Channel Shift – AKA Successful Customer Contact Management

1. Channel Shift – AKA Successful Customer Contact Management www.trapeze-transformation.com Sarah Fogden

2. Chapter 1 Channel Shift - The Long and Winding Road

3. My “Channel Shift” World • The Office of the e-Envoy • e-Government • Transformational Government • David Varney • The Service Transformation Agreement • NI14 and Avoidable Contact • “Digital by Default” • The Government Digital Strategy Too many re-iterations of some very sound principles?

4. The Bigger Picture - The New Digital World

5. Technology Uptake 2000-2012 Everything should be made as simple as possible, but not one bit simpler. Albert Einstein

6. i. Making The Case for Change • Digital channel shift should be an organisation wide change programme, driven by a clear vision • In addition you also need the support of stakeholders to provide the resources to deliver change • It needs to be supported by a clear business case and sound project delivery plan

7. Laying Firm Foundations How will the quality of outcomes as perceived by customers and politicians change? Quality Case Will it work for those delivering the services and is it technicallysound? Core Proposition Technical Case Financial Case Is it affordable and will it lead to cashable benefits?

8. ii. Matching the Channel to the Task Each channel will have its own specific strengths and weaknesses Each customer demographic will have different channel preferences Each channel proposition must meet the needs of specific services and processes

9. Three Simple Yet Key Questions to Ask About a Channel/Service Combination • Is it capable of achieving the outcome desired? • Is it an economically sensible choice? • Will your target customers use it?

10. iii. Targetting Services and Processes for Channel Shift Digital channel shift should be precisely targeted to areas where there is clear evidence that it will yield benefits All available information should be used to determine where channel shift is likely to work Channel shift needs to be delivered as part of a broader strategy for efficiency improvement across your organisation

11. First - Know Your Benefits Soft Benefits (Qualitative Improvements) Easier to Access/Use Faster Delivery Offers ‘Value Add’ beyond existing service Hard Benefits (Cashable Savings) Headcount Reduction Estates Rationalisation Lower costs for contracted services and consumables

12. Then - Know Your Volumes and Costs A High Level Contact Profile for a Local Authority Cost per contact based on SOCITM figures and PWC report

13. Attributing the £5.4m Contact Cost Pie to Services

14. Then – Assess Your Options Do Nothing – It’s not cost effective or not a priority right now. This may be the case for small, complicated, low volume services. Manage Demand Better – The existing delivery model works, but can be more efficient if supported by new channels. This may be the case for complex services and processes such as Social Services and Education other than in Schools. Implement true Self-Service – The existing delivery model needs to be replaced by a new one based on customer self service. This may be the case for large volume services based on simple rules.

15. iv. The Customer Service Proposition – Why You Should Have One “A promise of value to be delivered and a belief from the customer that value will be experienced.” R Kaplan and D Norton

16. Was This One of Your Service Users?

17. The Service Proposition The standard business view: increased PROFIT and MARKET SHARE based on: Delivery performance to customer Quality performance for customer Customer satisfaction rate Customer percentage of market Customer retention rate

18. The Public Sector Service Proposition Which are still valid? Delivery performance to customer Quality performance for customer Customer satisfaction rate Customer percentage of market Customer retention rate User Advocacy, Cost-efficiency and Public Value ??

19. v. Establishing a Benefits Based Business Case • Focusing on realisable benefits strengthens the case for change. • Make sure any benefits you claim for your change programme are clearly defined and understood by your stakeholders. • Apply a practical framework for measuring and tracking them over time. • Link any claimed benefits to your overall case for change and make sure they have identified owners responsible for their delivery.

20. Remind Me – What Was Your Case for Change? How will the quality of outcomes as perceived by customers/politicians change? Quality Case Will it work for those delivering the services and is it technically sound? Core Proposition Technical Case Financial Case Is it affordable and will it lead to cashable benefits?

21. Re-Cap – Types of Benefits Soft Benefits (Qualitative Improvements) Easier to Access/Use Faster Delivery Offers ‘Value Add’ beyond existing service Hard Benefits (Cashable Savings) Headcount Reduction Estates Rationalisation Lower costs for contracted services and consumables

22. Benefits in a Business Case Any good business case should be able to: articulate and quantify its anticipated benefits weigh up benefits/dis-benefits against expected costs set out a plan for how benefits will be realised offer a means of tracking and reporting benefits realised against forecast match the benefits to the stakeholders Because, how else are you going to know if your project/programme has succeeded?

23. What Your Business Case Has To Be A clear statement saying precisely what will change on your balance sheet or in customer satisfaction terms A solid commitment to change in quantitative terms (e.g. how much, where and when…..) With specific, measurable targets (with owners) instead of the general and elusive aspirations of 'better' and 'cheaper‘….

24. vi. Effective Implementation Successful implementation of a channel strategy or customer contact programme requires a process of considerable behaviour change for: service users service providers delivery partners support teams (such as Comms, IT) frontline staff senior officers elected members Focus, sustained effort and teamwork are all needed to make change happen

25. But in practical terms – what does this actually mean……??

26. A Practical Approach to Optimise Success

27. A. The Portfolio Approach You will probably arrive at a mixed portfolio of projects that aims to: Gain customer and staff engagement Change customer behaviour Realise cashable savings Remain affordable Remain deliverable But what’s precisely in this mix will vary with each organisation and its strategic goals

28. The Portfolio Approach – Examples Big Savings Social Services Revenues & Benefits Registrars Savings Refuse Schools Planning Libraries Recreation Small Savings Users Many Users Few Users

29. The Portfolio Approach – Example 1 Big Savings Social Services Revenues & Benefits Registrars Savings Refuse Great opportunity to influence but limited savings potential Schools Planning Libraries Recreation Small Savings Users Many Users Few Users

30. The Portfolio Approach – Example 2 Big Savings Great opportunity to influence and make savings Social Services Revenues & Benefits Registrars Savings Refuse Schools Planning Libraries Recreation Small Savings Users Many Users Few Users

31. The Portfolio Approach – Example 3 Big Savings Good opportunity for savings, but complex and potentially risky Social Services Revenues & Benefits Registrars Savings Refuse Schools Planning Libraries Recreation Small Savings Users Many Users Few Users

32. A good ‘Portfolio’ keeps all these people engaged and and confident that what’s important to them has been considered Politicians Service Users Service Managers

33. B. The Project Planning Approach Good project management is a crucial part of any change programme – but often the one given scant respect and consideration…..

34. Coherent project management also keeps all these people engaged and clear on their own roles in the change process Politicians Service Users Service Managers

35. C. And Lastly - Pace Driving and maintaining the pace of change is a key element in any transformation programme: Change doesn’t happen by itself The rate at which you implement change will also have a significant effect on the financial bottom line The cost of infrastructure and IT can be large – and whilst it’s easy to spend money rapidly on IT, it’s harder to get rapid returns on the investment All components of the change programme need to coordinate well to ensure investments, especially those in technology, are exploited as fully and quickly as possible.

36. Maintaining the pace also keeps all these people confident of a successful outcome and investment in change, and bought-in to ongoing transformation Politicians Service Users Service Managers

37. Chapter 3 What Makes All the Difference – Four Challenges

38. A. Focus on Those Benefits! Cashable savings are probably your prime objective and there are only three significant sources: Headcount Reduction Estate Rationalisation Better commissioning of services/less waste If your channel shift programme does not produce these then it will not give you cashable benefits no matter how ‘digital’ you look

39. B. Avoid Magical Thinking! ERDMS System Social Media Agile Working CRM System Website Apps Using the technology does not imply you realise benefits

40. C. Think Really Logically…… Cost per transaction and assumed potential channel shift savings Sounds all very plausible, BUT……………..

41. What’s the Problem? These values have important simplifications embedded: They are mean values for multiple sectors and processes The are not necessarily ‘like for like’ Calculations assume straightforward and complete shift from one channel to another

42. So Remember - Digital is not always cheaper For every Amazon, Google and Facebook there are countless forgotten online failures

43. D. Know Your Customer MOSAIC Figures from a District Council in South of England

44. Chapter 4 Some Happy and Sad Endings…..

45. Student Loans

46. Online School Admissions and Online Free School Meals

47. The Moral of the Tale? Think About the Money and the People First – And Then Harness the Technology

48. Thank YouTrapeze is Sarah Fogden & Gerald PowerThere are more resources available at our websitewww.trapeze-transformation.com