce Complex Not needed Use triage to fix

The 5 ‘whys’ An example: My car will not start. (the problem) Why? - The battery is dead. (first why) Why? - The alternator is not functioning. (second why) Why? - The alternator belt has broken. (third why) Why? - The alternator belt was well beyond its useful service life and has never been replaced. (fourth why) Why? - I have not been maintaining my car according to the recommended service schedule. (fifth why, root cause)

Case study – Practice Nurses 12 Nurses from 12 practices buy 3 brands of dressings Their combined stock takes up 500 square feet of storage Annual wastage runs at 15% How could they use a Six Sigma approach to improve efficiency and save money

CTQ Tree – Critical to Quality Short waits Easy access Cared for Get Well Friendly staff Good Coms.. Happy Patients

The Fishbone or Ishikawa Diagram Maps cause and effect Staff Materials Resources Methods Measures Workplace Problem

Robustification No – George did not invent it! It’s a quality process where you make your service less prone to random variability How would you make sure your delivery drivers had equal skills and did not waste time on delivery runs?

Choosing between directions How can we make objective choices about which change options to pursue? Some tools Cost benefit plus PICK charts Decision Matrices

Cost Benefit Analysis to compare alternatives What delivers the most cost effective solution? Cash benefits? Plus + Time costs? Plus + Transaction costs between options? Plus + Are we triaging service delivery at most cost effective level? Plus + Are Social benefits relevant?

When faced with multiple improvement ideas a PICK chart may be used to determine the most useful. There are four categories on a 2*2 matrix; horizontal is scale of payoff (or benefits), vertical is ease of implementation. PICK Chart Low Pay Back High Pay Back Easy to do Possible Implement Hard to do Kill Challenge

Some tools for Service Design -Kepner Tregoe A nalyze to develop and design alternatives, create a high-level design and evaluate alternatives to select the best design The solution MUST contain these elements It would be a BETTER solution with these elements The best solution delivers all Essentials and scores highest on Desirables Essentials Desirables Compare and score What does the ideal solution look like?

Understanding service needs

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Understanding service needs