Level of Service (LOS) Management
Crucial to the continued development of companies, we bring about detailed descriptions on how service is linked to infrastructure investment, how service is measured and how performance goals and expectations are identified and set. LOS is a means for capturing and realizing value from the organization’s assets through the delivery of services (e.g., Trucks, libraries, cafeterias) to stakeholders (such as customers, employees etc.)
A. Purpose of LOS
To provide transparency
To provide accountability
To provide for repeatable and consistent measurement, reporting, auditing of inputs, outputs and outcomes
To ensure efficacy in service delivery
To ensure long-term financial viability in service delivery
To align service delivery to organizational goals
To extract value from assets and ensure positive relations with stakeholders
To optimize the delivery of service
To provide accountability
To provide for repeatable and consistent measurement, reporting, auditing of inputs, outputs and outcomes
To ensure efficacy in service delivery
To ensure long-term financial viability in service delivery
To align service delivery to organizational goals
To extract value from assets and ensure positive relations with stakeholders
To optimize the delivery of service
B. Management of LOS
We achieve the management of LOS through the following principles:
i. Establish the Value Framework
Review existing aspirational documents:
Policies
Strategies, Plans
Industry standards
Previous citizen surveys
Policies
Strategies, Plans
Industry standards
Previous citizen surveys
And use this to create a network tree (“Value Framework”) aligned back to organizational objectives. The framework is arranged using the hierarchy of: Enterprise LOS, Customer LOS and Technical LOS.
Quality and quantity of the measures
Ratio of qualitative to quantitative measures
Search all master/strategy docs (by keyword, such as “water” and “roads” to find all references to these asset elements.
Transpose the text into a table
Quality and quantity of the measures
Ratio of qualitative to quantitative measures
Search all master/strategy docs (by keyword, such as “water” and “roads” to find all references to these asset elements.
Transpose the text into a table
ii. Identify Gaps in Service Measures
Determine where:
LOS measures need to be converted from qualitative to quantitative statements
Service delivery levels are outside asset capacity
Service is below asset capacity
Estimate Costing of Services
We then attach cost estimates for providing each service to determine financial sustainability.
LOS measures need to be converted from qualitative to quantitative statements
Service delivery levels are outside asset capacity
Service is below asset capacity
Estimate Costing of Services
We then attach cost estimates for providing each service to determine financial sustainability.
Maintain LOS
we need to invest in our existing asset base. Many assets are old and deteriorating and a risk to service delivery. We need to invest just to stand still. This is the investment required to maintain the current LOS to the community and existing stakeholders.
Enhance LOS
Our customers want a higher level of service. Let’s invest in our assets to make an improvement in our level of service and increase our target level. The investment required to provide an identifiable, measurable and permanent change in the overall LOS to community and existing stakeholders above the standard previously provided.
Growth & Demand
The scope of work is getting bigger, and we need to expand our service to accommodate the increasing demand. Let’s bring the same service to more stakeholders. The investment required to provide service for new customers with no net deterioration from the current LOS provided to existing community and stakeholders.
New Legislation
The regulator has updated the legislation that affects our organization, and we need to comply by making some changes.
The investment that is required for compliance with new legally enforceable obligations.
The investment that is required for compliance with new legally enforceable obligations.
Increase efficiency
The investment required to enable a demonstrable savings in operating expenses. Cost estimates are comprised of the following elements:
Staff (to operate and maintain the assets and provide the services
Equipment and software
Engage with Stakeholders:
Inform customers of existing and desired levels
Staff (to operate and maintain the assets and provide the services
Equipment and software
Engage with Stakeholders:
Inform customers of existing and desired levels
iii. Set Targets & Roadmap
We set realistic targets using the SMART framework and insert these targets into the value framework. The targets are adopted by top management and communicated to stakeholders. In this regard, a Chapter of our Asset Management Plan (AMP) often includes information on levels of service.
We utilize trends to inform the roadmap and apply
these five types of trends to levels of service:
Positive upward trend
Negative upward trend
Positive downward trend
Negative downward trend
Steady state trend
Negative upward trend
Positive downward trend
Negative downward trend
Steady state trend
This answers the questions
of:
Where have we been?
Where are we now?
Where do we want to get to?
Where are we now?
Where do we want to get to?
iv. Trade-offs (Cost, Risk, Performance)
We also consider the inevitable trade-offs to achieve the triple bottom line (TBL) objectives by:
Identifying critical assets
Determining asset utilization levels
Determining asset operating costs
Developing trade-off criteria
Identifying critical assets
Determining asset utilization levels
Determining asset operating costs
Developing trade-off criteria
v. Monitoring and Measuring
We collect asset relevant data.
What to be measured:
Leading Indicators (through Technical LOS)
Lagging Indicators (through Customer LOS)
How we measure LOS:
Citizen satisfaction monitoring
Customer Satisfaction Survey
Willingness-to-Pay Survey
Measurement method – who and what (survey, etc)
Measurement calculation – how (stats, etc)
Measurement interval – when (daily, yearly, etc)
Reporting method (graphs, text, pictures, etc)
Reporting interval
Trend analysis
Benchmark Analysis/ Comparison of service shortcomings due to asset capacity/performance
What to be measured:
Leading Indicators (through Technical LOS)
Lagging Indicators (through Customer LOS)
How we measure LOS:
Citizen satisfaction monitoring
Customer Satisfaction Survey
Willingness-to-Pay Survey
Measurement method – who and what (survey, etc)
Measurement calculation – how (stats, etc)
Measurement interval – when (daily, yearly, etc)
Reporting method (graphs, text, pictures, etc)
Reporting interval
Trend analysis
Benchmark Analysis/ Comparison of service shortcomings due to asset capacity/performance