The Citizenship Approach to Customer Involvement - Essay Example

The Citizenship Approach to Customer Involvement Contents Introduction 1 Literature review 4 Approaches of Tenant Management 4 Traditional Approach 4 Consumerist approach 4 Citizenship approach 5 Industry Practices 5 Drivers 8 Internal Drivers 9 External Drivers 9 Analysis 9 Key issues 9 Recommendations 10 Conclusion 11 BIBLIOGRAPHY 12 Introduction The evolution of the business environment has been dramatic in the last few decades. This change has been pumped by rapid development in the arena of information technology. The innovations fuelled by information technology have totally changed the meaning of change. The massive developments in the field of information technology and the communication process have changed the terms of trade altogether. Therefore in this environment of rapid change and diversity, the concepts of customer relation management are totally different. The importance of customer feedback is immense. This is because the response time has greatly decreased. The organizations now cannot wait to see if their products show positive response in terms of profit. The consumers are informed now like never before. The globalization has done wonders to the commercial world and the boom in internet has increased the reach of the customers. The products and services are just within the few clicks of the computer mouse. The competition is another important factor which determines the modern business environment. This competition is a byproduct of diversity. The increase alternatives available to consumers force organizations to continuously evolve and strive for excellence. The present era has thus high regards for the customization of the product and services. This is a result of third wave civilization. In second wave the emphasis was placed on standardization of products. The increase in customization automatically places customers as the key drivers to success. Therefore every possible measure is taken to satisfy the needs of the customers. Be it private or the public, both the types of the companies view customer satisfaction as one of the prime objectives. As the customers are the key drivers that help organizations make their decisions, the organizations are taking every possible measure to satisfy them in order to increase their market reach. For the purpose, many of the organizations are also involving the consumers and the customers in the decision making process. The marketing and management strategies are therefore formed with the customer at the core. Therefore practical involvement of the customer in decision making process is the key to success. Organizations find different methods to involve customers in the decision making process. Large FMCG (Fast moving consumer goods) organizations rely on surveys and customer feedbacks. Smaller organizations such as housing societies etc can directly communicate with customers and developed different strategies to increase and encourage participation. The participation of customers in policy and decision making is not an easy process. There are many different constraints to this entire process. The residents do not usually have incentives to actively participate in the society. Therefore they only find it necessary to contact the society after encountering a problem. Although this is also an important part of the communication process but such interaction is usually with a negative mindset. Therefore the society needs to find different methods to encourage participation with their residents other than just acting as a forum of complaint handling. The differing perceptions and backgrounds of residents is also a point of conflict. Everyone has their own idea of bringing improvement to the state of affairs. The society therefore needs an effective system where the residents do not feel left out and negative participation is discouraged at the same time. Literature review Approaches of Tenant Management There are three predominantly different theories on the topic of house management or the tenant management. These are called the traditional approach, the consumerist approach and the citizenship approach. Traditional Approach The traditional approach comprises of such ideas by the house manager or the owner that tenants are such persons, who have no house and so have taken the house on rent. This approach does not allow room for compassion or a sense of community towards tenants. In the new business environment there is not room for the traditional approach. Consumerist approach According to the consumerist approach, which is believed to be promoted by the conservative party of the United Kingdom, the tenants are viewed as the customers as they pay monthly rent to the owners. As per this approach, the emphasis is laid in the fact that tenants are paying rents and so they are entitled to the best of the services. The land lord or the owner is bound to provide the essential services so that the tenants remain satisfied. This approach is a big improvement on the traditional approach. However this approach however also lacks the element of community building which is integral to a successful relationship. The consumerist approach fails to understand that the relationship of tenants is long lasting and should treat different from consumers. Citizenship approach The citizenship approach is clubbed together with that of the labor party. This approach focuses on having good relationships in between the land lord and the tenant. But it does not mean that the parties are uncritical about each other. Still, over all good relationship is maintained in between the tenant and the landlord. 1 This approach should be used by the organization in its outlook towards its residents. This approach nurtures compassion towards the residents. Therefore the first step by any organization should be clarify its approach towards its residents and consider them part of a community and not just consumers. Industry Practices As discussed earlier, customer involvement strategy for the businesses and the resident involvement strategies for the housing associations are few of the most important things. As Octavia Housing maintains, the prime aim of the resident involvement strategy should be to develop uncomplicated processes that enable the involvement of the residents in the design and the delivery of the services across the organization. The housing association has identified certain key components that according to them are important for the purpose of designing a successful resident involvement strategy. They are as follows2: Improving the accountability of the association to the residents To come up with a clear structure that enables the staff and the resident for the purpose of involvement To provide greater opportunities, both at the decision making as well as the strategic level, to ensure greater resident involvement To let the residents know about the various options, methods and support available for the involvement of the residents Knowsley Housing Trust on the other hand has identified that one of the method of interacting regularly with the consumers was to develop a social networking websites. The increasing time constraints of consumers have rendered physical visits impossible. Through the website they would be able to regularly commune with the society and place their proposals. This website could also be used to spread consumer surveys. There was already a website which was being used by Inspectors and an upgrade could give access to consumer. KHT 3developed and implemented a program. This is a focus group, especially for ‘hard to hear’ target customers from BME, disabled, young and older Person backgrounds. The first series of focus groups was held in April 2006 and each met twice yearly since. Over the years there has been an increase in attendance at the focus established events. The credit of this increase can be given to new methods involving customers in estate walkabouts and attending community fun days. The performance measurement is the key to success of these programs. Therefore measurement system has been implemented. The following are variables are measured under this system: Customer satisfaction would be measured through Status Survey and annual satisfaction survey for customer involvement Customer Involvement Annual Impact Assessment will measure the success of actions in relation to meeting the aims of strategy Another major housing association of the United Kingdom, Larsen Housing Association, has also taken every possible measure to define the resident involvement strategy. In case of Sarsen, it was the residents and the staffs of the association that worked hard to develop the ideal resident involvement strategy4. The group admits that it did certain extent of detective work to be aware of the resident strategies that are prevailing in some of the other resident associations. In order to develop the strategies, Sarsen Housing also took advices from some of the organizations that are involved with setting of the standards for the housing association like that of Housing Corporations, National Housing Federation and that of the Audit Commission. According to the Sarsen Housing Association, the resident involvement strategy should involve the following: To listen to the feedbacks of the residents and used those optimally to make improvements An incentive scheme might be introduced to encourage more of the residents to get involved Involvement of people should be from all of the groups, for example, young people, ethnic groups, rural populations, minorities and other section those are less likely to get involved Different ways should be inculcated to involve more of the population, e.g. holding meetings and events at different venues at different The residents should be kept updated with the ways of getting them involved Regular information should be provided to the residents as how their involvement can help the housing association. It would make them interested to get involved in the decision making bodies 5 Drivers The variables which determine the extent of customer involvement are referred to as the drivers. The drivers are the key factors which are essential for the purpose of the growth of the resident involvement strategy. Such drivers would include both internal as well as external factor. The identification of these drivers is the key to successful customer oriented strategies. The organizations can shortlist the drivers which are most relevant to their own model. Internal Drivers These are factors which can be controlled and improved by the society. Internal drivers would include the equality among the residents, efforts to improve the services (Continuous improvement or Kaizen should be implement for this purpose). The understanding of the needs and aspirations of the various residents would be very beneficial for creating a ‘level playing field’ which would in turn help in the resident involvement strategy. Resource and training are the other important internal drivers. External Drivers The external drivers of the resident involvement strategy are those factors that are not directly related but still acts as the force for such strategies. The certain regulations that have developed in the recent years act as the prime external driver. The modern concept of thinking the customer as the partner also has augmented the resident strategy. The formulation of bodies like Cave Review or Tenant Services Authority has had a positive impact on these strategies and thus can be considered an external driver as well. The organizations can not directly control these factors but have remained up to date with their environment in order to counter them. Analysis Key issues The internal variables can be controlled and improved by the organization in order to bring about improvements in the current system. The first step however should be to identify the key variables which are relevant to this issue. These key issues would automatically highlight the internal variables which need improvement in order to bring about improvements for the benefit of the residents. The following are some key issues which must be addressed in order to improve the level of service being offered to residents: Improvement of the Service: The involvement of the residents would enhance greater monitor, review and evaluation by the residents. The feedbacks of the residents are worked upon and the service quality is definitely improved. The best method of measuring the level of service is using the SERVQUAL model. This model measures the timeliness, empathy, and quality etc of the service being offered. Accountability: The accountability has its focus on two main areas. Primarily there should be accountability for the funds contributed to the society. Secondly the decision made by the organizations should be in conjunction with resident expectations. Strong Communities: The community development is necessary in order to make the role of the organization effective. The resident should interact with each other regularly in order to create a sense of community. Recommendations The society should emphasize on the improvement of services being offered. The model of the society should be adjusted in order to suit the resident needs. The following learning from the study should be implemented and are presented as recommendations: The perception should be changed towards consumer or resident needs. This is only possible if consumerist and traditionalist approaches are rejected. The citizenship approach should be adopted by the society. The level of service should be improved for the customers. The delivery time should be improved. Moreover the attitude (empathy) towards the customer should be given importance. They should be treated as part of the society rather than consumers. Accountability should be established for the society. This accountability should be publicized and the residents should be made part of this process. An internet website should be developed for the organization on which they could interact with each other and discuss issues of mutual interest. Conclusion There is absolutely no doubt that the present time belong to the consumers. Therefore the residents should be given priority and the citizenship approach should be adopted. The need and the call of the hour should be to understand resident needs. Moreover the involvement of the residents should be encouraged from all concerned quarters. Appropriate measures should be initiated so that there is increased resident involvement. BIBLIOGRAPHY KHT. the citizenship Approach to customer involvement [Online] Available at: (www.k-h-t.org) Audit Commission. Hammersmith and Fulham Homes provides 'fair' services. Protecting the Public Purse [Online] Available at: (http://www.audit-commission.gov.uk/pressoffice/pressreleases/Pages/hammersmithandfulhamhomesprovidesfairservices.aspx) [Accessed 06 January, 2010]. Cairncross, L., Clapham, D. & Goodlad, R. (1997) Housing Management, Consumers, and Citizens. Taylor & Francis H & F Homes, (2009). Resident Involvement Strategy 2009-2012. H&F Homes resident involvement objectives [Online] Available at: (http://www.hfhomes.org.uk/Images/RI%20Strategy.Final%20V.4June09_tcm21-123399.pdf) [Accessed 06 January, 2010]. Read More