understanding and improving customer focus · understanding and improving customer focus ... sample...

For more information and details on support available visit the clearinghouse website at www.communitydoor.org.au/SectorReadiness

Understanding and Improving

Customer Focus

How customer focus can help sustain and grow your organisation

Module 2: Customer Focus Self-Assessment Last updated: December 2013

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This information is confidential and was prepared by 3rdView Consulting solely for the use of NDS and Disability Service Providers.

Understanding and Improving Customer Focus: Program Overview

These are just some of the questions posed by disability service providers as the National Disability Insurance Scheme (NDIS), one of the most significant social changes in recent Australian history, is introduced. For people with permanent and significant disability, their families and carers, the NDIS provides greater choice over the care and services they receive, and shifts purchasing power from the government to consumers.

For disability providers, the NDIS will result in a move to a competitive open market. Providers will need to market their services and work hard to attract and retain clients. They will need to carefully balance the achievement of missional objectives, whilst ensuring the sustainability of their business.

Disability providers are being supported to make this shift via a series of modules on Understanding and Improving Customer Focus as part of the Sector Readiness and Workforce Capacity Initiative. These modules will help providers gain insight into their clients’ needs and ensure that all aspects of the business (e.g. strategy, marketing, customer service, human resources, finance and operations) are aligned to deliver on this.

The program includes the following four modules:

Module Description Delivery 1 - Introduction to

Customer Focus Introduction and overview of the importance of customer focus in a competitive market environment

December 2013

2 - Customer Focus Self-Assessment

Understanding the current extent of customer focus in your organisation

December 2013

3 - Understanding Your Customers

Gathering deep insights into your customers, their needs and drivers

February 2013

4 - Developing Strategies to Build a Customer-Focused Organisation

Practical steps to help your organisation become customer-focused

March 2013

How do we ensure we’re delivering the

services our customers need?

How do we market our services more

effectively?

How do we ensure our customers

are satisfied?

How do we help customers choose the

right provider for them?

How do we build a sustainable business in a time of significant

industry change?

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Module 2: Customer Focus Self-Assessment

Module Objective This module is designed to support disability service providers to assess the current level of customer focus in their organisation. By critically evaluating the current situation important gaps in customer focus can be identified, laying the foundation for future action. In addition, areas of strength can be acknowledged and built upon.

At the conclusion of this module, providers will have:

• Commenced the customer focus conversation across their organisation • Engaged key stakeholders in the need to develop a customer-focused organisation • Assessed their current level of customer focus across the four key elements (made up of 12

attributes) of customer focus • Identified areas of strength and areas for improvement

Customer Focus Self-Assessment Overview The customer focus self-assessment on the following pages is based on the 3rdView Consulting approach to developing a customer-focused organisation

Diagram 1: Approach to developing a customer-focused organisation

www.3rdView.com.au

What Makes a Customer-Focused Organisation?

Customers

5. We actively engage customers in the design of products and services

6. We develop a deep understanding of our customers and their unique needs

7. We critically evaluate the customer experience and seek to improve in areas that are important to our customers

8. We proactively seek customer feedback and share it with our people

Business Leadership

2. Our Leaders demonstrate their commitment to customers in the way they speak and behave

3. We openly share customer stories in formal and informal communications

4. We design business systems and processes to deliver on customer commitments

Strategy, Vision & Brand

1. We place the customer at the core of our vision, strategy and brand proposition

Employees

9. We actively encourage our people to engage with customers and understand their experiences

10. We consciously design our structure, roles and responsibilities to ensure a focus on customers

11. We carefully recruit people who are passionate about customers

12. We generously reward and recognise our people based on their commitment to customers

Strategy,)Vision)&)Brand)

Business)Leadership)

Employees)Customers)

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Diagram 1 features four key Elements that must be aligned to create a customer-focused business:

• Strategy, Vision & Brand • Business Leadership • Employees • Customers

Each of these elements is supported by Attributes that demonstrate and define the level of customer focus displayed. The 12 attributes, and the element that they support, are outlined in the table below.

Element Attributes Strategy, Vision & Brand


Business Leadership

2. Our Leaders demonstrate their commitment to customers in the way they speak and behave



Customer


6. We develop a deep understanding of customers and their unique needs



Employees




12. We generously reward and recognise people based on their commitment to customers

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Customer Focus Self-Assessment Instructions The following pages contain the self-assessment tool that is the starting point for a conversation about customer focus in your organisation. The conversation should be conducted as an open and collaborative exercise, taking the opportunity to discuss the 12 customer focus attributes with your Board, Senior Management team, Leaders, Employees and Customers. This conversation will provide important perspectives on your organisation, whilst engaging key stakeholders in your customer focus journey. The example below illustrates the types of evidence that you will be looking for.

Sample Self-Assessment sheet

Attribute

Element that the attribute

supports

Examples of evidence of

the attribute. Look for both the existence and quality of

evidence.

Guidance on who to engage, where you can

observe the attribute and

where you might find

documented evidence

Self-assessment rating – if in

doubt be conservative

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The self-assessment tool has been designed to scale up and down for different sized organisations from micro to large. As a result, there may be roles, systems and documentation that don’t exist as standalone parts of your organisation. In the majority of cases, there should still be evidence of each of the attributes, even if it is only a small part or subsection of another role, system or document.

Consideration should be given to the extent of the evidence available. Intermittent examples demonstrate intent, however to be truly customer-focused there should be consistent evidence of each attribute across a range of data points.

After a thorough exploration of the extent to which your organisation demonstrates the attribute, an assessment should be made. Again, this is most effective when completed as part of a conversation, ensuring that key stakeholders are committed to the rating.

This self-assessment forms the basis of future strategy development and action planning within the Understanding and Improving Customer Focus Program.

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Element Vision, Strategy & Brand

What evidence am I looking for?

Our vision and ‘reason for being’ are articulated in customer terms

The customer is referenced in our organisation’s strategy

Our strategy / business plan clearly identifies who our customers are, and how we add value to their lives

Our strategy is clearly informed by unique customer insights

There is clear evidence that the customer was deeply engaged in the development of our vision and strategy

Our brand / value proposition reflects the needs of our customers

Our strategy shows how we are uniquely positioned to support our customers needs

We emphasise the customer above internal objectives

The customer is central when we explain our strategy to others in presentations and meetings

Who can provide information on this

attribute?

Board Senior Management Leaders Employees Customers

Where will I observe this attribute in practice?

Board meetings Senior Management meetings Strategy presentations

Where will I find documented evidence of

this attribute?

Organisation strategy / business plan Annual report Internet and intranet site Minutes of Board and Senior Management meetings Internal communications material – newsletters, presentations Induction and training materials

Our organisation displays this Attribute

Never

☐ Rarely

☐

Sometimes

☐

Often

☐

Always

☐




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2. Our Leaders demonstrate our commitment to customers in the way they speak and behave

Element Business Leadership


Our Board members, Senior Management and Leaders actively seek to engage with our customers

Our Board members, Senior Management and Leaders are often seen with customers

Leaders display genuine empathy for our customers

Customers are discussed at every meeting throughout the organisation

Customer discussions are given priority on meeting agendas

Senior Management and Leaders ask about customers as a priority when speaking with employees

Senior Management and Leaders have a deep understanding of a number of our customers and their unique situations

Customer interactions take priority over internal activities

Customer successes are openly celebrated – their success is our success

Our customers feature strongly in our presentations and marketing material


attribute?

Board Senior Management Leaders Employees


Board, Senior Management and team meetings One-to-One discussions between Leaders and employees Everyday interactions throughout the workplace


this attribute?

Communications from Leaders Internal communications material – newsletters, presentations Induction and training material On posters and information displayed in workstations and common areas Annual report


Never

☐ Rarely

☐

Sometimes

☐

Often

☐

Always

☐




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Customer stories are shared openly throughout the organisation

Customer stories are used to celebrate success

Customer stories are used to improve service delivery

All employees can recount a range of customer stories to describe the value that the organisation brings to customers

Customer stories feature in external presentations by the Board and Senior Management

Customer stories are a key component of our internal communications material (e.g. newsletters)

Customer stories feature in marketing material, and are a core part of the sales process

Our customers can recount stories that demonstrate the value of our organisation

Our referral partners can recount stories that demonstrate the value of our organisation

Our suppliers can recount stories that demonstrate the value of our organisation


attribute?

Senior Management Leaders Employees


Board, Senior Management and team meetings One-to-One discussions between Leaders and employees Everyday interactions throughout the workplace Interactions with our customers


this attribute?

Communications from Leaders Internal communications material – newsletters, presentations Induction and training material On posters and information displayed in workstations and common areas Annual report


Never

☐ Rarely

☐

Sometimes

☐

Often

☐

Always

☐




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Customers are engaged in the development of new systems and processes

We work with our customers to ensure our interactions are as simple and seamless as possible

We work with our customers to ensure our interactions meet their needs effectively

We have reviewed our finance system to ensure it aligns with our customer objectives

We have worked with customers to understand the effectiveness of our finance system from their perspective

We have reviewed our technology strategy and systems to ensure they align with our customer objectives

We have worked with customers to understand the effectiveness of our technology systems from their perspective

We have reviewed our people strategy and systems (e.g. rostering, service standards) to ensure they align with our customer objectives

We have worked with customers to understand the effectiveness of our people strategy and systems from their perspective

We seek direct feedback on the outputs of systems that affect our customers


attribute?

Board Senior Management Leaders Employees Functional specialists


Projects to review the effectiveness of business systems Customer feedback surveys Interactions with our customers


this attribute?

Process, policy and procedure manuals Induction materials and training manuals


Never

☐ Rarely

☐

Sometimes

☐

Often

☐

Always

☐




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Element Customer Connection


We use observations and insight to trigger new product and service ideas

Our frontline staff are a major source of new product and service ideas

Customers are consulted when we are designing new products and services

Customers are actively involved in designing new products and services

Customers participate in testing new products and services before they are released more broadly

If a new product or service isn’t attractive to our customers, we work with them to improve the design

We are interested in understanding what our customers think of our new product and service ideas

We continue to seek feedback from our customers after a new product or service has been implemented

We use the feedback from customers to ensure continuous improvement


attribute?

Senior Management Leaders Employees Customers


Meetings to discuss existing and/ or new products or services Front-line interactions


this attribute?

Communications about new products and services Customer communications – seeking feedback on new products and services Customer surveys and requests for feedback


Never

☐ Rarely

☐

Sometimes

☐

Often

☐

Always

☐




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6. We develop a deep understanding of our customers and their unique needs



We know which customers we are targeting, and which customers can be better serviced elsewhere

We have invested time to research our potential customers to understand their key needs and drivers

We have conducted observational research to seek to understand our customers holistically, not just during their interactions with us

We have identified segments within our target market that have different needs

We have tailored our services to meet the needs of our target market / segments, whilst retaining opportunities for personalisation

We share our insights about our customers with our staff

The insights we gain about our customers inform activities within our organisation

We regularly review our understanding of our customers to ensure we remain up-to-date and relevant

We actively seek to separate assumptions from fact, and continually seek the customer’s perspective on our services

We acknowledge the view of individual customers, but seek to understand the needs of other customers before making change


attribute?

Senior Management Leaders Employees Front-line customer facing staff Customers


Marketing planning Customer research Interactions with our customers


this attribute?

Marketing documents Customer segmentation model Customer feedback and research data


Never

☐ Rarely

☐

Sometimes

☐

Often

☐

Always

☐




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We understand the service experience that our customers are seeking from our organisation

We understand which aspects of the experience are most important to our customers and seek to ensure excellence in these areas

We are constantly looking for ways to extend or complement our current services to deliver improved customer outcomes

We have a clear process for our employees to follow when engaging with customers

Our customer service standards are clear and visible to our employees and our customers

Our customers are regularly asked to review our performance against our service standards

We have a clear process for gathering feedback on our customer experience

We measure our long-term relationships with our customers


attribute?

Senior Management Leaders Employees Customers Front-line customer facing staff


Regular customer interactions Customer meetings Introductory meetings between employees and customers


this attribute?

Customer service standards (agreed approach for customer interactions) Customer charter (commitment to customers) Customer strategy documents Customer touchpoint maps (diagrams showing the key interactions with our organisation, and the relative importance to customers) Customer experience maps (diagrams showing the physical and emotional dimensions of an interaction with our company) Business process documents


Never

☐ Rarely

☐

Sometimes

☐

Often

☐

Always

☐




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Complaints systems are available, visible and welcoming

Compliments systems are available, visible and welcoming

Complaints are acknowledged and handled promptly and efficiently

The outcome and resolution of a complaint is shared with the customer and relevant staff

All feedback is acknowledged and celebrated with both customers and employees

A number of different sources are used to actively gather customer feedback

A range of different media are monitored to identify indirect customer feedback

Time is taken to search for consistent themes in customer feedback, providing early warning of systemic issues

There is a clear process for discussion and reflection on feedback at all levels of our organisation

We have a culture of continuous improvement based on feedback


attribute?

Senior Management Leaders Employees Customers Front-line customer facing staff


Interactions with our customers Customer feedback meetings Team meetings


this attribute?

Customer correspondence Customer feedback documentation (complaints and compliments) Complaints policies and procedures Customer feedback guidelines and approaches Internal communications – magazines, newsletters


Never

☐ Rarely

☐

Sometimes

☐

Often

☐

Always

☐




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Element Engaged Employees


Employees are expected to take regular opportunities to interact with customers that visit our premises

Regular offsite customer visits are actively encouraged

Learnings from customer visits are discussed at regular team meetings

Customer interaction is considered to be a key indicator of performance

Employees seek to empathise with customers – finding ways to ‘walk in their shoes’

Employees take the time to learn more about our customers in every interaction (face to face, or remotely)

Our employees take the time to listen to our customers and understand their world, rather than seeking to make them understand ours


attribute?

Senior Management Leaders Employees Customers


One-to-One discussions between Leaders and employees Everyday interactions throughout the workplace Interactions with our customers


this attribute?

Customer service policies and procedures Customer service training modules Customer records Employee performance review records


Never

☐ Rarely

☐

Sometimes

☐

Often

☐

Always

☐




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Accountability / ownership of customer outcomes is clearly defined and communicated

Customers are clearly identified as everyone’s responsibility

All employees can articulate how they contribute to delivering customer outcomes

All position descriptions reference internal and external customers

All position descriptions explain how the role contributes to customer outcomes

A customer advocate or independent customer feedback mechanism features in our organisation structure

It is clear to customers who to contact if they have a concern

It is clear to customers and staff how, and when, customer concerns should be escalated


attribute?

Board Senior Management Leaders HR Specialists Employees Customers


Board, Senior Management and team meetings One-to-one discussions between Leaders and employees Everyday interactions throughout the workplace Annual performance reviews


this attribute?

Organisational charts Position descriptions and job titles Annual performance review documents Personal / professional development plans


Never

☐ Rarely

☐

Sometimes

☐

Often

☐

Always

☐




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Customer service and customer focus are emphasised in all recruitment advertising

The value that the organisation provides to customers is included in all recruitment advertising

Customer service and customer focus excellence are key criteria to determine candidate short lists

Interviewers seek examples of customer service and customer focus excellence from candidates

A lack of customer focus from a candidate immediately disqualifies them from joining the organisation

The recruitment and selection process demonstrates to candidates the empathy and care that we show to our customers


attribute?

Board Senior Management HR Specialists Leaders Employees


Development of position descriptions Recruitment interviews Throughout the recruitment and selection process


this attribute?

Position descriptions Interview guides Recruitment policies and procedures Recruitment advertisements


Never

☐ Rarely

☐

Sometimes

☐

Often

☐

Always

☐




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12. We generously reward and recognise our people for their commitment to customers



Team and individual rewards include recognition for customer service and customer focus

Customer service excellence is acknowledged quickly and publicly

Positive customer feedback is shared openly and widely

Customer service and customer focus are included in all individual reward and incentive programs

Cross organisation awards recognise outstanding customer service and customer focus

Commitment to customers is rewarded above all other attributes

Customer service excellence is recognised and rewarded in newsletters and marketing material

Customer service excellence is recognised by the Board and Senior Management


attribute?

Board Senior Management Leaders HR Specialists Employees


Everyday interactions throughout the workplace Team meetings Awards programs and ceremonies Annual performance reviews


this attribute?

Key Performance Indicators (KPIs) / Key Result Areas (KRAs) Awards programs Financial and non-financial reward programs Annual performance review documents


Never

☐ Rarely

☐

Sometimes

☐

Often

☐

Always

☐




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Self-Assessment Summary

Activity Completed During the self-assessment you should have:

• Engaged key stakeholders to discuss each of the 12 customer focus attributes • Observed a broad range of activities, meetings and interactions to gather supporting evidence of

customer focus behaviours • Gathered supporting evidence of customer focus commitment from a range of internal and external

documents • Agreed the self-assessment rating for each attribute

Once this process is complete, each of the self-assessment ratings can be transferred onto the summary table (next page). This provides a consolidated summary of the self-assessment that should be used as a starting point for discussions on customer focus improvement initiatives.

Identifying Areas For Improvement Organisations should seek to improve in all areas of customer focus, however immediate priority should be given to the following attributes:

• Attribute 6 - We develop a deep understanding of customers and their unique needs • Attribute 1 - We place the customer at the core of our vision, strategy and brand proposition

Additional focus on these two attributes will support the business to improve in all other areas of customer focus. The rating for these attributes needs to be at least ‘sometimes’ to support broader improvement.

Prioritisation After attention has been given to ‘understanding customers’, and ‘placing the customer at the core of the vision, strategy and brand’ prioritisation may occur as follows:

1. Set a target rating for each attribute to be achieved within a 6 month period. Be realistic about what is possible in the timeframe, acknowledging that further self-assessments can be conducted in the future.

2. Focus on the attributes that were rated as ‘never’ in the initial self-assessment and seek to lift them to ‘rarely’. While the organisation is still a long way from customer focus excellence at this point, it is an acknowledgement that there is some awareness and interest in every aspect of customer focus.

3. If there are a number of attributes that achieve the same minimum rating, seek to improve in the following order:

o Vision, Strategy & Brand o Business Leadership o Employees o Customers

Further information about improving customer focus will be provided in future modules of the Understanding and Improving Customer Focus Program.

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3RDVIEW CUSTOMER FOCUS SELF-ASSESSMENT SUMMARY Element Attribute Never Rarely Sometimes Often Always

Visi

on,

Stra

tegy

&

Bra

nd

1. We place the customer at the core of our vision, strategy and brand proposition ☐ ☐ ☐ ☐ ☐

Bus

ines

s Le

ader

ship

2. Our Leaders demonstrate our commitment to customers in the way they speak and behave

☐ ☐ ☐ ☐ ☐

3. We openly share customer stories in formal and informal communications ☐ ☐ ☐ ☐ ☐

4. We design business systems and processes to deliver on customer commitments ☐ ☐ ☐ ☐ ☐

Cus

tom

ers

5. We actively engage customers in the design of products and services ☐ ☐ ☐ ☐ ☐

6. We develop a deep understanding of customers and their unique needs ☐ ☐ ☐ ☐ ☐


☐ ☐ ☐ ☐ ☐

8. We proactively seek customer feedback and share it with our people ☐ ☐ ☐ ☐ ☐

Empl

oyee

s


☐ ☐ ☐ ☐ ☐


☐ ☐ ☐ ☐ ☐

11. We carefully recruit people who are passionate about customers ☐ ☐ ☐ ☐ ☐

12. We generously reward and recognise our people for their commitment to customers ☐ ☐ ☐ ☐ ☐

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Next Steps Whilst it is important to seek to improve in all aspects of customer focus, Modules 3 and 4 of the Understanding and Improving Customer Focus Program focus on providing further information and guidance on two critical attributes of customer focus.

• Module 3: Understanding Your Customers (Attribute 6 - Developing a deep understanding of customers and their unique needs)

Every part of the organisation’s activity should be designed in response to customer needs. Many organisations assume they understand customer needs based on a single survey, or based on a the perceived need of customers of similar organisations.

Remember that your customers are unique, and so is your organisation. Bringing the two together is the secret to sustainable success.

• Module 4: Developing Strategies to Build a Customer-Focused Organisation (Attribute 1 – Placing the customer at the core of our vision, strategy and brand proposition)

This attribute lays the foundation for all other attributes. Without a clear customer-focused strategy, it is nearly impossible to align your people, systems and processes.

This attribute is also a significant demonstration of Board and Senior Management commitment to the customer focus program – a commitment in the strategy sends a clear message to all staff and stakeholders.

Once these two attributes are strongly in place, you will have the insights and strategic direction required to support the improvement of all aspects of your organisation.

Modules 3 and 4 are due for release in early 2014.

For more information and resources, visit the Sector Readiness and Workforce Capacity Initiative Clearinghouse: http://Communitydoor.org.au/SectorReadiness

The Sector Readiness and Workforce Capacity Initiative is a collaboration between the Department of Communities, Child Safety and Disability Services, Health and Community Services Workforce Council, National Disability Services Queensland and the Southern Queensland Institute of TAFE.

This resource has been developed by 3rdView Consulting Pty Ltd in consultation with National Disability Services Queensland.

User Feedback A module on improving customer focus would not be complete without a request for feedback from users!

We are keen to hear from disability service providers on:

• How you have used this information • The outcomes that you have achieved during the process of self-assessment • Any additional indicators of success that you have identified based on the unique needs of the

disability sector • Any suggestions for improvement on this, or subsequent modules

3rdView are also happy to discuss options to guide you and your organisation through the self-assessment module.

Feedback, or requests to discuss the information contained, can be sent to 3rdView Consulting at [email protected].

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