|For Office Use: | | |Grade for Assignment | | Written Analysis and Communication Individual Assignment No 2 Case Analysis Report on ‘The Quality Improvement Customers Didn’t Want’ Submitted by Mitul Jayendrabhai Shah Roll no- 121224 MBA FT – SECTION B Institute of Management – Nirma University 14TH August 2012 EXECUTIVE SUMMARY Quality Care is a US based reputed Health Maintenance Organization (HMO).Allan Moulter, CEO of Quality Care is in dilemma to install computerized system or not because of the uncertain behaviour of customers. The objectives are to retain existing customers, to maintain customers’ satisfaction and to improve service quality. The alternatives are to implement the new system or not to implement the system or implement the system parallel to current manual system.
The decision is to implement computerized system parallel to manual system initially. If customers accept the new system, Quality Care can go for fully computerized automated system. WORD COUNT - 99SITUATIONAL ANALYSIS Quality Care is Health Maintenance Organization (HMO) based in US. After Health Care One and Medicenters, it is 3rd player in the region (Refer exhibit no.
1). Allan Moulter is the CEO of the Quality Care for nine years. Jack Zadow, a consultant presented requirements for computerized system which made Allan think whether he should implement automation or not. HealthCare One, number one player in region has already begun using computerized reception system and the number Two player – MediCenters is also planning to install similar system by January.
As per new system, members can directly go to a computer and slide their identification card through. Computer will ask set of questions, reason for visit, pulls members’ records, process information and routes member to appropriate staff for consultation. Allan is in a dilemma whether to go for computerized automation system or not. Quality Care has to invest $350,000 including development, training, consultation and so forth. Ginger Rooney, the Vice president of marketing raised the doubt that Health Care is the personal field-one-on-one attention is what makes a satisfied customer.If computer system is implemented, there are chances that customer doesn’t feel the personalized touch and their customer satisfaction rate starts decreasing (Refer exhibit no.
2). On the other side, if they are going for computerized system then it will make the system more efficient and improve the quality of service. The staff will be less stressful and more personalized to the members of the Quality Care. Pat Penstone, CIO of Quality Care also suggests that it is not only about reception area but whole offering as a whole.There are chances that members of Quality Care think that we are not high-tech and so we are also not up to speed in medical procedures. There are chances that in future government and insurance companies may want standard reporting and so we have to implement the system in future (Refer exhibit no.
2). PROBLEM STATEMENT Quality Care is concern whether it should go for computerized system in their working stations while improving the service quality, cutting down the cost, retaining the members of Quality Care and maintaining the customer satisfactions.CAUSES AND CONSEQUENCES The cause of the current dilemma is the unpredictable behaviour of the members and their reaction to Quality Care. The consequence would be that if Quality Care is going to implement the computerized system, their loyal customers, satisfaction of customers and market share are at stake. OBJECTIVES 1. To improve service quality.
2. To retain members of Quality Care. 3. To maintain satisfaction level of customers and staff members. ALTERNATIVES 1. Implement new computerized system.
2.Do not implement computerized system. 3. Implement computerized system parallel to current manual system and expand it if successful. EVALUATION OF ALTERNATIVES Evaluation of option 1: If Quality Care decides to go for option one that is if they are implementing the new system, the transition is the major process which should be smooth and they have to take care that they retain their customers/members while transition. There are chances that members don’t feel the personalized touch and Quality Care may lose their customers.
There are chances involved that if Quality Care implements the system, they run out of cost as they can’t able to reduce the staff and have to bear higher cost which can lead to lower profit and market share. Evaluation of option 2: If Quality Care doesn’t implement the new system, there are chances that it will lag behind in technology to their competitors. It has to implement the system in future as there are chances of government and insurance companies to ask for standard reports. Members might also think that Quality Care is not high-tech and so their medical processes will also be outdated.There are chances that Industry is moving forward and so they can lose the edge over their competitors in market share. Evaluation of option 3: If Quality Care implements the computerized system with parallel with current manual system, they can retain customers and satisfaction level of customer as customers will get personal touch.
It will improve service quality and will fulfil objectives of company. After some time once customer accepts the system, they can fully expand the system. DECISIONThe new Computerized System concept has to be used to improve the quality, reduce the cost and stay ahead and improve competitiveness. At first parallel methods i. e. both technology and manual methods should be used together.
As people cannot quickly adapt to changes and need a certain amount of time to learn by using both methods training can be given to the employees and work can be carried in an effective manner. PLAN OF ACTION 1. Implement computerized system and make it work with manual method for some time. 2.
The customers also must be made aware of the new technology as well as training to use the system smoothly. They must be told about the merits of implementing the system and how it will make their work easier as they are the people who will use it regularly. 3. Feedback form should be given to the customers who will give their comments after using the system and these forms to be updated by a person. 4.
The computerization system should be made flexible to adapt to changes and even back up should be there at the time of system failure so that the work does not get affected. 5.The computerized reception counter should have a human person which will give the combination of both high tech and touch and in turn help Quality Care to improve customer satisfaction. CONTINGENCY PLAN Quality care can implement both computerized System and manual system as well. If Quality Care found that their customer retention plan or customer satisfaction got affected and it started losing its market share, they can switch to manual system at front reception and only implement computerized system at back-end. WORD COUNT: 990 EXHIBIT NO.
1 Quality Care (HMO)’s position and statistics 3rd largest HMO in the region • 3000 employees and just fewer than 200000 members • Total revenue $ 450 million this year with profits of $ 8. 1 million after expenses • 86% customer satisfaction with level four and five • Average employee turnover but increased turnover in last two years • Successful strategy of dedicated toll-free number for timely advice and support to pregnant customers EXHIBIT NO. 2 Concerns/Opinions in Quality Care | |Does QC really need computerized reception despite good customer retention rate? | | | |Allan Moulter | | |(CEO) | | | |Will it be cost-effective? | |Will the transition from old to new technology smooth? | | |Will there be any at administrative staff-cut? | | |Will there be procedural and timing changes? | | |How company can measure the improvements in service quality? | | |QC can’t sit on hands doing nothing when industry is moving towards computerized reception system. | | | |Pat Penstone | | |(CIO) | | | |Patient may assume that because QC is not high-tech with sign-in procedures, it is not high-tech on medical procedures. | |Reception is the first thing customers see and it tells them what QC is and how it works.
| | |QC will have to install a system like this at some point anyway, as and when government or insurance companies mandate | | |standardized reports. | | |Surveys can’t be trusted. | |Human contact makes patient more reassuring than machine contact | |Ginger Rooney, | | |Vice-president of | | |marketing | | | |Older people and critically ill require human reassurance | | |Survey conducted reveals that customers don’t avour new system | | |There can be other ways of standardizing reports | | |Retaining is the competitive edge of QC, but computer sends impersonal image | UNDERTAKING To Whom It May Concern: I, Mitul Jayendrabhai Shah hereby declare that this assignment is my original work and is not copied from anyone/anywhere. If found similar with sources, I take complete responsibility of action taken thereof by WAC Team.
Signature Name: Mitul Jayendrabhai Shah Roll no: 121224 Section: B
