Systems Thinking & Efficiency Briefings from the Pilots September 2005

Systems Thinking & Efficiency

Briefings from the Pilots

September 2005

About this session. Why did Preston City Council get Involved.

Preston City Council Income Collection Intervention.

What we Discovered.

What Improvements did we make to the Service.

Conclusion.

Questions Welcome at the End.

Rent Collection and Debt Recovery BVPI’s in bottom quartile. July 2003 - Account Management

Team formed. Major improvements i.e. rent

arrears reduced by £600k. New methods of payment

introduced. High turnover over staff/ staff

morale. Recovery process too procedural.

Why Get Involved? After restructure performance improved

(including BVPIs) but grey areas/silos. Tried EFQM, IIP, Performance Management

Framework, Benchmarking, BVR etc. Stock Transfer- “new culture” needed to

deliver and meet customer expectations Expected “issues” but not sure how it

would develop

What we Discovered in 6 Weeks. Too much Concentration on BVPIs and Targets – Sub

Optimisation of Performance. Followed Policy come what may. Made the Customer Fit the System. So Many People Involved in the System. Waste (Value and Failure) – Monday Mornings. ”Setting up Customers to Fail.” Expertise in the Wrong Place. I.T. is a Driving Force.

We could prove it!

Defacto Purpose – Meet KPIs for rent arrears.Revised Purpose – “Right amount, right time.”

Work Flow. Gas and Electricity Meter.

What are the management assumptions?Focus on performance and perception of the department. I come to work to have fun.

What do management focus on?AMT Targets. Monthly Reporting to DMT. Fire-fight to find out why “payments haven’t hit accounts”. Monitor performance of team and adherence to policy and procedure, have meetings monthly to discuss. Work to the rules to reduce rent arrears. Go to meetings. Meet legal and regulatory requirements. Develop Saffron to assist in pursuing arrears (streamline, try to reduce the number of checking steps required).

What are the front line doing? Lettings/sign up, not really bothered about giving out information because my individual performance is measured on different target(s). AMT; ‘getting out’ arrears letters, serve NOSP, eviction. Measured on % debit target. Chasing debt and knocking on doors. Printing letters. Filling in forms, phoning HB (up to 35 mins delay), chasing HB claims.

What is the typical customer experience?‘Fill in’ a form, go on list, view a house / arrange appointment (Sign up). Bombarded by information at sign up. Unclear information given as to what to pay and how to pay it, may or may not have help filling In HB form. Electric/gas may or may not be on. House may or may not be habitable. May or may not get a redec voucher. 2 weeks after first rent due, get first letter, Wk4 – NOSP/Second letter/ ‘visits’/ telephoned, Wk7 – SO3 – have ‘visits’ / are telephoned again, Wk9 – get a Pre court letter issued saying “The council are going to take me to court”

Logic Picture Thinking

System

Performance

Service Improvements

Looked at New and Existing Customers (right first time).

More Information to Applicants and New Sign Up Procedure.

Only do the Value Work & Work flows 100% clean

Expertise Developed and in the Right Place.

Improved Predictability of Income Flows

Introduced Measures

Void Turn Around Times Increased

Customer Focus

Beware!!!!

Redesign results new customers

Barriers? Full Support of Interim Director/ Chief Executive.

Suspicion/Protectionism/Disinterest Departmental Management Team/managers Housing Benefits IT - systems to other departments’ needs Corporate barriers - Standing Orders Targets / Silos Resources/ Day job 3D & 2D Waiting to Transfer

Now Success on New Customers

Established Working Method. Average Time for Payments to Hit Accounts Reduced

from 39 days to 20 Days. Less New tenants Fall into Arrears. We do not Sign up People Unless they want to be a

Tenant. Sign up Takes an Hour Did not Complete Work on Existing Customers – but we

have Reduced waste and know what needs to be done. What’s next?

Community Gateway – New Structure It’s not going Away!

Staff

They did the work plus the day job

They came up with the “best” service improvements

Staff Development All expectations not met

Quotes I was so confused about what I had to pay and I was told I would get full HB but

now I have rent arrears. I’m not well and this is making me worse”

“Account balance is never right on a Monday. It’s normally right on a Tuesday”

“My sister talks to her mates (in the USA), over the internet, why can’t you guys talk to each other in the same set of buildings?”

Quote from Interim Director after Check Presentation “……………….”

“There is only one decision that you can make!”

“All this theory does not make sense until you actually do it.”

“Everyone is working hard for their department but not for the benefit of the customer.”

“We are doing all of that anyway, it’s just BusinessProcess Mapping.”

Conclusion It worked for new tenants

Customer focussed

Better use of staff skills

BVPIs

Gateway!

Another step taken to a new organisational culture