Local Government FM Network Managing Staff and Customers 31st October 2006 Are you being served?

1. Local Government FM Network Managing Staff and Customers 31st October 2006 Are you being served? Critical Incidents, Service Perceptions, Zone of Tolerance and Customer Satisfaction Outcomes Tim Davidson-Hague

3. What is a customer ? "A recipient of goods and/or services" • External Customers • Internal Customers

4. Service Profit Chain “Profit and growth are stimulated primarily by customer loyalty. Loyalty is a direct result of customer satisfaction. Satisfaction is largely influenced by the value of services provided to customers. Value is created by satisfied, loyal, and productive employees. Employee satisfaction, in turn, results primarily from high-quality support services and policies that enable employees to deliver to customers” Heskett et al (1994, p164)

5. Local Government Customers • Who are your customers? • Internal / External • Do your customers have a choice? • Internal / External

6. Customer Satisfaction? “Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations….. High satisfaction or delight creates an emotional affinity with the brand, not just a rational preference. The result is high customer loyalty” Kotler, P. (1997) Marketing Management, 9th Edition

7. The Zone of Tolerance (Johnston, 1995)

8. Low customer Involvement: Wide Zone of Tolerance

9. High Customer Involvement: Low Zone of Tolerance

10. Customer Expectation and Outcome

11. Managing Customer expectations Expectation Perception Gap Customer Expectation Service Level / Service Quality

12. Managing External Customer Expectations: NHS • overstretched/ under-resourced – staff shortages, financial 'crisis', cuts in service etc • long waiting times • overcrowded and dirty hospitals – MRSA etc • poor food • loss of dignity LOW expectations?

13. Local Government External Customer Expectations • What are they?

14. Discontinuity Theory Deciding to Fly Choose airline/ travel agent Travel to airport Purchase Ticket Check-in Concentrate on these to ensure high chance of satisfaction and repeat business Other Discontinuities Critical Discontinuities Visit Duty Free Board plane Inflight service Inflight conditions eg weather Land destination Baggage Collection Pick up Taxi Arrive at Hotel Irons, K (1994) Managing Service Companies

15. Example: Patient Experience • Map out the experience (journey) of a patient attending an NHS hospital for minor day case surgery • What are the critical discontinuities? • With which of these does FM have a role to play? • Is this where efforts are currently focused? • WHAT IS YOUR CUSTOMER EXPERIENCE?

16. Canvassing Users Views • If the intent is to design an excellent delivery system around the needs of service users, obtaining feedback and taking account of users’ views and priorities are vital to bring about improvements in the quality of service delivery

17. Customer Experience & Satisfaction • Ask the customer – satisfaction surveys! BUT.......Measure What? • Measuring expectations / perceptions • Performance / Importance

18. Prioritising and allocating resource Zeithaml and Bitner (1996)

19. FM Products or FM Services Product, service, process, outcome? • Success of (satisfaction with) physical goods requires that the product is good enough eg meal • Success of (satisfaction with) services requires that the PROCESS is good enough "…many services are more than just useful facilitating activities for … products: They may spell the difference between success and failure in a marketplace where demanding customers expect services along with their goods." Christopher H. Lovelock (1992), Managing Services, Prentice Hall International

20. Functional Management Focus R & D Production Sales Traditional Approach Internally focused objectives • processing of given number of orders • achieving certain volume of production • raising of required number of invoices CUSTOMER

21. Process Management Focus Production Sales R & D Customer Focused Approach Externally focused objectives • fulfilment of specific customer requirements • achievement of high and improving levels of customer satisfaction • adapting the organisation to the needs of a changing market and business environment CUSTOMER

22. Process / Service Mapping Customer Flow LINE OF INTERACTION Contact Staff LINE OF VISIBILITY Back Office Support LINE OF IMPLEMENTATION Management

23. Broken Windscreen Claims Processing Request additional information Pay Notify agent Client Local Independent Agent Claims processing centre Give instructions File claim Request quote Local Windscreen Company Provide quote Pay Process Mapping

24. Key Questions Adapted from Lockyer

25. Re-engineered configuration Broken Windscreen Claims Processing Client Claims processing centre Notify Pay Approved National Windscreen Company Schedule repairs

26. The Process:So how does it work in your organisation? • 1 day meeting for 12 people starting 9am, finishing 5pm • Need hospitality and AV and special room layout arrangement

27. Redesigning FM Service Delivery Half day Meeting

28. Redesigning FM Service Delivery Half day Meeting

29. Service Excellence "an ongoing transformational process in operationally effective and continuously improving organizations with matching culture; that guarantees service is experienced by the user in a valuable, enjoyable and memorable manner, delivered by delighted staff" (Abusaid,et, al,2004).

30. Achieving Delight • Give 'em the pickle! (Bob Farrell) • exceeded expectations/going the extra mile • A stay at the Courtyard Marriott "…On the second day of my stay at the Courtyard in Richardson I suffered a pinched nerve in my back … When I returned to my hotel room, there on my bed was the heating pad that would make the rest of the week bearable." • What's your pickle?

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