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

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 Core Proposition Financial Case Technical Case Quality Case How will the quality of outcomes as perceived by customers and politicians change? Will it work for those delivering the services and is it technically sound? 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. Hard Benefits (Cashable Savings) Headcount Reduction Estates Rationalisation Lower costs for contracted services and consumables First - Know Your Benefits Soft Benefits (Qualitative Improvements) Easier to Access/Use Faster Delivery Offers ‘Value Add’ beyond existing service

12. Volumes of Customer Contact by Service ServiceTelephoneFace to FaceWhite MailEmailWebTOTALEstimated Cost Benefits 60,00045,00050,0004,0002,000 161,000 1550400 Switchboard 150,000 750000 Revenues 110,00013,00003,000800 126,800 747160 Refuse 120,00070050006,000 127,200 617000 School Admissions 33,0007,5005,50020,0002,500 68,500 436500 Registrars 35,0001,9007001,0001,500 40,100 215300 Planning 7,0004,2003,0006,0001,200 21,400 160040 Social Services -Childrens 25,444300 4,500 30,244 153920 Blue Badge 4,0001,4007,5001,200 14,100 135600 Social Services-Emergency 25,000 2,000 27,000 135000 Env Health 22,00060001,5000 24,100 125900 Highways 22,000150250 7,500 29,900 116600 Social Services -Other 19,000150 19,150 97100 Free School Meals 4,000 3008000 9,100 83600 Social Services-Adults 10,000 500 10,500 52500 Street Lighting 6,000002,000200 8,200 40040 Social Services - Adoption 4,000 500 4,500 22500 All services Grand total656,44478,90067,75047,00021,700871,794 5,439,160 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. 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. Then – Assess Your Options

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 1.Focusing on realisable benefits strengthens the case for change. 2.Make sure any benefits you claim for your change programme are clearly defined and understood by your stakeholders. 3.Apply a practical framework for measuring and tracking them over time. 4.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? Core Proposition Financial Case Technical Case Quality Case How will the quality of outcomes as perceived by customers/politicians change? Will it work for those delivering the services and is it technically sound? Is it affordable and will it lead to cashable benefits?

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

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 1.A clear statement saying precisely what will change on your balance sheet or in customer satisfaction terms 2.A solid commitment to change in quantitative terms (e.g. how much, where and when…..) 3.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 Few Users Many Users Small Savings Big Savings Savings Users Schools Revenues & Benefits Social Services Refuse Libraries Recreation Planning Registrars

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

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

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

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

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

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

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

38. 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 A. Focus on Those Benefits!

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

40. Source Face to Face TelephonePostIVROnline PWC Report [3]£10.53p£3.39p£12.10pNA£0.08p SOCITM [9]£14.00p£5.00pNA£0.20p£0.17p Credible?Yes Cost per transaction and assumed potential channel shift savings C. Think Really Logically…… Sounds all very plausible, BUT……………..

41. Source Face to Face TelephonePostIVROnline PWC Report [3]£10.53p£3.39p£12.10pNA£0.08p SOCITM [9]£14.00p£5.00pNA£0.20p£0.17p 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. Group E Middle income families in moderate suburban semis 10,88621% Group CWealthy people living in the most sought-after neighbourhoods 7,85814% Group FCouples with young children in comfortable modern housing 7,54612% Group DSuccessful professionals in suburban/semi-rural homes 7,39613% Group HCouples & young singles in small modern starter homes 5,8749% 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 You Trapeze is Sarah Fogden & Gerald Power There are more resources available at our website www.trapeze-transformation.com www.trapeze-transformation.com