* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * This file contains an ASCII representation of one section of * * GAO/OCG-95-1, Management Reform: Implementation of the National * * Performance Review's Recommendations (December 5, 1994). * * * * GAO's views are contained in the file GAONPR.TXT, which comprises the * * Letter to Congressional requesters from this report. * * * * Delineations within the text indicating chapter titles, headings, and * * bullets are preserved. Major divisions and subdivisions of the text, * * such as Chapters, Sections, and Appendixes, are identified by double and * * single lines. The numbers on the right end of these lines indicate the * * position of each of the subsections in the document outline. These * * numbers do NOT correspond with the page numbers of the printed product. * * * * No attempt has been made to display graphic images, although figure * * captions are reproduced. Tables are included, but may not resemble * * those in the printed version. * * * * One printed copy of this report may be obtained at no charge from the GAO * * Document Distribution Facility, by calling (202) 512-6000, by faxing your * * request to (301) 258-4066, or by writing to P.O. Box 6015, Gaithersburg, * * MD 20884-6015. We are unable to accept electronic orders for printed * * documents at this time. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * IMPROVING CUSTOMER SERVICES (ICS) ===================================================================== Section 26 OVERALL SUMMARY ------------------------------------------------------------------- Section 26:1 The administration substantially implemented the NPR's recommendation to establish an overall policy for providing quality services to the public by issuing Executive Order 12862 "Setting Customer Service Standards" (September 1993). The order required all agencies that provided services directly to the public to, among other things, survey customers, establish service quality standards, measure performance against the standards, and address customer complaints. According to an NPR official and the NPR report Putting Customers First: Standards for Serving the American People, many agencies had surveyed their customers about their service needs and established standards for service delivery. The NPR official said that the next step for agencies will be to measure their performance against the standards and report the results to the public. The official could not verify that all agencies that provided services directly to the public had initiated customer service programs. However, the official said that NPR had coordinated with OMB to identify agencies with major service delivery programs. In response to the NPR's agency-specific recommendations, the Social Security Administration (SSA), the Internal Revenue Service (IRS), and the Postal Service each had made progress. SSA surveyed its customers and posted service standards in each of its field offices. The SSA had plans to update its strategic plan based on its customer survey results. The IRS published customer service standards and planned to post these standards in field locations and include the standards in its January 1995 mailing to taxpayers. The IRS also worked to increase the electronic transmission of refund data to the Financial Management Service (FMS) to speed up the payment of tax refunds. Postal Service officials said that 75 percent of its post offices had posted the 5-minute wait standard. They also said that they encouraged post offices to display and promote the local telephone number for the 24-hour information line using brochures or other means. They said they were still planning how to display their first-class mail delivery standards. However, it should be noted that these recommendations involve publishing or displaying performance standards, not taking action to meet those standards. Officials in OMB's Office of Information and Regulatory Affairs (OIRA) said they streamlined the approval process for over 20 agencies that sought to conduct voluntary surveys of their customers. OIRA officials said that under the streamlined process, OIRA reviewed and acted on agencies' applications for generic classes of voluntary customer surveys within 2 weeks compared to up to 90 days under the old process. GAO CONTACT ----------------------------------------------------------------- Section 26:1.1 William M. Hunt, Director, Federal Management Issues, General Government Division, (202) 512-8676. RECOMMENDATION INFORMATION ------------------------------------------------------------------- Section 26:2 ICS01: CREATE CUSTOMER-DRIVEN PROGRAMS IN ALL DEPARTMENTS AND AGENCIES THAT PROVIDE SERVICES DIRECTLY TO THE PUBLIC ----------------------------------------------------------------- Section 26:2.1 Establish an overall policy for quality of federal services delivered to the public and initiate customer service programs in all agencies that provide services directly to the public. ACTION ITEM --------------------------------------------------------------- Section 26:2.1.1 Establish an overall policy for the quality of federal services delivered to the public, and initiate customer service programs in all agencies that provide services directly to the public. GAO COMMENTS --------------------------------------------------------------- Section 26:2.1.2 Agree. We strongly advocate the creation of such a policy, which could foster good public relations and timely service to citizens. We have recommended that a governmentwide focus on citizen's needs be the foundation for the government's management and reorganization. Further, we have supported a customer-oriented approach in individual federal agencies. Also, we have suggested incorporating the needs of the American public in developing information technology strategies. It should be noted that many government services are provided to the public through third parties, such as housing administrations or medical insurance providers. Our ongoing work suggests that it may be appropriate to include requirements for ensuring or measuring customer service in the contracts or agreements with such third parties. A pertinent consideration in this regard is whether additional government funds would be needed if this were done. IMPLEMENTATION --------------------------------------------------------------- Section 26:2.1.3 Partially Implemented. Executive Order 12862 established an overall policy for the quality of federal services to the public. The executive order required that all agencies that provided significant services directly to the public should strive to provide customer service equal to "the best in the business." Many federal agencies that provide services directly to the public have initiated customer service programs. According to an NPR official, 152 federal agencies published more than 1,500 customer service standards. NPR published these standards in the report Putting Customers First: Standards for Serving the American People. These agencies also published short, easy-to-read brochures that described the service standards customers could expect. The official said that nearly all of the customer service standards resulted from customer input obtained through surveys, focus groups, discussion groups, or complaint systems. The official could not verify that all agencies that provided services directly to the public had initiated customer service programs. However, the official said that NPR staff had worked with agencies and with OMB to ensure that most major programs had been covered. The NPR official said that meeting all the requirements of Executive Order 12682 will take time but that agencies had made a good start by publishing their standards. The official said that the next step will be for agencies to measure their performance against these standards and to align their management systems to support a customer focus. RELATED GAO PRODUCTS --------------------------------------------------------------- Section 26:2.1.4 Partnerships: Customer-Supplier Relationships Can Be Improved Through Partnering (GAO/NSIAD-94-173, July 19, 1994). National Archives: A More Systematic Customer Focus Needed (GAO/GGD-94-3, Oct. 14, 1993). Improving Government: Need to Reexamine Organization and Performance (GAO/T-GGD-93-9, Mar. 11, 1993). U.S. Postal Service: Tracking Customer Satisfaction in a Competitive Environment (GAO/GGD-93-4, Nov. 12, 1992). OPM Revolving Fund: Benchmarking Could Aid OPM's Efforts to Improve Customer Service (GAO/GGD-92-18, Jan. 21, 1992). Office of Personnel Management: Better Performance Information Needed (GAO/GGD-90-44, Feb. 7, 1990). Meeting the Government's Technology Challenge: Results of a GAO Symposium (GAO/IMTEC-90-23, Feb. 1990). ICS02: CUSTOMER SERVICE PERFORMANCE STANDARDS--INTERNAL REVENUE SERVICE ----------------------------------------------------------------- Section 26:2.2 As part of its participation in NPR, the Internal Revenue Service is publishing customer service performance standards. To speed the delivery of taxpayer refunds, the Secretary of the Treasury should delegate disbursing authority to IRS in 1993 and future tax seasons. ACTION ITEMS --------------------------------------------------------------- Section 26:2.2.1 1. As part of its participation in the National Performance Review, IRS should publish customer service performance standards, to include the following examples. -- A refund due on your paper return will be mailed within 40 days; a refund due on your electronic return will be mailed within 21 days when you request a check, or sent within 14 days when you specify direct deposit. -- Our goal is to resolve your account inquires in a single contact; if you have a repeat problem you can contact the Problem Resolution Office, which will resolve the problem in an average of 21 days. -- When you provide sufficient and correct information to an IRS tax assistor and get an incorrect answer, we will cancel related penalties. -- Let us know where our tax forms or instructions are confusing or difficult--by 1995, we plan to boost the clarity of tax forms and instructions so that 90 percent of individual returns are error-free. 2. The Secretary of the Treasury should delegate disbursing authority to IRS for refunds made using electronic funds transfer and should, for all other disbursements, expedite efforts to transmit refund information electronically between IRS and FMS. GAO COMMENTS --------------------------------------------------------------- Section 26:2.2.2 Insufficient Information. While we agree with the intent of publishing customer performance standards and of getting refunds to taxpayers in a timely manner, we are unsure whether delegation of disbursing authority to IRS is an appropriate means to that end. We would have to know more about the costs and implications of such a change. IMPLEMENTATION --------------------------------------------------------------- Section 26:2.2.3 Partially Implemented. According to IRS officials, IRS has expanded the customer service standards listed in the NPR accompanying report on improving customer service from four to eight, and will publish the standards in the tax packages mailed to taxpayers in January 1995. The eight standards were included in the IRS Customer Service Plan, published in September 1994, and were to be displayed on a poster wherever possible in IRS offices and volunteer assistance sites. A communications strategy is being developed to provide news releases and fact sheets publicizing and explaining the standards. Treasury Department officials said the IRS and the Treasury Department have agreed that the Treasury Department should not delegate disbursing authority to the IRS for refunds made using electronic funds transfer. The FMS within the Treasury Department currently provides the service of issuing both electronic and paper refunds to taxpayers on behalf of the IRS because the IRS does not have the resources to provide this service. FMS officials said that because they provide the service of obtaining funds from the Federal Reserve Bank and issuing payments to individuals for many federal agencies, they can provide this service more efficiently than could any individual agency. Beyond efficiency concerns, FMS officials said that individual agencies do not want the responsibility of certifying that the correct amount of money is issued to the correct recipient. FMS officials also said that the Federal Reserve Bank prefers to do business with one intermediary, such as the FMS, rather than with many individual agencies. The IRS and the FMS have taken steps to speed up the electronic transmission of refund information from the IRS to the FMS to replace the practice of transmitting this data on tapes that have to be physically delivered. IRS and FMS officials said that this is an ongoing effort and could not provide a precise timeline as to when it would be completed. RELATED GAO PRODUCTS --------------------------------------------------------------- Section 26:2.2.4 None. ICS03: CUSTOMER SERVICE PERFORMANCE STANDARDS--SOCIAL SECURITY ADMINISTRATION ----------------------------------------------------------------- Section 26:2.3 As part of its participation in NPR, the Social Security Administration is publishing customer service performance standards. SSA will also obtain customer opinions on all the goals and objectives of their strategic plan, using that input to revise the goals and objectives as needed, set priorities, and establish interim objectives. ACTION ITEMS --------------------------------------------------------------- Section 26:2.3.1 1. As part of its participation in the National Performance Review, SSA should publish nationally and post in each of its offices performance standards for customer service. -- You will be treated with courtesy every time you contact us. -- We will provide you with all the information you need in order to understand SSA programs, including your own potential for benefits. -- We will also provide you with information about other social service programs that may help you. -- When you call our 1-800 service for information or help, you will reach us on the first call. 2. In addition, SSA should obtain customer opinions on all the goals and objectives of the strategic plan, using that input to revise the goals and objectives as needed, set priorities, and establish interim objectives. GAO COMMENTS --------------------------------------------------------------- Section 26:2.3.2 Agree. We endorse SSA's efforts to improve its customer service performance. We have recently completed audit work suggesting that SSA put forth sustained effort to improve management and future plans. IMPLEMENTATION --------------------------------------------------------------- Section 26:2.3.3 Partially Implemented. In February 1994, SSA instructed all of its field offices to post the recommended customer service standards on signs in both English and Spanish in a prominent, visible location. In September 1994, SSA published updated customer service standards. These standards were based on the results of SSA's customer survey activities, including focus groups, direct surveys, and comment cards. SSA officials said that SSA used 26,000 customer comment cards as the primary means to survey its customers' opinions on the goals and objectives in its strategic plan. By July 1994, SSA had received 11,355 responses. The questions on the comment cards asked the respondent to fill in blanks with the amount of time that would represent good service for different types of SSA services, such as receiving a decision after applying for retirement benefits. SSA officials said the results of the survey were to be used to update SSA's strategic plan by the end of 1995. RELATED GAO PRODUCTS --------------------------------------------------------------- Section 26:2.3.4 Social Security: Sustained Effort Needed to Improve Management and Prepare for the Future (GAO/HRD-94-22, Oct. 27, 1993). Social Security: Need to Improve Post-Entitlement Service to the Public (GAO/HRD-93-21, May 7, 1993). Social Security: Telephone Busy Signal Rates at Local SSA Field Offices (GAO/HRD-93-49, Mar. 4, 1993). Social Security: Measure of Telephone Service Accuracy Can Be Improved (GAO/HRD-91-69, Aug. 30, 1991). Social Security Downsizing: Significant Savings But Some Service Quality and Operational Problems (GAO/HRD-91-63, Mar. 19, 1991). Social Security: Little Overall Change in Telephone Accessibility Between 1985 and 1988 (GAO/HRD-88-129, Sept. 15, 1988). Social Security: Staff Reductions and Service Quality (GAO/HRD-88-97, May 13, 1988). ICS04: CUSTOMER SERVICE PERFORMANCE STANDARDS--POSTAL SERVICE ----------------------------------------------------------------- Section 26:2.4 As part of its participation in NPR, the U.S. Postal Service will expand its plans to display customer service standards in post office retail lobbies. ACTION ITEM --------------------------------------------------------------- Section 26:2.4.1 As part of its participation in the National Performance Review, the U.S. Postal Service should expand its plans to display the following standards in post office lobbies: You can expect first-class mail delivered anywhere in the U.S. in 3 days, your local mail overnight; you will receive counter service within 5 minutes; and you can get postal information 24 hours a day by calling the following local number: (appropriate local numbers will be used). GAO COMMENTS --------------------------------------------------------------- Section 26:2.4.2 Agree. We fully support the Postal Service's current initiative to develop standards to govern the provision of customer services and agree that those standards should be fully disclosed to the public. IMPLEMENTATION --------------------------------------------------------------- Section 26:2.4.3 Partially Implemented. The Postal Service has made progress in displaying the three service standards. According to Postal Service officials, although The Postal Service has had internal service targets for the delivery of first class mail for over 20 years, these standards had not been prominently displayed to postal customers. An initiative to put large geographic maps depicting overnight, 2, and 3-day service areas is in the developmental stage. The Postal Service is planning initially to display these maps in the post offices, stations, and branches of the 96 cities currently covered by the External First-Class Measurement System--an independent customer satisfaction survey. Officials told us that the Postal Service also is in the process of displaying the standard that customers will receive service at post office counters within 5 minutes. Postmasters are working toward achieving this standard and are posting the standard in each office where it has been attained. Postal Service officials said that to date 75 percent of main offices, stations, and branches had posted this standard. Officials told us that the Postal Answer Line (PAL), an automated 24-hour information source, is available in 81 major metropolitan areas, serving over 110 million postal customers. The Postal Service is planning to expand this system to include customers with rotary telephones and customers who are hearing impaired. Postal Service officials said that current policies call for post offices to publicize the PAL number where it is available in the telephone book and in brochures placed in lobbies. RELATED GAO PRODUCTS --------------------------------------------------------------- Section 26:2.4.4 U.S. Postal Service: Tracking Customer Satisfaction in a Competitive Environment (GAO/GGD-93-4, Nov. 12, 1992). ICS05: STREAMLINE WAYS TO COLLECT CUSTOMER SATISFACTION AND OTHER INFORMATION FROM THE PUBLIC ----------------------------------------------------------------- Section 26:2.5 For voluntary information collection requests directed at customers, OMB will delegate authority to approve such requests if departments certify that they will fully comply with Paperwork Reduction Act (PRA) requirements. OMB will also clarify rules on the use of focus groups and streamline renewals of previously approved survey requests. ACTION ITEMS --------------------------------------------------------------- Section 26:2.5.1 1. For voluntary customer surveys, the Office of Management and Budget will delegate its survey approval authority under the Paperwork Reduction Act to departments that are able to comply with the act. 2. The Administrator of OIRA should issue guidance on focus groups, specifically establishing under what circumstances group discussion activities would be excluded from OIRA review. 3. The Administrator of OIRA should greatly simplify and speed renewal of previously approved information collection requests (ICR) when the questions asked and the recipients of the ICR are unchanged. GAO COMMENTS --------------------------------------------------------------- Section 26:2.5.2 Generally Agree. We agree with the thrust of this recommendation to streamline the collection of customer satisfaction information. However, OMB will need to continue to coordinate agency voluntary customer surveys to minimize duplicate requests for information from citizens. IMPLEMENTATION --------------------------------------------------------------- Section 26:2.5.3 Partially Implemented. The directors of OMB and OIRA issued memoranda to department and agency heads and to OIRA Branch Chiefs and Desk Officers outlining initiatives to facilitate the clearance of customer surveys. 1. According to OIRA officials and memoranda, OIRA has not delegated its survey approval authority under the Paperwork Reduction Act to departments that are able to comply with the act. Instead, OIRA has implemented a streamlined process for providing "generic clearances" to classes of voluntary customer survey instruments proposed by agencies. For a survey to be voluntary it must be perceived as voluntary by the recipients. To obtain the generic clearance, agencies must provide OIRA with general details about the surveys it plans to do and certify that the surveys will comply with the requirements of the Paperwork Reduction Act. OIRA has committed to review agency requests for generic clearances within 2 weeks. OIRA grants the clearances for a 3 year period. However, as an agency issues a survey covered by the generic clearance, it must provide to OMB a copy of the survey, a description of how the survey will be used, and an estimate of the total hours recipients will spend completing the survey. OIRA officials said that during the past year more than 20 departments and agencies received generic clearances within two weeks compared to up to 90 days under the old process. Although OIRA initially excluded regulatory agencies from the new process, OIRA nevertheless has attempted to streamline the approval of customer surveys by regulatory agencies. 2. OMB issued guidance stating that focus groups fall within the coverage of PRA and require OMB clearance, but that a program of focus groups designed to elicit customer concerns would be a prime candidate for a generic clearance. 3. OIRA officials said that they are working to simplify and speed the renewal of ICRs when the questions asked and the recipients of the ICR are unchanged. For example, OIRA has expressed a willingness to shorten the time it reserves for public comment on ICR renewals because they are generally uncontroversial. RELATED GAO PRODUCTS --------------------------------------------------------------- Section 26:2.5.4 Paperwork Reduction: Mixed Results on Agency Decision Processes and Data Availability (GAO/PEMD 89-20, Sept. 7, 1989).