[email protected] Strategies for Improving Performance of the Public Sector” 26 th March 2008...
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[email protected] 1 Strategies for Improving Performance of the Public Sector” 26 th March 2008 Ministry of Civil Service and Administrative Reforms and Ministry of Finance & Economy Republic of Mauritius
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Transcript of [email protected] Strategies for Improving Performance of the Public Sector” 26 th March 2008...
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Strategies for Improving Performance of the Public
Sector”
26th March 2008
Ministry of Civil Service and Administrative Reforms and
Ministry of Finance & Economy
Republic of Mauritius
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Topics to be Covered
Need for ChangeRole of Leadership in
Customer satisfaction Staff performance Improving Systems and Processes Improving Service Quality
5
.
Customer expectations are changing;Competition is rewriting the rules; Costs are going up;Change is continual, faster & more complex than before;Technology makes us obsolete;Other stakeholders expectations are changing; Economy is global and interconnected
We are in a very dynamic situation
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Rate of Quality Improvement in Automobile Industry, From “ Making Quality Happen” Juran Institute, 1988.
1950 1960 1970 1980 1990 2000
Japan
WestQuality(Salability Of Product
Rate of Improvement is Decisive
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.
The essence of going forward is humility
Do we have a choice?
You as Leaders have the responsibility to embrace change and drive improvements.
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Role of LeadershipIdentify stakeholders, understand & satisfy
their needs; Establish, communicate & deploy
Vision, Mission & Values
Measure performance and progress towards fulfillment of Stakeholder satisfaction, Vision, Mission and Values (Dash board)
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Deployment of Vision, Mission -Issues & Challenges &
Your Role as Leaders
Not communicated personally Time frame is not defined; Vague/ not inspiring enough; Staff not clear what they have to do to achieve it; Disconnect between vision/ mission and strategy and
goals; Lack of processes/ ineffective deployment; Lacks measurement system to track progress.
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Japanese Perceptions of Job Functions
Top Management
Middle Management Improvement of Standards
Maintenance, Technology & ManagementSupervisors
Workers
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Japanese Perceptions of Job Functions (2)
Innovation
Maintenance
TopManagement
MiddleManagement
Supervisors
Workers
KAIZEN
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Customer Expectations
Customer need
Definition Example of Car Rental Company
Basic The bare essential attributes of the product or service should be present.
A rental car will be serviced and will operate properly.
Expected Some attributes will be provided as a part of the product.
The rental car is convenient to get to, some features are explained, and basic policies clarified to the customer.
Desired These are attributes that are worthwhile to have, but not necessarily provided as part of the package.
The person at the rental car gives good directions to your location and helpfully tells you how to save money when you return the rental car.
Unanticipated These are surprise attributes that go beyond what the customer expects from a purchase.
The rental car agency drops the car by your place at your requested time and will pick it up when you are finished.
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Customer Service Listening Systems (Partial List)
Type Description Purpose
Surveys Service satisfaction survey of customers following a service encounter
Obtain customer feedback while service experience is still fresh; act on feedback quickly if negative patterns develop
Mystery Shopping
Researchers become “ customers” to experience and evaluate he quality of service provided.
Measure individual employee service behaviour for use in coaching, training, performance evaluation, recognition, and rewards. Identify systematic strengths and AFIs in customer contact service.
Customer Complaint & Enquiry
System to retain, categorize, track and distribute customer complaints and other communications with the company.
Identify most common type of service failures for corrective action. Identify through customer communications opportunities to improve service or otherwise strengthen customer relationships.
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Issues & Challenges in Customer Listening Systems &
Your Role as Leaders
CSS. In survey, ask what is important to customer; Select the right scale; Ensure independence, objectivity, right frequency, credible
sample, right segmentation, high response rates Compute the satisfaction levels correctly; Accept the voice of the customer – (right or wrong) Take the voice of the customer deep into the organization Do not focus on indices. Focus on improvement, improvement, improvement Make % improvement as one of your KPI.
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What is a complaint
"Any Expression of Dissatisfaction by a Customer Whether Justified or Not".
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Issues & Challenges in Customer Listening Systems &
Your Role as Leaders
Customer complaints Adopt BS:8600 Drive out fear Make it very easy for staff to record Assign responsibility for resolution. Authorize staff to resolve Advertise - let your customers know whom to report and how to
report complaints Increase in no. of complaints recorded as one of your KPIs; Respond to customers promptly Do not close the complaint till customer is satisfied Analyze & eliminate causes of complaints to prevent
reoccurrence Take voice of complaining customer deep into the organization
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Customer Complaints
Only 4% of the dissatisfied customers let the company know of the problem.
The reasons for not complaining are: Customers don’t know how to register a complaint They don’t think it will do any good (the supplier
employees won’t know what to do with it) People feel awkward or pushy if they complain. The service provider might fight back
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Chevrolet Experience - Before
About 40 million vehicles on road ; Network of 5000 dealers; Complaints handled by local dealers; Inconsistency in dealing complaints; No systematic way to collect and analyze
customer feedback; No way of identifying persistent causes of
problems.
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Chevrolet Experience - After
Centralized customer service into single customer assistance center;
800 toll free phone time; Toll free No. advertised heavily; Set up 24X7 call centre – 200 staff; Receiving 5000 calls daily; 80% calls answered on first ring; Normal waiting time – 5 sec.
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Chevrolet Analysis - Findings
40% Actually
complain (40)
60% did not
complain (60)
80% Willing to 20% Not willing 10% willing 90% not willing
re buy (32) to re buy (8) to re buy (6) to re buy (54)
Message: Get all customers with problems to complain !
100 “Unhappy” Customers
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Staff Institute Establish Performance Appraisal System
including annual objectives with weightages, measures and targets;
Staff Satisfaction SurveysBottom up structured listening channelsHorizontal structured communication channelsRecognition and Reward systems
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Issues & Challenges in Performance Appraisal System & Your Role as Leaders
Objectives are aligned with Vision/ Mission/ Strategy BSC – all 4 perspectives covered Continuity in cascade End result focus Appropriate weightages Measurable targets SMART Objectivity, fairness & transparency Traffic light system to monitor progress
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Strategy Quality Goals
Sub goalsAnnual goals Projects
Deploying the Vision through Objectives
Key Strategy
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Commonly Accepted Objectives
1.Product Performance
2.Competitive Performance
3.Quality Improvement
4.Cost of Poor Quality
5.Performance of Business Processes
6.Customer Satisfaction
7.Customer Loyalty & Retention
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Process Management
All work gets done through processesProcesses are at the heart of any
businessProcesses in traditional organizations
are not identified, measured, controlled, managed and are orphans.
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Work Flow in Functional Organization
R & D
Producti
on
Service
Distribution
Manufacturing
Product Development
Customer
Customer
Customer
Key Business Objective
Mission
Vision
Top ManagementFunctional Objectives
Pro
cess
Ob
ject
ives
Shipping
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Process Management
Identify critical business processes & their interrelationships
Assign process ownerMeasure what is critical to customer to
improve servicesContinually improveImplement ISO:9001:2000 effectivelyBusiness Process Reengineering
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Issues & Challenges in ISO:9000 & Your Role as Leaders
Ensure all critical processes are: identified, inter relationships defined, mapped, scoped, Measured for their effectiveness and efficiency Controlled & managed And continually improved.
Do not make it a paper tiger
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.What are Services?
They are deeds, promises, processes and performances
Service depends on friendliness, competence, responsiveness and motivation of the service providers.
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. Goods Vs ServicesTangible IntangibleStandardized HeterogeneousProduction Simultaneous Separate From ConsumptionNon-Perishable PerishableSpecifications Expectations
How are services different from goods?
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.
1. Reliability
2. Responsiveness
3. Assurance
4. Empathy
5. Tangibles
ServeQual dimensions
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.ServeQual dimension
Reliability- Delivering on Promises made .
Or the ability to perform the promised service dependably and accurately about core service attributes such as Delivery, Service provision, Pricing.
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.ServeQual dimension
Responsiveness-
Willingness to help and provide prompt service in dealing with queries, attentiveness, questions, complaints and problems
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.ServeQual dimension
Assurance Inspiring Trust and Confidence and
Employees knowledge on products and services and the courtesy
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.ServeQual dimension
Empathy Degree of Caring ,individualized attention
provided , Treating customers as individuals and making them feel they are unique and very special.
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.ServeQual dimension
Tangibles Representing the service physically
Such as appearance of physical facilities equipment, personnel, communication material. This can enhance image and signal quality to customer.
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Concluding Thoughts
Challenge is It is in your moments of decisions that your destiny is
made To take initiative Provide leadership Effective implementation with the involvement of all
impacted stakeholders Impacting & sustainable results
Leave a legacy
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.Q & A
Thank You
My Best Wishes to you all in Your
Journey Towards Performance Improvement
Sunil [email protected]
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Vision: “ Desired future state of an organization (Dr. Juran)”
Mission : Purpose of our business (What business are we in)
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STRATEGIC PLANNING MODELS (Juran)
Strategies : Means to achieve the vision. Strategies are few and define the key success
factors such as price, value, technology, market share, and culture that the organization must pursue. Strategies are sometimes referred to as ‘key objectives’ or ‘long-term goals’.
Goals :What the organization must achieve over a 1-to-3 year period; the aim or end to which work effort is directed. Goals are referred to as ‘long-term’ (2 to 3 years) and ‘short term’ (1-2 years). Achievement of goals signals the successful execution of a strategy.
Key Performance Indicators (KPI) :Measurements that are visible throughout the organization for evaluating the degree to which the strategic plan is being achieved.
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Western Perceptions of Job Functions
QUALITY MODELS AND THEORIES
Innovation
Maintenance
TopManagement
MiddleManagement
Supervisors
Workers
