Transforming a Public Service Organization from inside Out to Outside in

Abstract

As competition increases and customers become more demanding, service organizations are recognizing the need to become more market oriented. This requires developing and being guided by “outside-in” as opposed to “insideout” processes. However, many organizations are finding this difficult to achieve. Using the framework developed by Day, the authors examine the use of service principles to transform a large public sector service organization so it is more market oriented. The authors examine the catalysts that initiated the change, how the change program was designed, and how it was implemented. Central to the change process was getting the organization to rethink its activities so they were “outside-in.” Resultant changes for staff in their focus and vocabulary brought about improved work practice and more effective customer communication. The performance scorecards showed dramatic improvement in process performance and a substantial and enduring positive impact on customer satisfaction.