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BLUEOCEANSTRATEGYCASESTUDY
“TransforminggovernmentservicedeliverytothepeopleofNSW”
Author:SusanKehoe
SusanKehoeStrategytoPerformanceConsultingGroup
Mobile:+61(0)409887685Email:[email protected]:www.strategytoperform.com
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BlueOceanStrategyCaseStudy-ServiceNSW
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TableofContentsForeword
1 Introduction............................................................................................................................3
2 BackgroundtotheestablishmentofServiceNSW....................................................................4
3 ScopeofthisCaseStudy..........................................................................................................5
4 BlockstoValueInnovationinNSWGovernmentServicedelivery............................................64.1 TheBuyerUtilityModel............................................................................................................64.2 “As-is”StrategyCanvasforNSWGovernmentservicedeliveryin2012...................................7
5 ABlueOceanapproachtotransformingservicedelivery.........................................................8
6 PrinciplesforShapingStrategy................................................................................................96.1 ReconstructingMarketBoundaries..........................................................................................9
6.1.1 LookingacrossIndustries..................................................................................................96.1.2 LookingacrossStrategicGroups.....................................................................................106.1.3 LookingacrosstheChainofBuyers.................................................................................106.1.4 LookingacrossComplementaryProductorServiceOfferings........................................116.1.5 LookingacrossFunctionalorEmotionalAppealtoBuyers.............................................116.1.6 LookingacrossTime........................................................................................................13
6.2 FocusingontheBigPictureandanewBusinessModel.........................................................136.3 ReachingBeyondExistingDemand........................................................................................156.4 Gettingthestrategicsequenceright......................................................................................16
6.4.1 Buyerutility.....................................................................................................................166.4.2 Priceutility......................................................................................................................166.4.3 Costutility.......................................................................................................................176.4.4 Adoption.........................................................................................................................17
7 TheBusinessModelCanvas....................................................................................................18
8 TheServiceNSWValueProposition........................................................................................188.1 TheValueProposition.............................................................................................................198.2 TheProfitProposition.............................................................................................................208.3 ThePeopleProposition...........................................................................................................22
9 PrinciplesforShapingExecution.............................................................................................249.1 Overcomingorganisationalhurdles.......................................................................................24
9.1.1 Tippingpointleadershipandpeoplewithdisproportionateinfluence...........................249.1.2 BreakingthroughtheCognitiveandMotivationalHurdles.............................................259.1.3 BreakingthroughthePoliticalHurdles...........................................................................259.1.4 BreakingthroughtheResourceHurdles.........................................................................25
9.2 Buildingexecutionintostrategy.............................................................................................25
10 TheLitmusTest......................................................................................................................26
11 TheServiceNSWOutcome.....................................................................................................27
12 Conclusion..............................................................................................................................29
13 AdditionalResources..............................................................................................................29
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ForewordServiceNSWisanimportantinitiativeinthedeliveryofanimprovedcustomerexperienceforthecitizensandbusinessesofNewSouthWales.Iwaspleasedtobeapartofacommittedteamin2012bringingServiceNSWtolife,taskedwithmeetingtheNSWGovernment’scommitmenttoimprovecustomers’experiencewithGovernmentservices.AstheNSWGovernment’sone-stopshopforgovernmentservicedelivery,asatJuly2014,ServiceNSWhaddeliveredover3.5millioncustomerinteractionsacross3integratedchannels.Thisisoutstandingperformanceincustomerserviceandatestamenttotheapproachforitsdevelopment.Servicechannelsaredesignedwithcustomers,forcustomersanddeliveredbystaffthatareempoweredandsupportedtodeliverhigherqualityservices.WhetherinthecentresnowoperatingaroundNSW,throughtheimproveddigitalexperienceorthetelephoneservice,peopleareembracingtheServiceNSWpropositionineverincreasingnumbers.SuchsuccessisduetothededicationandcommitmentoftheServiceNSWteam.Itiscontinuingtospearheadthecustomerservicetransformationthatisunderwayinthepublicsectorandissettingnewbenchmarksforcustomerservice.MichaelPrattCustomerServiceCommissionerDepartmentofPremierandCabinet
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1 IntroductionBlueOceanStrategy1hasbeenusedextensivelytotransformthepublicsectoraroundtheworldatalocal,stateandnationallevel.Mostprominently,since2009theMalaysiangovernmenthasimplementedaNationalBlueOceanStrategytoliftthelivingstandardofthecountryandtostructuretheapproachtonationaldevelopmentandmodernisation2.ManycasestudiesofpublicsectorinitiativesarelistedontheBlueOceanStrategywebsite3.NotablyhowevertherearenocasestudiesoftheuseofBlueOceanStrategyinthepublicsectorinAustralia.ThiscasestudyisaboutthetransformationofgovernmentservicedeliveryintheNewSouthWales(NSW)stategovernmentofAustraliaandshowsthatevenifBlueOceanStrategymaynothavebeenexplicitlyusedintheAustralianpublicsector,BlueOceanthinkinghasbeenappliedinatleastonegovernmentagencyinNSWrecently.ThisstudylooksathowBlueOceanStrategyprinciplesexplainthesuccessofaneworganisationestablishedbythegovernmentofNewSouthWales,Australia.Thenewagencycalled“ServiceNSW”wascreatedwhengovernmentmovedoutoftheredoceanofovercrowded,complexandconfusingdepartment-centricservicedeliverytoanewmodelofgovernmenttransactionalservicedeliverythataddedsignificantlyimprovedvalue,reducedcostsandengagedpeoplebothinsideandoutsidetheorganisationtotransformtheexperienceofpeopletransactingwiththeNSWgovernment.ServiceNSWmovedintoanewblueoceanofsimplecustomer-centricservicedesignanddeliverywithaone-stop-shopmodeldeliveredacrossthreeintegratedchannels(digital,phoneandservicecentres)tomakeiteasyforcustomerstotransactwithgovernment.Theservicedeliverymodelwasbuiltaroundtheconceptofaone-stop-shop-onephonenumber,onewebsite,andintegratedservicecentresfocusedonhighqualityservicedeliverytotransformthecustomerexperienceforpeopletransactingwithgovernment.Thiswasanexampleofvalueinnovationingovernment.Itdemonstratesthatbycreatingagovernmentorganisationdesignedfromcustomerfeedbacktoaddresscustomerpainpointsandbychallengingtraditionalmarketboundariesbetweenthepublicandprivatesectors,theexperienceoftransactingwithgovernmentcanberapidlytransformedforcustomers;theemploymentexperiencecanbetransformedforstaff;andgovernmentcanachievecostsavingsthroughrationalizationofoverlappingservices.ServiceNSWwassetupwiththemission:Tosimplifythewaycustomersdobusinesswithgovernmentandtotransformourcustomers’experiencethroughexcellentserviceandqualityatanoptimalcosttoserve.Insixmonthsandwithverylimitedresources,anexperiencedteamofpeoplesetupaneworganisationthatdeliveredconvenient,simple,qualitymodernservicesonbehalfofstategovernmentagenciesacrossdigital,phoneandservicecentrechannels,supportedbyaleadershipandemployeeexperiencewhichhastransformedcustomersatisfactionfromlevelsaslowas13%toconsistentlyhigherthan95%sinceopeningforbusinessinmid2013.
1BlueOceanStrategy:HowtoCreateUncontestedMarketSpaceandMaketheCompetitionIrrelevantbyW.ChanKim
&ReneeMauborgne(HBRPress,Boston,2015)2https://www.blueoceanstrategy.com/malaysia-nbos/public-service/3http://www.blueoceanstrategy.com/blue-ocean-strategy-for-national-development/
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2 BackgroundtotheestablishmentofServiceNSWAustraliahasathree-tieredsystemofgovernment–thefederal(orCommonwealth)GovernmentofAustralian,stategovernmentsandlocalgovernment.NewSouthWales(abbreviatedasNSW)isthemostpopulousofthesixstatesofAustraliaandcoversanareaof809,444sqkmor312,528sqmilesontheeastcoastofAustraliawithSydneyasitscapitalcity.Ithasapopulationof7.5millionpeople.Everyyearthesepeopleundertakeapproximately40milliontransactionswiththeNSWgovernment.AttheNSWstateelectionsof2011theLiberal–NationalPartywongovernmentinthebiggestlandslideswingagainstanysittingAustraliangovernmentsinceWW2afterbeinginoppositionforover16years.Thestateeconomywasinthedoldrums,thestategovernmenthada$49billiondebt,therehadbeenalackofinvestmentinmoderngovernmentservices,ininfrastructureandinpeopleleadership.AsurveyconductedbytheBostonConsultingGroupandDBM4showedthatcustomersatisfactionwithNSWgovernmentservicedeliverywasat60%,17%belowthenextlowestgovernmentinAustraliaand28%belowtheleadingstategovernment.Customers(mostofwhomwerealsovoters)inNSWweredissatisfiedandfrustratedwiththeirexperiencewhentransactingwithgovernment.ThenewgovernmenthadsetoutanambitiousstrategyforchangebeforetheelectionandtransformingthestandardofgovernmentservicetothepeopleofNSWandrestoringtrustintheStategovernmentasaserviceproviderwaspartofthatplan5.ThecreationofServiceNSWwasanearlyhighprofileactionbythenewgovernmenttotransformthecitizen’sexperienceoftransactingwithgovernmentandwastargetedatdeliveringaone-stopshopserviceforarangeofhighvolumestategovernmenttransactionalservices.Theseincludedservicesfromahandfulofkeystatedepartmentsandcoveredsuchservicesasvehicleregistrations,certificates,licences,identificationcardsandpaymentoffines.
TheRationaleforChange
4CustomerServicesTransformation,July2012https://aiia.com.au/documents/event-presentations/2016/nsw/nsw_govt_forum_customer_service_transformation_jul_2012.pptxx5NSW2021https://www.nsw.gov.au/sites/default/files/initiatives/nsw_2021_goals.pdf
60% average & variable customer satisfaction with government service
delivery
380+ government operated shop fronts
100+ government call centres
8,000+ phone numbers
900+ individual government websites – including 52+ transactional websites
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Attheendof2012therewereanestimated380NSWgovernmentshopfronts,100callcentres,8,000phonenumbersand900websitesthatcustomersneededtoselectfromandnavigatethroughiftheyneededtotransactwiththeNSWgovernment.Servicestandardswerepatchy,atbest;operatinghourswereusuallyrestrictedtowithinstandardbusinesshours;serviceswereusuallydesignedfromagovernmentdepartment’sviewpoint,notacustomerviewpoint;andthegeneralstandardofservicesacrossdigital,phoneandservicecentrechannelshadnotkeptpacewithimprovementsthathadbeenoccurringinthewidercommunity.Overallcustomersatisfactionwiththeservicetheyreceivedwasat60%butthisdisguisedawidevariabilityinservicewithsatisfactionaslowas13%inplaces.Thecustomerexperienceofdoingbusinesswithgovernmentwasincreasinglyfallingbehindcommunitystandardsatthesametimethatgovernmentcostsneededtobecontainedandreduced.Abusinesscasehadbeenputtogetherfromwithingovernmentincorporatingcustomerresearchandproposingthecreationofa“one-stop-shop”governmentorganisationforthedeliveryofgovernmentservicestoreplaceaconfusingarrayofexistingservicelocations.ThisbecametheinitialfocusforthenewlyappointedNSWCustomerServiceCommissionerinJuly2012.TheCommissioner'sroleincludeddevelopingpracticalandsustainablewaystoensurethecustomersoftheNSWGovernmentreceivedthemodernqualityservicetheyhadbeenpromised. 3 ScopeofthisCaseStudyThiscasestudyfocusesonthestart-upphaseofServiceNSWfromDecember2012toJuly2014.ThebusinesscaseforServiceNSWwasformallyapprovedbytheNewSouthWalesgovernmentinearly2012andServiceNSWopenedforbusinessinJuly2013.Asatthedateofwritingthiscasestudy(December2015)ServiceNSWisstillexpandingasnewservicesareofferedthroughitsone-stop-shopbusinessmodel.Thefollowingtableshowsthetimelineofrelevancetothiscasestudy.
HistoryandMilestonesofServiceNSWstart-up
Date Item
March2011 NewNSWgovernmentelectedEarly2012 BusinesscaseforServiceNSWapprovedbyCabinetJuly2012 PremierappointsinauguralCommissionerCustomerServicefromprivatesector
withfirsttasktooverseeestablishmentofServiceNSWNov2012 ServiceNSWCEOappointedDec2012 ServiceNSWexecutiveleadershipteaminplaceDec2012 IndustrialactiondelaysstaffrecruitmentJan2013 Programofworkunderwaytoimplement‘proofofconcept’phaseofServiceNSWJuly2013 ServiceNSWgoesLive-onewebsite,onephonenumberandfirstservicecentrein
Kiama.Customersatisfactionat98%andneverdropslower.July2014 18centresopen,800plustransactiontypesoffered,926,000customersservedin
servicecentres,417,000customersservedbyphone,1.5millionvisitstowebsite,andexpansioncontinuing.Customersatisfactionat98%.
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4 BlockstoValueInnovationinNSWGovernmentServicedeliveryOneoftheelectionpromisesoftheincomingNSWPremierO’Farrellwas:“Torestoretrustinthestategovernmentasaserviceprovider”6.Thereputationofthestategovernmentbureaucracyandgovernmentwasatalowpointandhenceapriorityissuewastorestoretrustthatsuchagovernmentpromisewouldandcouldbekept.Deliveryintheeyesofcustomerswasacriticalissueforthenewgovernment’scredibilityandoneoftheearlyactionsofthenewPremierwastofillanewroleofthefirstCustomerServiceCommissionerinAustraliawithaseniorleaderfromthefinancialservicessector.TheCommissionerwastoberesponsibletothePremierforthedeliveryonthispromise.
4.1 TheBuyerUtilityModelCustomerresearch7highlightedthatcustomersfoundithardtomakesenseofgovernmentservicedelivery,wheretofindtheservicestheyneeded,howtogetreliableinformationfromthecorrectsource,andhowtodothiswithoutwastingalotoftime.
FeedbackfromCustomers
Customerresearchhadidentifiedrecurringcustomerpainpointswhentheytriedtotransactwithgovernment.Thebuyerutilitymapbelowshowsasummaryoftheseatdifferentstagesoftheservicedeliveryandcustomerexperiencecycleandtheimpactsoncustomers’satisfactionwithgovernmentservicedeliveryingeneral.
6NSW2021https://www.nsw.gov.au/sites/default/files/initiatives/nsw_2021_goals.pdf7TheCustomerImperative:Redesigningfor“CustomerInside”byMichaelPratt,CustomerServicesCommissioner,July2014http://bx2014.org/sites/bx/media/248.pdf
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Thehundredsofwebsites,phonenumbersandgovernmentshopfrontsprovidingadviceandtransactionalservicestothepeopleofNSWwerefragmentedanddesignedtosuitthedepartments’requirementsratherthanthecustomers’.Theywerehardtofindandaccessandoftenrequiredlongwaittimesandinvolvedconfusedcustomersgoingtothewrongplace,orhavingtogotomultipleplacestodotherangeofthingstheyneededtodo.Thestandardofservicewashighlyvariableandledtoapoorreputationforgovernmentservicesandabeliefthatgovernmentwasbureaucratic,inefficient,outofdateandnotfocusedonservice.
BuyerUtilityMap
Utility Experiencedneed/lifeevent
Searchforservice
Experienceofservice
Deliveryorfulfilment
Impressionofgovernment
Votingbehaviour
Customerproductivity
Timewasting
Variablestandard,fragmented,wastingtax
Manual&facetoface
Inefficient Negative
Simplicity
Fragmentedacrossdepartments
Confusing Bureaucratic&rule-bound
Error-prone,manualdeliveryorcollection
Unnecessarilycomplex&bureaucratic
Negative
Convenience
Organisedfordepartmentnotcustomer
Complex&bureaucratic
Atdepartment’sconvenience
Inconvenient&timeconsuming
Bureaucratic,inefficient&outofdate
Negative
Risk
Overlyriskaverse&rulebound
Badpress Negative
Fun&Image
Customerhadtofitin
Tedious,frustrating,confusing
Variable,officious,annoying,bureaucratic
Slow,oldfashioned,inconvenient
Seriousandimpersonal
Negative
Environmentalfriendliness
Manual&paperbased
Oldfashioned Negative
Inconsistentandout-datedservicestandards,fragmentedservicepointsfordifferentservices,multiplecustomerinteractionsfortheoneissue,andlackofon-linefulfilmentinservicedeliveryallcreatedmanyopportunitiestofixcustomers’painpointsandreducethecost-to-serve.ThiscustomerexperiencepatternproducedstrongdissatisfactionamongstvoterswithgovernmentservicedeliveryandcontributedtothebiggestlandslideswingagainstanysittingAustraliangovernmentsinceWW2.Theelectionpromiseofthein-cominggovernmenttorestoretheelectorate’strustinthestategovernmentasaserviceproviderwasacontributortothechangeofgovernment.
4.2 “As-is”StrategyCanvasforNSWGovernmentservicedeliveryin2012
Eventhoughthecustomerexperiencewasnotuniversallypoor,theprevailingpublicimageofgovernmentserviceswasofpoorqualityservice.The“as-is”strategycanvasbelowrepresentsthepredominantviewofgovernmentservicedeliveryandindicatesdimensionsthatcreatedcustomerfrustrationandinformedthedevelopmentofanalternativebusinessmodel.
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This“as-is”strategycanvashighlightstheBlueOceanopportunityareasthatexistedforimprovingservicedeliverythroughimprovingvalueforcustomersandalsoforreducingcost.
5 ABlueOceanapproachtotransformingservicedeliveryAttheendof2012thenewServiceNSWleadershipteamwasrecruitedtobringthebusinessplantolife.ThegoalwastoestablishServiceNSWwithin6monthsandtransformthequalityofcustomerserviceacrossmillionsofgovernmenttransactionsperyearanddeliveraconsistentlyhighstandardofservicewhilstreducingcosts.Thenewbusinesswouldprovidemodernsimpletouseintegrateddigital,phoneandservicecentrechannelsinitiallycoveringtransactionsfromsixdifferentdepartmentsand800differenttransactiontypes.Noothergovernmenthadsuccessfullyachievedsuchanambitiousprojectinsuchashorttimeframe.Manydesignandexecutionchallengesandriskshadtobemanagedsuccessfullytodeliverontheobjective.Inanalysingwhatwasactuallydoneandwhyitwassosuccessful,theestablishmentofServiceNSWcanbeseenasanexampleoftheapplicationofmanyoftheprinciplesofBlueOceanStrategyinmanagingbothstrategyformulationandexecutionrisks.BlueOceanStrategydescribesfourtypesofstrategyformulationrisksandtwotypesofexecutionriskthatneedtobeeffectivelymanagedtosuccessfullydeliversuchaproject.TheprinciplesproposedbyBlueOceanStrategyformanagingtheserisksaresetoutinthetablesbelow.Thefollowingsectionsofthispaperwillexaminehowtheserisksweremanagedintheset-upofServiceNSW.
0102030405060708090
100
NSWGovermentDepartments'StrategyCanvas2012
NSWGovtDepartments
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PrinciplesforFormulatingBlueOceanStrategiesStrategyRisks PrinciplestoShapeStrategySearch ReconstructmarketboundariesPlanning FocusonthebigpicturenotthenumbersScale ReachbeyondexistingdemandBusinessModel GetthestrategicsequencerightExecutionRisks PrinciplestoShapeExecutionOrganisation OvercomekeyorganisationalhurdlesManagement Buildexecutionintostrategy6 PrinciplesforShapingStrategy
6.1 ReconstructingMarketBoundariesSearchriskoccurswhenorganisationsdonotopentheireyestonewanddifferentopportunitiesandthuslimittheoptionstheyconsiderinstrategydevelopment.InsteadoftakingtheestablishedmarketboundariesforgrantedtheBlueOceanstrategistquestionsandchallengesthem.InthiscasethedesignofServiceNSWchallengedexistinggovernmentmarketboundariesandmindsets.TheSixPathsFrameworkoffersastructuredapproachtothinkingaboutwaystoreshapemarketboundaries.BlueOceanstrategistsexploreallsixandseektouseallorasmanyaspossibleinformulatinginnovativestrategy.InServiceNSWthereconstructionofmarketboundariesandtheintroductionofexperiencefromotherindustrieswasthecriticalelementthatbroughtsuccesstotheneworganisationandallowedittobecomesosuccessfulsoquickly.
TheSixPathsFramework
6.1.1 LookingacrossIndustriesStandardsofcustomerservicehadbeensignificantlyimprovinginprivatesectorserviceindustriesovermanyyearsandyettheseimprovementshadnotbeenadoptedintheNSWgovernment.Retailbankinginparticularhadworkedthroughmanyissuesintransactionalservicedeliveryinservicecentre,phoneandon-lineandmobilechannelsandmuchofthiswasapplicabletotransactional
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servicedeliveryingovernment.TheCustomerServiceCommissionerandmanyofthetopexecutivesrecruitedtosetupServiceNSWhadextensiveexperienceinretailbankingaswellasotherindustriesandwereabletoseetheopportunityandveryquicklyintroducekeyelementsofthisretailbankingexperienceintotheServiceNSWbusinessdesignandreplacetraditionalgovernmentdepartment-centricapproachestoservicedeliverywithmoderntestedcustomer-centricapproachesthatalsoreducedthecosttoserve.Experiencefromtheretailbankingsectorinmultichannelintegratedservicedeliveryandhowtomigratecustomerstolowercostphoneandon-lineself-servicechannelswasappliedtotheServiceNSWservicedesign.Takingacustomer-centricapproachtoservicedesignandinvolvingcustomersinthisdesignwasanacceptedpartofprivatesectorservicedesignbutwasnewtotheNSWgovernment.Modernservicecentreswithfast-movingqueuesandahelpfulconciergetoassistwithqueuemanagementandwithconversiontousingalternativephoneandweb-basedservicesalsohadbeeninoperationinretailbankingformanyyearsbutwerenotusedaseffectivelyingovernmentservicecentres.Bankingcustomersnowexpectedhighqualityphoneandinternetbankingwithprovisionof24/7serviceswitheasyself-serviceandon-linefulfilment.Thesechannelsimprovedcustomerserviceoptionsandreducedthecost-to-serveinbankingandwereacorepartoftheretailbankingbusinessmodelbuttendedtobeabsentfromgovernmentservicedeliverymodels.Goodpeopleleadershipskillsandpracticestocreateandmanageacustomer-centricserviceculturewithstaffwhoweremotivatedandempoweredtosolveproblemsandcreateapositiveexperienceforcustomerswerealsoknowninotherindustriesbuttendedtobeabsentfromgovernmentwheretherewasapreoccupationwithrules,regulationsandpolicy,cumbersomeprocessesandavoidingriskorresponsibility.Otherindustrieswithrequirementsforregulationandcompliance(suchasbanking)weresomehowabletomanageriskandcompliancebutalsodeliverabettertransactionalexperienceforcustomers.ThisexperiencewasalsobroughtintotheServiceNSWdesignandtraditionalgovernmentapproachesthatovercomplicated,confusedandbuiltinlayersofcostanddelaywerechallenged.
6.1.2 LookingacrossStrategicGroupsBlueOceanstrategistsdonotfocusontheircompetitivepositionwithintheircurrentstrategicgroupbutratherlookacrossthestrategicgroupswithintheirindustry.Inthiscasetheindustrywastherangeofgovernmentdepartmentsthathadbuiltuptheirownserviceofferingsinisolationandofteninbudgetarycompetitionwitheachother.Governmentdepartmentscreatedtheirownsiloesofdepartment-centricserviceprovision.Thisresultedinsignificantduplication,costandconfusion.ServiceNSWredefinedtheboundariesofserviceprovisiontoaddresscustomers’painpointsanddesignservicestofitcustomerlifeeventsratherthandepartmentalresponsibilities.Serviceswereamalgamatedintoaone-stop-shopsocustomerscouldaccessservicesfromarangeofgovernmentdepartmentsatonesite–onewebsite,onephonenumberandoneservicecentredesigned,notarounddepartments,butaroundcustomersneedsandeasyaccesstoservices.
6.1.3 LookingacrosstheChainofBuyersBlueOceanstrategistslookforopportunitiestomarkettoasmanycustomersegmentsaspossibleandlookforignoredorneglectedgroups.InthecaseoftheNSWgovernment,somegroupshadbeenneglectedinservicedelivery.Peoplewhofounditdifficulttotransactwithinnormalbusinesshours,whoweretimepoorandfounditdifficulttophysicallyvisitservicecentrestotransact,whowerelessmobileorwhofounditdifficulttonavigateandfindgovernmentserviceswerenotwell
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serviced.Althoughthesepeoplestillhadtoaccessgovernmentservicesfromtimetotime,accesswasveryinconvenientforthem.The24/7phoneanddigitalservices,theincreaseinon-linetransactionsandfulfilment,andtheintroductionofaconciergeinservicecentresimprovedservicesforthesepeopleaswellasforallcustomers.
6.1.4 LookingacrossComplementaryProductorServiceOfferings Complementaryproductsandprocessesaffectthetotalcustomerexperience,thecostofaservice,theenvironmentwithinwhichstaffsupplytheservice,andtheabilitytointroduceimprovementsquicklyandatlowcost.Thewholechainofactivitiesthataffectwhathappensjustbeforeorafteraserviceisreceivedandtheservicesprovidedbysupplierstoassistindeliveryofyourservicecanimpacttheserviceexperienceforcustomers.Solvingtheproblemthatthecustomersfaceinthetotalprocesscanradicallyaffectthevalueoftheservice.ThustheBlueOceanstrategistdoesnotfocusonmaximisingthevalueoftheirproductorserviceonlybutlooksacrossthecomplementaryproductsandservicesnormallyconsideredoutofscopeofabusiness.AtServiceNSWserviceprovidersandbusinesspracticesfromarangeofsectorsandsupplierswereusedtoquicklyintroducemoderncommercialpracticesintoservicedeliverydesignanduse.ThisexpertiseprovidedarapidleapinservicequalityacrossawiderangeofelementsofServiceNSW’soperations.Italsomodernisedtheworkenvironmentofstaff,theserviceenvironmentforcustomersandthespeedoffeedbackreceivedfromcustomersontheirimmediateserviceexperience.Forexample:
• anoutsourcedcallcentreproviderwasusedtogethighqualityphoneservicesupandrunningquicklyandtransformthesystemsandcustomerexperienceonthephone,
• awellknownAustraliandesignerwasusedforcorporatewardrobedesigntoprofessionalisetheimageofservicestaff,
• consultantsspecialisingincustomerexperiencewereengagedforcustomer-focusedbusinessprocessdesign,
• assessmentcentressupportedbyanexternalrecruitmentcompanyassistedwithstaffselectionforserviceorientation,
• variousproviderswereusedforrapidmodernizationofITsysteminterfaces,• retailbankingexperiencewasappliedtoservicecentredesigntomodernisethe
environmentforcustomers,• retailbankingexperienceinfluencedtheuseofaconciergeserviceforcustomergreeting
andtrainingcustomersinselfservice,• aspecialistwebdesigncompanydesignedtheuser-drivenwebsiteandintranetdesign,and• financeindustryexperienceinfluencedtherapidtouchscreencustomerfeedbacksystemon
servicewhichprovideddirectquickfeedbacktoindividualstaffontheircustomers’serviceexperience.
Allofthiscontributedtoarapidandefficienttransformationinservicetocustomersthroughend-toendprocessesthatsupportedthebusinessgoals.
6.1.5 LookingacrossFunctionalorEmotionalAppealtoBuyersGovernmenttransactionalservicesusuallygravitatetowardsfunctionalratherthanemotionalappeal.Howeverinservicecentresinparticular,theunexpectedimpactofthemodernvisualpresentationofServiceNSWoutlets,thewelcomingatmospherecreatedbytheconcierge,theeliminationoflongwaittimesandtheinvitationtoprovidesimplefeedbackwithnewtechnologycreatedanemotionalunexpected“wow”inthecustomers’serviceexperience.Onthephones,theimmediatehelpfulservicebyapersonratherthananIVRandnolongwaittospeaktosomeonealso
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createda“wow”inthecustomer’sexperience.Thiswasallverydifferentfromwhattheyhadgrownusedtoexpectingfromgovernment.Theserviceexperiencestirredanemotionalresponseofpleasurethatisreflectedintheconsistent98%customersatisfactionratings.Evennow,eyeswilllightupandcustomerswillsmilewithpleasureandcommententhusiasticallyabouttheirexperienceandtheimprovementinservicewhentheauthoraskspeopleabouttheirexperienceasacustomerofServiceNSW.Thechangeinserviceoutletpresentationfromthis…..
Tothis…..
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6.1.6 LookingacrossTimeGovernmentserviceshadnotkeptpacewithtrendsthatwerealreadystronglyentrenchedinthewidersociety.Increasingly24/7accesstoservicesandtheshifttodigitalself-serviceandon-linefulfilmentandaccessonmobiledeviceswerebecomingthenorminserviceprovision.ThemodernisationofservicedeliverywithServiceNSWhelpedtobringgovernmenttransactionalservicedeliveryintothecurrenteraofservicestandardsandpositioneditforfurtherdevelopmentsinamoderndigital,mobileera.Meetingtheacceleratingcustomerdemandfordigitalandmobileself-service,althoughrequiringinvestmentinnewtechnology,providedaplatformforthereductioninduplicatedshopfrontsandashifttolowercostdeliverychannelsthatcustomersareincreasinglyexpecting.
6.2 FocusingontheBigPictureandanewBusinessModelPlanningriskoccursbecausewelosesightofthebigpicture.BlueOceanStrategyusesthestrategycanvasasatooltofocusonthebigpictureforboththe“as-is”andthe“to-be”businessstrategyandusestheEliminate/Reduce/Raise/Createframeworktohighlightthefocusareasforvalueinnovationinthedesignofthenewbusinessmodel.
TheFourActionsERRCFramework
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Researchoncustomerpainpointsgaveaveryclearpictureofwhataspectsofthegovernmentservicecouldbeeliminated,reduced,raisedandcreatedtoplaceServiceNSWinanewBlueOceanofservicedelivery.TheseareasareshowninthefollowingERRCgrid.
ServiceNSWEliminateReduceRaiseCreate(ERRC)grid
Eliminate
• Poorpublicreputationofgovernmentservices(poorcustomersatisfaction)
• Governmentbureaucracy-drivenservicedesignforcustomer-facingtransactionalservices(notcustomer-centric)
• Transactionalservicesthatarefragmented,complexconfusingspreadoverhundredsofphonenumbers,websitesandservicecentresofdifferentgovernmentdepartments(noteasytofindandaccess)
Raise
• Publicsatisfactionwithgovernmenttransactionalservices(customersatisfaction)
• Staffselectedforserviceorientationandpeopleleadershipskills(serviceorientedstaff)
• Qualityandconsistencyofpeopleleadershipofstaff(customer-centric)
• Increasehoursofoperationtobemoreaccessible(easytofindandaccess)
• Numberoftransactionsthatcanbedoneonline(on-linefulfilment)
• Numberofpeoplechoosingtouseonlineselfservice(assistancetousedigital)
Reduce
• Highcostofduplicatedservices(price)• Complexityandhasslesofdealingwith
government(poorcustomerexperience)• Unproductiveunnecessarymultiple
visits,errors&reworkcausingfrustratedandconfusedcustomers(noteasytofindandaccess)
• Duplicationandoverlapinservicedelivery(duplication&overlap)
Create
• 24/7one-stop-shopacross3channels(easytofindandaccess)
• Moderncustomer-centricservice&processdesign(customer-centric)
• Modernfrontendsystemsforcustomersandstaff(modernsystems)
• Visualimpactofmodernserviceandwelcomingservicesinservicecentres(includingtheconcierge)(customerexperience)
• Designandservicestoencourageonlineselfservice(assistancetousedigital)
• Immediatecustomerfeedbackonservicesatisfactionlinkedtostaffmember(customersatisfaction)
• ServiceValueChainappliedtobackofficeservicessupportingfrontofficeservicedeliveryandculture(customersatisfaction)
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6.3 ReachingBeyondExistingDemandScaleriskreferstothefactthatgrowthislimitedbythesizeofthecustomerbase.BlueOceanStrategythinkingpromotestheopportunitytodramaticallyexpandthepoolofpotentialcustomersbylookingforopportunitiesthatextendthecustomerbaseintonon-customersgroups.BlueOceanstrategistsareinterestedinnon-customersastheyrepresentpotentialorlatentdemand.AsgovernmentorganisationssuchasServiceNSWdelivermonopolygovernmentservices,theconceptofnon-customersneedstobeconsideredmorecreatively.Theycouldbecustomerswhodonotuseparticularchannels(egdigitalorphone)ortheycouldbedepartmentswhochoosetouseanalternativeserviceprovidertoServiceNSWforthedeliveryoftheirtransactionalservices(egAustraliaPost).BlueOceanStrategycategorizesnon-customersinto“soon-to-be”,‘refusing”and“unexplored”non-customers.Somepotentialnon-customersinthesecategoriesforServiceNSWareshowninthediagrambelow.
ThreeTiersofNon-customersforServiceNSW
AsapriorityforServiceNSWwastodeliveronthegovernment’spromiseofbothtransformingtransactionalservicedeliveryandreducingservicedeliverycosts.ServiceNSWfocusedinitiallyonhighvolumetransactionsfrompilotagenciesthatcouldbemodernisedandstreamlinedandonconvertingnon-digitalcustomerstoselfservicecustomersbyprovidingeasytouseon-lineservices.ThepositivecustomerexperiencewouldcreateapotentialmarketformoreservicestobemigratedtoServiceNSWtofurtherincreasetheeconomiesofscaleandimprovetheserviceofferingofServiceNSW.Unexplorednon-customersoutsideoftheNSWgovernmentsector(federal&localgovernmenttransactions)oralreadyoutsourcedhighvaluegovernmentservices(egthosecurrentlyoutsourcedtootherorganisationsonafeeforservicebasis)couldbetakenonbyServiceNSWatalowercosttoserveonceServiceNSWdemonstrateditcoulddeliver.
• Departmentsconsideringoutsourcingtransactionselsewhere
• Citizensunhappywithgovernmentservices
• Non-digitalcustomersthatcouldbeconvertedtodigital
• Citizenswhosevotingbehaviourcanbeinfluencedbygovernmentserviceimprovement
• TransactionsoutsourcedtoAustraliaPostetc
• Federalandlocalgovernmenttransactions
• Privateenterprisetransactionsthatcomplementotherservices
UnexploredRefusingSoon-to-be
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6.4 Gettingthestrategicsequenceright
Businessmodelriskoccurswhentherightstepsaredoneinthewrongorder.ThesequenceofBlueOceanstrategyisafourstepprocessstartingwithbuyerutility,thenmovingtopricing,thencostthenadoption.Thesolutionmusthaveexceptionalbuyerutility,bepricedtothemassmarket,haveacoststructurethatisprofitableandresolvepotentialadoptionhurdles.ThefollowingmodeloutlinestheprocessofdeterminingiftheBlueOceanstrategyisreadyforexecution.StartingwithBuyerUtilitytheBlueOceanstrategistonlymovestothenextquestionwhentheyareabletoanswer“yes”.IftheanswerisyestoallfourquestionsthentheBlueOceanideaismorelikelytobecommerciallyviable.
6.4.1 BuyerutilityTheServiceNSWstrategywasstronglybasedonalleviatingcustomerpainpointsandcreatingaserviceofferingthataddedexceptionalvalueforcustomersacrossalldemographicsandregainingthetrustofcitizensinthegovernment’sabilitytodeliverqualityservicetopeopleinNSW.Customer-centricservicedesignandbuyerutilitywasattheheartofallaspectsofthebusinessdesignandthismindsetwasusedtounlockexceptionalvalueingovernmentserviceprovision.ServiceNSWwasalsoprovidingtheservicesofmultiplegovernmentdepartmentsthatneededtofeelconfidenttheycouldtrustServiceNSWtodelivertheirservicesandcomplywiththeirlegislativeandpolicyobligations.OnceServiceNSWdemonstratedthattheycouldbetrustedtodeliver,additionalagencieswouldbeapproachedtohavetheirtransactionalservicesincludedintheServiceNSWofferingthusallowingthoseagenciestofocustheireffortsontheircorebusiness.
6.4.2 PriceutilityServiceNSWwassetuponthepremisethatgovernment’scost-to-servewouldreduceoncetheproofofconceptwasestablishedandscaleachieved.ServiceNSWhadtoensuretheycoulddelivertheserviceoutcomeswithintightpriceconstraintsthatwouldsupportlongertermsignificantcostreductions.
BuyerUqlity
• Isthereexcepqonaluqlityinthebusinessidea?
Price • Isthepriceaccessibletothemassofbuyers?
Cost • Canitatainthecosttargettoprofitatthestrategicprice?
Adopqon • Whataretheadopqonhurdlesinactualisingthebusinessidea?
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6.4.3 CostutilityTodelivermoderntransformedserviceswithinthepriceconstraints,ServiceNSWleveragedlearningsandsolutionsfromotherindustriestoaccelerateinnovationandchoseminimalistsolutionsthatwoulddeliverbestvalueatlowcost.Deliveryofdigitalself-servicesolutionsthatcustomerswantedtousewasacriticalelementinreducingthecosttoserve.
6.4.4 AdoptionCustomerslovedthechangeasitmadetheirliveseasier.HowevercreatingpartnershipswithagenciestosupportadoptionofServiceNSWastheirreplacementserviceproviderwasachallengeandrequiredstrongcommitmenttorelationshipbuildingandgovernance,andthesupportofearlyadopterstobuildpartnershipssoagenciescouldleveragethebenefitsServiceNSWcouldoffer.
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7 TheBusinessModelCanvasTheBusinessModelCanvasisatoolthatshowsasimplesummaryofkeyelementsofabusinessmodel.ThecanvasbelowsummarisestheServiceNSWbusinessmodel.
ServiceNSWBusinessModelCanvas
KeyPartnersNSWgovernmentdepartmentsExperiencedcomplementaryserviceproviderstopartnerforrapidserviceimprovement
KeyActivitiesNSWgovernmenttransactionsacrossallchannelsCompliancewithlegislation&policiesRevenuecollectionfordepartments
ValuePropositionsTosimplifythewaycustomersdobusinesswithgovernmentandtotransformourcustomers’experiencethroughexcellentserviceandqualityatanoptimalcosttoserve.
CustomerRelationshipsTransactionalperiodicrelationshipswithgovernmentcustomers
CustomerSegmentsAllagegroupsanddemographicswhoneedtotransactwithNSWgovernmentGovernmentdepartmentsasclientswhouseServiceNSWastheirservicedeliveryarmfortheircustomers
KeyResourcesPeopleProcessesRelationshipsTechnologyInternet
ChannelsServicecentresPhoneDigitalAlldevices
CostStructureStaffcosts,Corporatecosts,ITsystemcostsandpropertycosts
RevenueStreams(*future)Budgetallocationsfromgovernment*Marginfromfeescollectedonbehalfofotherdepartments*Feeforservicefromdepartments
8 TheServiceNSWValuePropositionForastrategytobesuccessfulitmustalignthreestrategicpropositions–thevalueproposition(offeringdemonstrablecustomervalue),theprofitproposition(itmustbringsubstantialrevenueandprofittothebusiness),andthepeopleproposition(itmustmotivateandempowerpeopletoexecutethestrategy).
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8.1 TheValuePropositionTheERRCgridinsection6.2showsthekeyelementsthatinformedthedevelopmentoftheServiceNSWstrategy.TheStrategyCanvasbelowshowsthecleardifferentiationbetweentheoldgovernmentservicedeliverystrategyandthenewServiceNSWstrategyandindicatesthedimensionsthatweregivenprioritywhentrade-offshadtobemadeduetotimeorresourceconstraints.Thenewmodelaimedtocreatevalueinnovationbyreducingcostsandpriceatthesametimethatitproducedasignificantimprovementinvalueforthegovernment,clientdepartmentsandcustomers.ThetaglinefortheServiceNSWstrategywas“TransforminggovernmentservicedeliveryforthepeopleofNSW”.
TransforminggovernmentservicedeliveryforthepeopleofNSW
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ServiceNSWStrategyCanvas
ServiceNSW
NSWGovtDepartments
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TheBlueOceanStrategyCanvaswasnotusedinServiceNSWbuttheServiceNSWDNAdiagrambelowgaveasimpleclearpictureofthestrategy.Thiswasusedinallforumstoshowthevision,thestrategyandthemeasuresofsuccesstoguidedecisionmaking.Thisguidedthebusinessdesign,executionandperformancemeasuresofsuccessandinformedchoicesthatweremadeduringthebusinessdesignprocess.Itshowedthestrategynon-negotiablesandwhatsuccesswouldlookliketoall.
ServiceNSWBusinessModelandStrategy
8.2 TheProfitPropositionServiceNSWwasexpectedtoeventuallydeliversignificantsavingstogovernmentbyreducingduplicationinshopfrontsandphoneservices,streamliningprocessesandputtingarangeofstrategiesinplacetoencourageeasyself-service.Bystrippingawayunnecessarybureaucracyinservicedelivery,theaimwasnotonlytoimprovethecustomerexperiencebutalsotoreducethecost-to-serve.ThefactorsthatcreatedtheServiceNSWProfitPropositionareillustratedinthefollowingERRCgridandStrategyCanvas.
Leadership & Culture
Organisational Systems
Internal Service Quality
Employee Commitment
Outstanding Customer
Experience
Customer Satisfaction
Employee Productivity
Employee Retention
CUSTOMER FEEDBACK FOR CONTINUOUS IMPROVEMENT
ORGANISATION EMPLOYEES CUSTOMERSÈ È
Service NSW DNAVISION
MISSION
VALUES
SERVICE VALUE CHAIN
To simplify the way customers do business with government and to transform our customers’ experience through excellent service and quality at an optimal cost to serve
PASSION A great customer experience is our highest priorityTEAMWORKWe work together for positive customer outcomesACCOUNTABILITYWe work to create value and take ownership for the customer experience end-to-end
Putting our customers at the heart of everything we doDelivering more choice Making it easier to connect with us through a variety of easy to access channels Innovating, improving and simplifying how we do things
We are wired for service, with:Distinctive service culture Outstanding leadership and passionate people Quality technology and processes Partnerships built on mutual respect Good custodians of tax payers’ money
Top quartile employee commitment Top quartile customer satisfaction First choice provider of government services Solutions and savings for government
STRATEGY DELIVERY
SUCCESS
To be recognised as the distinctive leader in the provision of government services È
È È
È
È
È
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ERRCforProfit
Eliminate
• Duplication&overlapofservicesdesignedarounddepartmentalsilos
• Complicatedcomplexprocesses• Distortedviewofriskdrivinglayersof
non-value-addingbureaucracy
Raise
• Customerself-service
Reduce
• Costofmultiplehandlingofcustomers• Multiplewebsites,phonenumbersand
shopfronts
Create
• Streamlinedprocesses• On-linefulfilment• Conciergetoassistwithselfservice
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ServiceNSWProfitProposiqon
NSWGovtDepartments
ServiceNSW
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8.3 ThePeopleProposition
CentraltotheServiceNSWstrategywasthecreationofacustomer-centriccultureandworkplacethatencouragedcustomerservicethroughoutthewholeServiceValueChainfromsupplierstointernalserviceprovidersandleaderstofrontlinestaff.AttheheartoftheServiceNSWDNAwastheconceptoftheServiceValueChainandtheideaoftheinter-connectednessoftheemployeeexperienceandthecustomerexperience.Ifstaffweretodeliversuperiorservicetoexternalcustomers,ServiceNSWneededtocreateaworkplacecultureandprovideresourcesthatsupportedhighqualityinternalservicedeliveryandagreatemploymentexperienceforstaff.Leadersatalllevels,particularlytheCEO,hadakeyroleinmakingthishappen.Itemsthatweregivenpriorityincludedimprovingthequalityofpeopleleadership,empoweringstafftosolveproblemssotheycoulddeliverbetterservicetocustomers,providingawardrobetogivestaffamoreprofessionalimage,providingmodernworkplacestofrontlinestafffirst.Frontlinestaffwereprovidedmoreuser-friendlymoderntechnologytodotheirjobsandtouchscreentechnologyallowedcustomerstoprovidemoreimmediateandpersonalisedfeedbackontheirserviceexperiencefromstaff.IntheirarticleonBlueOceanLeadership8KimandMauborgnesuggestleadershipcanbethoughtofasaservicethatemployees,bossesandstakeholderseitherbuyordon’tbuy.Whenpeoplebuyaperson’sleadershiptheyarebuyingcertainleadershippracticesthatinspireemployeestocommittodoingtheirbest.Butwhenemployeesdonotbuyaperson’sleadershiptheybecomedisengagedandnon-customersofyourleadership.LeadersinServiceNSWhadacriticalroleinshapinganewcultureofpassionforcustomerservice,teamworkandaccountability.Leaderswerechosenmorefortheirpeopleleadershipskillsthantheirtechnicalknowledgeandstaffwereencouragedtosolveproblemstoprovidegoodservice.Expectationsforqualityservicewereclearandindividualandteamfeedbackfromcustomersonperformancewasimmediateandbuiltintohowstaffwereled.Thiswasaverydifferentworkplacetomanyofthetraditionalgovernmentworkplacesandstaffrespondedinwaysthatdelightedcustomers.Becauseoftheextentofthechangeinexpectationsofworkplacebehaviourandperformance,significanteffortwentintoexplainingthenewworkplaceandexpectationssothatimpactedpeoplefromagenciescouldmaketheirownchoiceaboutwhethertheywantedtoapplyforjobsinServiceNSW.ManyexistinggovernmentemployeesfromimpactedagenciestransitionedsuccessfullytoServiceNSW.SuppliersalsowerebriefedduringprocurementactivitiesonthenewcultureandexpectationssothattheyknewtheywereexpectedtoprovideaservicethatsupportedtheServiceNSWDNAandobjectives.TheERRCgridandtheStrategyCanvasbelowshowwhatchangedtocreatetheServiceNSWPeopleValueProposition.
8BlueOceanLeadershipbyW.ChanKim&ReneeMauborgne(HBR,May2014)
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ERRCforPeople
Eliminate
• Inconsistentmanagementofstaffperformance
• Distortedviewofriskholdingbackchange• Lackofperformancemanagement
Raise
• Timelypersonalisedfeedbackonservicefromcustomersandsupervisor
• Recognitionofgoodcustomerservice
Reduce
• Poorpeoplemanagementpractices• Oldhard-to-usesystemsforstaff• Bureaucraticfrustrationsthatdiscouraged
stafffromsolvingproblems
Create
• CompellingServiceNSWDNAvision• Leadershipaccountability&empowerment• Moderntechnologysolutionssupporting
frontlinestaffandcustomers• Modernworkplacesforfrontlinestaff
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AxisTitle
ServiceNSWPeopleProposiqon
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ServiceNSW
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9 PrinciplesforShapingExecutionRepeatedresearchonthesuccessofbusinessstrategyandtransformationalchangereportsfailureratesfrom70%to90%.9Thisequatestoanextraordinarilylargewasteofresourcesinactivitiesthatareintendedtoimproveorganisationalperformance.Unlikemoststrategyframeworkshowever,BlueOceanStrategyrecognisestheimportanceoforganisationalandmanagementhurdlesandbarrierstochangeandbuildsstrategyexecutionstrategiesintothestrategyformulationprocessfromthestart.
9.1 OvercomingorganisationalhurdlesOncethestrategyisdefinedthereareanumberoforganisationalrisksthatmustbeidentifiedandovercomeifexecutionistobesuccessful.BlueOceanStrategyidentifiescognitive,motivational,politicalandresourcinghurdles.BlueOceanStrategyalsoproposestheuseof“tippingpointleadership”principlestoovercomethesefourhurdlesmostquicklyandefficiently.
Organisationalhurdles
9.1.1 TippingpointleadershipandpeoplewithdisproportionateinfluenceTippingpointleadershipchallengesconventionalwisdomwhichbelievesthemorecomplextheproblem,themoreresourcesarerequiredtoresolveit.MalcolmGladwell10hasillustratedinhisbookTheTippingPoint:HowLittleThingscanMakeaBigDifferencethatcertainpeopleexercisedisproportionateinfluenceinsocialnetworks.Byknowingwhothesepeopleareandinvolvingtheminthestrategyformulationandexecutionprocesstippingpointleaderscanbeusedtoaccelerateboththequalityandspeedofsolutionsandtheengagementofstaffinsupportofthechange.
9TheIrrationalSideofChangeManagementbyCarolynAikenandScottKellerTheMcKinseyQuarterlyno2200910TheTippingPoint:HowLittleThingscanMakeaBigDifferencebyMalcolmGladwell,BackBayBooks,newYork,2002.
CognitiveHurdle
PoliticalHurdleResourceHurdle
MotivationalHurdle
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InthesetupofServiceNSWastherewasnoexistingorganisation,mostinfluencewasexertedbypeopleinformalpositions–thenewPremier,theCustomerServiceCommissioner,Unionsandkeypeopleinimpacteddepartmentsexerteddisproportionateinfluence.
9.1.2 BreakingthroughtheCognitiveandMotivationalHurdlesThecompellingcaseforServiceNSW,thecustomerfeedbackdataandtheServiceNSWDNAandvisionforchangecreatedapowerfulstoryforbothintellectualandemotionalengagementofimpactedstafffromotherdepartments,forengagementofexternalstakeholdersandforattractingstafftojoinServiceNSW.ThecustomerdatatogetherwiththeServiceNSWstorytoimproveservicestotheNSWcommunityandtocustomersandtoimprovetheemploymentexperienceforstaffprovidedverycompellingrationalandemotionalargumentsforchange.TheconsistentfocusinthedesignofServiceNSWonimprovingboththecustomerandthestaffexperiencecreatedthesenseofbeingpartofsomethingtransformationalandgoodforbothsocietyandindividualemployees.Staffintheimpactedagencieswereinvolvedinregularcommunicationsandsomewereinvolvedinaspectsofdesigningtheneworganisation(suchasthedesignofthecorporatewardrobeandinvolvementinprojectteams).
9.1.3 BreakingthroughthePoliticalHurdlesHavingtheCustomerServiceCommissionerasasponsorreportingtothePremierandaccountablefordeliveryofoneofthePremiers’prioritiestoimprovecustomerserviceinNSW,provedanimportantpoliticalandbureaucraticsupportinovercomingthemanychallengesthataroseindeliveringsuchmajorchangeinsuchshorttimeframes.
9.1.4 BreakingthroughtheResourceHurdlesThebusinesscaseforfuturefundingofServiceNSWandcostsavingswasbasedonthereallocationofbudgetsfromexistingdepartmentsasservicesareprogressivelytransferredtoServiceNSWonafeeforservicearrangement.Fortunatelytheinitialfundingdidnotrelyonthisastheformulaforbudgetaryreallocationwasanongoingareaofdebate.
9.2 BuildingexecutionintostrategyManagementriskreferstotheneedtobuiltexecutionintostrategyfromthebeginningbywinningthetrustandcommitmentofpeopleimpactedbychangeinordertoinspiretheirvoluntarycooperationandproactivesupportsothatchangeisnotunderminedbymistrust,non-cooperationandsabotage.Unlessthepeoplemostaffectedbythechangeareinvolvedfromthebeginninginunderstandingwhychangeisneeded,andhaveanopportunitytocontributetoandinfluencethestrategyformulationprocessandunderstandwhatisexpectedofthemwithanychange,thewholestrategycancomeundonebecauseofdisengagementandimpracticalpoordesign.BlueOceanStrategyreferstotheneedfortheuseof“fairprocess”inthechangeprocessthroughinvolvingimpactedstakeholdergroupssotheyconsidertheyhavehadafairchancetoinfluencechangesthataffectthem.
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Executionhurdles
Settingupaneworganizationinonlysixmonthsthattransformedsomanyaspectsofhowthingswerenormallydoneingovernmentrequiredextensivestakeholderengagement.Thestoryofwhatwasbeingcreatedandwhy,theexpectationsofleadersandstaffintheneworganizationandtheprioritygiventodeliveringservicetocustomerswasaconsistentongoingmessagethatallowedpeopletoknowwhatwouldbeexpectedofstaffinthenewServiceNSWandwouldallowthemtodecideiftheywantedtoworkinthistypeoforganisation.Themessagewasalsocleartonewstaffthatmanyaspectsoftheneworganizationwerestillbeingworkedoutandtheywouldneedtoparticipateinsolvingproblemsattimesratherthanexpectingtheywouldcomeintoafullydesignedorganisation.Giventhechallengingchangeagenda,theshorttimeframesandtheagileapproachtoprojectdesignanddelivery,executionwasbuiltintothestrategyfromthestartandstakeholdersatalllevelswereinvolvedinthecompellingstoryforchangewhichcreatedsignificantstakeholderbuy-inandcreatedgoodwillintimesofconsiderablechangeandanxiety.10 TheLitmusTestWhencomparingdifferentideasforinnovationtheLitmusTestprovidesasimplegraphicalwaytoidentifywhichoptionhastheleastbusinessriskandhasthegreatestchanceofsuccess.Themoreticksanoptiongets,thegreaterthechancethatthestrategyhasbeenwellthoughtthroughandtheharderitisforacompetitortoreplicate.TheLitmusTestcombinesthestrategyalignmentofvalue,profitandpeopleandthesixpathstoinnovationthatwehavealreadydiscussed.ItthenaddsamarketingdimensionintheLitmusTestthatconsiderswhetherthestrategyisfocused,divergentandcompelling.Inotherwords,canasimplestorybetoldaboutthebusinessstrategythatwillcapturethecustomer’simagination.Customersandstaffwillbecomethemarketersiftheycanconciselyexplainthevaluepropositioninconversation.
Engagementofimpactedstakeholders
Expectationsofpeopleclear
Explanationofneedforchange&decisions
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LitmusTestfortheServiceNSWStrategy
StrategyAlignment
ConceptLitmusTest
SixPathstoInnovation
Ideas
Value
Profit
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ServiceNSWbusinessmodel
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TheServiceNSWDNAprovidedasimplecompellingvisionthatillustratedjusthowdifferentanddivergenttheServiceNSWmodelwasfromexistinggovernmentservicedeliverymodels.ThestoryofServiceNSWandtheopportunitytobepartofitscreationattractedpeopleandsupplierswhowouldnormallyneverworkingovernmentanddeliveredasignificantlevelofdifferentiatedservice.Thetaglineof“TransforminggovernmentservicedeliveryforthepeopleofNSW”wasfocused,divergentandcompelling–andwasdeliveredonfromdayone.Evennow,twoyearsafteropeningServiceNSW,customerscommentwithdelightabouttheirexperiencewithServiceNSW.11 TheServiceNSWOutcomeAsatJuly2014thestreamliningandsimplificationofdeliverychannelswaswellunderway.
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Fromopeningforbusinessinmid2013untilJuly2014,ServiceNSWhadhandledmorethan2.8millioncustomervisitsacrossdigital,phoneandservicecentrechannelswithgrowinglevelsofmigrationtodigitalchannelsforbothinformationandfulfillment.
Customersconfirmedserviceswereeasiertofindandsimplertoaccessacrossmultiplemodernchannelsandwereavailableoverextendedhoursand24/7.ServiceNSWcustomersatisfactionwasconsistentlyat98%acrossallthreechannelsandhadnotdroppedbelow95%sinceopening.
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12 ConclusionServiceNSWchallengedmuchconventionalwisdomaboutperformanceimprovementingovernmentorganisations.Itchallengedhowriskwasperceivedandmanagedingovernment.ItshowedthatspeedandservicetransformationwerepossibleandthatGovernmentservicedoesnotneedtobepoorquality.Itchallengedthedepartment-centricwayofthinkingandshowedthatcustomer-centricservicedesigndoesnotneedtocompromisegovernance.ServiceNSWdemonstratedthevalueofbringingpracticesfromothersectorsintothepublicsectortoacceleratemodernizationandchange.Italsoshowedthat,despitebureaucraticresistance,leaders,manyofwhomhadnotpreviouslyworkedingovernment,couldgetanewgovernmentorganizationupandrunningsuccessfullyandquicklywhilstcomplyingwiththebasicrulesofgovernmentandalsoremovingnon-value-addingbureaucraticredtape.Italsoshoweditwaspossibletocreateexponentialleapsincustomervaluewhilstalsosavingtaxpayersmoney.13 AdditionalResources
1. TheCustomerImperative:Redesigningfor“CustomerInside”byMichaelPratt,CustomerServicesCommissioner,July2014http://bx2014.org/sites/bx/media/248.pdf
2. CustomerServicesTransformation,July2012https://aiia.com.au/documents/event-presentations/2016/nsw/nsw_govt_forum_customer_service_transformation_jul_2012.pptx
3. ServiceNSW:Pioneeringaneweraingovernmentserviceswithsalesforce.comhttps://www.youtube.com/watch?v=YuJC2rqpD30
4. ServiceNSWnowopenhttps://www.youtube.com/watch?v=VNUOXUlYF2I5. ThetransformationalServiceNSWexperience
https://www.youtube.com/watch?v=dzohm7TFsOA