How to Develop a Long-Term Service Delivery Strategy from Creation to Evaluation
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Transcript of How to Develop a Long-Term Service Delivery Strategy from Creation to Evaluation
How to Develop a Long-Term Service Delivery Strategy from Creation to Evaluation
Robert K Martineau
Vice President
Business Strategy & IT Consulting
Today’s Agenda
• 8:30- 9:30 Presentation and Q&A• 9:30- 9:40 Introduction to Problem• 9:40-10:30 Workshop and Coffee• 10:45-11:15 Team Presentations• 11:15-12:00 Panel and Wrap Up
Developing a Long Term Service Delivery Strategy
Presentation
What We’ll Talk About…
• Understanding the Desired Service Outcome
• Understanding the Customer / User
• Designing a New Service or Updating an Existing Service • Determine desired outcome, expected benefits, customer,
requirements• Perform Current Capability Assessment – Customer Interaction, Back
Office Processes, Systems, Supporting Infrastructure• Design the Service, including channel(s)• Determine Integration with Back End Processes and Systems• Determine Support Infrastructure Requirements• Exploit Partnership Opportunities• Develop Performance Management Framework• Develop Strategic Plan and Budget• Develop Implementation Plan
Terminology
Service• Something that you do for someone or on their behalf, such
as performing a task, or providing information or good(s)
Channel• The conduit by which an organization’s service(s) are offered
or distributed to a customer. • A channel is often part of the service feature and part of the
customer value proposition. • The attributes of the channel can enhance or diminish the
service(s) for each segment.• Examples: over the counter, mail, telephone, eMail, Web site
Customer• A person, organization or process that receives and uses a service
1.DESIRED
OUTCOME
2.UNDERSTANDCUSTOMERS
USERSNEEDS & WANTS
3.SERVICE
OBJECTIVES& SERVICE
DESIGN4.
BACK OFFICEPROCESSES
&SYSTEMS
6.SUPPORTING
INFRASTRUCTURE
5.SERVICE
CHANNELS
7.CUSTOMER
SATISFACTION
8.OUTCOME
ATTAINMENT
Begin here, with the
outcome in mindBe
CustomerCentric
Design from the
outside in
LeverageIntegrate
Transform
Multi-ChannelService Delivery
MeasureCustomer
Satisfaction DemonstrateResults
ForCanadians
The Typical Journey…
Step 1 - Developing a Service Delivery Strategy • Achieving the Desired Outcome
Step 1 - Understand Desired Outcome
Understand the Service Delivery Strategic Context
Your Service Outcome
Departmental Outcome
Government Outcome
Your Service
Departmental Service
Government Services
Clearly understand the answers to these questions:
1. What desired outcome is your service to produce? (Not output)
2. What is the objective / purpose of your service? What will be the delivered benefit(s)? Who (groups, segments etc) will benefit?
3. How does your service contribute to the attainment of the Department’s / Government’s desired outcome for Canadians?
4. What do I need to consider in terms of policy and legislation ?
Step 1 - How to Do This…
• Review strategic direction setting documents, especially for desired outcomes and recent performance
Focus on understanding:• Your Organization’s Strategic Objectives• Desired Outcomes and Intended Result(s)• Current Performance Reports and Measures
• Define the desired outcome for your service and the benefit(s) that will be obtained by the customers / users of your service
• Consultation with stakeholders to build buy in, consensus
• Obtain senior management agreement on the desired outcome and benefits statement
This will ensure clarity of purpose and strategic alignment
Best Practice:Understand your organization’s Strategic Plan, Business Plan, RPP, DPR. Connect the dots.
Service Delivery Success• Be Outcome Oriented• Balance Perspectives• Build Consensus• Achieve Strategic
Alignment
Service Delivery Strategy
Step 1 - Balancing Perspectives
Executives, Service Managers
Objectives: Satisfied customers Reduced costs Increased effectiveness
IT CommunityObjectives:
Leading edge technology Cost usually not an issue Superior technical performance Security
Customers and Front Line Staff
Objectives: Simplicity, ease of use Convenience 7/24 access to services Seamless service Privacy
Strategic Factor Description
Desired Outcome
Purpose of Service
Contribution to Organization Outcome
Policy, legislative considerations
Expected Benefit
Senior Management Perspective
Service Manager Perspective
Support Infrastructure Perspective
Customer / Front Line Worker Perspective
Step 1 – Service Delivery StrategySample Analysis
Step 2 - Understanding the Customer / User
Step 2 - Understand your Customer
1. Who are the Current and Potential Customers / Users?
2. What do you know about them and what they want?
• Attributes• Demographics• Geographics• Psychographics
• Segments• Profiles• Preferences
3. How are they served today? Usage statistics, patterns?
4. How do they use what is available today? When? How often?
5. How would they like to be served? How is feedback obtained?
6. What are their service preferences?
Best Practice:Develop a detailed understanding of customers and service users.
Step 2 - Importance of Customer Data
1. Plan to Integrate all Customer Data into a Single DatabaseBenefits• Better customer profiling• Better customer service• Better service management
Considerations• User acceptance• Legislative• Privacy Act and PIPEDA• Confidentiality2. Analyze Usage Data
a. Usage rates vs profilesb. Usage patterns and triggers
3. Consider Predictive Modelinga. Life eventsb. Business eventsc. Trends, patterns
4. Performance Managementa. Transactional - What do they use? How often? Are they satisfied?b. Strategic - Is the desired customer outcome being attained?
But, carefully consider access to and use of this data
BestPractice
Factor Segment 1 Segment 2 Segment 3 Segment 4
Customer Identity or Group
Service
Needs
Service Preferences
Access Method
Channel Preference
Frequency, Duration
Security Privacy Needs
Satisfaction / Feedback
Outcome Attainment
Step 2 - Importance of Customer DataSample Customer Segment Comparison
Step 3 – Designing the Service and Channels3.1 Current Capability Assessment3.2 Designing the Service3.3 Performance Management3.4 Support Infrastructure Requirements3.5 Partnering
Current Service(s) Assessment• What service(s) are we mandated to deliver?• How many service requests do customers make of us?• How many different requests by type do we receive?• When are these requests made? What pattern do the requests form?• How do we handle a customer service request?• How de we deliver / fulfill a service request?• What do we know of customer satisfaction with the current services?• When were our services designed? Last reviewed? Is there a life cycle
management approach used to keep them current?
3.1 Current Capability Assessment
Current Channel(s)• What service delivery channels to we have?• What channels are used by each customer segment to submit requests?• What do we know about cycle times and throughput for each channel?
Other metrics?• What do we know about customer satisfaction regarding our current
channels?
3.1 Current Capability Assessment
Customer Knowledge• How many customers do we have?• Have we segmented / profiled our customers?• What do we know about them?• How do we know it?• How do we know that it is valid?• Is access to customer information managed to protect privacy and
confidentiality?
Current Business Processes• How are customer service requests handled? At the customer
interface? Internally? At the delivery interface?• When was the current business process designed? Updated?• Are the customer facing channels and business processes
integrated with the back office business processes and systems? If not, how are hand offs handled?
• What automation support enables customer facing and internal business processes?
Current Information Capture• What information do we collect by type, volume?
• Transactions?• Customers? Individually? By segments?
• What capabilities do we have to analyze this information?• What reporting capability to we have?
Current Technology / ies• What applications support current customer facing and back office
business processes?• What technologies do we use in each channel?
• Store front, Telephone / call centre / voice, Mail in, eMail, Kiosk / ATM, Web Site
Current Performance Management or Evaluation• How is the performance of current service delivery managed and / or
evaluated?• Are the measures comprehensive? Process? Output? Outcome?
Financial? Non-financial?
3.1 Current Capability Assessment
Factor Capability Assessment
Current Services Assessment
Current Channel(s)
Current Business Processes
Customer Knowledge
Information Capture
Supporting Technology Infrastructure
Performance Management Approach
3.1 Current Capability AssessmentSample Analysis
3.2 Designing the Service
Determine The High Level Service Parameters:
• Achieve Targeted Business Outcome – What It Has To Do• Attain Desired Service Outcome, with Attainment Measured• Meet Customer Satisfaction and Service Quality• Meet Service Levels / Objectives• Match Channel and access capability to customer profile(s)• Deliver Consistent Service and Message
• Meet Legislative, Policy Requirements - Compliance• Satisfy Privacy, Access To Information, CLF, Usability, etc.
• Respect Budgetary / Cost Limitations - What Is Affordable• Design to Budget• Where possible, attract / drive people to lower cost channel(s) to decrease
service delivery cost and increase service levels and quality
Government
Department
Service
DesiredOutcome
Customer/ Segment
Profile
Service
3.3 Determine Supporting Infrastructure Requirements
Funding
CustomerRequirements
Back OfficeProcesses& Systems
Policy, Legislation
SchedulingConstraints
Channel
ChannelCustomer
CurrentCapability
Assessment
3.2 Design the Service
Step 1Step 1
Step 2Step 2Step 3.1
3.2 Service Design Considerations
Also consider
ConsiderPreviousSteps
and
3.2 Designing the Service
1. Analyze2. Design
3. Plan4. Deploy
5. Operate6. Monitor / Adjust
ServiceDesign
ProjectManagement
PerformanceManagement
Concurrent
Typical Project Approach
BEST PRACTICE:As you design the service, determine the performance management approach – the outcome measures, the customer satisfaction metrics, the process and transaction metrics, the supporting infrastructure metrics, the financial metrics.
3.2 Service Design
Customer
Outcome
Channel
Channel
Channel
Channel
Service
Back OfficeProcesses
&Systems
Supporting Infrastructure
BEST PRACTICE:1. Engage the customer / user in service / channel design and usability testing2. Engage process owners and key infrastructure people (such as CIO (IT), CFO (financial
management and cost accounting) in service and channel design
1. Start with Customer Needs and Wants3. Determine
how you will satisfy that need
A Typical Approach…
2. Determine how customer conveys needs
4. Determine what you need from other parts of your organization
5. Determine how you assemble / package the response 6. Determine how you would convey
the deliverable to the customer
7. Determine customer satisfaction
3.2 Why Multiple Channels?
1. Experience has shown that there is a direct correlation between multi-channel delivery and perceptions of higher value – “they care about me”
2. Experience has shown that many people get basic information in one channel (web, mail) and want personal interaction to clarify questions and refine choices (using the telephone or over the counter / in person)
3. You are better able to map and tune channels to individual / segment customer needs and preferences
4. You are better able to deal with privacy / trust concerns – convert initial reluctance to confident user
5. People value choice – ability to select channel based on lifestyle, needs, schedule, convenience
3.2 Typical Channel Attributes
Channels will vary in:• Ease / difficulty of access• Quantity and quality of
information / content• Richness of client experience• Reach – geographic,
demographic • Typical customer profile and
likelihood of use• Level of security, privacy and
confidentiality• Operating cost• Availability• Speed of service • Customer satisfaction
Channel attributes drive channel use:
• Ability to complete service transaction
• User preference
• User aptitude
• Ease of access
• Convenience
• Speed of service
• Efficiency
• Trust
CustomerCHANNELS
3.2 Using Multiple Channels
INTERNET
Direct / Over The Counter
Telephone
InternetWeb, eMail
Telephone
Kiosk DataNetwork
BackOfficeIndirect
Web, eMail
CustomerFacing
Best Practice:Connect all channels to common back end system
3.2 What’s Different about Various Channels?
Channel Strengths Richness Reach Information Provision
Information Capture
Cost *(Bank)
Store Front Face-to-face, unstructured, comfortable
Variable Low Variable – depends on skill, resources
Often lost unless
automated
High
($3.00)
Mail Comfortable, flexible, ease of use
High Medium Rich (potential) Often lost Medium
Telephone Personal, simple, universal access
Good for unstructured and ill informed questions
Medium High Limited to voice transfer
Often limited or lost unless automated
Medium
($1.50)
IVR Cheap, universal access
Good for repetitive transactions
Low High Rich for predetermined
questions / situations
Digitized but limited
Medium
($0.30)
Kiosk / ATM Ease of use and access Low Low Rich for predetermined
questions / situations
Digitized but limited
Lower
($0.78 to
$0.42)
Web Low transaction cost
Flexible
High Medium Richest High - Forms and cookies
Lowest
($0.06)
* Booz Allen Hamilton Study of Banking Industry, 1999, adjusted to 2002 Australian costs
Service Design Factor Specifications
1. Service Outcome and Objectives
2. Policy, Legislation Drivers
3. Customer Requirements
4. Customer Segments and Profiles
5. Customer Engagement in Design Process
6. Multi-disciplinary Design Team (Biz, HR, IT, $)
7. Current Capability Assessment
8. Service Design (Business Process)
9. Customer Experience Design
10. Channel Selection and Design
11. Channel Integration with Common Applications
12. Service Integration with Back Office Systems
13. Partnership Opportunities
14. Performance Management Approach
3.2 Service Design Summary
Based on What You Have Determined Here…
Design the customer experience, process(es), channels, integration, partnership,performance management
Sample Service Specifications
Aspect Objective Measure Indicator
&
Metric
Target
Or
Standard
Service Outcome Desired Service Outcome
Policy Objective(s) Achieved
Financial Affordable, Within Budget
Charges
Expenses
Customer Customer Satisfaction
Satisfaction
Complaints
Kudos
Process Efficient, Integrated Processes
Throughput speed
Cycle Time
Enablers Supporting Infrastructure
Availability
Capacity
3.3 Performance Management Framework
Best Practice: Based on Kaplan Norton “Balanced Scorecard”
3.4 Support Infrastructure Requirements
Aspect Channel 1
Over the Counter
Channel 2
Channel 3
Telephone
Channel 4
Web
Customer Interface
In person Customer Service staff (processing mail)
Call Center
(processing calls)
Web Site
IT Tools Terminal Terminal Terminal Web Site
Web Application
Application Common service request / delivery application
Common customer database, Interface with corporate applications
Network Common Data Network (Internal) and Internet (External)
Telephone Network – Internal; and PSTN
Security User log on
Managed access to applications and database
User log on
Managed access to applications and database
User log on
Managed access to applications and database
Firewall
SSL / PKI
Managed access to applications and database
Privacy Managed access to applications and database
Managed access to applications and database
Managed access to applications and database
Managed access Non-repudiation
3.4 Privacy and Security Considerations
Privacy• Privacy policy (published) and employees trained• Privacy Impact Assessment (PIA) on applications• Security mechanisms to enable privacy
Security• Security Policy, Statements of Sensitivity• Threat and Risk Assessment (TRA)• Vulnerability Assessment, Penetration Testing• Identity Management for Credentials• Role Based Access Management (Permissions)• Security Mechanisms – Firewalls, PKI, SSL, Smart Cards
for integrity and non-repudiation
Business Continuity / Disaster Recovery Planning• Develop and practice the plan
BestPractice
BestPractice
BestPractice
3.4 Trends and Future Considerations
Technologies and Trends to Watch:• Web Services
• Ability to link applications and databases
• Identity Management• Access management tool• Confirming credentials
• Privacy• Protection of personal information and
how it is used
• Personalization• For improved service• For personalized content
Hint:Panel members well qualified to speak to these.
3.5 Partnering in Service Delivery
• Determine what you must do / keep “in house” for strategic / legislated reasons
• Determine what you could consider for alternative arrangements:• Outsourcing – services and / or business processes• Partnering – from peer organizations, adjacencies, communities of
interest
Be Flexible in Your Approach to Service Design: Evaluate alternative opportunities for services and / or service components:
Partnering is a useful strategy for:
• Reduction in duplicate capabilities in similar services
• Burden sharing of facilities, skilled people and resources
• Cost avoidance and achieving economies of scale
3.5 Partnering in Service Delivery
Some Partnering Examples• Shared web site infrastructure• On Line Payment capability• Shared Call Center• Shared Kiosks
Establish a Partnership Agreement That Features:
• Clarity - The objective of the partnership
• Specifics - Describe what would be shared among partners
• Understandable, workable agreement - Develop a clear partnership agreement that describes the partnership accountabilities, responsibilities and liabilities for operations, management, reporting, financial contribution management
• Effective management tools - Describe governance, management responsibilities, contributions and accountabilities, conflict / issue resolution process(es)
A Strategic Approach to Client Centric Service Delivery
Step 4 - High Level Strategic Plan – An Outline
1. Strategy• Service Strategic Outcome• Customer Segments, Profiles• Service Objectives
2. Capability Assessment
3. Design Service• Define Service Process• Identify New Requirements• Design Performance
Management Framework• Identify Support
Infrastructure Needs• Perform Gap Analysis• Identify Partnering
Opportunities• Develop Service Budget
4. Detailed Planning• Service Management Plan• Implementation (Project) Plan• Test Plan• Change Management Plan• Training Plan
5. Implementation
6. Operations
7. Management Review• Monthly Performance Review• Quarterly Performance Review• Annual Performance Review• Annual Service Evaluation
Step 4 - Outline Strategic Plan
Workshop
Team Presentations
Table Group Teams
Panel
Panel Members and Areas of Expertise
• Robert K. Martineau• Catherine Allan• Hugh Lindley• Microsoft• Entrust
Wrap Up
• Understand the service delivery vision and desired outcome• Know where you want to be and the intended outcome
• Understand existing business strategy, desired outcomes, business processes, supporting infrastructure before moving forward• Know where you are
• Design / Re-engineer from the customer/user perspective• Redesign to maximize quality of customer experience and value
• Take a holistic, not a piecemeal approach• Don’t consider service implementations in isolation, but rather
together as a strategic direction and exploit synergies
• Evaluation of the technology in detail is crucial in determining the best fit for you• Select technology for business value• Don’t force fit business strategy to the wrong technology
There is a right way to do it !
Thank you.Robert K. Martineau
Vice President
Business Strategy & IT Consulting, Qunara Inc.
613-237-0257