Innovation co op presentation

© FP Advance All Rights Reserved
Reinventing Service Delivery
Brett Davidson
Chief Executive

The Issue

Servicing clients more
effectively

The Idea
Taken from an article that appeared in December 2012 edition of
Harvard Business Review:
“4 Ways To Reinvent Service Delivery”
by Kamalini Ramdas, Elizabeth Teisberg and Amy L. Tucker

Health Care Example
• Traditionally, cardiology patients are allotted 30 mins with a doctor
• At Club Red they get a choice:
– One-on-one appointment
– Or 90 minute shared appointment (with up to 11 other patients)
• In the shared appointment the doctor:
– Provides individual advice
– Goes over prescriptions
– Orders tests
– Discusses progress, challenges and future treatment plans for each patient
• The consultation is confidential among the group, but not private
• That’s a big deal in health care where personal service and privacy
are considered sacrosanct

Health Care Example
• Shared appointments improve productivity:
– In 90 mins doctor can see 10-12 patients rather than 3-5
• Interestingly the patients prefer it as well (satisfaction 98%) – Why?
– Shorter waits for appointments (can even drop in to any group)
– They learn by listening to the other interactions between doctor and patients
– As a result they become more knowledgeable about their condition
– Patients rarely speak to each other, but can opt in to other group activities
• Counterintuitively Club Red members develop a stronger connection
with the doctor
– By observing his/her empathy and connection with other patients
• The health outcomes are measurably better too:
– Obese patients achieve higher weight loss than those in 1:1 consults

The Model

The Model
 Innovations that redefine service delivery are rare
 Service redefinition requires deep insight into how to meet clients
needs
 Because it is not generally driven by disruptive technologies
(which often force people to confront basic assumptions), businesses
struggle to overcome the mentality of:
• “That’s not how we do it”
• “Our clients don’t expect that”
 But these service delivery innovations can create huge value for
businesses and their customers
 So how do you question the basic assumptions?

4 Dimensions To Consider
1. The structure of the interaction
2. The service boundary
3. The allocation of service tasks
4. The delivery location

1. The Structure Of The Interaction
• Can be configured in one of four ways:
a. One provider with one client
b. One provider with multiple clients
c. Multiple providers with one client
d. Multiple providers with multiple clients
The right structure depends on whether value for clients increases
or decreases when the experience or information from the interaction
is shared with others

The Application To
Financial Planning

Financial Planning Example
• Could we provide group access to financial planning advice for some
clients?
– E.g. Group annual review meetings (one provider to multiple clients)
• For younger accumulation clients
• For people of modest financial means not typically serviced by planners
– E.g. Joined up annual review meetings between planner, accountant, solicitor, business
coach, executive coach, life coach etc (multiple providers to one client)
• For business owners or senior executives
– E.g. Group joined up annual review meetings
• For groups of business people with groups of their other professional advisers
– E.g. Multiple advisers (planner, accountant, solicitor, business coach etc) at initial
meeting for brand new client (rather than getting individually involved later)

• What about group diagnosis and education sessions?
– E.g. Groups of people facing common financial issues
• Charged for
• Group education on the issues
• Ideas, models, recommended approaches to solving the issues
• Choice of DIY implementation OR assisted implementation for clients
• Group check ins held on a regular basis – book your spot (pay modest fee to
attend)

2. The Service Boundary
• Does a segment of your clients use a very similar
set of complimentary services?
If so there may be a case for integration
Just as the assumption of 1:1 service delivery should be re-examined,
so too should assumptions about the scope of what a business delivers
• Do problems with complimentary services affect
client outcomes?
The fact that clients use similar complimentary services is not
sufficient, but if clients have trouble accessing or using those services
you might want to re-examine the service boundary

• What about better integration of professional services?
– E.g. For business owners accessing advice from planners, accountants, solicitors
• Joining these up is not a new idea (but how well has it been done?)
• Is there scope in your business to “really” join this up? (Group diagnosis with one
client at first meeting)
• What would be required to help professionals work more effectively alongside each
other? (as opposed to working in silos) – being in the same building is not the fix
necessarily
• Do remuneration structures need to be part of the thinking to create joined up
approach? (rather than everyone focused on their own billings)

3. The Allocation Of Service Tasks
• Do employees’ expertise match their task?
Professionals often complain about time and mental space they
devote to routine activities
At Aravind Eye Hospitals in India surgeons perform only 30% of the
operation
• What tacit social assumptions influence task
assignments?
e.g. one to one interactions

• Obviously more effective use of paraplanners and support staff
applies here
– Can you get adviser involvement in client work down to 30% or less?
– What level of skills do your support team need to have for this to be realistic in your
business?
– Have you got the right people?
– Could you get the right people?
– Can you train the people you’ve got? How long might that take? Is it better to just hire it
in right now?
– Could we break down the tasks even further?
E.g. Business finder, first meeting diagnostic team, data collection specialist, financial
planning strategic analyst, first meeting presenter, implementer, professional team
liaison, relationship manager, review presenter

4. The Delivery Location
• Does the location limit clients access or success?
The answer to this question establishes the innovation opportunity
This dimension of service delivery, which is easily taken for granted,
is often defined by the providers needs rather than the clients
• Have communication and information needs
changed?
The best service location is one that aligns the providers and the
customers information and communication needs

• Use of technology provides opportunity for more creative service
delivery
– E.g. Special booth for doctor and elderly or immobile patients to liaise with specialist
consultant via video conference, plus access to blood pressure readings etc
– Saves patient difficult trip to get to established facilities
– What is the most creative way you have seen technology used to re-define service
delivery in financial planning?
– What is the most creative way you have seen technology used to re-define service
delivery in any other industry that might apply to financial planning?

Action
• Have you already applied any of these ideas consciously or
unconsciously in your business? (Please submit via comments section of
website)
• Has this presentation sparked any new ideas for you or your
business? (Please submit via comments section of website)
• Do you know anyone else that might be interested in becoming part
of our innovation community? (Get them to join our mailing list at the website)
• Have you got any innovative ideas you would like to present at our
next meeting? (Live in London or sent via video, podcast, hangout etc)
*Please feel free to share this information with anyone you believe
would be interested or could benefit

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