Re: Customers and stakeholders LO1541

James Moore (zoiho@digex.net)
Wed, 7 Jun 1995 09:33:01 -0400 (EDT)

Replying to LO1528 --

In my training I use the following definition to determine who the
customer is: the customer is the person or body that can make the decision
to take their business elsewhere, all others are co-suppliers.

Most of the time problems arise when co-suppliers think or act like they
are customers (i.e. internal customers, management), the task then becomes
to help them understand and act like co-suppliers.

James

On Tue, 6 Jun 1995
BIRRED@dnr.state.wi.us wrote:

> Responding to Joe Podolsky in Re: Measurement in Education LO1509:
>
> Joe says:
>
> >I have had several discussions with people in the education community about
> >who their customers really are. For example, one definition of a customer
> >might be the "economic buyer"; i.e., they who have the gold makes the rules.
>
> >How does it change our decisions, then, if we look at what the people with the
> >money want. Parents often pay for the higher education of their children.
> >What do they see as desirable outcomes? Other funding sources are scholarship
> >grants and foundations. What do they want? Etc.
>
> >And, given those thoughts, if the students aren't the customers, what are
> >they? For example, are they the "product" of the schools?
>
> These are excellent questions. In developing strategic plans and
> wrestling with implementing quality concepts, my agency has struggled with
> the distinctions among customers, clients and stakeholders. I'll try to
> distinguish them in the hope of informing this developing thread. They
> can be characterized by their distance from the process or function being
> considered, but it is important to note that they are not mutually
> exclusive.
>
> A customer is the next person in the process. There is a direct
> relationship between the person (or work unit) and the process; however,
> the customer may not be the intended recipient of the process's outcome.
>
> A client is someone for whose benefit the function is intended. There
> is a direct relationship to the outcomes, without much regard for the
> process.
>
> A stakeholder has an interest (a "stake") in the outcome of the process,
> but neither receives direct benefits from it, nor is explicitly considered
> in its design. There is an indirect relationship to the outcomes; i.e.,
> there are generally certain intervening variables that mediate that
> relationship.
>
> I've found these concepts useful in industry, education, and government,
> and I'd be happy to hear others' views. It's easy to get hung up on
> semantics, though, so I hope we can keep the discussion on the level of
> concepts and relationships.
>
> --
> David E. Birren Phone: (608)267-2442> Wisconsin Dept. of Natural Resources Fax: (608)267-3579
>Internet: birred@dnr.state.wi.us