To understand the Gen Y effect on service management, Alinement interviewed Rocky Scopelliti, here we conclude the interview looking at the internal impact on the organisation. He is the General Manager, Industry Development for Financial Services at Telstra Enterprise & Government. In our previous article, we focused on the customer and processes like business relationship management, request fulfilment, service reporting, service level management, change management and availability and continuity management and lifecycle areas like service transition, service strategy and enterprise data architecture. Today, we focus on other internal processes and the employee as customer.

Gen Y may use internet banking over more traditional channels used by other generations. When systems are down, I was wondering whether older generations are more tolerant of service outages , than Gen Y? Availability and service continuity management are important ITIL processes. Rocky’s response highlighted capability considerations:

Why is it that older generations tolerate standing in queues? It's not to say they like it, but why is it that they tolerate it. Gen Y won't tolerate this because they are motivated by options for other ways to satisfy the service requirement and expect instant service. Instant response in the online world simply means that organisations have the means (channels) and knowledgeable staff to respond to their problems through the channels they prefer in the time they prefer. 

Enterprises need knowledgeable staff all the time to service customers. A member of one of the focus groups in my research was an Australian studying at a US university. The student's interaction with the US based financial institution used a chat session or instant messaging during what this student perceived to be only available during US business hours. The surprise was that there were instant replies outside of US business hours – and a discovery that there was no need to have a local bank as he could access his bank 24x7. Problems were resolved in their own channels & means, resulting in a great service experience. 

Enterprises need to accept multi-channel communications and media, such as instant messaging and video. They then need to match service experience with these channels. Bankinter in Spain’s video channel (contact centres processes up to 1000 video calls per day) delivered 7% higher sales conversion rate and 10% higher customer satisfaction score than other channels demonstrating that video banking was a highly desirable service for customers. 

Rocky expanded on generation-independent contact centre practices and customer platform usage:

It is no different from practices today: how does a contact centre prepare for receiving and responding to visual image or texting? There needs to be a consistent manner in the customer experience across channel types. A contact centre must have consistent and repeatable experience, brand image and style with organisation-chartered principles. Training needs to adapt.

It is commonly perceived that social platforms are largely the domain of Gen Y. However, research suggests social media and social platforms are increasingly important for Gen X and Baby Boomers. Over the 12 months ending June 2009, Forrester report that the proportion of Australians aged 35-44 who use social media grew from 35% to 46% and that for those aged 45-54, social media growth was even stronger – from 24% to 39%. A 2010 study by Internet monitoring company Pingdom analysed records for U.S. visitors to major social platforms to determine the age distribution of visitors. Using figures from that study and excluding visitors under 18 and over 65, the average visitor age to these social platform sites is actually about 40 years old - so I would argue that these platforms are fostering improved work force productivity.

Capacity management is another important IT service management process. Current generation expects 'instant gratification'. How does this impact delivery capacity to support and maintain services? Rocky explains about recent technology enablement:

At an infrastructure level, it's about cloud computing that is providing 'an on demand' variable delivery model. We are seeing organisations across many industries pursue this model such as Visy. At a resource level, services such as video banking 'expert on demand' are enabling the creation of a whole new range of services by exploiting resources skills and expertise delivered through an efficient IP infrastructure to customers irrespective of location. Bankinter in Spain is a great example of this whereby they have not only found that their customer satisfaction across their video banking channel was higher than any other channel (85%), but the sales closer rates were much higher (25% v 18%)   Infrastructure needs are supported by the cloud computing model. Customers expect it, and now technology is no longer a barrier. 

Would Gen Y create multiple personas or avatars? I am interested in how enterprise data architecture responds to consolidate and centralise this type of customer information. Rocky resonated with the intent of a 'one customer view':

There is a unique opportunity with Gen Y because they disclose more information about themselves. For other generations, companies pay to get that data or research. It is not about this Generation being schizophrenic, it is about how to leverage the available information and change to services of value to them and the company. Gen Y resonates with those brands that understand this because of the products created and the way they connect.

In a regulated environment, organisations are responsible for securing customer information. Should an organisation manage security depending on customer generation? Rocky answered with a ‘No, but’:

Privacy legislation will always dictate the enterprise approach to management of customer information. This legislation needs to accommodate all constituents not just sub groups. Gen Y are challenging privacy through the tribal manner with which they interact with people important to their community that is by the way, more real time e.g. twitter and more global e.g. online. I think their openness with their multiple online personas/presence, in fact provides organisations with more knowledge about themselves than other customers. Information from other customers is more difficult to extract today. 

Different generations need to be able to work effectively in teams using confidential information and employing social media. Rocky told us about impact of generation on security and communication policies and competencies from a Telstra application:

Telstra was one of the policy pioneers with social media within its workforce. Instead of blocking access to these fast and rapidly growing preferred channels, it invested in creating a policy around 3 key points. Telstra recognises the need to have a policy which ensures that employees who use social media either as part of their job, or in a personal capacity, have guidance as to the company’s expectations where the social media engagement is about Telstra, its products and services, its people, its competitors and/or other business related individuals or organisations.  Telstra’s 3 Rs of Social Media Engagement are therefore ‘guardrails’ designed to protect the interests of employees and the company.  In brief, the 3 Rs ask that when engaging in social media you be clear about who you are representing, you take responsibility for ensuring that any references to Telstra are factually correct and accurate and do not breach confidentiality requirements, and that you show respect for the individuals and communities with which you interact.

You mentioned that Gen Y would not work for some companies/brands because of their values or legacy technology. What attraction and retention needs to be considered in service strategies? Rocky reminded us of employees as customers too:

Competition for talent is a major priority for enterprises in Australia. In fact our productivity research this year indicates that attracting and retaining staff is a top 10 issue of enterprises in Australia. Remote working is a great contemporary example of how enterprises are embracing more flexible forms of working and the enablers of this are firstly, lap top computing or smart phones, secure network access and lastly, fast broadband access for example Next G™.  Remote working is not just about flexible working, it is critical to improving productivity 

The longer term challenge is in Gen Y workplace preferences. They prefer their own equipment. Enterprises are suffering new challenges and consequences in their IT services models:
•    How to support a workplace where employees have their own hardware and software?
•    How does a home computer support model differ for IT service fixes being rolled out?
•    How can security policies accommodate private software on equipment?
•    How can a broader model including video, smartphones, fast broadband and different tools used by this generation, be supported?
•    How to support a dual equipment model?

Enterprises, like Telstra, have already responded with remote access from home computers and support of remote working. Enterprises are expecting a change in their IT services companies supporting equipment and productivity.

Can you give our readers a final thought or message? 

Improving the way people and organisations work is critical to Telstra and our focus is to enable enterprises to become more flexible, variable and productive. The ability to adapt to change is critical to any enterprise’s success, and with the accelerating rates and pace of change that we have today, I believe this to be the greatest challenge.

For more information, see the white paper entitled 'How ICT could improve service to Generation Y in the Financial Services Sector'. A model appearing in the paper shows: