Case Study - Service South Australia

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Background

Service SA (Service SA) was announced as a major Government initiative under the Information Economy 2002 (IE 2002) policy. There was a core directive to provide a common first entry service delivery point for South Australians to conduct financial transactions with government, access government related information services or receive referrals for more specialised government services or advice. This was to be provided through seamless ‘one stop’ channels comprised of a network of Customer Service Centres, a Call Centre and electronic services.

The aim was to establish a service delivery model that allowed people to undertake, or establish contacts required to undertake, all of their ordinary day-to-day business with State Government at any Customer Service Centre and with any member of the over-the-counter or telephone staff. Service SA was to put the customer first, and be independent of the underlying structure of the public sector. It was to allow the people of South Australia to deal with “the Government” rather than being forced to navigate their way through and between many agencies and business units. The formation of Service SA was to provide significant opportunities for government agencies to improve back office processes, streamlining them in response to customer expectations.

From the first day, it was planned that South Australians would be able to undertake these types of transactions through Service SA:

• Pay a Government bill;
• Obtain and lodge applications for a State Government licence, approval, permit, grant or assistance;
• Make bookings and appointments with an agency;
• Purchase government products;
• Obtain government information and advice; and
• Seek help and advice.

Service SA initially comprised 4 Customer Service Centres (3 regional and 1 outer metropolitan), 10 Rural Agents (now reduced to 7 due to non-performance) who provided an abridged range of services, a Government Legislation Outlet, a Call Centre, a website and an online shop for the purchase of government products.

As a result of Cabinet submissions in 2004 and early 2005, Service SA expanded its network to include another 7 Customer Service Centres (6 regional and 1 in the Central Business District (CBD)) and a dedicated Call Centre for ‘transport’ related business. The expansion was achieved by transitioning 7 Motor Registration and Licensing Centres and the ‘Transport’ Call Centre from another government agency, Transport SA. The Expansion Program involved the transfer of over 100 Transport staff to Service SA and was achieved through a planned roll-out over 9 months. The project was completed in March 2006.

The expanded network comprised 11 Service Centres, 2 Call Centres, the Government Legislation Outlet, a website, an online shop and Rural Agents. Support to the network was provided through a Central Office team comprising Business Development, Administration, Finance and Accounting, Online delivery, Communications and Promotions and Operations staff. As a result of Federal and State Government objectives, and funding, a small number of services were also provided to two remote Aboriginal communities in the far north of South Australia.

Service SA responded to the following challenges:

• Community dissatisfaction with difficulties finding the right agency to do business – establish a ‘one stop’ concept;
• Provision of access to government services in key regional locations;
• The need to improve service delivery and provide customers with channel choice;
• Provision of a viable and reliable customer referral service;
• Eliminate resource duplication;
• A more flexible approach to service delivery (eg via the internet); and
• Keep agency overheads to a minimum and implement back-end reform to reduce the overall cost of service delivery.

The major obstacles to Service SA’s creation and development were:

• No Government mandate to use Service SA or to prevent agencies from developing separate, disparate and agency-focused systems in a duplicative manner;
• Establishing a reputation and profile inside and outside government;
• Being a cost effective option for other government agencies;
• Establishing a viable funding model with a greater proportion of budget funding to cost recovery;
• Achieving challenging revenue targets;
• Lack of an effective cross-government governance model;
• Developing a consistent suite of services for delivery across all channels; and
• Establishing the Service SA brand in and outside of government, and building public awareness with limited resources.

The initiative is an integral part of a broad government-wide service transformation. The South Australian Strategic Plan (www.stateplan.sa.gov.au) sets out several key goals for public sector agencies to achieve government-wide service transformation. In the 2004 version of the Plan, Service SA was flagged as an initiative in its own right to achieve government objectives – this related to expanding the scope of and accessibility to Service SA. The following are examples of strategic priorities for Service SA over the next 2-5 years:

• Provide a single-entry point to government to ensure integrated service delivery to business and the community;
• Contribute to across-Government public sector reform and identify and implement steps to deliver ongoing improvements to organizational effectiveness;
• Investigate opportunities to improve government business processes via the use of internet technologies;
• Contribute towards the Government’s target of reducing red tape by 25% by July 2008;
• Promote a citizen-centric culture and capabilities across the public sector to ensure responsive, high-quality customer service;
• Work with all agencies to extend the suite of services offered through Service SA; and
• Develop a plan to further extend Service SA across South Australia.

Organizational Design and Governance Arrangements

Service SA is a Division in the Department of Transport Energy and Infrastructure (DTEI) (www.dtei.sa.gov.au). In late 2006, an organizational change was made by merging some parts of the Driver and Vehicle Licensing (DVL) business unit within DTEI with Service SA. DVL is responsible for the provision of services associated with the Motor Vehicles Act and activities supporting the delivery of this function. DVL also managed 9 metropolitan Registration and Licensing Customer Service Centres. The Motor Vehicles Act and Regulations are administered by the Registrar of Motor Vehicles and governs legislation and compliance relevant to registering motor vehicles, maintaining a driver’s licence and other associated activities.

It was determined that a merger of Service SA and some business functions of DVL would occur to facilitate efficient and effective service delivery and support a holistic approach to the provision of customer including electronic channels and agent provision. In May 2007, the Chief Executive announced a further organizational change that would impact on the positioning and future role of Service SA. This centred around the coordination of service delivery channels that simplify access to Government for all, creating a single entry point (with a single brand) for customers, a single information portal for staff and possibly one single phone number and website for Government services. These initiatives now fall under the banner of E-Government. The E-Government team forms a specific group within the organization structure for Service SA and has its own Director.

Service SA does not operate under legislation, apart from the Public Sector Management Act which sets out general employment determinations and positions, appointment and promotion procedures, assignments, remuneration, hours of duty, leave provisions, employee performance etc for the whole public sector.

Service SA does carry out a broad range of financial transactions on behalf of the Registrar for Motor Vehicles (DTEI) but is not responsible for the administration of the legislation. This is also the case for services it delivers on behalf of other client agencies such as the Office of Consumer and Business Affairs, SA Police and SA Water.

There is no mandate for Government agencies to use Service SA to deliver services on their behalf. Service SA’s Business Development team, comprised of a number of Account Managers, establishes relationships with individual agencies and puts forward solutions for more efficient ways of delivering services via Service SA. Many positive relationships have been established between Service SA and government agencies. A high percentage of Service SA’s financial transactions are related to ‘transport, registration and licensing’ business (in excess of 80%). The aim is to grow the non-Transport related business.

Agencies choosing to deliver services through Service SA can expect to:

• Broaden community access to their services;
• Effectively disseminate information to a wider customer base;
• Utilise existing whole-of-Government contracts and Service SA infrastructure;
• Capitalize on a large, well-established customer base;
• Benefit from Service SA’s profile and activity in the community; and
• Demonstrate support for SA’s Strategic Plan.

Account Mangers maintain relationships with agency representatives and manage ongoing matters that arise from day-to-day delivery of services across the three main channels. Charges and pricing schedules are negotiated with the individual agencies and consolidated in a Service Level Agreement (SLA). The charges are consistently applied across the agencies and based on a cost recovery model. The pricing may be reviewed each financial year and a variation effected in accordance with the Agreement.

Generally, governance arrangements are managed Divisionally through official reporting lines. In the combined organization model, each Director reports to an Executive Director, who in turn reports to the Chief Executive, DTEI.

For service delivery activities, the Director Service SA chairs a Management team comprising unit or team Managers. This team meets fortnightly to discuss a broad range of operational and strategic matters. A combined Divisional Managers meeting including E-Government team managers is held on alternate weeks to the Service SA management team meeting and is chaired by the Executive Director. This is an information-sharing forum where both strategic and organizational issues are openly discussed. Minutes are taken of each meeting and there is a formal Action List, which designates accountabilities for certain tasks and the required due dates for completion.

The Executive Director reports to the Chief Executive and there is a formal Performance Agreement between the two. The Director Service SA reports to the Executive Director Service SA and again there is a formal Performance Agreement. The Director Service SA conducts two formal Employee Performance Development Discussions each year with each direct report. These discussions focus on the accountabilities defined in approved position descriptions, achievements, future goals and objectives against Divisional Plans and personal development opportunities. The Director also holds weekly, or fortnightly one-on-one meetings with each Manager.

Business Model

The over-riding principle for Service SA’s business model is based on an Integrated Service Delivery approach that presents a genuine value proposition by providing:

• 3 integrated service channels (face-to-face, online and telephone);
• Easy access; and
• Convenience and choice.

Activities

Service SA makes it easy for the community of SA to access a broad range of government information and services, either by visiting Service outlets, making a phone call or by using online technologies. During 2006/07 the integrated Service SA network:

• Managed around 9 million financial and non-financial transactions through its Service Centres, Call Centres and online facilities with an annual turnover of in excess of $1.2 billion;
• Attracted 1 million online visits last calendar year to the Service SA web site which received a 91% customer satisfaction rating in a external survey conducted in July 2007;
• Served around 3 million customers over the counter; and
• Managed around 1 million calls to the Call Centres.

Channels

Customer Service Centres. Under the new organizational arrangements, Service SA will manage 20 Customer Service Centres located state-wide. The DVL Centres will be transitioned and branded as Service SA over the next 12months. This process will include training staff on the processes and procedures for Service SA’s other clients and building a common understanding of Service SA’s customer service culture.

Each Centre has a range of agency products available for sale plus an array of government brochures and forms. A broad range of transactional services are available at each Centre including:

• Accepting, checking, processing and forwarding of agency application forms;
• Accepting and receipting payments for applications, renewals, fines and invoices (payments are accepted via cash, cheque, credit card and EFTPOS);
• Bill payments (eg water, Emergency Services Levy, Land Tax and vehicle registration and licence renewals);
• Identification checks and validation processes; and
• Photograph and signature capture for a range of SA government licence cards.

Government Legislation Outlet. This outlet provides over-the-counter access to Government legislation, products and a selection of bill paying services.

Rural Agents. Service SA, in a brokerage role, provides smaller rural communities with easier access to Government information and services through its Rural Agent program. There are presently 7 of these Agents. Agents are paid a grant to cover costs, and a small commission on each financial transaction completed.

Anangu Pitjantjatjara Yankunytjatjara (APY Lands) Agent Centres. Service SA has implemented the APY Lands Service Delivery Project that delivers a small number of services through a third-party Agent at two remote Aboriginal locations in the far North of the State. The project aims to improve the effectiveness of direct service delivery to potentially marginalized SA communities in accordance with social inclusion, community and regional policy initiatives.

Roxby Downs District Council. Service SA has recently entered into a third party business relationship with the Roxby Downs District Council that delivers a discrete range of services on behalf of DTEI/Service SA in a remote (far North) location of SA. Council staff delivers the services and Service SA pays an annual fee for delivery of the services. The Council staff are supported by the Customer Service Centre at Port Augusta who process transactions and provide on the job training when required.

Call Centres

Service SA’s two Call Centres assist the community to access government information and services through discrete phone numbers. The smaller of the two Call Centres has 12 seats and focuses on providing more general information and services and is the number to call “when you don’t know who to contact in government.” In July 2005 Service SA took over management of the Transport Call Centre that has 45 seats. Customers can seek assistance or advice on a very broad range of transport related enquiries, and vehicle registration renewals can also be paid via the telephone.

Website

The Service SA website, www.service.sa.gov.au, provides a single electronic gateway to a broad range of government information, services and products. Visitors can easily browse or use the search engine tool to locate specific information without needing to know which agency provides the service. Once the desired service or information is located, the website directs the visitor to the relevant agency website for more detailed information. A series of ‘life event’ clusters is a useful feature on the site (eg having a child, settling in SA, starting school, learning to drive, finding a job.

Bizgate. The merger with E Government has brought the Bizgate (an online payment channel) into Service SA. In 2006-07, Bizgate processed over 800,000 transactions at a value of over $200 million. It has partnered with 27 State Government agencies, 57 Councils, 82 schools and the Commonwealth in making services and related payments available online.

SA Central Website. The merger with E Government has also brought the SA Central website into Service SA, which has in excess of 9,500 links to State, Local and Commonwealth government agencies and is well patronised, achieving two million visits during the last financial year. (www.sacentral.sa.gov.au)

Online shop. Service SA provides a secure purchasing facility where customers can buy government products online – www.shop.service.sa.gov.au. Online shop orders are processed and dispatched within two working days of receiving an order.

Delivery support systems

Service SA utilises a range of systems to support the delivery of government information and services via its delivery channels:

• Gateway Plus – a knowledge management system covering key business procedures;
• Generalised Receipting and Licensing System (GRL);
• Shop management console for the online shop; and
• Photo and signature capture points.

One of the major challenges facing Service SA is the development of a Channel Management Strategy as the government has indicated strongly that it wants a larger percentage of government services to be available online, particularly financial transactions.

Principally, the Service SA channel management proposition to Government is to:

• Migrate more government services to Service SA to ensure greater leverage of strategic resources for increased customer satisfaction, and cost efficiency across government service delivery; and
• Migrate more Service SA services to the electronic online and self-service channel. This ensures (a) more efficient service delivery through use of the low cost delivery channel, and (b) additional capacity in existing staffed service channels to meet future demand.

The Service SA channel management strategy aims to:

• Extend the high customer satisfaction rating regarding government information and transaction services gained through Service SA to a larger proportion of the government’s customer base. (Service SA attained a 92% customer satisfaction rating according to independent McGregor Tan research conducted in 2007);
• Further consolidate and leverage existing service infrastructure for more efficient and effective delivery of service demand opportunities;
• Reduce red tape through online service innovations; and
• Balance customers’ preferences and behaviours regarding service delivery channels, with channel costs and capabilities.

With the E-Government group recently joining Service SA, there is now the technical IT capacity to develop online solutions more vigorously.

One initiative from the strategy is the potential adoption of self-service kiosks. Service SA has undertaken research into the use of electronic self-service kiosks by the Vermont Department of Motor Vehicles, Service Ontario, Citizen Connect (Singapore) and Brisbane City Council (Queensland) with a view to trialling kiosks in South Australia. Service SA will undertake more customer research to assess the types of services that could and should be made available through self-service kiosks, and the level of customer acceptance.

The benefits of kiosks are intended for both providers and customers. Benefits to providers can include reduced pressure on staffing and real estate needs, unattended operation with extended hours, automated service statistic tracking and promotion of e-government service delivery. For the customer, benefits may include ease of access (ie location and extended hours), reduced transaction time and access to information.

Service SA will trial self service kiosks at selected Customer Service Centres in an effort to reduce the cost of service delivery, reduce the length of queues and queue wait times, while enhancing customer choice and planning a better means to meet service demands in more remote locations in regional South Australia. This strategy assists productivity by making “room” for the additional services through migration of a volume of low complexity services, currently performed in the face-to-face channel, to online delivery. However, recent customer surveys indicate a strong preference for over-the-counter services, even amongst those customers willing and able to complete transactions online. It is anticipated that any channel migration initiatives will need to be supported by extensive community consultation and education activities.

Funding

The operations of Service SA are funded by a combination of budget allocations and fee-for-service charges (cost recoveries) from client agencies. Service SA is currently funded by 14% Treasury appropriation and the remainder on a fee-for-service basis.

The funding model and principles were negotiated with State Treasury, and were based on the fundamental proposition that there would be efficiencies created in developing and implementing expanded services access and delivery collaboratively through Service SA. It was postulated that agencies would be able to re-invest the service delivery efficiency savings to provide increased services while part-financing Service SA recharges. Cost recovery on a transaction-based fee-for-service basis has been a matter of negotiation with each agency. Fee-for-service is somewhat problematic as true cost recovery can take many years to achieve relying on a critical mass of agencies to deliver services through the one-stop-shop. Presently, Service SA has challenges in meeting its revenue targets. Service SA charges individual agencies based on a negotiated fee for service rate.

Typically, Service SA now operates in an environment where service expansion requires a business case that provides at least a budget-neutral position with any new capital required being offset by savings elsewhere.

Human Resource Issues

The major human resource/staffing issues are

• Managing employee performance;
• Developing reward and recognition schemes;
• Targeted recruitment schemes and retention of experienced and skilled staff;
• Establishing a viable ‘Resourcing Model’ to determine capacity for growth in frontline service delivery areas; and
• Developing a Knowledge Management system (for staff) covering all business functions and processes.

Service SA has a Divisional Workforce Plan 2006-2010 encapsulating these key initiatives:

• Integrate workforce planning into Service SA’s business planning cycle;
• Strengthen links of existing partnerships with Further Education agencies and Commonwealth Programs;
• Ensure that Service SA is represented in DTEI employment marketing and promotional activities;
• Review and update all position descriptions to enhance job appeal and more clearly define job roles;
• Streamline recruitment, application and selection processes to achieve better staffing outcomes;
• Participate in ‘Special’ targeted recruitment programs such as Aboriginal Recruitment; and
  develop and implement a Customer Service Induction Training Program.

Job specific training occurs in the workplace and the lead-time for developing a new recruit into a competent customer service operative capable of functioning across the major lines of business can be 6 months or more. Generally, individual development training needs are identified through the Performance and Development Process and bi-annually a Divisional Training needs analysis is undertaken to identify common training needs that can be met through the development of Divisionally-based programs. Service SA has sponsored staff to undertake more formal (accredited) training and has run Leadership programs for Service Centre managers. Divisionally, funding is allocated for mandatory Occupational Health and Safety training and other mandated HR programs.

Performance Measurement

At the Divisional level performance is set and assessed against the following:

• Cultural assessment and staff attitude surveys;
• Employee performance and development processes;
• Director’s monthly reports to staff on operational issues and more recently operational weekly reports to the Executive Director;
• Service SA’s customer service strategy and implementation plan; and
• Service standards published in the Service SA Charter.

Corporately, performance is assessed through:

• Director and Executive Director Performance Agreements;
• Annual Reports to Parliament;
• Commitments in the Divisional Business Plan, DTEI Corporate Plan and State Strategic Plan (www.stateplan.sa.gov.au);
• Monthly financial reporting against targets (revenue and expenditure);
• Key Performance Indicators (KPIs) in annual Budget Portfolio statements and budget papers (www.treasury.sa.gov.au); and
• Annual audits of finance and OHS&W.

Service SA’s performance from a customer’s perspective is assessed through:

• Biennial customer satisfaction surveys, which are also used to report on the State Strategic Plan’s targets to increase customer satisfaction with service by 10% by 2010 and maintain thereafter;
• Application of the (Customer Measurement Tool) *CMT in the customer surveys;
• Publication of the Service SA Customer Service Charter;
• “Have a Say” customer feedback system in each Service SA Customer Service Centre to provide customers with an opportunity to make ‘red tape’ reduction suggestions as well as comments on staff performance or ideas for improvement;
• The number of Ministerial questions received;
• Number of customer complaints and speed of resolution; and
• Monitoring of queue waiting times in Service Centres.

(* Note: The Service SA Customer Service Charter (externally focused) and Customer Service Strategy (internally focused) are aligned with the CMT survey results, key national and international benchmarks and service standards.)

Use of Information Technology/Web 2.0

Service SA website (www.service.sa.gov.au) currently utilises web services to share content across other sites, and SA Central (www.sacentral.gov.au) also uses multiple feeds from government, semi-government and commercial sources.

There are no current web 2.0 techniques used on production sites of either Service SA or SA Central. Plans are being developed for future use of blogs, RSS feeds and podcasts for either staff or public access.

Partnerships

Service SA has several ‘partnership’ arrangements:

• Australia Post - business arrangements for the delivery of some ‘transport’ transactions such as vehicle registrations and contract for the provision of photographic hardware (for licences) in all Service Centres;
• 7 Rural Agents – as explained above;
• Local/District Councils – delivery of some Council services such as council rate and dog registrations;
• 1 Local Council (Roxby Downs) in an advanced suite of services delivery model
• Motor vehicle dealers;
• Bill ExPress – payment of vehicle registrations at locations (such as Newsagents) with registered outlets; and
• APY lands initiative – delivery of discrete services in 2 remote South Australia community service outlets via a third party provider.

Service SA has worked closely with the Government Reform Commission (www.grc.sa.gov.au) that is driving implementation of a more responsive customer service culture across the public sector. It also contributes actively to, and is a key player in, the national network of government service delivery organizations. It hosted a National ‘Service Delivery’ Summit in May 2007.

Service SA continues to build strategic alliances with other leading government customer service organizations such as the Department of Families and Communities (www.dfc.sa.gov.au) to leverage opportunities to collaborate on customer service initiatives.

South Australia, through Bizgate, is providing one of 4 national pilots with the Commonwealth’s $30m VANguard program. Service SA will implement a VANguard interface to reduce the compliance burden on SA businesses in their interaction with Government. The VANguard program is a key facility developed for authentication (verification of a business or individual’s details) and notarisation (time stamping and validating the integrity of a document). Authentication and notarisation are critical when moving to online delivery of applications that require an authorised signature such as occupational license (eg: electricians) and lodgement of electronic development plans.

Community Engagement

Service SA has used its network presence and participation at the community level to undertake a a broad range of internal and external communication, promotion and marketing initiatives:

• Television advertising campaign;
• Annual customer surveys;
• Regional radio advertising;
• Regional, city and metropolitan press advertising and editorial;
• Community newsletters;
• Library displays;
• Information provision to targeted community groups via peak organizations (eg Multicultural SA for new migrants and Disability SA for people with disabilities);
• Shopping Centre promotions;
• Attendance at regional field days, fairs and expos;
• Web based news items;
• Counter displays in Service Centres;
• Business specific leaflets distributed throughout the network;
• Mailouts to business and the community;
• Presentations to community groups; and
• Distribution of promotional posters, flyers’ leaflets brochures and promotional items.

Service SA has also established a “Connecting With Your Community” program where opportunities are pursued to actively promote its integrated service delivery through a range of community activities like Field Day and shopping centre expos. This means mail outs and engaging with local councils and other community groups. Service SA also regularly surveys communities on their preferences and needs with regards to integrated service delivery that enables fine-tuning of channel types, service offerings and future directions.

The benefits of this community work for business clients (ie other government agencies using Service SA to deliver their services) are:

• A “gateway to Government” environment for the customer;
• Savings through economies of scale; and
• Greater physical distribution of Customer Service Centres than an individual agency may have.

The main challenges are:

• Service SA’s cost recovery model not supported by other government agencies;
• Agencies not understanding real costs of delivering services; and
• Inadequate resourcing.

Issues Encountered/Challenges

The major issues/challenges that have been faced and that currently face Service SA are

• Achieving a consistent suite of services delivered across the service delivery network;
• Retaining staff in key job roles (ie Customer Service Officers);
• Securing funding for Service Centre refurbishments;
• Achieving commitments in the Service SA Business Plan, DTEI Corporate Plan and State Strategic Plan;
• Achieving high percentage channel shift to online and create capacity for more complex services to be delivered across the network;
• Delivering high quality, consistent and correct service and advice;
• Developing new relationships/partnerships to facilitate service delivery in key geographical locations;
• Balancing business growth with the capacity to deliver;
• Implementation of a robust Knowledge Management system;
• Increasing revenue growth and identifying new revenue generating opportunities;
• Increasing Service SA’s profile and reputation inside and outside Government;
• Communicating new directions in a clear and concise manner to staff;
• Negotiating a new and sustainable Financial Model for Service SA; and
• Developing and implementing a whole of government portal on which all agencies will participate/publish.

Critical Success Factors

The major factors explaining the success of Service SA are

• Common sense of one-stop concept with customers;
• Concept of value for money for client agencies and customers;
• Developing a “Service Centric” culture;
• Building a customer service “brand” that is valued by customers and clients;
• Staff loyalty to the Service SA brand;
• Openness and transparency;
• Accessibility; and
• Customer choice via service delivery channels.

Next Steps

Plans for service improvement include

• Implementing the Service SA Customer Service Strategy and public launch of the Service SA Customer Service Charter (and reporting against performance);
• Maintaining or improving Service SA’s 92% overall satisfaction rating;
• Expanding E-Government services to provide a greater range of online services to customers;
• Growing the business across all channels (increase the number of government agencies using Service SA);
• Developing a Channel Migration Strategy;
• Consolidating Customer Contact Centres and ramping up Service SA’s 13 23 24 telephone number to deliver expanded call centre capacity;
• Creating a single web presence for Government;
• Growing Bizgate as the Government’s online payment gateway;
• Increasing Service SA’s profile in Government and the community;
• Embracing the ‘Shared Services’ model (central provision of Procurement, HR, ICT and Accounts Payable services) and ensuring that Service SA’s business needs are clearly understood;
• Supporting the elimination of red tape;

Contact

Neil Turner,
Service South Australia,
Department for Transport, Energy and Infrastructure,
Government of South Australia,
E-mail: Turner.Neil3@saugov.sa.gov.au