Internal Customer
Internal customer essay
The internal customer is not new, nor is it a purely public sector concept. The idea was first used almost forty years ago to describe different forms of administrative relationships within the private sector (Sayles, 1964). It stemmed from an understanding that in any organisation all staff are both the providers and receivers of services and, critically, if poor internal service exists, then the final service to the external customer will be diminished.
The quality management movement brought the concept of internal and external customers. Traditionally the focus was on external customers with little thought given to how internal departments interacted. Improving relationships with internal customers and suppliers assists delivery of better customer service to external customers, through reduced lead-times, increased quality and better communication.
The “Service-Profit Chain” model developed by Harvard University emphasizes the circular relationship between employees, customers and shareholders. Under-staffed, under-trained employees will not deliver good quality customer service, driving customers away. Equal effort must be made in attracting, motivating and retaining employees as is made for customers, ultimately delivering improved shareholder returns. Better shareholder returns mean more money is available to invest in employees and so the circle continues.
A survey of organizations shows dramatic improvement in internal service quality over the last decade.
• Superior internal service appears to result in superior business performance.
• A major differentiator is culture, including leadership committed to an internal service strategy and the alignment of employees with that strategy.
The quality of service provided by front line staff is largely dependent on the quality of support they receive internally. For a customer service culture to become embedded in an organization, it must be demonstrated by
The internal customer is not new, nor is it a purely public sector concept. The idea was first used almost forty years ago to describe different forms of administrative relationships within the private sector (Sayles, 1964). It stemmed from an understanding that in any organisation all staff are both the providers and receivers of services and, critically, if poor internal service exists, then the final service to the external customer will be diminished.
The quality management movement brought the concept of internal and external customers. Traditionally the focus was on external customers with little thought given to how internal departments interacted. Improving relationships with internal customers and suppliers assists delivery of better customer service to external customers, through reduced lead-times, increased quality and better communication.
The “Service-Profit Chain” model developed by Harvard University emphasizes the circular relationship between employees, customers and shareholders. Under-staffed, under-trained employees will not deliver good quality customer service, driving customers away. Equal effort must be made in attracting, motivating and retaining employees as is made for customers, ultimately delivering improved shareholder returns. Better shareholder returns mean more money is available to invest in employees and so the circle continues.
A survey of organizations shows dramatic improvement in internal service quality over the last decade.
• Superior internal service appears to result in superior business performance.
• A major differentiator is culture, including leadership committed to an internal service strategy and the alignment of employees with that strategy.
The quality of service provided by front line staff is largely dependent on the quality of support they receive internally. For a customer service culture to become embedded in an organization, it must be demonstrated by