NATIONAL SUMMIT ON CUSTOMER SERVICE

IN FEDERAL, STATE AND LOCAL GOVERNMENT

December 11-12, 2000

Kellogg Conference Center, Washington D.C.

American Customer Satisfaction Index (ACSI): The Importance of Measuring Customer Satisfaction. – Bernie Lubran, Project Manager at the Federal Consulting Group (FCG), described the FCG as a unique fee for service group providing consulting services within the Federal government. He said the ACSI is particularly useful because it provides a common measure across agencies and between the public and private sectors. It has been used in the United States since 1994, and before that in Europe. In 1999, 30 government programs were included; more than 100 are included a year later. Results for the original 30 were announced December 22, with the rollout for the remainder in spring 2001. Initial results show that public-sector performance compares favorably with that of the private sector. The public-sector ACSI model, adapted from the older private-sector model, shows agencies the changes/improvements that would have the most impact on their goal – for example, trust and confidence. The results show that, for the public sector, the reality of service tends to exceed customer expectations. Federal agencies can outshine the private sector. The website for the government wide survey is now at www.customerservice.gov.

A Comparative Perspective on Customer Service. – Russell Kite, currently liaison to NPR from the Federal Emergency Management Agency, reported on how he resolved a severe backlog (and hence customer) problem at a former post in the Department of Labor using the GE Workout Program, pioneered by General Electric CEO Jack Welch. It involved listening to front line employees on key issues and giving them the tools to do their jobs. He took this experience to FEMA, where charismatic leader James Lee Witt had turned around a moribund agency, making it a model of customer service and satisfaction. He illustrated how this happened through reiterating Witt’s Eight Rules for Successfully Leading Change:

Never lose your focus on the customer.

State your mission.

Structure your organization around your mission.

Work with your career employees.

Give your employees the tools to do their jobs.

Communicate your message.

Secure support from your constituents.

Build partnerships.

Under Witt, FEMA has applied these rules and transformed itself, changing from an emphasis on Cold War catastrophes to real-life disasters. It reorganized around missions of mitigation (helping communities plan in advance for emergencies), preparedness (through training and exercises), response (when disasters occur), and recovery (rebuilding against future hazards). This was done with no RIFs. Employees were kept informed throughout. And each employee and each idea is clearly valued.

Improving Customer Service in the United States Patent and Trademark Office PTO). – Kathy Kern and Greg Mullen discussed how PTO took customer service to a higher level by surveying customer groups rather than assuming they knew what the customers wanted. PTO is now totally fee for service. Formally known behind its back by inventors and their attorneys as the "Rejection Office," PTO first had to acknowledge that it did, indeed, have customers. Through surveys, PTO learned that customers most objected to examiners’ adversarial attitude. Through a process of give and take, PTO committed itself to helpful actions and attitudes while still upholding the law. Their mission statement became "Helping customers get patents." Employees were given customer service training. Customer satisfaction improved. Lessons learned were the importance of communication, including internal communication; involving the front line in changing a culture from production line to service; flexibility, so as not to be afraid of change; accepting the likelihood of resistance, in that employees feared appearing to be too cozy with those they were regulating; and linkages, that employees need to be held accountable for what’s important.

Federal Unions and Customer Service Initiatives. – Colleen Kelly, president of the National Treasury Employees Union, described the history of Partnership Councils of labor and management arising from a Clinton administration Executive Order. She cited the union’s work with IRS to establish "problem-solving days" with customers to resolve tax dilemmas. She considers balanced measures to be key – customer satisfaction, employee satisfaction, and business results. Key drivers of employee satisfaction are work challenges, chance to learn new skills, authority to make decisions, and respectful treatment. The future of customer service and unions is intertwined since they have the same aim. Common issues include recruitment and adequate and stable funding. Bob Tobias, immediate past president and now a professor at The American University, said surveys are fine as far as they go, but they must be part of a larger improvement effort. In his experience, communication is the most important tool for unions and management to bring to the table. He recommends the book First Break All the Rules by Buckingham and Coffman.

Best Practices: Ideas That Have Worked in the Public Sector. – Kathy Monohan of the Immigration and Naturalization Service, formerly Balanced Measures expert at NPR, focused on state and local successes. She discussed Iowa’s Council on Human Investment, which meets quarterly to analyze the state’s customer survey results and develop action plans. She also described Coral Springs, Florida’s commitment to its mission "to be the premier city in Florida in which to live, work and raise a family," which includes ensuring that all city employees know where they fit into the mission. She discussed Phoenix’s continuous improvement program that is piloting balanced measures. Among Phoenix’s lessons learned was that a decentralized, flexible approach is more likely to win over employees. She also looked at the Austin, Texas, community scorecard; the Fairfax County, Va., Performance Budget for Human Services that helps coordinate various services; and Charlotte’s Balanced Scorecard approach. She emphasized the importance of communication and adapting approaches to a locale’s particular situation.

Balanced Scorecard Strategic Plans: Foundation for Strong Performance and Customer Satisfaction. – Norman Bowles discussed how the Federal Aviation Administration’s Logistics Center uses the Balanced Scorecard to improve customer service. The Center is in the process of becoming a Performance Based Organization whose success will depend on satisfying other components of FAA. These other offices will be able to go elsewhere for services and will do so unless the Center gives top-notch service. Since embarking on this route, the Center has received numerous quality awards. The process was done in-house through special teams rather than consultants. Among the steps was benchmarking against of private and public sector organizations. Employees were given considerable flexibility. Plan development focused on the goal, rather than the how to get there. Metrics available through implementation of the Scorecard enabled them to determine results achieved.

How To Reinvent and Revamp a Service Organization. – Anthony Nadlin, a manager at Net.com, provided a private industry perspective. I found it disappointing. Most of his presentation was hard to relate to the public sector and contained a lot of techie jargon. He appeared unaware of many of the constraints under which government functions, but some of his messages were useful. He cautioned about the importance of rewarding the right things (or, as he put it, all activities need into feed to the bottom line). He said that customer satisfaction has little bearing on customer loyalty, which is the real goal. He cited three types of companies – market leaders, close contender, and dying companies – that, again, were hard to relate to a government setting. And, he promoted Net.com’s services in promoting customer focus.

Reaching Disadvantaged Communities in the Internet Age: Concerns and Practical Solutions. – San Gallagher, associate Web manager at the Department of Housing and Urban Development, discussed HUD’s award-winning foray into customer service through information kiosks placed in stores and other building across the country where they are available to customers. This is a further step in HUD’s customer service that began with "HUD Next Door" – storefront customer-friendly HUD service offices that supplemented or replaced traditional offices in formidable Federal buildings. The information kiosks enable people without Web access to get to the HUD site and find information on such things as HUD-facilitated homes for sale. The kiosks, which look like ATM machines and have a similar touch screen, also include printers. They are now located where people congregate – for example, in malls and grocery stores. The first one was established in Washington, D.C., in 1998, and soon there will be 90 nationwide, at a cost of approximately $18,000 each for setup. In a survey of observed customers, 91 percent said they were easy to use. Ultimately, HUD plans to have 190 kiosks in community locations and hopes to partner with other Federal agencies.

Using the Web To Create a New Online Customer Service Standard. – Mark Carpenter, Manager of Interactive Services for AARP, is helping oversee the transformation of AARP from a membership organization to a customer service organization that helps member find the best services, products, etc. Part of the aim is to move members away from phone contact and onto the Internet. Consumers have choices today in so many areas that organizations have to focus on the consumer as opposed to the product. Organizations have to recognize that the world has changed and observe customer service principles in order to survive. AARP has changed in line with changing demographics. Many members are not retired. AARP has created forums to allow members with similar interests to chat online. It’s important to track customer visits to all parts of a Web site. Show your customers that you are paying attention and change your site based on their needs. Provide options; be prepared to begin a customer interaction on the Web and finish it on the phone. AARP has leveraged technology by establishing "My AARP" customized pages, which should help increase efficiency and lower costs of providing services.

Using the Internet To Treat Your Constituents Like Prime Customers. – Bob Miller, Director of Implementation at GovWorks.com, discussed how his firm helps government use the Internet, advising on what constituents really want from a government website, success factors, and service delivery. Originally, government sites were little more than newsletters. But a website is not an efficient broadcast medium. Customers visit only because they want to reach you; you can’t compel them. Email is a better vehicle for broadcast. Some useful applications for a site are downloadable forms, lists of phone numbers and email addresses, archived documents, and complaint acceptance. He showed some local government examples of sites – Sparks, Nev. (poor example) and Fremont, Cal. (good example). Service delivery via the web can include such things as database queries, permit submissions, and online payments. Surveys in 13 cities showed that constituents want to use sites to solve problems, get specific information quickly, avoid a phone call, avoid a trip, and complete transactions. To serve customers, survey them, using the web to find out what they want; make the Internet the first choice for service delivery; establish goals for Internet use; measure costs and benefits; and develop Internet service incrementally to make sure it works and the people know about it. Using Miller’s GovWorks software, Huntsville, Texas, established bill and parking ticket payments online. It was done incrementally and promoted through links, online banners, flyers, inserts, and stickers. In New York City, the process was far more complex. The aim was to establish alternative ways to pay fines, fees and taxes through a single point of access, doing away with an inheritance of five different legacy systems. It was phased in and found to be more efficient, less costly and more convenient for customers, resulting in fewer errors and increased compliance, even though the legacy systems proved too ingrained to abolish altogether. Conclusions: Customer service on the Internet requires service delivery on the Internet. Service delivery on the Internet yields better service and increased efficiency. An incremental approach can make delivery more manageable.

by Betsy Adams
Performance Results Staff
Office of Regulatory Affairs, FDA
(301) 827-4543