Buy
Do
Share
Understanding Service Needs
Objectives
 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
Links to other procurement
programmes
 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
5 Modules
Identity Service Need
Benchmarked to:
National
Occupational
Standards for
Purchasing
Full attendance
plus completion of
assessment leads
to ILM Level 3
Award in Service
Improvement
Commercial
Assessment
Solution Provision
Contracting
Contract Relationship
Management
Learning Materials
Programme
supported by
Workbooks and
elearning via iLearn
Dedicated Client
service manager
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
Caius Petronius AD 66
“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.”
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
Service demand
6
Numbers
5
4
3
2
1
0
mon
tue
wed
thur
fri
sat
Day of week
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
-SPEED+
+COST-
• 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
The Pareto Principle
80% of queries handled at 1st 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
Golden Rules of Surveys
•
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
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 ?
23
A Questionable Questionnaire
23. 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’
24
Impressions
About You
About your organisation
What would you like your customers
What would you like your customers
to say about your organisation and
the way it deals with them ?
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?–
14% are
attracted by
What the research says
68% are
dissatisfied with
the indifferent
attitude of
other suppliers
(where they have a
choice)
just one
member of staff
Sources : British Quality Foundation
Institute for Customer Service
14% are
dissatisfied
with the
service itself
Individual behaviour makes the
difference!

Every individual makes a significant
impact customer experience & on the
organisations service reputation

It is a myth that service quality is the
major influence on customer satisfaction
– it’s just one!
Why are people and organisations
often resistant to change?
The Transition Curve
7.
NEW BEHAVIOUR
Incorporate meanings
into new behaviours
2.
FALSE
HOPE
Temporary retreat
Disbelief
6.
3.
FRUSTRATION
Awareness that change is necessary
Frustration phase
How to deal with change
5.
1.
Beginning of transition
4.
Internalisation
Seeking understanding
why things are different
Not until people get out of activity
do they understand their lives better
EXPERIMENTATION
SHOCK
Shock overwhelmed
mismatch between
high expectations
and reality
NEW MODELS
LETTING GO
"Letting go of past" comfortable
attitudes and behaviours
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
Time
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
•
•
•
•
•
•
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•
•
•
•
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
DESIRED STATE
PRESENT STATE
UNDESIRED STATE
DRIVING FORCES
What's in it for me? Pay-Offs
The behaviourist approach - Skinner
Cues
trigger
behaviour
leads to
Pay-Offs
Understanding how it feels
If you were a water molecule......
Freeze/Unfreeze/Refreeze
Using a practical model to drive change
Moving from the Present state to the Desired state through empowerment.
SPECTRE
(Pestle)
External trends and drivers
Where are
we now?
STAKEHOLDER
Analysis
& Research
GAP analysis
SWOT
External & Internal
Research and feedback
Present state – Desired future state
Where do
we need to
be?
Where Are We Now ?
Using SWOT Analysis dynamically to
plan the change
Strengths
Weaknesses
What
What
What
What
What
What
What
with?
What
have we got that is good?
do we do well?
advantages do we start with?
do we like?
don`t we do well?
problems are there?
disadvantages do we start
don’t we like?
Opportunities
Threats
Build on strengths
Correct weaknesses
Take precautions against threats
Turn opportunities into objectives
What internal or external matters
could adversely affect us?
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
•
•
•
•
•
Awareness of the need for change
Desire to support and participate in the change
Knowledge of how to change
Ability to implement new skills & behaviours
Reinforcement 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?
Yellow Bus Diagram
Partnership
Other
Alternative
County/District
CPA
Rural/Urban
School/
School Groups
Environmental
Pupil Safety
Community
CPA
Rural Areas
LTP Targets
Quality
Grants
Cost
Charging Policy
Service
Bus Pass Issues
Running Costs
Maintenance/
Repairs
Drivers
Insurance
Buses
Lease or Buy
WHO
WHY
Provides
Monitoring
Benchmarking
Infrastructure
No.of Buses
Yellow Buses
No.of Drivers
Disabilities
No.of Attendants
Health & Safety
£
VFM
C.P.A.
HOW
Time
WHO
FOR
am/pm
CRB
Traffic Priority
Bus Stops
Infrastructure Issues
WHEN
Length of
Contract
..Or Standalone
WHERE
Efficiency
Break
Clause
Additional contract
(to existing)
Drop off points
WHAT
Snow/gritting
Type of
service
Size of Bus
& Roads
RISKS
Just Schools
Wider
Special Needs
Pupils
All
Attended Class
Nursery
Primary
Statutes
Secondary
School Age
Consult
Stakeholders
Parents
Others
Older
Other Seniors
Special
Pupils
Other
Day Care
Contract
Failure
Contingency
Plan
Service
Wider
Quality
Strike
Finance
Ind bus/driver
CRB/Legal/
Hts
Charge/Loss
of demand
Other (Courier)
Local Groups
After School
School Trips
Other BCC Clients
© Cherith Simmons Management 2006
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
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•
•
•
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
DMAIC – Improving existing processes or services
Define
Measure
Analyse
Develop
problem
description and
project goals
Identify critical
quality
requirements
Identify process
steps that add
value
Develop
potential
solutions
Evaluate
current
measurement
system
Identify root
cause for
problem areas
Review best
practice and
adopt if sound
Target waste
Set criteria for
selecting
solutions
Collect
customer data
Review
historical data
Map the current
process
Set up a team
and define its
remit
Develop a
better one if
found wanting
Collect data
Prioritize root
causes
Map the future
state
Improve
Pilot solutions
Roll out
solutions
Control
Document the
new process
Map the process
Set up
monitoring &
review
Train staff
Identify lessons
learned.
The 7 Wastes
Rework
Over
supply
Access
Waiting
Inventory
Idle
Poor
Cost of Internal
More
Or
stock,
quality supply delivery
external Kit, or
=
than
delay
space
Defects demand Reduce
In
service
Travel Complexity
Dead Complex
time
Not
needed
Reduce
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
Friendly
staff
Easy
access
Happy
Patients
Get
Well
Cared
for
Good
Coms..
The Fishbone or Ishikawa Diagram
Staff
Resources
Workplace
Problem
Materials
Methods
Measures
Maps cause and effect
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?
PICK Chart
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.
Low Pay Back
High Pay Back
Easy to do
Possible
Implement
Hard to do
Kill
Challenge
Some tools for Service Design -Kepner Tregoe
Analyze to develop and design alternatives, create a high-level design and
evaluate alternatives to select the best design
Essentials
What does
the ideal
solution
look like?
The
solution
MUST
contain
these
elements
Desirables
It would be
a BETTER
solution
with these
elements
Compare
and score
The best
solution
delivers all
Essentials
and scores
highest on
Desirables
Questions?