Leadership Communication

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Leadership Communication

  1. 1. Services Marketing Chapter 15: Striving for Service LeadershipSlide © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 15 – Page 1
  2. 2. Overview of Chapter 15 Services Marketing  The Service-Profit Chain  Integrating Marketing, Operations, and Human Resources  Creating a Leading Service Organization  In Search of Human LeadershipSlide © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 15 – Page 2
  3. 3. Services Marketing The Service-Profit ChainSlide © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 15 – Page 3
  4. 4. The Service-Profit Chain Services MarketingSlide © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 15 – Page 4
  5. 5. Links in the Service-Profit Chain Services Marketing 8. Top 2. Customer 5. Employee 6. Employee 1. Customer 3. Value 7. Internal management satisfaction 4. Quality and loyalty drives satisfaction loyalty drives drives quality drives leadership drives productivity service drives profitability customer employee underlies the customer drives value quality and employee and growth satisfaction satisfaction chain’s loyalty productivity loyalty successSlide © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 15 – Page 5
  6. 6. Firm Value Created by Customer Satisfaction Services MarketingSlide © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 15 – Page 6
  7. 7. Qualities Associated with Service Leaders Services Marketing  Understands mutual dependency among marketing, operations, and human resource functions of the firm  Has a coherent vision of what it takes to succeed  Strategies are defined and driven by a strong, effective leadership team  Responsive to various stakeholders  Value created through customer satisfactionSlide © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 15 – Page 7
  8. 8. Services Marketing Integrating Marketing, Operations, and Human ResourcesSlide © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 15 – Page 8
  9. 9. Defining the Three Functions Services Marketing • Target “right” customers and build relationships Marketing • Offer solutions that meet their needs Function • Define quality package with competitive advantage • Create, deliver specified service to target customers Operations • Adhere to consistent quality standards Function • Achieve high productivity to ensure acceptable costs Human • Recruit and retain the best employees for each job Resource • Train and motivate them to work well together • Achieve both productivity & customer satisfaction FunctionSlide © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 15 – Page 9
  10. 10. Reducing Interfunctional Conflict Services Marketing  One challenge is to avoid creating “functional silos”  High-value creating enterprises should be thinking in terms of activities, not functions  Top management needs to establish clear imperatives for each function that defines how a specific function contributes to the overall mission  Interfunctional transfers will  Appointing formally designated provide a holistic perspective individuals to integrate for individuals objectives  Establishing integrated project  Internal marketing and training teams  Commitment of top  Having interfunctional service management delivery teamsSlide © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 15 – Page 10
  11. 11. Services Marketing Creating a Leading Service OrganizationSlide © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 15 – Page 11
  12. 12. From Losers to Leaders: Four Levels of Service Performance Services Marketing • Bottom of the barrel Service • Patronized because there is no viable alternative • New technology introduced only under duress; uncaring Losers workforce • Dominated by a traditional operations mindset Service • Unsophisticated marketing strategies • Consumers neither seek out nor avoid them Nonentities • Clear market positioning strategy such that customers Service within target segment(s) seek them out • Proactive, investment-oriented approach to HRM Professionals • The crème da la crème of their respective industries Service • Names synonymous with outstanding service, customer delight Leaders • Employees are empowered and committedSlide © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 15 – Page 12
  13. 13. Four Hurdles for Moving up the Performance Ladder Services Marketing  Cognitive Hurdles  People cannot agree on causes of current problems and the need for change  Resource Hurdles  Firm is constrained by limited funds  Motivation Hurdles  Prevent rapid execution when employees are reluctant to change  Political Hurdles  Organized resistance forces in forms from powerful vested interests seeking to protect their positionsSlide © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 15 – Page 13
  14. 14. Leading Change in a Service Organization Involves 8 Stages Services Marketing 6. Producing 7. Building 1. Creating a sense sufficient short-term momentum and of urgency to results to create using that to tackle develop the impetus credibility and tougher change for change counter cynicism problems 8. Anchoring new 2. Putting together a 5. Empowering behaviors in strong enough team employees to act on organizational to direct the process that vision culture 3. Creating an appropriate vision of 4. Communicating where the that new vision organization needs broadly to go Source: John KotterSlide © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 15 – Page 14
  15. 15. Services Marketing In Search of Human LeadershipSlide © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 15 – Page 15
  16. 16. Leadership vs. Management Services Marketing Leadership Management • Development of vision and strategies, • Keeps current situation operating and empowerment of people to Setting direction through planning, budgeting, Planning overcome obstacles, make vision organizing, staffing, controlling, and • happen visions and strategies that Creating problem solving • A management process designed to describe a business, technology, or • Emphasis on emotional and spiritual • produce orderly results, not change Emphasizes physical resources resources culture corporate • Works through hierarchy and systems • Works through people and culture In terms of what it should become • Keeps current system functioning over long term and articulating • Produces useful change, especially feasible way of achieving goal non-incremental changeSlide © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 15 – Page 16
  17. 17. Individual Leadership Qualities Services Marketing  Love for the business  Make communication a priority  See service quality as foundation for  Work with a team on competing decision-making  Recognize key role of  Know when to change employees when necessary  Driven by a set of core  Walk the talk values they pass onSlide © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 15 – Page 17
  18. 18. Leadership, Culture, and Climate Services Marketing Leadership  Leadership traits are needed of everyone in supervisory or managerial positions, including those heading teams Organization Culture  Represents the shared  Perceptions/themes regarding what is important  Values, beliefs, and assumptions  Shares understanding about what works and what doesn’t work  Styles of working and relating to others Organizational Climate  The tangible surface layer on top of the organization’s underlying culture that requires radical rethinking of:  HRM activities  Operational procedures  Firm’s reward and recognition policiesSlide © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 15 – Page 18
  19. 19. Summary Services Marketing  Service profit chain provides summary of relationships between key variables that explain service leadership  Four levels of service performance  Service losers  Service professionals  Service nonentities  Service leaders  Service leadership must cut across marketing, operations, and human resources  Leaders need to understand the difference between leadership vs. management, as well as setting direction vs. planning  Leaders play a big part in nurturing an effective organizational culture that moves an organization towards service leadershipSlide © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 15 – Page 19

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