What are the characteristics of customer focussed ...

[Pages:31]What are the characteristics of customer focussed leadership and how can this be achieved in a climate where demand inevitably outstrips resource?

Aspire (Cohort 1) Business Partnering Programme Report by: Gordon Latham (Warwickshire CC) Louise Lawrence (Sandwell MBC) Primula Paul (Walsall MBC) Margot Worton (Dudley MBC) June 2015

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Contents 1.0 Background & Objectives

2.0 Methodology & Scope

3.0 Stakeholders

4.0 Findings 4.1 Alignment & Share Purpose 4.2 Empowerment and Accountability 4.3 Lead with a customer focus 4.4 Listening to customers/staff 4.5 Assessment and Evaluation 4.6 Agility

5.0 Conclusions

6.0 Recommendations

7.0 Appendices 7.1 Self Assessment Tool 7.2 Overview of team input 7.3 Reading List

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1.0 Background & Objectives

The modern local government workplace is currently typified by a seemingly constant need for restructure to meet budget cuts. Uncertainty prevails. Customer expectations are rising. Legislation is tightening, inspections and audits are a regular feature.

Increasingly unable to meet the needs of all its citizens, the modern council has to look to prioritise its scarce resources, scrutinise how it delivers to ensure best options are taken, focus on what the customer really wants ...and in some cases, where the customer can help to deliver these.

The role of the customer focussed leader therefore is paramount in these organisations. But what does being a customer focussed leader really mean? How does this differ from other leadership styles? What are the characteristics that we should look for and need to be considered truly customer focussed?

Customer focussed leadership is much more than good customer service. It is not just about customers being satisfied with the service that they are receiving and the way that they are receiving it. It is about customers being instrumental in the design and delivery of those services.

For many years, with less financial constraints, councils were able to provide services which kept all its citizens reasonably happy- something for everyone, which could be perceived as being customer focussed. But with increasing austerity, difficult decisions have had to be made and now councils are facing `wicked decisions' - that is cutting services that they know will have a significant adverse effect on the quality of life for people. It is now about priorities and balance - to do this without the input of those affected, both those receiving the service and those delivering it, is not the way to do things.

It is also not just about consulting citizens on a range of options that they can chose from. It is involving the citizens at the start of the process, to be involved in the inception, design, creation and perhaps delivery of those services. No more is the council able to use its patriarchal approach of `we know best' If we do want, and need, citizens to truly be engaged with the services, they must be involved at the earliest stage. And meaningful engaged, customer focussed councils need to accept some of the ideas put forward may even be better.

But this cannot happen in splendid isolation of one person leading the charge. Customer focussed leadership needs to be embedded throughout the organisation. Employees at all levels of the organisation can be, need to be, leaders - we are not looking for one superhero to do it all. The University of Birmingham report `The 21st century public servant' talks about the idea of rejecting the `heroic leadership' model in favour of `distributed and collaborative models of leading' This research looks to identify what the benefits are to leading with a customer focus, particularly at a time of austerity. It will also identify the key characteristics that set customer

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focussed leadership apart from other styles. Finally it will identify a self assessment process for those wishing to follow this approach within their organisations

2.0 Methodology & Scope

A study was undertaken of the academic research already produced on this topic. In particular the works of Coulson and Miller. The Institute of Customer Service provided cases studies from a range of different public, private and third sector organisations.

This research informed the approach taken of focussing on public and voluntary sectors. The private sector has not faced the same levels of austerity and their focus is formed on the basis of the need for a competitive edge to attract customers and so their approach, whilst acknowledging the need for the public sector to be more commercially minded, is not easily translated into a local authority setting or a focus for this report.

This research formulated a theory of what a Customer focussed leader should look like. This theory was then tested through a wide range of public and voluntary organisations through face to face and telephone interviews and site visits.

3.0 Stakeholders

Project Sponsor - The project was commissioned by Dawn Hewins, Assistant Director, HR & Transformation, Stoke on Trent City Council. Dawn raised this as a relevant challenge for the sector which would be of interest to all Local Authorities.

West Midlands Employers - This is the first cohort for the Aspire Business Partnering Programme and it is important the investment made by WME and the local authorities who have bought into the programme sees a return on invest; demonstrated by enhanced business partnership skills of the attendees and useful outcomes for the key issues raised by project sponsors.

Project Mentors - each member of the team has a mentor who has provided financial support and commitment, enabling the time and space required to develop the project.

Project Team Members - all members have invested considerable time and energy into producing a report and presentation that adds value to their own learning and development and which produces some meaningful insight and outcomes for their sponsor and mentor, see appendix 7.2.

Internal/external leaders/managers/customers and employees - have given their time and shared their experiences to help in the testing of the research and develop our outcomes.

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4.0 Findings For a definition of customer focused leadership, the model by Ray Miller demonstrates the clear difference between the top down ` we know best' approach, in which citizens are mere recipients of services that have been identified by leaders (fig 1) and a customer focussed approach in which any delivery of service starts with the customer, identifying their needs and involving them in decisions made (fig 2)

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Both the academic research and interviews identified recurring themes as to the qualities, skills or knowledge needed by those who are customer focussed leaders. Others were also identified but the 6 below represent those that are specific to this topic as opposed to being generic for other types of leadership:

4.1 Alignment & Share Purpose (balancing short and long term priorities) An organisation's purpose is its identity; shared purpose takes the thinking further identifying the need for the identity and purpose to be shared by all employees and external stakeholders such as customers and partners. To achieve this shared purpose it is important for the values, behaviours and objectives of the stakeholders to be aligned i.e. to be seen to be consistent, integrated and fit with each other. This must be demonstrated throughout the organisation and through all communication channels including documentation such as appraisals, job descriptions etc. but also the verbal and non-verbal messages given by senior leaders Alignment and a shared purpose are all drivers of sustainable organisation performance, and important issues for HR and business leaders to focus attention on, whatever the economic climate. Indeed in times of austerity, when closer working relationships and partnerships are needed to deliver it is more important than ever if successful outcomes can be achieved. CIPD research has highlighted the importance of these themes for long-term performance, in particular the `Shaping the Future' programme of work and the `Next Generation HR' research. Aligning a joint purpose across several separate organisations Page | 6

At a time of change in health & social care delivery of services improved joint working of local government with it's partners - notably the NHS and many others is a must. There is a need to ensure that statutory guidance can be successfully followed and a real shared purpose is required. The Care Act also requires more joint working and joint working protocols. Warwickshire County Council (WCC) has striven to take creative approaches to get partners into the fold. The Chief Executive of `Health Watch' who through their role has integral links with all of the relevant organisations for delivery of health & social care delivery has assisted WCC to get early links into these organisations to assist in developing the best joined up services. The Health & Wellbeing Board and The Francis Enquiry and various NHS services have all been a catalyst for spurring all relevant partners to want to effectively engage in the development of these services.

WCC has ?1/4m funding to engage in a high level engagement to improve the corporate customer journey and in doing so to remove unnecessary overlapping of services and makes efficiencies whilst improving overall customer satisfaction. The changes are testing leadership skills and highlighting developing needs and required behaviours that are being addressed. Success is being achieved by strongly challenging the organisational structure first to test if it's fit to deliver the customers requirements in the most effective way. It's been about channelling resources and the different services in the right way to ensure the customer gets that priority and that internal organisational politics and strategies are appropriately aligned to the various services and functions. The success in terms of the provision of Health & Social Care will depend on that singular approach to the delivery of services and hence the importance of the project that is underway is to pull together these services so that WCC really can provide better customer focused services in times when the resources available to deliver these are challenged like never before.

Seven separate organisations, one purpose!

A good example of the above approach previously being very successfully applied relates to the Warwickshire `One Front Door' approach. This is a partnership approach of WCC with the 6 district councils in Warwickshire and staff working alongside one another in the various `one front door' offices within the town halls of Nuneaton, Stratford, Atherstone, Rugby Leamington and Warwick. In order to provide customer focused leadership all staff, regardless of the employer are working to a common set of agreed customer focused behaviours to deliver the services. This is on top of pre-requisite corporate behaviours that all Warwickshire County Council staff have to perform against and in measured in relation to their performance appraisal. All staff working in the `one front door' offices have a delegated authority to take ownership to deliver the necessary level of customer care, so it's success (in terms of feedback) is very much seen through leadership on customer care matters being demonstrated all levels. At all of these `one front door' centres a wider range of services to customers have been made available through achieving greater cooperation, integration and joining up with the various district councils and the local authority. Thirty plus services are now provided out of each and an increased resource to providing these quality services has been recognised as necessary with staffing increasing to deliver these.

Commitment to the community

At Dudley MBC the Leader, Pete Lowe, believes most Public Sector workers are in their roles (at least the customer front line staff) because of their commitment and belief in making a difference to the lives of the those in the community. However, during times of austerity it

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is difficult for some understand how that sense of purpose, to support vulnerable adults and children for example, is shared and aligned with the decisions being made in terms of budget savings. This does make it more challenging for customer focussed leadership in austerity as, despite having less time to forge close working relationships and develop a shared understanding of the priorities and agendas for each group, greater commitment to discussing and consulting with employees and customers is imperative to ensure that shared purpose (the overarching aspiration to do the best possible for the community with the resource available) is aligned throughout.

The challenges of the budget saving process has also bought opportunity to engage customers, elected members, managers and employees in discussions around modernising and aligning systems, processes and policies so they support and not prohibit the organisation change required; whereas such debates and actions may have been resisted previously there is a greater understanding that with less resource things have to change. The research in "Shaping the Future" confirmed that whilst there were negative responses to the austerity "it's all about survival" for some interviewees there was this positive aspect to the financial context "the cuts are forcing us to confront change. In public service, change doesn't necessarily happen unless there is a crisis or disaster, or it happens very slowly". The customer focussed leader will adopt the latter approach. However as stated he/she cannot do it on their own and there has to be customer focussed leadership throughout the organisation to be confident of achieving a shared, aligned purpose. Many employees are remote to the senior leadership team and political leadership and will not only get most of the key messages and aspirations from their line manager and customers first this is where their loyalty and identity/purpose is developed so it must be aligned with the overall organisation purpose by the local leadership and external stakeholders. A key driver for this, however is clear and visible customer focussed leadership at senior levels so customer focused at all levels does not absolve senior managers from their responsibilities.

Pete Lowe recognises that whilst DMBC is getting there in the past the messages have been too remote and not bought in to the relevance of each employee's role sufficiently, resulting in a major initiative to align values and behaviours through the "golden thread" to the one council and community council objectives.

Sharing a vision across organisations

West Midland Employers (WME) provides training and support for all of its member organisations. A significant element when pulling events together is the `horizon scanning' piece to ensure that members receive the support that they need in a timely manner. This involves WME carefully balancing their short and long term priorities, pulling together support packages long before members realise that they need it while at the same time responding to urgent requests for support under a `business as usual' banner.

4.2 Empowerment and Accountability (permitting, motivating and organising a group of people to achieve a common goal.)

Literature suggests a range of opinions on the definition of empowerment and accountability, that sees empowerment as a management control/manipulation tool, to the soft HRM view

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