9 things to avoid doing when studying demand

The people at Vanguard have written a lot about studying demand in services.  Why you should do it, how you should do it, etc.  They even invented the term 'failure demand' – so I'm not going to repeat what they say here.  For a short introduction to studying demand, I recommend this one minute read from Simon Pickthall.

Instead, I'm going to share a few things I've learned that are not helpful to do when you study demand.  I've either witnessed everything in the list below, or made the mistakes myself. 

1. Do all the studying yourself.  As mentioned in a previous post, the main purpose of studying a service isn't for analysis.  It's to help people unlearn and relearn.  The best way for them to do this is by studying the service from the customer's perspective.  And studying demand is a great place to start.   

I made this mistake more recently than I would have liked.  The demand analysis became just another slide in a PowerPoint presentation.   It lost all it's impact, and definitely didn't change anyone's thinking about the service.

2. Guess what the demands are.  Get a bunch of managers together in a room.  Do some 'brainstorming' and –  based on opinions –  identify the most common type of failure demand.  Put these in spreadsheet, with actions, due dates, etc, against each type of failure demand.

Or, decide the most common types of demand in advance.  Make them in to a tick sheet, and give it to the people who receive the demand to fill in.  

Studying a service is all about learning and discovery – it's not about trying to have all the answers.

3. Use existing data.  Run a report from your CRM, using categories already defined by the consultants who implemented the CRM.  This is similar to the previous point, where you shouldn't assume in advance you know what the customer is calling about.  The difference here is you've paid someone else to do the guessing for you. 

4. Be constrained by the existing rules.  I was once with a team listening to demand for council housing repairs.  One of the most frequent demands – particularly around midday each day – was "are you still coming to today's appointment?"  The appointment was for a tradesperson to arrive at their home and carry out a repair. 

The existing appointment slot was 8am to 1pm.  For this reason, most of the team initially felt this can't be a failure demand.  The resident was calling during their appointment slot, not afterwards, so surely we've done nothing wrong?
 
They were viewing this demand through the lens of the existing organisational system, and all it's constraints.  Yes, no person has done anything wrong.  But the system could be improved to stop this demand happening in the first place.  For example, you could shorten the appointment slot.  Or, as some councils have done, ask the resident when they want you do carry out the repair, and turn up then. 

5. Don't involve the people who receive demand.  When you're sitting with them listening to demand, don't explain why your there or what you're doing.  Don't show them what you're writing down. 

It's important to show your findings to the people who receive the demand.  It removes some of the mystery about what you and your team are up to.  It's also an ideal way to validate your findings – show it to them and ask them if this looks like a 'normal' day.  Listen to what they say about it. 

6. Fear failure demand.  Look for excuses to categorise everything as value demand, for fear it will look bad or demotivate staff if you find too much failure demand.  If this happens, it starts to give you some clues about the organisational culture.  

7. Ignore the type of service you are studying.  I've made the mistake a couple of times of studying demand in a people-centred service in exactly the same way I would in a transactional service.   I've learned from this mistake now, and it's something I plan to write about in a future post.  

8. Gather too much data.  I've had people on my team before who were concerned they needed to collect data on thousands upon thousands of demands.  Yes, you need to be somewhat scientific.  But not to the extent of randomised controlled trial or anything else that requires similarly high levels or rigor. 

When have you studied enough demand?  When the people you're working with have learned what they need to learn, and when the demand has become predictable.  This means you're no longer seeing types of demand you haven't seen before. 

9.  Do nothing else.  I've seen demand analysis be treated as a one-off exercise, done in isolation.   There may sometimes be value in doing this, but you're missing out on a fantastic opportunity to improve the service if you do nothing else.

It's important to next find out how the service responds to value demand, and does what matters for the customer.  You'll then want to learn why the service responds in the way it does.  

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How about you?  Have you done or seen any of these mistakes?  Are there any others you've seen that aren't covered here?  Please feel free to comment below, or share this with someone who might be curious.  

Finding the purpose of a service in four steps

In my last post and the one before I discussed the importance of purpose, and the perspective it should be considered from.  Here I'm going to share some tips I've learned to help others define a purpose of a service – set out in four steps. 

1. Gather people together from different parts of the service
A service is normally made up of teams and people performing different functions (a common aspect of a command and control design).  When you split a service like this, the people in each function tend to become like characters from Rashomon, with different views about what the service exists to do as a whole.  It's helpful to bring those views together, and start aligning them around a common purpose.

2. Ask them what the purpose is
I've adapted an activity Dan Pink does.  Ask everyone "what is the purpose of [this service]?" and  instruct them to write it on Post-It notes.  Stick the answers up, and read them out.  (In local government, I've often had answers like "to carry out our statutory duties to..."   They are used to taking an internal perspective rather than a customer one). Next, have a discussion and agree a working definition of purpose.

At this point I've made mistakes.  I've been impatient.  I've wanted them to nail the purpose too early on, and wasted time debating the issue and getting nowhere. 

3. Go and study demand
Instruct the team to observe customer demands on the service.  Listen to phone calls, observe face-to-face conversations, read emails, etc.  Write down each demand in the customer's own words.  Consider what matters to the customer at the point of making a demand.  If you speak with customers, ask them "what matters?"  In a future post I'll write more about studying demand.

4. Ask them again
This time, be clear that the purpose should be from the customer's point of view.  Reflect on what you've all learned about demand and what matters to the customer.  I've always found that by now the team come up with a definition of purpose that's at least very close to representing what the whole service exists to do for the customer.  It can be useful to have a discussion about how this differs from the first version of purpose, and why it's changed. 

 

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The definition of purpose is likely to keep evolving as you learn more about what matters to the customer.  That's good.  The important thing is to be crystal clear about purpose before starting to redesign the service – something to cover in a future post. 

What are your thoughts about these steps?  Would you use them?  How could you improve them?  Feel free to comment below, or share with someone who might be interested. 

Purpose – from what perspective?

In my last post I discussed some reasons why a clear and meaningful purpose is important.  In this one I'll discuss the most important thing I've learned about defining the purpose of a service: define the purpose of your service from the perspective of the customer.

(Or citizen, service user, resident, client, patient, tenant, etc.  Whatever the most appropriate term is for the people the service is set up to serve.)

Too often organisations instead take an internal view.  The story of Oticon, a Danish hearing aid company, is a good one.  It's told by Lars Kolind in The Second Cycle – Winning the War against Bureaucracy.  Their stated purpose for many years was:

"Leaders in hearing technology"
 

This comes across as a bit 'meh' to me.  Is it clear?  What exactly does 'leaders' mean?  Do the employees care if they are the leaders or not?   Most importantly, does the customer care if Oticon are the leaders in hearing technology? 

As Lars says in his book "I never met any consumer who asked for the world's most advanced hearing aids... In fact I rarely met consumers who asked for hearing aids at all".  What mattered to the customer was to live a normal life with the hearing they had.  They therefore redefined Oticon's purpose as:

"Help people to live as they wish with the hearing they have"
 

I like this.  It describes clearly and succinctly what the organisation exists to do from the perspective of the customer.  I also think it does well in relation to the points discussed in my last post. 

They used their new purpose to redesign the organisation, so roles and functions added value for the customer and contributed to achieving purpose.  As a consequence they reduced costs, increased sales, and Oticon became profitable again.

How about you?  What's the purpose of your service – when you consider it from the perspective of the customer?  Feel free to comment below, or share this with someone who might appreciate it. 

In my next post, I'll share a few things I've learned about helping others to define the purpose of their service. 

What is the purpose of purpose?

The first of W Edward Deming's 14 points for management is to "Create a constancy of purpose".  This is still very relevant today. 

For example, I recently listened to a programme called The Charity Business on BBC Radio 4.  In the third episode we learn that some charities are excellent at raising funds, but their impact is minimal.  We also learn there are other charities that make a huge impact, but are not so good at raising funds.  It means we end up giving money to the charities that are good at pulling on our heart strings and persuading us to donate, while other charities that make a difference go out of business. 

It sounds like some charities focus too much on fund-raising, to the detriment of their original purpose.  This is one reason why constancy of purpose is important – to keep everyone focused on doing the right things. 

Here are four more reasons why purpose is important:

1. Alignment.  In Fourth Generation Management by Brian L Joiner, he uses a diagram similar to the one below to highlight the importance of a clear purpose. 

The top box represents an organisation with no clear purpose.  Teams or individuals end up operating on their own – each pulling in their own direction.  It can result in chaos and dysfunction.  The bottom box represents an organisation where the purpose is clear and meaningful.  Everyone is pulling in the same direction

2. Decision making.  In this 30 second clip, Olympic rower Ben Hunt-Davis explains one of the reasons why his team won gold in Sydney.  During training, every time they had a decision to make they'd ask themselves "Will it make the boat go faster?" 

This was the purpose of their training.  It gave them clarity about what they were there to do – even if it meant missing out on trips to the pub.  Likewise, you can ask "will this help us achieve our purpose of...?" when making those difficult decisions in your organisation.

3. Motivation. In Drive by Dan Pink, purpose is one of his three ingredients of intrinsic motivation.  His research finds that "The most deeply motivated – not to mention those who are most productive and satisfied – hitch their desires to a cause larger than themselves".  Later on in the book he also says "If people don't know why they're doing what they're doing, how can you expect them to be motivated to do it?"

4. Measurement.  Purpose defines what your organisation exists to do.  If you don't have measures that relate to purpose, how will know how well the organisation is performing?  John Seddon puts it nicely with this diagram:

If measures are derived from purpose, it allows you to experiment and innovate with method.  You use your measures to see if your efforts are improving your achievement of purpose.  The mistake a lot of organisations make –  which I'll talk about in a future post – is when measures start with an arbitrary number instead of purpose. 

In my next post I'll share the most important lesson I've learned about defining the purpose of a service.  In the meantime, feel free to comment below, or share this with someone you think could be interested.