The NHS & Marks & Spencer's
The goal of this CRM survey is to provide tips towards creating a customer experience improvement technique for both NHS and Mark's and Spencer's Food.
The key objectives throughout this article are the following;
* To recognize weaknesses in meeting the worthiness propositions
* To identify the strengths structured after the organisations primary values
* To use and recommend CRM models and techniques which could enhance the customer experience
This survey has identified difficulties with the existing value proposition, management composition and budgetary factor with regards to the NHS. These issues have been highlighted throughout section 1, which describes how the current customer experience is being affected due to the silo management composition, where the company is run. This sort of management approach is creating issues throughout the NHS, which were seen to set-up many degrees of management, poor internal communication, motivational issues and low degrees of empowerment amongst personnel.
This report has also identified the main element talents of Mark's and Spencer's Food proposition and the way the organisation engages with its customer's to boost their experience. However, it has also been highlighted that with the application of specific CRM models, the company can improve their customer's experience consistent with their value proposition as well as develop a permanent customer experience strategy.
The key conclusions and tips found in aid of implementing a person Experience technique for the NHS was to improve the current silo management composition to a more systemic strategy which would ensure a more effective way to get together the value proposition could be produced, keep cost to least whilst improving the client experience.
The key conclusions and recommendation found in regards to Mark's and Spencer's Food was to put into practice two CRM models for just one customer experience strategy. After careful analysis, it has been suggested that the applications of Round's model and the QCi Customer management (customer life-cycle) platform would be most effective. This would profit the company in the following two ways;
* By moving M & S to a far more customer valued methodology towards engaging with the customers
* Monitoring the customer journey from beginning to end
If all models are applied then the customer experience will improve greatly as time passes becoming more aligned with the worthiness propositions.
This report will examine the performance of The NHS and Markings and Spencer's Food and is also in two parts. Section 1 will be based upon an examination of the current customer experience sent by both. The study of both organisations current performance with regards to their current customer experience will be outlined through their suggested value proposition, the organisational structure, current inside and external problems and their methodology 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 gain the customer's experience, whilst better boosting and effectively interacting with the value proposition, both strategically and proficiently.
This section will also point out the significance where these CRM models will benefit both organisations both brief and long term, with little investment and a big change in mentality and drive.
This statement will conclude by summarising the value of the tips for both organisations and the implications for both, failing woefully to appropriate 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 portion of the report seeks to assess and analyse both Markings and Spencer's food and the NHS in terms of the value proposition and their current customer experience. Both organisations are incredibly unique in relation to their value propositions, however through analysing the current customer connection with both, there may be a chance for improvement through the application of customer relationship management techniques.
1. 2 The NHS
2. 2. 1 Again ground
The NHS was primarily founded on July 5th 1948 as a Labour incentive which set out to revolutionise the way in which UK citizens received healthcare. The NHS proposition was simple, to ensure all NHS services were available to all no matter wealth, social school, age, contest and gender.
The value proposition because of this newly established organisation was one of the first of its kind in the western world, which targeted at changing the old insurance founded system only afforded by some. The Government authorities proposal was to fund the NHS through national insurance efforts and duty from UK workers and employers, who each pay a show of the NI contribution, therefore providing a countrywide health service suitable to all.
2. 2. 2 Problems with the NHS
Currently this year 2010, the NHS continues to be experiencing many issues and problems due to both interior and external factors, which includes in turn caused their value proposition to be distorted over the last 60 years of operating. Nearly all these problems stem from the NHS operating with an extremely Silo approach rather than a systemic thought process, which really is a main reason behind increasing Authorities pressure and significant affect how the NHS is run.
This increased pressure has resulted in the client experience being distorted through these important problems;
A Post Code Lottery
Ready List Prioritising
Regional Variance with the Level of HEALTHCARE Provided
Prescriptions Payed for by Many
Optical and Dentistry charges
However, these issues are almost all a derivative of the increased Governmental stresses and significant effect imposed on the NHS, with regards to how it's run. Fundamentally, it has in turn afflicted the way in which, NHS staff are able to strive and deliver, the organisations value proposition. It has been outlined through centralisation and commonly enforced targets as well as a command and control culture seen across the majority of NHS clinics.
These imposed targets have affected the level of care and attention provided by NHS staff to patients, which has resulted in the tactics performed being with regard to hitting targets, which may be counter-productive to patient care and attention. A common exemplory case of this is patients being moved to an over night ward and treated as a part of morning rounds, if they cannot be seen within the four hour A & E concentrate on; they may usually have been seen within four and a half hours and had been discharged.
This kind of command line and control culture which imposes goals with a high down management level structure has intended that the NHS is commonly considered very bureaucratic, establishing a comprehensive selection of unrealistic and un-achievable focuses on and goals with the existing silo structure set up. The underlining issue however, is that the worthiness proposition has to be delivered in the framework of these goals, which creates limits with the versatility that front side end staff can offer to get rid of customers, whilst making a dark-colored and white attitude. This silo composition and command word and control culture is seen in the diagram below;
2. 2. 3 The Management Structure
The management structure within the NHS is typical of your procedure that is using a silo methodology within its company. This is seen in the way in which the NHS runs through the next;
Many Levels of Management: There are plenty of degrees of management within the NHS, which includes created the command word and control culture, which can be seen through most levels.
Poor Internal Communication between Management Levels: There are several communication issues between the various management levels in the NHS. The indegent internal communications are a primary example of the way the organisation hasn't evolved its inner composition post-war.
Poor control of real and potential goal conflict: As middle management established un-realistic focuses on with a top-down level mentality, the effect is poor control of real and potential target issue, within the NHS all together.
Motivational Issues between Middle Management and Leading Line Staff: Issues involving motivation arise among middle management and leading line personnel, whereby the Government's influence of setting targets and budgetary adjustments, leaves middle management and forward line staff feeling disheartened and un-motivated within the job role. However, this always then leads to the customer experience being poor and the worthiness proposition being distorted.
Low Degrees of Empowerment and Role Classification amongst Front Brand Staff: As NHS personnel working in a organisation that is made with a high down level mentality, it is very common to find low degrees of empowerment and role explanation amongst front series staff who will work the longest shifts, at the cheapest end of the pay spectrum.
In 2008, a T. V series was aired called, "Can Gerry Robinson fix the NHS" that was made to emphasize the issues regarding the management structure within the NHS with the effect being that lots of of the aforementioned issues were brought up.
2. 2. 4 Budgetary Concerns
The main concern with the NHS budget is simple; the target motivated culture and bureaucratic management structure has led to their being significant levels of resource wastage. This in turn has remaining many frontline staff needing to deliver the value proposition with inadequate resources themselves.
1. 3 Grades & Spencer's Food
1. 3. 1 Background
Mark's and Spencer's is one of the UK's most widely known high street vendors, having been established in 1884 and becoming the largest non-food retailer in the united kingdom. In 1948, Mark's and Spencer's launched its food team which became one of its strongest SBU's within the company. M & S food is sold at present in-store, through the simply food retail network and with 338 food stores across the UK and a 3. 6% market talk about, they have grown to be one of the most recognised and appreciated brands of today.
1. 3. 2 M & S Food Value Proposition
Mark's and Spencer's food has become one of the organisations key talents, which is built on core worth embedded of their value proposition; "Quality worth it". These primary values have guaranteed that the M & S food proposition is targeted around high quality, restaurant styled food.
Another key strength of the M & S food has been their ability to ensure that all customers play an integral role of their value proposition, which is outlined in within the Slogan, "Your M & S". The adverts for M & S food have been one of these strongest promotions, which incorporates the organisation focused effort on providing high quality food, built on primary values that have surrounded the brands image, value and notion since 1884.
M & S food is definitely identified by consumers as very innovative with high quality and value associated using their range. Gleam advanced of trust with the brand and the consumers which is supported by a friendly and effective service that has been at the forefront of the customers experience in-store. As the M & S customer experience has always been exceptional with many maintaining a higher understanding of M & S food during their lifetime-value, the company has always obtained higher than the common score for customer service compared to their competition.
In a recently available study made by Mintel, three out of four M & S customers favorably recommend the brand to relatives and buddies as the worthiness proposition has appealed more towards older, affluent consumers within the ABC1 types of the social financial scale.
Below shows the identified perception by M & S consumers of their food with regards to their strongest competitors Tesco's and Waitrose;
1. 3. 3 M & S Food Procedure towards their customers
Mark's and Spencer's activity recently would suggest they are taking a very customer centric methodology towards their customers. They are currently running a 'wise buys campaign' and a 'meal for just two for 10', which includes gained a lot of good mass media and press coverage as well as attained the needs and wishes of the majority of their customers.
One of these main aims was to provide high quality food that sorts the key aspect of M & S proposition with a value price that shown market conditions. They also have had the ability to highly customize the web shopping experience, that they have included through their online shopping site, 'shop your way'. An added addition to the is an online facility that allows customers to leave reviews for other customers, which is a very customer centric, interactive way to engage and understand the customer's experience.
Mark's and Spencer's in addition has got a dedicated unit that scans the market for key emerging customer trends, that they can identify quickly and react to customer needs. (CIU Customer Incite Device)
2 Improving the Customer Experience
2. 1 Introduction
The customer connection with any company can continually be increased, which is the mentality of all regarding their customer's experience. Both NHS and Mark's and Spencer's can defiantly improve this and do so through the use of CRM models and techniques, which is outlined in the section below.
The NHS has an extremely 'control and control' culture which has resulted in the organisation going for a silo management way towards work. To increase the customer experience, the organisation should take more of a systematic mentality and strategy towards work, that may also benefit the client experience in the long term.
Mark's and Spencer's Food is excellent at being customer centered, however to improve the customer experience they may need to try to analyse their 'customer value and customer centricity' and exactly how they can reach these as a intensifying target.
2. 2 The NHS
3. 2. 1 Control and Control (Silo Management) Vs Systems Thinking
After an analysis of the NHS and its own current problems stemming from a command and control mentality, it could indicate they have set up a 'silo management composition', which is symptomatic of organisational dysfunction.
This typical 'order and control' thinking was highlighted by Seddon, J (2003) where he detailed the impact and consequence of this dysfunctional activity;
* A Top-down hierarchy
* A Functional design
* Decision making being very segregated from work
* Performance measured through output, targets, criteria related to the budget
* A contractual frame of mind towards their customers and suppliers
* The role of management is to control people and budgets
* A built in ethos of control
* Change centred on reactive projects
* Desire is very extrinsic
The consequence of the NHS being structured on the top-down management style mentality, organised around business functions, has ensured that the circulation and drive of organisational development and change to meet focuses on can be found throughout. However, Seddon, J (2003) talks about that; 'without there being some type of (Mechanism) or way for aligning the development of new capabilities over the organisation, inconsistencies are manufactured within the customer experience. '
It in addition has been highlighted that; "Failure to recognise the relationship between the parts of a system leads to a Silo mentality. This target is on parts of a system, as opposed to the whole, could possibly be the cause of numerous organisational problems such as amount of resistance to improve. " A systematic approach to service improvement evaluating systems thinking in property, office of the deputy primary minister (2005).
It is recommended that the NHS use a more systemic strategy towards their organisational development and mentality, to run more as 'a network with interdependent components that work together, to try and accomplish the purpose of the machine. ' W. Edwards Deming, (1993)
It was also highlighted by Deming, who stated that, 'A system must have an aim. Without an aim, there is absolutely no system. Desire to must be clear to everyone. The aim must include programs for future years. Desire to is a value judgement. ' W. Edwards Deming, (1993). But the NHS has a value proposition "its aim", has increasingly become distorted since it is not fundamentally clear to all levels within the company.
It is also suggested that to fight and enhance the poor interior communication between middle managers and poor control of genuine and potential focus on turmoil between them and front line staff, it ought to be viewed that the individuals work in something. The sole purpose of middle- management should not be to manage the staff and budgets, but instead work on the system to boost it, by using front line personnel.
Below can be an exemplory case of the improvement that would come from an even more adopted systemic way by the NHS;
This kind of NHS systemic thinking would gain the organisation and in-still a mentality of constantly enhancing the organisational learning and communication between departments; providing empowerment to low level front lines personnel, whilst creating role description for most.
In turn, the client experience would become more aligned with the organisations value proposition, that could be delivered better.
2. 3 Mark's and Spencer's Food
2. 3. 1 Rounds Model: Improving Positioning and optimisation- by design
It is preferred that Mark's and Spencer's food apply "Rounds" model which is used to improve positioning and optimisation by design. The building blocks and concept behind Rounds model is to; "Help organisations align their functional and customer management features to increase the satisfaction, retention and value of both its customers and its employees whilst minimizing operating costs and increasing return on capital investment. " Rance, D (2009)
For Mark's and Spencer's Food to understand their customer experience, they'll need to check out two areas of the cycle;
* What they want as an organisation to happen at the idea of a person engagement
* What the customer actually experiences during and after this engagement
To analyse these two important aspects for understanding the client experience in accordance with Round's baseball model; 'Which represents the trip to customer centricity and it is the customer aspect that is absent from most organisations" Round (2009) it'll provide M & S Food with a words that will assist establish disconnects and misalignments within the company.
Mark's and Spencer's Food happens to be sitting at "second platform" on Rounds baseball model, as the company is currently focused on satisfying customers by developing a regular customer experience through end-to-end business functions and driving constant improvements. M & S Food are in a stage in their life-cycle whereby they may have built a good reputation, a definite image, consistently high quality service and products whilst creating a higher level of trust with their customers.
It is preferred that M & S Food attempts to move more towards "third bottom part", where they try to build on the foundation of these service excellence to increase customer value through the application of strategies for each specific customer, moving from being customer concentrated to a more optimised customer value stand-point.
This application means that M & S Food wouldn't normally move from building customer loyalty through the client experience but instead create "raving supporters" through optimising customer commitment and concentration towards a mentality whereby the customers are valued more as individuals. However, I believe that Mark's and Spencer's would battle to move towards "third bottom part" and put into practice these changes of their system as of this present time, as the effectiveness of their already customer concentrated approach is still being assessed in success.
2. 3. 2 The QCi Customer Management Model
It is preferred that Mark's and Spencer's Food analyse the customer life cycle, by using a framework which is at the centre of the QCi Customer Management Model.
"Customer life-cycle thinking is a prerequisite for practising excellent customer management. " Starkey, M (2000)
Mark's and Spencer's as cited before, is a very customer focused company and with the application of this framework they will be able to know which life-cycle stage each customer, as well as what proportion of the client base reaches, through each life-cycle stage.
Through the use of this framework, M & S food can analyse the customer journey from starting to end, which can be seen below;
Mark's and Spencer's Food should use the client life-cycle platform within the QCi customer management model to guarantee the constant circulation of the customers journey. All parts of the circuit need to work together so that the customer experience can always be analysed relative to the organisations value proposition.
4. 0 Conclusions
This statement has examined the client Experience performance in the NHS and Mark's Spencer's Food and found lots of issues with both. The NHS has a value proposition which has been distorted anticipated to many internal and external problems stemming from an extremely silo management methodology centred on measuring performance based on output, targets and standards related to the budget; that happen to be more commonly enough un-achievable both brief and long-term for different levels of staff.
Therefore, it has been recommended that the NHS take more of a systems pondering approach to the structure of the company and the way in which they converse between middle-management and front line personnel. Systems thinking would not only benefit the staff within this top-down hierarchy mentality, but change the way in which the worthiness proposition could be delivered more effectively.
Although the success of M & S Food is noticeable, as an company they could still have better concentrate on the customer's value and keep track of their trip/experience better. The implications of failing to correct this issue may be that they are left out, as competitors focus more on becoming customer centric and customer centered.
The implications for the NHS of failing to appropriate these issues will eventually cause the organisation being struggling to treat patients effectively, whilst over shelling out for a budget that should be more than productive for an organisation of the size.
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