STRAIT to the future

8th Asia-Pacific Specials, Health and Law Librarians Conference

How to keep your customers happy and still move into the 21st century

Justine Newby
Australian Stock Exchange

Keywords: Re-engineering; Change management; Electronic news

Abstract

New technology provides the scope to build on the best of the past but the crucial element is managing the change, and this involves marketing and educating the customer. This paper is a case study of how a paper-based information service was re-engineered into an electronic format. It outlines the customer's response to this initiative pre and post implementation, and examines the lessons learned.

Introduction

Implementation of new technology in the library environment has been reasonably advanced with libraries often capitalising on being at the leading edge of information technology. These last 18 months has seen ASX library experiment with new ways of providing value-added products and services to ASX staff, our customers. We are achieving this by making optimal use of technology and by taking a proactive approach to change. This is not a new concept for us as most libraries operate within a framework that is constantly changing due to the shifting landscape of information. What has changed, though, is that we are actively embracing innovation as a way of maximising the performance of library services.

The challenge of adding value to these services is change management. How do you gain customer acceptance of a new or re-engineered service? How do you respond to customer complaints if they're not happy with the new service? Do you ignore, deflect or pay little attention to the complaints, hoping they will silently disappear? At ASX we decided to take the bull by its horns and implement a change management strategy designed to ensure that the new service not only met the requirements of the old service but vastly improved on it.

The first part of the paper describes ASX Library's experience of re-engineering an information service and how technology provided scope for delivery and access mechanisms. The second part outlines the change management strategy and how marketing and communication played an important role in assisting customers resisting change to gradually embrace the new technology.

Re-engineering an information service

ASX and ASX library
ASX has undergone immense change over the last 18 months. The organisation embarked on a restructuring program that included a new structure and core values, and the introduction of charging for services between business units. In October last year ASX was demutualised and listed on the Australian Stock Exchange. These events produced a major shift in how we operate both internally and externally. For the library this has meant seeking new initiatives, taking calculated risks, maintaining a high profile and developing effective partnerships within the organisation.

The library, one of thirty-two business units in ASX, is a small team of five consisting of three librarians, a library technician and a records and archives manager. Located in Sydney the library provides services to ASX staff on a national level with offices in all states and a customer base of 650 people. The clustering of staff throughout Australia has been a significant challenge for the library to deliver information services in a way that provides the highest level of benefit.

Access to information is important to our customers, and this was a reason why the library undertook the project of re-engineering its flagship current awareness service, AWARE, from paper to electronic format. The emphasis on access to information impacts on how the library operates its business as technology utilisation will, undoubtedly, be increased and this also impacts on how the library manages customer relationships. There is an educative process involved in helping those who need assistance in changing their attitude to technology. The library recognised this and flagged it as an important ingredient in the project's communications plan.

Technology is fueling the development of innovative new products and services at a stunning rate (Dunn, 1998, 223). We wanted to adopt a technology solution to replace an inefficient, manual process, and to reduce the current cost of this service. We also wanted a solution that would enhance it by focusing on access and delivery mechanisms, as well as providing a model for reforming the delivery of information services in the library.

Current awareness service - AWARE
Less than twelve months ago the current-awareness service, AWARE, was paper based and produced on a daily basis. This service had existed in much the same format at ASX for over five years and was highly regarded as an effective tool for keeping abreast of current Australian and international news. It was, and still is, the Library's most high profile and important service.

Producing AWARE involved two hours of one staff member's time each day. The service was compiled each morning and consisted of news clippings provided by a monitoring agency, ASIC releases, and any other press releases relevant to ASX such as Treasury and ACCC. The news clippings were sorted to remove articles unrelated to the brief, and major newspapers were also checked as articles were sometimes missed in the brief. The service was approximately 30 pages in length and was arranged in subject order. Interestingly, we discovered later from discussions with our customers that many were not aware of this subject order.

AWARE was then photocopied 60 times and distributed mostly via the internal mail while the interstate offices received a faxed copy. The 60 copies were circulated to 200 people where some copies had up to eight people on a circulation list. At this point it is worth noting that the library was covered under a copyright agreement with the Copyright Agency Limited to distribute the information to this many people.

Issues
Why did we decide to change the service? The process we had in place was not providing timely and equitable access, and the main reason was because it was paper based. Furthermore it was manual and quite laborious. Providing a daily news service where at least one third of recipients were not receiving it on the day it was produced was less than satisfactory. The library's view was echoed by feedback we were receiving from some of our customers. All of these factors together with the structural changes occurring at ASX prompted the library to explore opportunities that would create efficiencies in producing the service.

An electronic solution
Cost benefit analysis
The first step towards an electronic solution was to undertake a cost benefit analysis. The objective was to obtain a true cost of producing the service which would determine the cost-effectiveness of automating the process. The analysis included the following items:

• staff costs in the preparation of the service
• cost of information resources used
• monitoring service
• cost of materials and services in the physical production
• cost of paper
• cost of labels
• cost of maintenance to the photocopier
• cost of providing the service
• cost of faxing the service interstate
• cost involved in redistribution
• cost of archival maintenance
• cost of staff time in filing the items under subject categories
• cost of filing materials
• cost of copyright fees paid to copyright agency

The results of the analysis astounded the library. It was an expensive service. Faxing charges, for example, was a surprisingly large cost. Facing budget reductions the library needed to find an alternative, cost-effective way of producing it. Our aim was to go out into the marketplace and find a solution to providing an efficient delivery mechanism, preferably via the corporate intranet that would address the issues of access and automation.

Matching our requirements with products in the marketplace
We documented our requirements before venturing out into the marketplace. Essentially we just wanted to replicate the paper version into an electronic format as our customers were happy with its content and we wanted to keep it simple. The service therefore needed to include a range of Australian sources and ASIC media releases. We also wanted to utilise the corporate intranet as it would be a cost-effective way of delivering the service and providing simultaneous access to it. The key requirements were:

• reduction in current costs
• delivery via the corporate intranet
• simultaneous access to the service
• improved delivery time
• Australian newspaper articles in full-text from national and state publications.
• Overseas newspaper articles in full-text from a selection of publications
• media releases
• search facility

It can be hard holding on to the mantra of "keep it simple". New technology provides the scope to build on the best of the past, and produces an environment of innovation in libraries but it can also provide obstacles. Manual processes that are simple can become complex when automated, particularly when the manual process involved a decision-making process as this is often difficult to automate. However, technology provides huge benefits with access and delivery mechanisms.

When the library went to the marketplace seeking an information vendor that could provide our requirements there were not a plethora of choices. We wanted something that could be tailored to our needs, and delivered seamlessly into our corporate intranet environment. We were to discover quickly that this was not possible. The content of the paper version included Australian news, overseas news, and media releases but no vendor could match these requirements so we had to compromise. The vendor we eventually decided to go with was able to meet all the other requirements plus Australian content with the sweetener that the new service would reduce our current costs by 35%. It was not difficult to sell this initiative to senior management as it reduced operational expenses, created efficiencies in the work undertaken, and provided greater accessibility to the service as delivery was via the intranet.

The compromise with the content requirements was that the Library itself automated the overseas news (this comprised of article abstracts written by a staff member) and media releases, and linked it to the Australian news provided by the vendor by way of a homepage on the corporate intranet for the new service. In short there was a lot of customisation involved.

Gaining the support of our customers - pre implementation
The success of any library service depends on customer support so the process of re-engineering this service involved consultation with all business units. Once the library had a detailed understanding of the electronic version - source, coverage, delivery time, method of access, search features - we set up a consultation process with the businesses. The library viewed this as an opportunity to brief them on the initiative and gain an understanding of their information requirements for the service. It was also an opportunity to further develop customer relationships. The initial meeting was, in most cases, with the head of each business unit and we carried out a number of activities:

• Conducted a discovery exercise to seek an understanding of how each business operated, and what their current and future information needs were to enable the library to develop profiles of each business unit.
• Briefed each business on the initiative of re-engineering the current awareness service into electronic format and making it available on the corporate intranet. The cost savings and improved service delivery were stressed.
• Presented a prototype, provided by the vendor, of what the service could look like, and what the library proposed for its new structure, and sought their feedback on this.
• Gained an understanding of each business unit's information needs for the service.

The response from these meetings was generally positive. There was only a small number of people who expressed reluctance towards re-engineering the service. Their concern was that they would be less inclined to use the electronic format because, unlike the paper version which would be delivered to their in tray, it would not be easily visible nor portable.

The business units played a pivotal role in developing the brief, a list of subject areas with keywords, that would be used to track Australian news. The keywords are central to providing a relevant current awareness service and there were just under 150. It was quite a lot compared to how many we had for the paper service but the large number was to enable the capturing of only pertinent articles because there would be no filtering system with automation. The final version of the brief was sent to all units for comments before it was given to the information vendor.

Feedback from the businesses suggested new features which were incorporated into the final version and included:

• Web links to the front pages of major Australian and international newspapers, and selected business journals.
• Links to ASX internet site, Sharenet, and the library's site on the corporate intranet

Throughout this process we kept all businesses informed of progress through face to face consultation, memos, informal chats, and group e-mails to the customers.

Determining the look of the electronic AWARE
The look and feel of the electronic AWARE was determined by the library's requirements, the scope of the vendor's product, and the feedback we received. The vendor's product was fairly static and around this the library designed a homepage for AWARE with links to various parts of the service, and html documents for title pages of the service. It was now divided into 4 sections: Australian News; Overseas News (Summaries); Media Releases; and Links to Newspapers. There was a lot of work involved to give the appearance that all the information was delivered seamlessly into the intranet, particularly with the Overseas News and Media Releases. The final result was a simple front page that included the required links with very little in the way of graphics.

Marketing the start of the electronic AWARE
As we moved into the stage of preparing to implement the re-engineered service, we developed a communications plan that addressed the areas of marketing and educating the customers, as well as establishing a test group to trial the service. The test group included staff from different business units from Sydney and interstate offices, and they were asked to comment on the "look and feel", and the content of a test version. The feedback was quite positive and provided the library with ideas for improvement such as more navigational tools to make it easier to get back to the front page of AWARE, and providing a navigation bar in different sections to allow easy movement between them. Interestingly, the test group did not comment on the content of the information.

The planned location of the electronic service was to be the library's site on the intranet but concerned that the service might lose its impact as it was going to take three click before you were in it we, instead, created a button and made it part of the intranet toolbar. This enabled access from anywhere within the intranet.

There was a two week marketing campaign announcing the impending launch of the new service, and the library used a number of methods to promote it. We decided that the paper version would cease with its electronic launch due to concerns that some clients may come to expect the paper version in conjunction with the electronic. We believed we could ease the transition by providing detailed information about the new service and its features, with a demonstration of it on the intranet. This information package was e-mailed to all staff. Other methods of promotion included a memorandum to all management; publicity appeared on the paper based service for the two weeks leading up to the launch; there was publicity on our fortnightly abstracting service; fliers were sent to staff, and posters were placed in lift areas.

The day before the launch the library sent an e-mail to all ASX staff as a reminder of what to expect the following morning and emphasising we were available to answer any questions they may have. On the day of the launch we sent an e-mail to all staff informing them that the new service was now in operation and offering assistance. We also phoned a random group of interstate staff, and visited many in the Sydney office.

The library felt that its approach to re-engineering its current awareness service was fairly comprehensive. We were open to communication, seeking out different views, we were systematic in ensuring we had addressed all areas of the conversion, and we were not rushing into launching it. All the analysis we did indicated that it was going to be well accepted. This was the first time the library had undertaken a project of this magnitude in terms of a large customer base and the extent of change in a product or service. So we were unprepared for the response we received after its launch.

Reaction
The launching of the electronic AWARE brought a mixed response, and much of what we heard was not encouraging. We had received a number of phone calls from customers, most in senior management, unhappy with it. Most of these customers said they wouldn't use it, and one demanded we bring back the paper version as the electronic one was "terrible!". These responses greatly concerned the library as we knew that word of mouth spreads quickly and bad advertising would hurt the service we just launched so we responded quickly to the complaints.

Change management - communication and marketing

The library decided to take the bull by its horns and implement a change management strategy designed to ensure that the new service not only met the requirements of the old service but vastly improved on it. We took a proactive response to the complaints and, in doing so, turned the situation around. Instead of being complacent we encouraged customers to complain, viewing them as opportunities rather than as problems as there is an enormous reservoir of potential improvement among those who are dissatisfied.

Managing change - the stages involved
Having a simple change management strategy helped the library to determine where to focus our activity in successfully managing change. Individuals go through stages during change and this was no exception when the library re-engineered its current awareness service from paper to electronic. A lot of customers, and the library team, did not realise just how much of a change going from paper to electronic was going to be. It was a mind shift. A lot of customers were in denial. There is a series of stages that are encountered when implementing changes and understanding these are important to identify where each customer is in the change process.

Stage 1 - denial
Denial is the critical, first stage in coping with change and our customers appeared to pass through it at the same speed which is not always the case. This initial stage is a belief that nothing major is occurring, and the task is to break down the denial by developing an awareness of the impact of the change. The library had attempted this through the communications plan it had implemented pre-launch, and through the series of meetings with customers explaining what changes would occur. But we found it difficult recognising denial because, in hindsight, the unhappy customers avoided acknowledging a negative perspective until we launched the service. While dealing with denial the goal is to get as much assistance and cooperation as possible while announcing and promoting the changes, and this is not an easy task.

Stage 2 - resistance
The library was aware of the resistance to this change from the mixed response we received to the launching of the new service. Some customers felt AWARE had been turned upside down and they had lost control, and they therefore resisted.

Resistance occurs after the denial stage has been passed, and after a negative view has been formed.. It is usually the most difficult stage during change and the major task is to lower resistance. Resistance will not be completely eliminated but the aim is to reduce resistance enough to allow the change to continue to progress (Lynn, 1989 p 63). The library tackled this issue through a questionnaire with the objective of having all concerns surface so we could have a clear understanding of why there was resistance. It was also important to create a safe environment for customers to complain, and to reinforce our appreciation for the feedback regardless of how negative it was.

Two weeks after the launch the library contacted all customers who used to receive the paper based AWARE to find out what they thought about the new version, and how it could be further improved. We made it clear that complaints were welcome because without them we couldn't improve the service, and we stressed that we saw it as a continuous process of improvement. We felt it was important to openly discuss customer issues as soon as possible as open access was critical during times of change. From the 200 customers we contacted 70% responded to our questionnaire. In order to gain a high response rate within a short space of time we attempted to phone everyone but those we could not reach were sent the survey either via e-mail or internal mail. The ten questions we asked were designed to identify customers who were using the service, those that were not, and the reasons why. Questions like "What would you prefer?" assisted in moving the resistant customer to the next stage of change, adaptation, because they felt they were involved in the change process. It was a simply worded and deliberate way of finding out what they really thought of the service, and involved a conscientious, planned strategy of strengthening customer ties.

In some instances the library encountered roadblocks to feedback where some customers didn't believe it would make a difference. This view is often the result of previous experience where the person has been burned so they are sceptical of investing time in a questionnaire that they think will yield little results. The key was listening and addressing their concerns; not with lip service but with actual changes. We found that by responding to their concerns quickly and courteously, the customers were more apt to begin their conversations rationally. The results of the questionnaire showed the following:

57% liked the new service
16% disliked the new service
27% undecided

Several issues will emerge during the resistance stage and for the library the main issue was a feeling that there was no choice for the customer; that the electronic service would not adapt or evolve. The library's failing was not to fully understand this issue pre-launch, and as it only emerged during the resistance stage we were not prepared. However we quickly responded, creating and maintaining a climate receptive to change. This has minimalised future resistance. The main comments that came out of the questionnaire were:

• Too many subject categories and duplication of articles in the different categories
• Prefer a "Top Stories" category to resemble the type of articles contained in the paper version
• Prefer paper because it's portable (more people than we realised wanted the option of a paper copy)
• Need to be prompted because it's a big cultural change from paper to electronic

As a result of this common complaints were ferreted out, and the service improved in the process with the following features added to address the main complaints.

• Categories refined - fewer but more succinct categories allowing for easier searching and greatly reducing the duplication of articles.
• "Top stories of the day" category - aims to be like the original paper version of AWARE providing a general overview of financial news.
• "Full view and quick print" option - addressing the portability issue, this feature provides a quick and easy option of printing the full-text of all articles in a category. (The original structure meant that articles could be printed off, but this had to be done one by one)
• AWARE prompt - a facility to push the full service of AWARE or a specific category to the desktop via a daily e-mail.

Stage 3 - adaptation
The third stage in managing change is adaptation, and it is in this stage when the change begins to become accepted. Where resistance is shown by a negative perception, this stage reflects a positive view. The library relaunched AWARE two weeks after it went live with another marketing campaign targeting all customers. From the questionnaire we received a range of different ideas for implementing change to improve the service and the major ideas were incorporated. A one page summary of the new features with explanations of their benefits were distributed via e-mail. We gave people a couple of days to use the revised service and made phone calls to customers, focusing on those who used the paper service and had not been enthusiastic towards the electronic one. The feedback was positive, and many were impressed that the library was listening to their concerns and allowing for adaptation.

Stage 4 - getting the customers involved
It is the final stage of involvement where customers actively participate in the change, making contributions and suggestions, and regarding the change as the "way it is". For the library this has been an evolving, continuous process. Two months after the relaunching, four major business units wanted to extend the capability of AWARE for their businesses by the addition of two subject categories which together contained approximately 150 keywords. They recognised the long range potential of the electronic service and were willing to invest extra resources for this extra capability. The library regularly keeps in contact with customers updating them on new features to the service and general promotion. Strategies for customer involvement is a continuous process. It didn't stop after the resistance subsided. It's an important investment, especially for building commitment to customer relationships.

AWARE has become stable again. It is part of the routine operations of the library because it has demonstrated its value and durability. It is still regarded as the library's flagship. We strive to continuously improve the service and our other information services because the key to survival is a never-ending process of change with customer involvement.

Conclusion

The main challenge that ASX library encountered when it decided to re-engineer an existing information service was not to do with technology, although it produced issues and obstacles along the way. The challenge lay with managing the process of change while gaining customer acceptance of the new service. The library turned customer complaints into opportunities for better customer service through its quick, proactive response to the situation. This has had a positive effect on customer loyalty, on our image as a provider of information, and on the success of the service. A lesson learned is it's always important to keep your perspective and sense of humour. With this lesson the library keeps moving forward while still preserving the best of the past is the library's challenge.

References

Crawford, W. and Gorman, M. (1995) Future libraries: dreams, madness, and reality, American Library Association, Chicago

Dunn, R.G. (1988) "After the Tsunami: the information profession in the post Internet world", The Electronic Library, 16 (4) August: 223-225

Ebbs, R. (1997) Responding to demand: the ultimate challenge for delivering information in On the Edge, Proceedings of the Seventh Asian Pacific Specials, Health and Law Librarians' Conference, 12-16 October 1997. Perth, pp421-428

Fossum, Lynn (1989) Understanding organizational change, Crisp Publications, California

Martin, William B. (1989) Managing quality customer service, Crisp Publications, California

Author

Justine Newby, B.A. (CSU), Grad. Dip. of Applied Science (Info.) (UTS), has worked in the library environment of business, law and finance for the past nine years. She is currently National Manager of Research and Information at Australian Stock Exchange.