Select Committee on Public Administration Written Evidence


Memorandum from Tetlow Associates

  This memorandum represents the response of Tetlow Associates to the issues raised in the Issues and Questions Paper: "Public Services: putting people first?"

  It follows a research project we have undertaken recently on behalf of the Local Government Association and National Consumer Council on Developing Customer Satisfaction Measures for Local Government Services. A summary of this report is available at: http://www.lga.gov.uk/Documents/Briefing/projects/developing%20measures.pdf.

  We provide responses below to your questions 1, 2, 3, 8 and 10.

Question 1:   Can public services learn from the way that either non public sector organisations or overseas governments make use of user experience in service delivery and design?

A:  learning from the private sector

  This is not only possible but essential. The context in which people experience public services is framed by the offerings of all the organisations with which we interact including the private sector, and this influences our expectations. The fact that supermarkets are now open 24 hours a day, or that many services are available on-line inevitably frames expectations about the way the world can be experienced and puts pressure on public services to learn from such examples if they are to avoid a public perception that they are anachronistic and outdated.

  The techniques used by the private sector have much to offer to public services. Specific techniques designed to enhance customer insight (eg segmentation, techniques for understanding the nature of the customer experience and the relative importance to the customer of aspects of products and services) have informed many of the developments of commercial products and services of recent years and have given leading companies significant competitive edge.

  Some of these techniques are being applied to public services but they are hampered by the fact that there is no generally accepted standard and practice is diverse. Thus wisdom derived from research about the responses of some groups in society to one service is rarely used in the design of others. The use of basic sociodemographic categories in customer research on public services is widespread but sophisticated segmentation methodologies as an essential element in service design is not. Very few public service surveys seek to understand the reasons why people feel pleased or displeased with the service they receive. Most rely on answers to simple satisfaction questions which give a general impression but do not help pinpoint the precise nature of improvement customers might welcome.

  In order to deepen understanding, many public services use qualitative techniques including deliberative forums, focus groups, citizens' juries and other methodologies which give people greater freedom to express their views in depth and discuss their experience than is possible using quantitative surveys. Many of these techniques are based on private sector examples and are extremely useful. However, their use is patchy and only a small population can be involved, so the use of surveys with greater rigour is also required.

  A related key area where public services can learn from the private sector is in the use to which the data, once gathered, is put. Public service organisations are often not structured in a way which allows the information which is known about customer responses to change the way they work. The results of surveys often do not transparently inform crucial decision making processes and are not part of the essential management information which boards draw on in making strategic decisions. Examples of the ways private companies have changed processes to respond directly to customer preferences are common. This is less evident in public services.

B.  Learning from other countries

  International best practice has useful lessons. The best known example is that of Canada, where there are national standards for measuring the drivers of satisfaction with services and regular national surveys ("Citizens First"). The key lessons for the UK from the Canadian example are:

    —  Rigorous focus on understanding the reasons for people's satisfaction and dissatisfaction has produced an overall significant increase in satisfaction with services.

    —  The use of rigorous, standardised methodologies for understanding customers across services has proved successful for a wide range of services at all jurisdictional levels.

    —  Achieving good results has not been costly and many Canadian officials believe that money has been saved.

  Further information about the Canadian example is available from the Institute of Citizen Centred Service. (http://www.iccs-isac.org).

  Other examples worth looking at include the US American Customer Satisfaction Index, itself the basis for the European Customer Satisfaction Index which has been used on a small scale in Scandinavia. These examples provide an interesting example of a standardised way of managing data about customers but the results in terms of driving change are less clear than is the case in Canada.

Question 2:   Is it possible to set minimum standards for public services? If so, how is this best done?

  There are risks in setting minimum standards, especially those related to customer satisfaction or which depend on perceptions. Satisfaction is influenced by many issues which may not be directly related to the quality of the service received. (There is evidence, for example, that satisfaction with services varies between sociodemographic groups.) Thus achieving, say, a standard for customer satisfaction of 65% satisfied or very satisfied may be relatively easy to achieve in one area but very challenging in another, and the difference may be explained largely by differences in the populations of the two areas.

  More effective are minimum standards for improving people's experience based on previous survey evidence. This approach was taken in Canada—each service was set a target of a 5% improvement in satisfaction over a five year period, and this was achieved by 2005.

  Setting minimum standards for performance other than customer satisfaction or measures of customer experience is widespread. The effect of these on people's relationship to services depends on the extent to which the standard relates to what people want and need from the service. Proxy targets are often used in this area—for example waiting time targets setting minimum standards in the NHS. Proxy targets carry risks—whilst it may be reasonable, provided there is robust supporting evidence, to assume that improvement in the target will improve the customer experience, organisations tend to focus on the content of the target or minimum standard rather than the spirit, especially if there are financial or reputational issues for the organisation in meeting the minimum standard. This produces perverse incentives and runs risks of damaging the customer experience when, for example, hospitals focus on ensuring that no-one waits more than four hours in A and E as their first priority and pays less attention to the actual experience of the patient, who may simply find themselves waiting in another part of the hospital instead, with a possible resulting adverse effect on their overall experience of their treatment.

  Setting standards needs to be based on current, specific information about the issues which matter to people. Whilst there may be widespread evidence that people value being treated with dignity and respect, simple questions of social care customers such as "were you treated with dignity and respect" may produce a "yes/no" answer which could produce a result that a certain percentage of customers felt they were treated with dignity and respect. However, we know that elderly people are more likely to answer "yes" to this question than young ones, and thus the answer may not tell us a great deal about the service itself but is more likely to be a reflection of social attitudes to authority. More effective are specific question derived from the detail of the experience, such as "Did staff talk about you as if you were not there". Using measures built around such questions can be used to derive a meaningful overall score for the customer experience, and measuring this over time could form a useful minimum standard for services.

Question 3A:   What role do measures of customer satisfaction have in assessing the standard of public services?

  Overall measures of customer satisfaction do have a role in assessing the standard of public services. However, taken on its own there are difficulties with this concept:

    (a)  Policy goals may not be consistent with high levels of customer satisfaction. For example, we do not necessarily wish to prioritise simple satisfaction with higher education—students may be satisfied with undemanding coursework, if asked, but their longer term interests and that of society more widely are better served by sacrificing simple immediate satisfaction for greater challenge.

    (b)  Satisfaction levels vary by sociodemographic groups, with, for example, older women very much more satisfied than younger men. Simple satisfaction scores need to be understood carefully, and the underlying detail explored.

  Measures of the extent to which organisations focus on their customers as part of their day to day processes may be more helpful. For example, the extent to which they gather data about the user experience and use it to drive processes, alongside evidence that satisfaction scores and rating of specific service experiences are improving, may be more meaningful.

Question 3B:   How should user views be monitored?

  A variety of techniques are appropriate for understanding user views and experience. "Views"—which may be a matter largely of opinion can be a different concept from "experience". Thus a user may hold a view that a particular service is not the way he or she might ideally like it to be—for example he or she may dislike the building or the style of a publication, but nonetheless the service experience is satisfactory because he/she was dealt with expertly by staff. It is probably useful to measure both, but important to be clear which is being investigated.

  The most important aspect of the user/customer relationship with the service to measure is the direct experience. Qualitative work is necessary to develop a detailed understanding of the nature of the experience and the issues and details which matter to people. This can then be used as a basis for general surveying using qualitative and/or quantitative techniques. If similar instruments are used on a widespread basis, and repeated over time, important trends can be tracked which can be used to inform policy development at local and national levels. This is not possible at present and requires improvement.

Question 3C:   How can the cost effectiveness of user surveys and feedback be assessed?

  The issue of the cost effectiveness of understanding customers is often raised. During our research for the Local Government Association and National Consumer Council we found evidence that local authorities gather a great deal of data at currently unquantified expense (estimating the actual cost may be the subject of further research) much of which is little used to drive their processes.

  Additionally, some processes undertaken by public service organisations in the belief that they are a necessary part of delivering a good customer service may prove, on the basis of sound evidence, to be unnecessary.

  We believe strongly that simply looking at this issue from the perspective that additional survey work represents an extra "cost" to organisations is mistaken. Experts in Canada involved in managing the Citizens' First initiative and the use of their "Common Measurements Tool" believe that this initiative has at worst been cost neutral and have anecdotal evidence that individual institutions have saved money as a result.

  Private companies regard the cost of understanding customers as an essential element of their business and crucial to their survival. We believe that effective public service organisations need to give this issue similar priority if their democratic mandate is to be honoured. It is not to be regarded as an optional "extra" in addition to other aspects of strategic management—strategic management is impossible to undertake effectively without it.

  Assessment of cost effectiveness may include measurement of the achievement of desired policy outcomes. These are often behavioural—for example reducing crime, encouraging environmental responsibility or healthy living. These depend on effective communication with customers which can only be based on detailed understanding of them and their experience. Thus even in areas where direct service experience is less relevant measurement of the extent of behavioural change may be an indication of the cost effectiveness of customer insight. Similarly, satisfied public service customers, especially those for personal services such as social services, are likely in some cases to be helped to manage their lives effectively and perhaps reduce their dependence on acute health services.

Question 8:   Do official consultations typically manage to capture the views of the right people? What kinds of consultation are most effective in engaging with the appropriate people?

  The simple answer to this question is no. Engagement with many forms of consultation requires social capital which many people simply do not have—the language of documents and the processes to be engaged with are inaccessible to many and poorly advertised. Only those people familiar with such processes are inclined to engage, producing the "usual suspects" syndrome and the sense that consultation has become a ritual which passes for real public engagement but is in fact a poor substitute.

  This requires further work. There are many techniques available for understanding peoples' perspectives on policy issues, many of which are in widespread use in the market research industry. Government has much to learn from these techniques and their use might make for more effective policy making and easier acceptance of policy announcements and legislation.

  This problem exists at national and local level, and the capacity of some individuals to be heard can lead to an understandable perception by politicians that they are in touch with public opinion, when in fact they are simply hearing the loudest voices. It is essential that rigorous research, geared especially to ensure true representation of the population, forms part of the policy engagement process.

Question 10:   How does user influence relate to wider issues of democratic accountability?

  This issue is of critical importance where services are intensively used but only by a minority of people—for example looked after children. Many people will have opinions about such services, especially when they are the subject of press coverage, but few will have close first hand knowledge and it is difficult for politicians to determine the extent to which widespread public opinion should influence decision making rather than knowledge of the user experience, which may be rather different. This situation is made worse when good data about the actual performance of the service in the eyes of its users is not readily available.

  It is essential that sound democratic processes of engagement are supported by good data about customer experiences, so that public opinion can be balanced alongside real evidence about the way services are performing in the eyes of their customers.

January 2007





 
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