1. thawanis@hotmail.com1 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

2. thawanis@hotmail.com2 Topics to be Covered  Need for Change  Role of Leadership in  Customer satisfaction  Staff performance  Improving Systems and Processes  Improving Service Quality

3. thawanis@hotmail.com3 Need for Change

4. thawanis@hotmail.com4. We are living in an age of uncertainty

5. thawanis@hotmail.com5.  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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7. 7. The essence of going forward is humility Do we have a choice? You as Leaders have the responsibility to embrace change and drive improvements.

8. thawanis@hotmail.com8 Role of Leadership  Identify 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)

9. thawanis@hotmail.com9 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.

10. thawanis@hotmail.com10 Japanese Perceptions of Job Functions Top Management Middle Management Improvement of Standards Maintenance, Technology & Management Supervisors Workers

11. thawanis@hotmail.com11 Japanese Perceptions of Job Functions (2)

12. thawanis@hotmail.com12 Customer Who is your customer What are your customer needs?

13. thawanis@hotmail.com13 Customer Expectations Example of Car Rental CompanyDefinitionCustomer need A rental car will be serviced and will operate properly. The bare essential attributes of the product or service should be present. Basic The rental car is convenient to get to, some features are explained, and basic policies clarified to the customer. Some attributes will be provided as a part of the product. Expected 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. These are attributes that are worthwhile to have, but not necessarily provided as part of the package. Desired The rental car agency drops the car by your place at your requested time and will pick it up when you are finished. These are surprise attributes that go beyond what the customer expects from a purchase. Unanticipated

14. thawanis@hotmail.com14 The Kano Model Basic Performance Satisfaction Performance Excitement Time

15. thawanis@hotmail.com15 Customer Service Listening Systems (Partial List) PurposeDescriptionType Obtain customer feedback while service experience is still fresh; act on feedback quickly if negative patterns develop Service satisfaction survey of customers following a service encounter Surveys Measure individual employee service behaviour for use in coaching, training, performance evaluation, recognition, and rewards. Identify systematic strengths and AFIs in customer contact service. Researchers become “ customers” to experience and evaluate he quality of service provided. Mystery Shopping Identify most common type of service failures for corrective action. Identify through customer communications opportunities to improve service or otherwise strengthen customer relationships. System to retain, categorize, track and distribute customer complaints and other communications with the company. Customer Complaint & Enquiry

16. thawanis@hotmail.com16 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.

17. thawanis@hotmail.com17 How do you define Customer Complaint?

18. thawanis@hotmail.com18 What is a complaint "Any Expression of Dissatisfaction by a Customer Whether Justified or Not".

19. thawanis@hotmail.com19 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

20. thawanis@hotmail.com20 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

21. thawanis@hotmail.com21 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.

22. thawanis@hotmail.com22 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.

23. thawanis@hotmail.com23 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

24. thawanis@hotmail.com24 Staff

25. thawanis@hotmail.com25 Staff Institute  Establish Performance Appraisal System including annual objectives with weightages, measures and targets;  Staff Satisfaction Surveys  Bottom up structured listening channels  Horizontal structured communication channels  Recognition and Reward systems

26. thawanis@hotmail.com26 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

27. thawanis@hotmail.com27 Strategy Quality Goals Sub goals Annual goals Projects Deploying the Vision through Objectives Key Strategy

28. thawanis@hotmail.com28 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

29. thawanis@hotmail.com29 Management Systems and Processes

30. thawanis@hotmail.com30 Process Management  All work gets done through processes  Processes are at the heart of any business  Processes in traditional organizations are not identified, measured, controlled, managed and are orphans.

31. thawanis@hotmail.com31 Work Flow in Functional Organization R & D Production Service Distribution Manufacturing Product Development Customer Key Business Objective Mission Vision Top Management Functional Objectives Process Objectives Shipping

32. thawanis@hotmail.com32 Process Management  Identify critical business processes & their interrelationships  Assign process owner  Measure what is critical to customer to improve services  Continually improve  Implement ISO:9001:2000 effectively  Business Process Reengineering

33. thawanis@hotmail.com33 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

34. thawanis@hotmail.com34 Service Quality

35. thawanis@hotmail.com35 What business are you in?

36. thawanis@hotmail.com36 Service Business

37. thawanis@hotmail.com37. What are Services? They are deeds, promises, processes and performances Service depends on friendliness, competence, responsiveness and motivation of the service providers.

38. thawanis@hotmail.com38. Goods Vs Services  Tangible Intangible  Standardized Heterogeneous  Production Simultaneous Separate From Consumption  Non-Perishable Perishable  Specifications Expectations How are services different from goods?

39. thawanis@hotmail.com39. 1.Reliability 2.Responsiveness 3.Assurance 4.Empathy 5.Tangibles ServeQual dimensions

40. thawanis@hotmail.com40. 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.

41. thawanis@hotmail.com41. ServeQual dimension  Responsiveness- Willingness to help and provide prompt service in dealing with queries, attentiveness, questions, complaints and problems

42. thawanis@hotmail.com42. ServeQual dimension  Assurance Inspiring Trust and Confidence and Employees knowledge on products and services and the courtesy

43. thawanis@hotmail.com43. ServeQual dimension  Empathy Degree of Caring,individualized attention provided, Treating customers as individuals and making them feel they are unique and very special.

44. thawanis@hotmail.com44. 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.

45. thawanis@hotmail.com45. Are you the finest service provider in your line of business ?

46. thawanis@hotmail.com46. What differentiates you from the rest ?

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48. thawanis@hotmail.com48 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

49. thawanis@hotmail.com49. Q & A Thank You My Best Wishes to you all in Your Journey Towards Performance Improvement Sunil Thawani thawanis@hotmail.com

50. 50  Vision: “ Desired future state of an organization (Dr. Juran)”  Mission : Purpose of our business (What business are we in)

51. thawanis@hotmail.com51 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.

52. thawanis@hotmail.com52 Western Perceptions of Job Functions QUALITY MODELS AND THEORIES