In many states – though not all – the Department of Motor Vehicles is one of the worst run of any department. The DMV is often a necessary evil. Regulations make it is difficult to circumvent and they have no competition. As a result, the DMV often yields an inefficient and unpleasant experience.
In this case study, the voters of your state have had enough. In a referendum during the last election, voters overwhelmingly authorized/ordered the state to privatize the department of motor vehicles and to encourage private operators to take the operations over. Not only that, but the referendum authorized and encouraged MANY such operators to compete in the state. Finally and in a well-earned turn of events, no current or former employees of the government run DMV would be eligible to work in the new privatized environment.
The companies would be paid based on two important objective measurements:
The number of transactions processed. The faster the processing, the more money could be made. The issuance of driver’s licenses, transfer of vehicle titles, vehicle registration, issuance of license plates are all transactions that would now be be privatized.
The objective customer satisfaction survey that all customers completed immediately after their “service experience”. The survey would be the same for all companies. Payment for the transactions would be modified based on the survey results for any given company. For example, if you had 100 transactions that were each paid at a rate of $20 you would have $2,000 in gross transaction revenue. If you had a satisfaction score of 80%, you would be paid 80% of that. If you had a satisfaction score of 70% you would be paid 70% of that. If you had a satisfaction score of less than 60%, your company would be eliminated from the program and your existing “stores” allocated to the remaining competitors.
Finally, all companies would use the existing DMV IT systems. This system was recently updated and is very functional. Each company would process transactions using identical software and with identical requirements for identification of the individuals. Companies could cooperatively enhance the systems by agreement and by the companies agreeing to fund the enhancements.
To encourage long term investments, the referendum mandates that this privatization may not be reversed for 40 years, and only upon a 2/3 majority of voters after that date.
You have been hired by a company that is interested in entering this business. They have completed a feasibility study and determined that the market can be highly profitable, based on their estimates of efficiency. They are currently in the hospitality industry and so understand how productive and effective properly organized, trained, and paid employees can be with the right structure and culture.
The plan is to open multiple “stores” in convenient locations. Think of cellular stores as an example.
Your role is to define the following general guidelines for the company in this line of business.
Create a mission/vision statement that would focus on both speed of service and quality of service. What should the company highlight as priorities? Write out a mission statement and explain your rationale. (~1/2 page)
Create the skill sets for the customer-facing staff. What specific attributes would you focus on hiring for, and why. Given that the only people who have done this specific work in the past are ineligible for hire, what type of experience would you look for in a candidate, and why. A list of 15-20 traits or qualities are recommended. More is even better. be sure to describe each with enough detail. (~1 page)
Create an organizational structure for each business unit (store) that is as flat as possible. You want the absolute minimum of management levels to maximize the efficiency and accountability of everyone in each unit. You can draw an organizational chart or describe it in a narrative, or both. Either way, explain your rationale. (1/2-1 page)
Create a “progressive discipline” system that aligns with the goals of speed of service and quality of service. What, exactly, would you do the first time a customer service agent “failed” a customer satisfaction survey or fell below benchmarked transaction speed goals? (example: re-training? loss of future raise?) Upon the second occurance, what would happen? At what point would they be terminated? Also consider including number of permissable infractions within a specific time period. List the system and describe your rationale.