how to become the ritz-carlton of aged care

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Kevin Dwyer

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With the change to Consumer Directed Care (CDC) in the aged care industry this year, you'll need to offer exceptional customer service in order to remain competitive. Discover how you can meet - and exceed - the needs of your customers, by becoming the Ritz-Carlton of Aged Care. As presented at the Leading Age Services Australia (LASA) Tri-State Conference held in February, 2014.

TRANSCRIPT

Page 1: How to become the Ritz-Carlton of Aged Care

Kevin Dwyer

Page 2: How to become the Ritz-Carlton of Aged Care

Exceptional customer value

Engaged staff who put in discretionary effort

Engaged staff who want to stay

Superior customer service – above the fair value line

What does it mean to be the Ritz Carlton of Aged Care?

Page 3: How to become the Ritz-Carlton of Aged Care

Act or performance offered by one party to another

An economic activity that creates value and provides benefits for customers at specific times

The process of helping guests addressing their wants and needs with respect and dignity in a timely manner1

What is customer service?

1 (Ninemeier et al 2005)

Page 4: How to become the Ritz-Carlton of Aged Care

Providing Superior Customer Service –The Fair Value Line

Perc

epti

on

of

Co

st

Perception of Service

Superior Service

Bad Service

Page 5: How to become the Ritz-Carlton of Aged Care

What is Fair Value?

Page 6: How to become the Ritz-Carlton of Aged Care

Providing Superior Customer Service –The Fair Value Line

Perc

epti

on

of

Co

st

Perception of Service

Superior Service

Bad Service

Page 7: How to become the Ritz-Carlton of Aged Care

Why is Customer Service Important?

Page 8: How to become the Ritz-Carlton of Aged Care

Transitioning to CDC – Consumers drive what we do

Employees

Systems & Processes

Government and Compliance Driven

Consumer Directed Care

Government

MARKET• Consumers• Government

Government Regulators

Employees

Systems & Processes

MARKET• Consumers• Government

Government Regulators

Consumer

Page 9: How to become the Ritz-Carlton of Aged Care

Determine what consumers segments you wish to serve Assess exactly what the segments value Develop practical ways that systems can be modified or

developed to consistently deliver value to consumers Design and implement revised standards of operation Train and empower service staff to deliver value Evaluate and modify service delivery systems against

standards of operation

The Impact of Reforms on Customer Service Provision – What to do?

Page 10: How to become the Ritz-Carlton of Aged Care

Lessons from Ritz - Carlton

Page 11: How to become the Ritz-Carlton of Aged Care

Gold standards

Moments of Truth Mapping

How do Ritz-Carlton Deliver Consistent High Quality Service?

Page 12: How to become the Ritz-Carlton of Aged Care

Gold Standards are the foundation of The Ritz-Carlton Hotel Company. They encompass the values and philosophy by which they operate and include: The Credo

The Motto

The Three Steps of Service

Service Values

The 6th Diamond

The Employee Promise

Ritz-Carlton: What are Gold Standards?

Page 13: How to become the Ritz-Carlton of Aged Care

What is a Moment of Truth?

A Moment of Truth is any opportunity to create a lasting

perception in our customer’s mind.

In the Hospitality industry, there are a minimum of twenty or thirty moments of truth

in its provision of service.

Page 14: How to become the Ritz-Carlton of Aged Care

Good and bad Moments of Truth in the Hospitality Industry

Page 15: How to become the Ritz-Carlton of Aged Care

How to Map Moments of Truth

Page 16: How to become the Ritz-Carlton of Aged Care

Example of Basic Moments of Truth Mapping – Health Centre

Contact with Health Centre

Current Situation Desired Situation

User comes to health centre

Peeling paint, long lines Attractive building, short waiting time

User comes to registration desk

Unfriendly, busy receptionist Friendly, welcoming receptionist

User waits to see doctor User waits up to 2 hours to see doctor

User waits for doctor no longer than 30 minutes

User has visit with doctor

Doctor seems rushed and impatient

Doctor visit is brief but helpful; user feels satisfied

User leaves health centre

Long line of patients waiting to get in

Feels like she had a pleasant visit, doesn't see many people waiting

Page 17: How to become the Ritz-Carlton of Aged Care

Segment the market

Evaluate which interactions leave a lasting impression of the value of service delivered

How to Map

Page 18: How to become the Ritz-Carlton of Aged Care

Transitioning to CDC – Traditional segmentation

High care

Low care

Page 19: How to become the Ritz-Carlton of Aged Care

Transitioning to CDC – New segmentation?

Tech. savvy

Tech. averse

Page 20: How to become the Ritz-Carlton of Aged Care

Transitioning to CDC – New segmentation?

Family

Work status

Culture

Page 21: How to become the Ritz-Carlton of Aged Care

Map a generic customer’s experience and determine the moments of truth.

Make a view of each significant target segment. Survey customers’ actual experiences – e.g. phone surveys

Functional – was the room clean? Emotional – did you have a sense of well being?

Customer complaints However only a small percentage of customers who are dissatisfied

actually complain.

Use employee observations. “Day in the life of” observations.

Mapping Moments of Truth – Do’s

Page 22: How to become the Ritz-Carlton of Aged Care

Don’t use “satisfaction” surveys The design of most satisfaction surveys is usually poor.

Asks an opinion of but not the importance

Satisfaction surveys tend to condition recipients to give a response. Study 1:

Customer retention levels of around 40% correlated to an average rating of “satisfied” and did not reach 80% until the average rating reached “very satisfied”1.

Study 2: 80% of customers who churned from an internet service provider had

responded that they were “satisfied” or “very satisfied” with their service.

Mapping Moments of Truth – Don’ts

1 Harvard Business Review in 1995, Jones and Sasser2 Mercer

Page 23: How to become the Ritz-Carlton of Aged Care

Moments of Truth in Aged Care

Page 24: How to become the Ritz-Carlton of Aged Care

Moments of Truth Map Examples in Aged Care

Contacts with Organization

Current Situation Desired Situation

First appearance of the facility

Concrete, no garden, no shade, uninviting

Garden entrance, inviting to consumer and relatives

Home visit Over-friendly carer who does not respect privacy

Friendly carer who is sensitive to the customer’s need for privacy

Catering – resident’s lunch

Unimaginative meals with little variety – resident does not look forward to lunch

Imaginative meals appropriate for residents tastes presented appealingly – resident looks forward to lunch

Exercise activities Overzealous instructor with monotonous routines

Instructor capable of varying activities to customer’s capability and desire

Resident visits the doctor

Long line of patients waiting to get in to see the doctor who is uncommunicative

Short line of patients, sees an engaging caring doctor on time

Page 25: How to become the Ritz-Carlton of Aged Care

What to do with a Moment of Truth Map?

Page 26: How to become the Ritz-Carlton of Aged Care

Create a Standard of Operation

Complete a Training Needs Analysis

Use a competency dictionary

Design and develop training

Reconsider the current performance management approach

Consider restructure service delivery options

Recruit on attitude to deliver service

What to do with a Moment of Truth Map?

Page 27: How to become the Ritz-Carlton of Aged Care

In Conclusion

Page 28: How to become the Ritz-Carlton of Aged Care

How will you rate in a consumer driven environment?