Taking Care of Business 3 |
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Executive Summary
Taking Care of Business 3 (TCOB3) is the third pan-Canadian survey of business clients that the Institute for Citizen-Centred Service (ICCS) has conducted. Similar to previous TCOB research, as well as the companion Citizens First studies, TCOB3 was commissioned by a consortium of provincial and municipal governments for the purpose of gathering information to help measure governments’ performance in the delivery of public service. Canadian governments at all levels have a vested interest in continually improving service to the public and providing services in the most cost-effective manner. Through this research governments are able to monitor their performance over time and develop new methods of delivery that meet the changing needs and desires of the Canadian public.
In 2010, sponsorship for the TCOB research series became the responsibility of the participating provinces and ICCS. This decision led to a number of changes as to how the research would be managed and prioritized, including greater emphasis on municipal service delivery and changes in the research scope. In part, these changes reflect the expanding role of municipal governments in public service delivery, as well as a need to better understand the impact of channel technology on client satisfaction. New communication technologies and shifting preferences away from traditional methods of service delivery are emerging themes of TCOB 3.
Research results are based on a telephone/online survey of 4,111 Canadian businesses, conducted by R.A. Malatest & Associates Ltd. between April and July 2010. Participants were selected at random and represent all non-government sectors of the economy from all provinces and territories. Each interview took approximately 25 minutes to complete with a valid response rate of 13.3 percent. The margin of error that is normally associated with a sample of this size is ±1.5 percent.
Major findings
TCOB3 adopted a somewhat different analytical framework for examining business interaction with government. In large part, these changes were designed to understand more fully the views of businesses both before and after the service experience. At the time of the survey, businesses, and particularly smaller operations, were still feeling the impacts of the economic downturn and uncertainty about future economic prospects. As service expectations are influenced by business perceptions, TCOB3 attempts to better understand the extent to which these perceptions may have impacted client satisfaction in 2010. For the purposes of this study, business perceptions and attitudes are examined in the following contexts:
Pre-service Expectations and Perceptions of Government
Research was completed to explore business perceptions of government and to ascertain the expectations of the government service that business owners/managers felt they would likely experience. In general, the research confirmed findings of TCOB2 that business perceptions of government remain weak, with no significant improvement from the previous study. The majority of business respondents felt that they received a poor return on their tax dollar, despite ongoing efforts to improve service delivery in recent years. The current study does, however, show that the economic status of the business does influence perceptions of government, with businesses in “growth mode[1]” more likely to agree that good service from government is essential to a healthy business climate than were businesses experiencing flat or declining growth.
TCOB3 further demonstrates that business expectations of the level of service that they will receive are dependent on the specific service interaction with government. For example, the majority of business respondents who contact government for the purpose of completing a routine transaction expect to receive a high or very high level of service. In contrast, businesses that are contacting government to solve a problem or correct an error do not share the same level of confidence that they will receive a high level of service.
Overall, relative to 2007, it would appear that Canadian businesses are somewhat less satisfied with government performance in 2010, as evidenced by the decline in service quality scores for a range of government services accessed over the last 6 months. Analysis of the data pinpoints specific decreased satisfaction with government imposed “costs” – such as local/provincial taxation, payroll taxes, Workers Compensation premiums and employment standards – while at the same time, businesses note a decline in support services available to them, such as employment training programs and employment promotion programs.
This decline in service quality scores to levels similar to TCOB1 (2003) was also mirrored in related research conducted among citizens in 2008 (Citizens First), indicating a “plateauing” effect in satisfaction with government service among the broader public. The experience coincided with the general deterioration in the economy since 2008 and low business confidence in government performance, suggesting a relationship between current economic conditions and client satisfaction. In further examining the “service reputation” of the three levels of government in 2010, we learn that service reputation scores for both provincial/territorial and municipal governments did not change since 2007. Only the federal government experienced an overall increase in their service reputation score between 2007 and 2010.
The Service Experience
Notwithstanding the modest decline in service quality scores since 2007, when asked to specifically relate their satisfaction with a “recent government service experience”, it appears that government has improved in a number of service delivery areas. Analysis of the data for TCOB3 indicates that there has been an improvement in many key areas of service delivery, including timeliness, service outcome and overall satisfaction with the service experience. Further analysis of the data reveals that there were several “positive surprises” in terms of business’ pre- and post-service expectations. Namely, that in many instances, the actual service experience of the respondent was better than what they thought they would receive before the service commenced. The results suggest that, despite a general decline in business perceptions of governments’ performance since 2007, service managers are responding to business concerns through improvements in government service delivery.
The research also identifies what programs/services would best be delivered through different service delivery channels. While it is clear that there is no “one channel fits all” to meet business needs, analysis of service outcomes and channel loyalty suggests that governments should attempt to “steer” business owners/managers to using specific channels for specific types of interactions. For example, online/website users appear to generate high levels of satisfaction for routine or transactional type interactions, whereas telephone and in-person channels still appear to be favoured channels for interactions requiring problem-solving or error corrections.
Relative to 2007, there has been a marked decrease in “channel loyalty” – meaning that the proportion of business respondents who would utilize the same channel to access the same service has declined. For example, whereas in 2007, 71% of business respondents would use the same channel for a similar transaction, in 2010, a much lower proportion (58%) of respondents were of the same opinion. Channels that experienced the greatest migration (i.e., proportion that would prefer to utilize other channels) included in-person and mail channels – channels typically viewed as time consuming or less convenient. In addition, in contrast to Citizens First studies, it appears that there is significant channel migration to “non-personal” channels – such as the web and email – which further underscores business’ willingness to utilize more convenient and timely service channels.
Post-Service Results
Results of the recent service experience yield a number interesting observations pertaining to usage and preference of service channels, as well as the service quality attributes or classic drivers of satisfaction. In 2010, the telephone remained the primary channel for accessing services, while client satisfaction and channel loyalty was highest with online service delivery. As more government services are now being delivered online, businesses are beginning to recognize the benefits of conducting business over the Internet or via government websites. The relatively high positive “surprise factor” suggests that online and web-based solutions are becoming more acceptable, and even preferred, for a growing proportion of Canadian businesses.
Key findings include:
- The Internet/Website was listed as the preferred channel for just over one-quarter (26%) of businesses, compared to 42% of businesses that preferred the telephone. There is growing popularity of the Internet, as more than half of all businesses (51%) indicated they would like to perform all routine interactions online. Results showed, however, that significant additional demand exists for online services, as just 41% of respondents indicated they were currently able to conduct routine services online. Businesses that have used the Internet or website in a previous transaction were most supportive about having the ability to complete all routine business with government online.
- The emergence of online delivery options is not without challenges. As the Internet is the primary channel for just one-quarter of business respondents, governments may wish to consider employing incentives to encourage greater use of online/web-based channels. A major concern among all respondents was the loss or limited ability to connect with a “live person”. Initiatives designed to promote greater online channel usage should include a mechanism to connect with a live person, as well as other incentives (e.g., rebate, reduced costs, etc.) associated with online transactions.
- Analysis of the key service drivers suggest that different service attributes impact overall satisfaction for each specific service channel. However, two service attributes stand out in terms of influencing overall satisfaction with the channel: the timeliness of service delivery and whether options and next steps were clearly explained. Lastly, analysis of the service drivers for each channel was also completed in order to provide service managers with a better understanding of where they should focus efforts to achieve the “best bang for their buck”.
Other Findings
In addition to re-visiting service delivery issues that were explored in previous TCOB studies, several new issues were examined in the current study. While these issues may or may not directly impact the service experience, they are considered important factors influencing general perceptions businesses hold of government performance. Through the research, we discover that businesses with higher perceptions of government performance are generally more satisfied with their service experience.
- Red Tape Burden – Almost one-half (44%) of respondents felt that red tape had increased over the past three years, while a similar proportion (47%) felt that the regulatory burden had remained the same. Only 4% of businesses reported a decrease in overall regulatory burden.
- Business Involvement in Decision Making – An important finding in the current study was the very limited engagement reported by Canadian businesses regarding involvement in the decision-making processes of government. For example, less than one-quarter of businesses contacted agreed that they were sufficiently consulted about regulatory/bylaw changes; that they had received sufficient information about such changes; or were provided with adequate time to respond to proposed changes.
Business Engagement in Decision-making Contributes to Positive Attitudes toward Government
A key finding of the research is to demonstrate the relationship between business participation in public sector decisions and overall satisfaction with government. Businesses who felt that they were adequately “engaged” by government regarding policy and bylaw changes were twice as likely to indicate that they received good value for their tax dollars and that government conducted their business in an open and accountable manner, compared to business respondents who felt that they were not engaged in government decision-making processes.
The Road Ahead
As an organization dedicated to improving government service using evidence-based strategies, the ICCS through this research continues to identify emerging issues and developments relevant to government service providers. Government service providers are in many respects change leaders, exploring and testing new technologies and ideas for the purpose of improving the efficiency and quality of service to the public. All clients want quality service for their tax dollars and TCOB3 builds on the growing body of evidence that suggests governments benefit by listening to Canadian business and effectively responding to their needs through the service development process.
TCOB3 provides important information for government service agencies in a number of areas. It shows:
- Despite declines in the “reputation” of governments among Canadian businesses, at the service delivery level, businesses are more satisfied with services in 2010 than was the case in 2007.
- The research further underscores the key service delivery attributes for each of the three major service delivery channels that will allow service managers to continue to improve upon each channel’s performance.
- The study also provides new insights as to how governments can support further migration to Internet or web-based service delivery channels.
[1]“Growth Mode” includes current performance or expectations of the business which “Anticipate a period of growth this calendar year” combined with “Expect to expand or change product lines”.