Understanding and Improving Customer Focus

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1 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 For more information and details on support available visit the clearinghouse website at

2 Page 2 Understanding and Improving Customer Focus: Program Overview How do we market our services more effectively? How do we build a sustainable business in a time of significant industry change? How do we ensure we re delivering the services our customers need? How do we ensure our customers are satisfied? How do we help customers choose the right provider for them? 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 2 - Customer Focus Self- Assessment 3 - Understanding Your Customers 4 - Developing Strategies to Build a Customer- Focused Organisation Introduction and overview of the importance of customer focus in a competitive market environment Understanding the current extent of customer focus in your organisation Gathering deep insights into your customers, their needs and drivers Practical steps to help your organisation become customer-focused December 2013 December 2013 February 2013 March 2013

3 Page 3 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 What Makes a Customer-Focused Organisation? Business hip Strategy, Vision & Brand 1. We place the customer at the core of our vision, strategy and brand proposition Customers 2. Our 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 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 ) 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 Diagram 1: Approach to developing a customer-focused organisation

4 Page 4 Diagram 1 features four key Elements that must be aligned to create a customer-focused business: Strategy, Vision & Brand Business hip 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 Strategy, Vision & Brand Business hip Customer Attributes 1. We place the customer at the core of our vision, strategy and brand proposition 2. Our 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 5. We actively engage customers in the design of products and services 6. We develop a deep understanding of 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 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 people based on their commitment to customers

5 Page 5 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, team,, 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. 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 Sample Self-Assessment sheet

6 Page 6 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.

7 Page 7 1. We place the customer at the core of our vision, strategy and brand proposition ) Element Vision, Strategy & Brand 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 Board Customers Board meetings meetings Strategy presentations this Organisation strategy / business plan Annual report Internet and intranet site Minutes of Board and meetings Internal communications material newsletters, presentations Induction and training materials

8 Page 8 2. Our demonstrate our commitment to customers in the way they speak and behave ) Element Business hip this Our Board members, and actively seek to engage with our customers Our Board members, and are often seen with customers display genuine empathy for our customers Customers are discussed at every meeting throughout the organisation Customer discussions are given priority on meeting agendas and ask about customers as a priority when speaking with employees and 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 Board Board, and team meetings One-to-One discussions between and employees Everyday interactions throughout the workplace Communications from Internal communications material newsletters, presentations Induction and training material On posters and information displayed in workstations and common areas Annual report

9 Page 9 3. We openly share customer stories in formal and informal communications ) Element Business hip this 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 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 Board, and team meetings One-to-One discussions between and employees Everyday interactions throughout the workplace Interactions with our customers Communications from Internal communications material newsletters, presentations Induction and training material On posters and information displayed in workstations and common areas Annual report

10 Page We design business systems and processes to deliver on customer commitments ) Element Business hip 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 Board Functional specialists Projects to review the effectiveness of business systems Customer feedback surveys Interactions with our customers this Process, policy and procedure manuals Induction materials and training manuals

11 Page We actively engage customers in the design of products and services ) Element Customer Connection this 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 Customers Meetings to discuss existing and/ or new products or services Front-line interactions Communications about new products and services Customer communications seeking feedback on new products and services Customer surveys and requests for feedback

12 Page We develop a deep understanding of our customers and their unique needs ) Element Customer Connection 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 Front-line customer facing staff Customers Marketing planning Customer research Interactions with our customers this Marketing documents Customer segmentation model Customer feedback and research data

13 Page We critically evaluate the customer experience and seek to improve in areas that are important to our customers ) Element Customer Connection this 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 Customers Front-line customer facing staff Regular customer interactions Customer meetings Introductory meetings between employees and customers 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

14 Page We proactively seek customer feedback and share it with our people ) Element Customer Connection this 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 Customers Front-line customer facing staff Interactions with our customers Customer feedback meetings Team meetings Customer correspondence Customer feedback documentation (complaints and compliments) Complaints policies and procedures Customer feedback guidelines and approaches Internal communications magazines, newsletters

15 Page We actively encourage our people to engage with customers and understand their experiences ) Element Engaged 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 seek to empathise with customers finding ways to walk in their shoes 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 Customers this One-to-One discussions between and employees Everyday interactions throughout the workplace Interactions with our customers Customer service policies and procedures Customer service training modules Customer records Employee performance review records

16 Page We consciously design our structure, roles and responsibilities to ensure a focus on customers ) Element Engaged 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 Board HR Specialists Customers Board, and team meetings One-to-one discussions between and employees Everyday interactions throughout the workplace Annual performance reviews this Organisational charts Position descriptions and job titles Annual performance review documents Personal / professional development plans

17 Page We carefully recruit people who are passionate about customers ) Element Engaged 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 Board HR Specialists Development of position descriptions Recruitment interviews Throughout the recruitment and selection process this Position descriptions Interview guides Recruitment policies and procedures Recruitment advertisements

18 Page We generously reward and recognise our people for their commitment to customers ) Element Engaged 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 Board HR Specialists Everyday interactions throughout the workplace Team meetings Awards programs and ceremonies Annual performance reviews this Key Performance Indicators (KPIs) / Key Result Areas (KRAs) Awards programs Financial and non-financial reward programs Annual performance review documents

19 Page 19 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 hip o o Customers Further information about improving customer focus will be provided in future modules of the Understanding and Improving Customer Focus Program.

20 Page 20 3RDVIEW CUSTOMER FOCUS SELF-ASSESSMENT SUMMARY Element Attribute Vision, Strategy & Brand Business hip Customers 1. We place the customer at the core of our vision, strategy and brand proposition 2. Our 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 5. We actively engage customers in the design of products and services 6. We develop a deep understanding of 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 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 for their commitment to customers

21 Page 21 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 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.

22 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 selfassessment module. Feedback, or requests to discuss the information contained, can be sent to 3rdView Consulting at info@3rdview.com.au. For more information and resources, visit the Sector Readiness and Workforce Capacity Initiative Clearinghouse: 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.