The NHS & Marks & Spencer’s

Abstract

The aim of this CRM report is to provide recommendations towards developing a customer experience improvement strategy for both the NHS and Mark’s and Spencer’s Food.

The key objectives throughout this report are as follows;

* To identify weaknesses in meeting the value propositions

* To identify the strengths based upon the organisations core values

* To apply and recommend CRM models and techniques which could enhance the customer experience

This report has identified issues with the current value proposition, management structure and budgetary consideration in relation to the NHS. These issues have been highlighted throughout section 1, which outlines how the current customer experience is being affected due to the silo management structure, by which the organisation is run. This type of management approach is creating issues throughout the NHS, which have been seen to create many levels of management, poor internal communication, motivational issues and low levels of empowerment amongst staff.

This report has also identified the key strengths of Mark’s and Spencer’s Food proposition and how the organisation engages with its customer’s to improve their experience. However, it has also been highlighted that with the application of specific CRM models, the organisation would be able to improve their customer’s experience in line with their value proposition as well as create a long term customer experience strategy.

The key conclusions and recommendations found in aid of implementing a Customer Experience strategy for the NHS was to change the current silo management structure to a more systemic approach which would ensure a more effective way to meeting the value proposition could be made, keep cost to minimum whilst improving the customer experience.

The key conclusions and recommendation found in relation to Mark’s and Spencer’s Food was to implement two CRM models for one customer experience strategy. After careful evaluation, it has been recommended that the applications of Round’s model and the QCi Customer management (customer life-cycle) framework would be most effective. This would benefit the organisation in the following two ways;

* By moving M & S to a more customer valued approach towards engaging with their customers

* Monitoring the customer journey from beginning to end

If all models are applied then the customer experience will improve greatly over time becoming more aligned with the value propositions.

Introduction

This report will examine the performance of The NHS and Marks and Spencer’s Food and is in two parts. Section 1 will be based upon an analysis of the current customer experience delivered by both. The examination of both organisations current performance in relation to their current customer experience will be highlighted through their proposed value proposition, the organisational structure, current internal and external problems and their approach towards customers.

Section 2 will give recommendations into how both organisations can improve their customer experience through the implementation of CRM models and techniques; that could benefit the customer’s experience, whilst better enhancing and effectively meeting the value proposition, both strategically and efficiently.

This section will also highlight the significance by which these CRM models can benefit both organisations both short and long term, with little investment and a change in mentality and drive.

This report will conclude by summarising the importance of the recommendations for both organisations and the implications for both, failing to correct these issues. Comparisons will be drawn between the two with key models being conceptualised and concluded.

Assessment of Current Customer Experience

1.1 Introduction

This section of the report aims to assess and analyse both Marks and Spencer’s food and the NHS in terms of their value proposition and their current customer experience. Both organisations are very unique in relation to their value propositions, however through analysing the current customer experience of both, there may be an opportunity for improvement through the application of customer relationship management techniques.

1.2 The NHS

2.2.1 Back ground

The NHS was initially founded on July 5th 1948 as a Labour incentive which set out to revolutionise the way in which UK citizens received health care. The NHS proposition was simple, to ensure all NHS services were available to all regardless of wealth, social class, age, race and gender.

The value proposition for this newly established organisation was one of the first of its kind in the western world, which aimed at replacing the old insurance based system only afforded by some. The Governments proposal was to finance the NHS through national insurance contributions and tax from UK workers and employers, who would each pay a share of the NI contribution, therefore providing a national health service applicable to all.

2.2.2 Problems with the NHS

Currently in 2010, the NHS is still experiencing many problems and issues due to both internal and external factors, which has in turn caused their value proposition to become distorted over the last 60 years of operating. The majority of these problems stem from the NHS operating with a very Silo approach rather than a systemic way of thinking, which is a main cause of increasing Government pressure and significant influence on how the NHS is run.

This increased pressure has resulted in the customer experience being distorted through these fundamental problems;

· A Post Code Lottery

· Waiting List Prioritising

· Regional Variation with the Level of Health Care Provided

· Prescriptions Paid for by Many

· Optical and Dentistry charges

However, these issues are almost all a derivative of the increased Governmental pressures and significant influence imposed on the NHS, in relation to how it’s run. Fundamentally, this has in turn affected the way in which, NHS staff are able to strive and deliver, the organisations value proposition. This has been highlighted through centralisation and commonly imposed targets as well as a command and control culture seen across the majority of NHS hospitals.

These imposed targets have affected the level of care provided by NHS staff to patients, which has resulted in the practices performed being for the sake of hitting targets, which may be counter-productive to patient care. A common example of this is patients being moved to an overnight ward and treated as a part of morning rounds, if they cannot be seen within the four hour A & E target; they may otherwise have been seen within four and a half hours and had been discharged.

This type of command and control culture which imposes targets with a top down management level structure has meant that the NHS is commonly viewed as very bureaucratic, setting a comprehensive range of unrealistic and un-achievable targets and goals with the current silo structure in place. The underlining issue however, is that the value proposition has to be delivered in the context of these targets, which creates limitations with the flexibility that front end staff can provide to end customers, whilst creating a black and white mind set. This silo structure and command and control culture can be seen in the diagram below;

2.2.3 The Management Structure

The management structure within the NHS is typical of an operation that is using a silo approach within its organisation. This can be seen in the way in which the NHS operates through the following;

Ø Many Levels of Management: There are many levels of management within the NHS, which has created the command and control culture, which can be seen through most levels.

Ø Poor Internal Communication between Management Levels: There are many communication issues between the various management levels in the NHS. The poor internal communications are a prime example of how the organisation has not evolved its internal structure post-war.

Ø Poor control of actual and potential target conflict: As middle management set un-realistic targets with a top-down level mentality, the result is poor control of actual and potential target conflict, within the NHS as a whole.

Ø Motivational Issues amongst Middle Management and Front Line Staff: Issues concerning motivation arise amongst middle management and front line staff, whereby the Government’s influence of setting targets and budgetary controls, leaves middle management and front line staff feeling disheartened and un-motivated within the job role. However, this always then leads to the customer experience being poor and the value proposition being distorted.

Ø Low Levels of Empowerment and Role Definition amongst Front Line Staff: As NHS staff working within an organisation that is built with a top down level mentality, it is very common to find low levels of empowerment and role definition amongst front line staff who are working the longest shifts, at the lowest end of the pay spectrum.

In 2008, a T.V series was aired called, “Can Gerry Robinson fix the NHS” which was made to highlight the issues concerning the management structure within the NHS with the result being that many of the above issues were raised.

2.2.4 Budgetary Considerations

The main issue with the NHS budget is simple; the target driven culture and bureaucratic management structure has resulted in their being significant levels of resource wastage. This in turn has left many frontline staff having to deliver the value proposition with inadequate resources themselves.

1.3 Marks & Spencer’s Food