The image was a regional map with red tars on every HealthCare One facility and yellow circles around tube ones using tube new system. “Webb their members come In the door, they go right to a computer and slide their identification eared through. Then the computer leads them through a set of questions about Tiber current medical condition, tube reason for tube visit, and so on. Everything is done electronically: The computer pulls the member’s record, processes the new information, and then routes the member to tube appropriate staff person for consultation. ” He slipped tube next image over tube map.
It showed Quality Care’s own facilities In dull brown. Healthcare One will have all Its faceless up and running on the Dawn laconic Is an associate professor of marketing at the f. L. Kellogg Graduate School of Management at Northwestern university in Evanston. Illinois. 20 new system by June. Tube number two player, Indictments, is planning to install a similar system by January 1997. I think you should consider it seriously – it’s really tube wave of tube future. ” Tube last overbear. A model of a “new and Improved” Quality Care reception area. No more crowded walling room.
Patients talking with nurses In the privacy of small, partitioned cubicles. Other patients checking In, paying bills, even have- inning Tiber blood pressure taken at attractive computer stations. “l tibia tabs one speaks for itself. ” Jack let the image sink in for a moment. “But I’ll comment anyway. With this system, you take a giant step forward In tube quality of your service. Your staff will he able to devote more energy to making sure that each patient receives prompt, unhurried, personal attention. ” He switched off the projector and stepped back to flip on tube lights.
Blinking, Allan Emulator accepted the report summary Jack handed IBM. He bad been the CEO at Quality Care for nine years – how many meetings did that mean be had attended? He looked at Pat Pensions, the company’s CIO. She seemed enraptured. He rubbed his forehead. “Thanks, that was informative,” he said. “You’ve given us a good overview of an Intriguing trend In tell us a little more about the specifics of installing a system like that? How is Healthcare One handling the transition? How has it measured the improvements in service quality? How much has the company invested in training? Computer consultants? Troubleshooters?
HealthCare One is a staff-model HOMO like us, so I know we can look at them for comparison, but I eave to say tab I’m a little concerned. You seem to be telling us hat our image as a quality health care provider will suffer if we don’t make this move, but we’re talking about an important change in a lot of daily routines. We have just under 3,000 employees and 200,000 members. Think of the procedural changes. The timing changes. And with more automation, wouldn’t we want to think about cutting the administrative staff by what, by two at each facility? Four? Six? ” “You could cut several positions from each location,” Jack said. But HealthCare One isn’t cutting staff – this is strictly a quality improvement, and it’s paying for itself in increased customer retention over the long term. What’s more, the transition isn’t difficult. In the pilot location, they’re already testing the next generation of the system. Artificial intelligence diagnostic programs. They’re incorporating scales and the blood pressure machines you saw in the last overhead. That saves a step or two for the nurse practitioner, so it simplifies service operations. They’re also going to upgrade so that the computer will be able to produce records that can be standardized for insurance companies.
Within a few months, the nurses and physicians will be experimenting with a prototype for their own notes on patients, which will streamline follow-up care as well. “If they’re not cutting staff, and they’re investing in new generations of the system, where’s the real advantage? There is a cost-control element to consider as well, isn’t there? ” Allan looked around the room, then back at Jake. “Tube system itself is a big investment – it would run tube company more tuba $350,000 Webb you include development, installation, training, consulting, and so forte. Weft’s more, the network would have to operate across all of our locations.
And if we wanted to do it right, we would probably tackle a wobble host of ancillary projects at the same time, things like rethinking tube design of our reception areas and our arrogations. DRAWINGS BY SETH JABBED sit on our hands doing nothing,” she said, straight TU Allan. “l mean, okay, it’s Just the reception function, but what if a patient assumes tab because we’re not high tech with our sign-in procedures, we’re also not up to speed on our medical procedures? The reception area, taken alone, isn’t a big deal. But as a part of our whole offering, it’s critical.
It’s the first thing our customers see. It tells them WBT we are and how we work. ” She nodded at Jack and continued, “Not to mention that we’ll have to install a system like this at some point anyway, as soon as tube government or the insurance impasses decide that it’s the way to go. Once a method is standardized, we don’t want to be playing catch-up,” “Right. Well. ” Allan looked at his watch, an impassive expression on his face. “l can see this warrants some further discussion, but we’ll eave to leave it for the time being. ” He stood up, ending the meeting, “lack, thanks,” be said again. We’ll go over the reports and I’ll see you later this week. ” Back in his Then “I’m not sure it’s worth it. Our customer retention rates are good. They’ve been steady for the past two years. And our customers are satisfied with the service-on a call of one to five, 86% of our customers are Tiber a four-that’s satisfied-or a five – that’s completely satisfied. We survey them constantly. “Frankly, I’m not convinced that investing in a new system will improve the quality of our care. As I said, you’re talking about a major shift in how our people get Tiber work done – all the way up the line. That’s disruptive.
Would the gains be worth it-” “Ultimately,” lack said patiently, “if your staff is less stressed and your care is more personalized, your quality improves. And -tabs is almost more important, although it’s going to sound stranger anima of your quality also improves. Remember, tube top two Homos in tabs region are installing tabs system. Quality Care is the number three player – you meant afford to look as though you’re behind tube times. ” Pat could not contain berserk. “I’d bate to see tube industry moving toward this technology wobble we “I’d have to see the rest of the industry moving this technology vase do nothing. Be reached for tube box of crackers be kept in ibis top drawer. He knew he sobbed get some Lune, but he wanted to think about tabs issue some more without distraction. Tube afternoon was booked solid; then he wanted to catch at least part of ibis son’s lee cocky game at 5:30, and be had to be back in town to participate in a panel discussion on ballet care for tube elderly at S:OOH. Munching, he thought about Quality Care’s position in the market and the kinds of things that had made tube company successful to date. 21 Quality Care bad never been the region’s largest or most profitable HOMO. But it was doing well.
This past year, its total revenues were $450 million, with profits of $8,1 million after expenses. And it did have a good track record Webb it came to customer retention. Businesses kept tube contract because their employees were satisfied with Quality Care, and Allan liked to think that he had played an important role in creating that loyalty. Allan bad begun ibis career with a large manufacturer of electronics equipment, Weber talking with customers bad been ibis passion. He bad brought that passion to Quality Care. During his tenure, the HOMO had instituted regular customer satisfaction surveys.
Patients were asked bow they felt about tube service tube received: Were tube waiting too long to see a editor? Were tube satisfied with the location and upkeep of the facilities? Did they want more information on health clubs or wellness programs? One survey had revealed the need for increased communication with pregnant members. Now expectant mothers received regular newsletters geared to provide timely advice and support during Tiber pregnancies. Tube company had also provided a dedicated toll-free number so that health clubs, even its own employees.
His peers often complained about how bard it was to increase customer satisfaction these days. Allan knew why it was so hard – keeping all the constituents happy was an insane balancing act. Still, Allan figured it was the open communication and the feedback tab kept tube company effective and competitive. We looked into a similar system then and dismissed the idea. We took the concept to our members in a special survey and tube said they’d hate it. ” “But then why would HealthCare One go forward with it? They’re the one to beat. I know tube must eave done Tiber openwork on this maybe better tuba we did.
Don’t That’s web he was more tuba a little concerned about Jack’s presentation. Quality Care’s own marketing staff Bataan turned up any dissatisfaction Witt the current reception procedures. And yet Allan was drawn to the possibilities presented by the new system. He picked up his phone and punched in Ginger Roomer’s extension. Ginger was tube vice president of marketing for Quality Care. Sob was part of tube team tab was scoping out locations for expansion and possible new alliances. She had flown in from Pittsburgh that morning – too late to attend Jack’s presentation. We spent a lot of time and money on that special study-why are you so to disregard it? ” take tabs tube wrong way, but they’ve got a more sophisticated organization. I’m sure they’ve weighed the risks against the benefits. Our study might eave been inaccurate. Is it possible that tube results are out of date already? ” Ginger didn’t take offense. “l doubt it,” sob said mildly. Think about why the customers said tube wouldn’t like it. Human intact versus machine. Health care is a personal field – one- on-one attention is WBT makes a satisfied customer.
They Just didn’t like tube idea of a imputer, at least for this part of their interaction with the HOMO. Tube come into one of our facilities for some health-related exam. Often it’s Just routine, but sometimes they’ve a little nervous and they appreciate all the human contact they can get. It’s reassuring. Tube idea of having tube first ‘person’ tube meet when they come in the door turn out to be a machine was quite disconcerting to many of the people we surveyed. Especially the seniors. ” She fell silent, but spoke again as sob saw Allan framing a response. We spent a lot of time and money on that special study – why are you so willing to disregard it? ” “Look at Tams, ” Allan said. “Older people got used to tube. ” “I’m not sure that’s true. And even so, does that mean tab we’ll try to encourage all our members to use the computer but that we’ll need human revisionists anyway for older January-February 1996 Quality Core frequently surveyed its corporate members, affiliated hospitals and health clubs, even its o>van employees. Pregnant customers would have easy access o advice and information, Allan was proud of the program.
And the surveys weren’t the only way tube company solicited information from its customers. Cab facility also bad a “feedback box” in the waiting area – paper and pens were provided, and experience with the company. In addition. Quality Care frequently and system’s “Do you have a minute right now to bear about tab meeting? ” Allan asked. She was in ibis office moments later, folder in band. “Cracker? ” he offered, holding out the box. She declined. He took another one and plunged into tube topic. “I’m not entirely convinced we need this system,” Allan said.
But I’ll tell you, I was playing devil’s advocate in there, and I was having a bard time. I don’t want us to fall behind the curve. ” “We’re ahead of the curve, if anything,” said Ginger, holding a familiar survey report out for ibis inspection. “Web you and Pat are so gung boo about this computerized reception area, I’ll never know. If you’ll remember, we were approached by a sales rep from tube Decremented Software Company 18 months ago. HARVARD BUSINESS REVIEW members- Isn’t that making the operation more complicated, not least That doesn’t sound like cost savings or quality improvement to me. “We’ve invested a good deal n Shadow’s research as well/’ Allan said. “Healthcare One hasn’t reduced staff, hut we could. And what happens when all the other organizations have signed on and the government or the insurance companies start requiring standardized reports; Pat brought that up in the meeting. It’s a valid concern. ” “There’s more than one way to create a standard report. ” Ginger he- “The administrative staff thought that a computerized reception area would make their Jobs easier. ” gang to look frustrated. “I’ll bet half the time, the patients enter information incorrectly anyway.
Someone would have to double-check the files on a daily hashish. She returned to his earlier point. “If Healthcare One hasn’t cut staff, how can you he sure that we would he able to? And keep in mind who we should really he talking thou the customers. Their perception is what’s important. Remember, our employees were the only ones who really liked the idea. The administrative staff thought that a computerized reception area would make their Jobs easier. And the nurse practitioners have so many routine procedures to do that they’re Just racing patients why on a conveyor belt.
They thought the system would give them time for the human touch. ” “Now you sound like you’re arguing for the system. Ginger. You can’t disregard employee input. Our employee turnover rate is average for this industry, but it has increased over the last two years. That’s a reason to reconsider the system in Aught of Jack’s report,” Allan said. “It’s important to keep our employees happy-we want to keep good people. In fact, as I recall, it took a lot of tap 24 dancing to explain to them why we weren’t proceeding with the computer system last time. “But the point still remains that the members didn’t like the idea,” Ginger said. Something that in this case happens to be one of the most personal services there is. You mentioned us retaining our ‘leading edge’ image. But a computer sends an impersonal image as well. I Just don’t think that a computer at the front desk will make or break us. You know that my department’s reports consistently show favorable customer satisfaction results. They already think we’re doing a good Job why them. If I can be blunt, I think that you’ve hen romanced why a consultant’s very savvy presentation.
And I think that we’ve spent so much money on the consultant that you feel we wouldn’t get our money’s worth if we didn’t follow his recommendations. I seem to be the only one thinking thou what’s right for the company. “Ginger, what happens in a year or so when everyone but us has this system installed? ” Allan threw up his hands. “Don’t you find it strange that we’re trying to choose heathen installing a system that we think // might enhance our quality as a provider and not installing a system Hauser we want to please our mergers? ” along.
For people whose departments were usually in agreement thou new initiatives and pump for the company, Pat and Ginger had often found themselves holding opposing views, or at least misunderstanding each other’s motives. “I’ll get right to the point, and I wont take much of your time. I know that you support the idea of a computerized reception area, hut I’d like to know more about why. You know that the customers are not in favor of it. ” “No, I don’t really know that. ” Pat looked uncomfortable for a moment and then seemed to gain resolve. “l may as well say this.
I know that Allan has a personal interest in how the company communicates with customers, hut I have some serious doubts thou the way all of those customer satisfaction surveys are carried out. You don’t personally oversee the surveys, do you? That’s Mike Barrow’s bailiwick, isn’t it? ” “Yes, it is,” Ginger said. “But we use the same rots of surveys as most companies do. Frankly, I do agree with you about some of that. I don’t put much stake in some of the information we get from the complaint boxes, for example. Those comments reflect the views of only one person. Change the night you’re say you’re thinking of the bottom line, but fiches one? ” she asked. Today’s or tomorrow’s? / / open late from Monday to Thursday. ‘ ‘Change the color scheme in the examining rooms. ‘ Those comments arena significant. But we asked a significant number of our mergers straight out, in a special study, how they would feel thou a computerized system. They said they wouldn’t like it. ” “l Just don’t have a sense that any of that information is to be trusted. People need to he told what they want – and people will recognize quality ear when they see it. That’s why I think we need this system. Ginger spotted Pat in line at the cafeteria on the first floor of the holding that housed Quality Care’s administrative offices. She caught up with her Just as Pat was paying for lunch. “Not to ruin your digestion, but I have a problem I’d like to talk about with you for a few minutes. Do you mind? ” “Not at all. ” Pat smiled. Ginger knew the smile was strained. The two had Just never really gotten “I’m thinking thou the bottom line,” Ginger said. She wished she had waited until later in the afternoon to approach Pat. In fact, she wished she had written her a memo and sent it over why E-mail. Why go through all the trauma if we already know how the customers will receive the change? ” Pat hadn’t yet touched her lunch. She picked up a packet of salad dressing and pulled it open. “You say you’re thinking of the bottom line, but which one? ” she asked. “Today’s or tomorrow’s? ” Hob’s cases present common managerial dilemmas and offer concrete solutions from experts. As written. They are hypothetical, and the names used are fictitious. We invite you to write to Case Suggestions, Harvard Business Review. 60 Harvard Way, Boston, MA 02163, and describe the issues you would like to see addressed.
Should Quality Care install the new system? Six experts examine the effect of new technology on customer satisfaction. Face. But when managers went ahead with the installation, 71% of the customers immediately chose to use it. And in subsequent dealings with the anemone, every customer who tried the system continued to use it. Second, when customers are given a choice between speed and accuracy on the one hand, and comfort and caring n the other, all customers are not the same. In the population at large, most customers will opt first for speed and accuracy and then for comfort and caring.
Interactions with caring, live people mean have a profoundly positive effect on a service experience, hut not as a replacement for prompt and proficient basic service. There will always be those who choose human interaction over convenience, notably customers experiencing serious illnesses and older patients who have trouble with newer ethnologist or unfamiliar environments. Overall, however, a computerized exception system will provide a more streamlined, more reliable, less stressful, and in many ways more enjoyable experience for the incoming customer.
Third, when it comes to customer satisfaction. Quality Care is not doing as well as it might seem. Allan Emulator says that 86% of the company’s customers are either a four or a five on the five-point scale. He seems pleased with that. Yet research has demonstrated that only fives are truly loyal. This means that a significant percentage of the company’s customers are not employees satisfied; their accounts are at risk. Quite apart from rehearing a decision on the new system. Quality Care must direct some attention toward staying competitive on its hash product offering.
