Service Design & Management


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Service Design & Management

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    it is a nice organized slide that reflect clear thinking methodology...can you help me to find more concentrated presentation on service design methodology
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  • Service Design & Management

    1. 1. Service Design and Management
    2. 2. Overview <ul><li>Defining &quot;service&quot;? </li></ul><ul><li>Service-Product Mix </li></ul><ul><li>Service Guarantees </li></ul><ul><li>Service Cycle </li></ul><ul><li>Customer Contact </li></ul><ul><li>Service Matrix </li></ul><ul><li>Employees and Service </li></ul><ul><li>Strategy: Focus & Advantage </li></ul><ul><li>Service Blue printing </li></ul><ul><li>Fail-safe Methods </li></ul><ul><li>a Well-Designed Service Delivery System </li></ul>
    3. 3. True or false? <ul><li>Everyone is an expert on services??? </li></ul><ul><li>Services are idiosyncratic? </li></ul><ul><li>Quality of work is not quality of service? </li></ul><ul><li>Most services contain a mix of tangible and intangible attributes? </li></ul><ul><li>High-contact services are experienced, goods are consumed? </li></ul><ul><li>Managing services marketing, personnel and operations know-how? </li></ul><ul><li>Services involve cycles of transactions involving face-to-face encounters, information exchange, social and mechanical interaction? </li></ul>
    4. 4. Service – defined by <ul><li>Tangible and intangible elements </li></ul><ul><li>Most services include elements of products </li></ul><ul><li>The customer is involved in delivery </li></ul><ul><li>Simultaneous production and consumption </li></ul><ul><li>Problems in defining and measuring </li></ul><ul><ul><li>quantity & quality </li></ul></ul><ul><ul><li>productivity </li></ul></ul><ul><li>Demand variances (peaks-troughs) are significant </li></ul><ul><li>Other manufacturing-service differences? </li></ul><ul><li>Service Design Issues? </li></ul>
    5. 5. Product, information and service processing <ul><li>Where is the service in? </li></ul><ul><ul><li>Fertilizers, furniture, vehicles, personal computers, food, pharmaceuticals </li></ul></ul><ul><li>Information services? </li></ul><ul><ul><li>accountants, lawyers, call centres, insurance offices </li></ul></ul><ul><li>Health and pleasure services? </li></ul><ul><ul><li>Beauty , hospitals, health farms, physiotherapists, restaurants. </li></ul></ul>
    6. 6. Product Service Mix 100% 75% 50% 25% 0% 100% 75% 50% 25% Goods Services Self-service green grocer Car manufacture Carpet sales and fitting Pizza Hut Cordon-bleu restaurant Car maintenance Hairdressing Consulting services
    7. 7. Place and approach <ul><li>Place/virtual/remote </li></ul><ul><li>Facilities-based </li></ul><ul><li>Field-based </li></ul><ul><li>Internal (client-server) </li></ul><ul><li>Approaches </li></ul><ul><ul><li>production line </li></ul></ul><ul><ul><li>self-service </li></ul></ul><ul><ul><li>personal attention </li></ul></ul><ul><li>High and Low contact </li></ul>Customer Service Strategy Staff Systems
    8. 8. Service Design Questions <ul><li>Who is our customer? </li></ul><ul><li>How do we differentiate our service? </li></ul><ul><li>What is our service package & operating focus </li></ul><ul><li>What are the processes, staff, facilities? </li></ul><ul><li>Can we protect the service? </li></ul><ul><li>Aspects of service package - defined by prior staff training </li></ul><ul><li>Speed of change of service offerings </li></ul>
    9. 9. Service Matrix Interaction & Customisation Low High Low High EasyJet DHL/FedEx Motel Golf course Retailing Wholesaler Driving school Retail bank Solicitor Doctor Personal trainer Accountant Architect Hospital? Internet banking Repair services Labour intensity
    10. 10. Banking - High/Low contact Low High Facility location Facility layout Product design Process design Scheduling Capacity planning Staff skills Quality control Time standards Wages Capacity planning Near customer According to expectation? Ambiance, user friendly? Intimate stages ? Full? Lost customer ? ? ? Time-based pay? Capacity=peak demand ? ? ? ? ? ? Technical skills only? Measurable, fixed Forms = surrogates - tight times Output-based pay? ?
    11. 11. Heroes and villains Furious litigation Complainant Dissatisfied Satisfied Delighted Villains Heroes Recovery planning Club Class member What is ServQual? Customers' experience performance
    12. 12. Operating Focus <ul><li>Customer treatment - friendliness, help </li></ul><ul><li>Speed and convenience of delivery </li></ul><ul><li>Price and payment </li></ul><ul><li>Variety of services (singular or one-stop shop) </li></ul><ul><li>Quality of tangibles e.g. the pie, the insurance </li></ul><ul><li>Unique skills - flambe, hair cut, roofer </li></ul>
    13. 13. Staff, Operations, Innovation and Contact Skills Technol innovation Operations Focus Clerical Automation IT Forms documents Helping Routing On demand Verbal DB queries eMail Lines responses Procedural Application software Control flows Craft/trade Self-serve Manage capacity Analytical Teams Client interaction
    14. 14. Service Design, Quality and Intangibles <ul><li>Quality (measured by deliverer or customer) depends on </li></ul><ul><ul><li>Tangibles and intangibles in the package. </li></ul></ul><ul><ul><li>Controls to improve utilisation & reduce costs. These may </li></ul></ul><ul><ul><ul><li>simplify & routinise to reduce consumer choice. A, B & C - take-or-leave-menus. </li></ul></ul></ul><ul><ul><li>But &quot;I do not want a standard package&quot;. </li></ul></ul><ul><ul><li>&quot;Fine - but pay more. Even then we may not be able to control quality&quot;. </li></ul></ul>
    15. 15. Service Design Issues <ul><li>A. Engineer for efficiency and utilisation </li></ul><ul><ul><li>Routinisation </li></ul></ul><ul><ul><li>Table d'hote packages </li></ul></ul><ul><ul><li>Impersonal vs. contact </li></ul></ul><ul><ul><li>Move from point of contact to back-office </li></ul></ul><ul><ul><li>Automate e.g. ATMs, tele-sales & call-centres, tracking systems </li></ul></ul><ul><li>B. Design from a customer service perspective (content + quality of interaction/experience) </li></ul><ul><ul><li>enrich the experience </li></ul></ul><ul><ul><li>balance perceived quality with costs of service </li></ul></ul><ul><ul><li>customer-orientation: research & specify relationships </li></ul></ul><ul><ul><li>what is a TQM approach to service design? </li></ul></ul><ul><ul><li>specify service objectives and bench-mark against rivals </li></ul></ul><ul><li>A & B - not mutually exclusive. </li></ul>
    16. 16. Service design and strategy <ul><li>Specify </li></ul><ul><ul><li>the tangible service elements/steps </li></ul></ul><ul><ul><li>customer participation </li></ul></ul><ul><ul><li>waiting (cannot stock a service) </li></ul></ul><ul><ul><li>the intangible aspects </li></ul></ul><ul><ul><li>how efficiencies must be secured </li></ul></ul><ul><ul><li>quality assurance measures </li></ul></ul><ul><li>Move front shop ==> back shop </li></ul><ul><li>take the customer out of the process </li></ul><ul><li>use the customer as labour </li></ul><ul><li>increase staff flexibility to balance capacity & demand </li></ul><ul><li>&quot;Service managers face problems that may be insignificant to production managers who have much to learn from the service ethic&quot;. </li></ul>Strategic objectives - best - cheapest - quickest - most innovative - brand loyalty - repeat business
    17. 17. Engineering Strategies for Services <ul><li>Front shop/Back room service design may seek to minimise customer participation </li></ul><ul><ul><ul><li>&quot;front shop&quot; for face-to-face elements. </li></ul></ul></ul><ul><ul><ul><li>select activities to move to &quot;back-room&quot; and apply conventional production principles </li></ul></ul></ul><ul><ul><ul><li>no customer access to back-room? </li></ul></ul></ul><ul><li>Internet banking </li></ul><ul><li>On-line help desk </li></ul>
    18. 18. The Holiday to Aghios Nikolios <ul><li>The Brochure - vetting every entry </li></ul><ul><ul><li>travel and transfer arrangement </li></ul></ul><ul><ul><li>hotel & apartment </li></ul></ul><ul><ul><li>check resort/villa environment before brochure publishing: disco, steps to climb etc. </li></ul></ul><ul><li>Representatives </li></ul><ul><ul><li>visit daily + available for clients </li></ul></ul><ul><ul><li>ability to act - fielding the problem (no prejudice) </li></ul></ul><ul><ul><li>narrow margins - one refund Ë flood. </li></ul></ul><ul><ul><li>minor complaints but clients are trapped. </li></ul></ul><ul><ul><li>be irritated or pay extra to fly home </li></ul></ul><ul><li>The flight home </li></ul>
    19. 19. Fail-safe Services - Poka-Yoke methods <ul><li>Avoid mistakes becoming service defects </li></ul><ul><li>Apply fail-safe methods to 3T? </li></ul><ul><li>Physical and visual warnings </li></ul>Was task done correctly? What was attitude and responsiveness of staff? What tangibles or environmental features were missing?? Task Tangibles Treatment
    20. 20. Air Travel Service Elements Leave Airport Collect Bags Arrives at airport Request flight information Make reservation Check in Proceed to gate & security check Board aircraft In-flight service Leave aircraft Poke Yoke Exercise: Filling in the missing details
    21. 21. Gaffs - Mea Culpa? <ul><li>Waitress chewing gum </li></ul><ul><li>Nurse did not wash hands </li></ul><ul><li>Wine is corked </li></ul><ul><li>Food is cold </li></ul><ul><li>Booked into wrong hotel </li></ul><ul><li>Passenger forgets passport </li></ul><ul><li>Passenger late for check-in </li></ul><ul><li>50 minutes between placing order and service to table </li></ul><ul><li>Lost record card at clinic </li></ul><ul><li>etc </li></ul>
    22. 22. Strategy: Focus & Advantage - Performance Priorities <ul><li>Product/service innovation </li></ul><ul><li>Cost leadership </li></ul><ul><ul><li>Treatment of the customer </li></ul></ul><ul><ul><li>Speed and convenience of service delivery </li></ul></ul><ul><ul><li>Pricing and pricing structure </li></ul></ul><ul><ul><li>Variety - pick and mix, uniqueness, modularisation </li></ul></ul><ul><ul><li>The quality of the tangible goods </li></ul></ul><ul><ul><li>Awareness and valuation of the intangibles </li></ul></ul><ul><ul><li>Unique skills that constitute the service offering </li></ul></ul>ServQual and Benchmarking
    23. 23. Internal Client-server Relationships Internal Server Internal Server Internal client and server External client Delight the customer
    24. 24. Customers as staff <ul><li>self-service - flexibility in coping with demand. </li></ul><ul><li>separate front shop/back-room - enabled by technology. </li></ul><ul><ul><li>Shelf filling vs. wand goods into trolleys. </li></ul></ul><ul><ul><li>Automatic self-service banking </li></ul></ul><ul><ul><li>bank card payment at the petrol pump </li></ul></ul><ul><li>remove the need for service attendants. </li></ul><ul><li>self-services </li></ul><ul><ul><li>open longer </li></ul></ul><ul><ul><li>less waiting time </li></ul></ul><ul><ul><li>cost reductions for the service provider </li></ul></ul><ul><ul><li>lower prices </li></ul></ul><ul><li>some customers </li></ul><ul><ul><li>miss the help and advice. </li></ul></ul><ul><ul><li>become excluded - socially neglected </li></ul></ul><ul><li>Where else can they to go? </li></ul>
    25. 25. Customer Contact and staffing <ul><li>Less skilled staff? </li></ul><ul><ul><li>More training required. </li></ul></ul><ul><ul><li>Loyalty & competence as key quality elements? </li></ul></ul><ul><li>What do we mean by “customer contact”? </li></ul><ul><ul><li>Signs of inefficiency in customer contact? </li></ul></ul><ul><li>Differentiate high - low contact services </li></ul><ul><li>Quality and failure costs. The service level must be delivered. Identify the levels and components that customers value </li></ul><ul><li>Cost the components and evaluate </li></ul><ul><ul><li>contribution of quality? </li></ul></ul><ul><ul><li>how much customers will pay? </li></ul></ul>
    26. 26. Services and staff flexibility <ul><li>Excess capacity or rely on PTs to balance capacity - demand? </li></ul><ul><ul><li>More PTs ==> increase in workforce size. </li></ul></ul><ul><ul><li>unfamiliar with products & systems, less skilled. </li></ul></ul><ul><ul><li>Labour turnover and reliability - Vicious circle. </li></ul></ul><ul><ul><ul><li>Few hours, move on quickly - why train? </li></ul></ul></ul><ul><ul><ul><li>Need quality staff but investment not justified </li></ul></ul></ul><ul><ul><li>So we live with unskilled, uncommitted staff. </li></ul></ul><ul><li>Remedies? </li></ul><ul><ul><li>multi-skilling and rewards </li></ul></ul><ul><ul><li>back-room staff move to front shop at peak time </li></ul></ul><ul><ul><li>skeleton crew at the back </li></ul></ul><ul><ul><li>Success depends on sensitivity of backroom tasks </li></ul></ul>
    27. 27. Guarantees and service-level agreements <ul><li>Promise of service satisfaction underpinned by actions </li></ul><ul><li>Monitoring and controlling </li></ul><ul><ul><li>quantified standards </li></ul></ul><ul><ul><li>subjective standards - meaningful to customer </li></ul></ul><ul><ul><li>99% reliability </li></ul></ul><ul><li>Pay-out/penalties on failure </li></ul><ul><li>Unconditional - no small print </li></ul><ul><li>Easy to understand and to communicate </li></ul><ul><li>Straightforward to invoke </li></ul><ul><li>Flight overbooked </li></ul><ul><li>Train late </li></ul><ul><li>ISP downtime </li></ul>
    28. 28. Well-Designed Service System <ul><li>Each element -consistent with operating focus </li></ul><ul><li>user-friendly </li></ul><ul><li>robust </li></ul><ul><li>designed for consistent performance by staff & systems </li></ul><ul><li>Seamless links between back & front office. </li></ul><ul><li>evidence of service quality is visible - customers &quot;see&quot; the value provided. Credible? </li></ul><ul><li>cost-effective. </li></ul>
    29. 29. Principles - Lyth and Johnston (1988) <ul><li>balance service efficiency with requisite quality. </li></ul><ul><li>Focus on </li></ul><ul><li>intangibles within service package </li></ul><ul><li>the customer viewpoint </li></ul><ul><li>critical role of customer contact staff & how they are supported. </li></ul><ul><li>performance monitoring </li></ul><ul><li>internal consistency within the service system </li></ul>
    30. 30. L & J: Nine Service Design Principles <ul><li>1. define service concept clearly & in detail. </li></ul><ul><li>2. evaluate image concept </li></ul><ul><ul><li>good service labelled poor if image out of line with customer expectations </li></ul></ul><ul><ul><li>trace back to service presentation </li></ul></ul><ul><li>3. study the customer view (be a customer) </li></ul><ul><ul><li>manage expectations & perceptions during & after </li></ul></ul><ul><ul><li>break out of designer & operator &quot;bounded rationality & familiarity&quot;. </li></ul></ul><ul><li>4. Top management commitment to service quality </li></ul><ul><ul><li>Mission + clear objectives. </li></ul></ul><ul><ul><li>Quality: inextricably linked to staff-customer contact. </li></ul></ul><ul><ul><li>MbyExample: top mgt. lip-service undermines credibility </li></ul></ul><ul><li>5. Define functional & technical quality standards </li></ul><ul><li>tangibles - as for physical products. </li></ul><ul><li>intangibles & subjective elements </li></ul><ul><ul><li>key ingredients in package e.g. cleaning, waiting, manner/appearance, skills </li></ul></ul><ul><ul><li>share understandings, recruit, train & reward for delivery expectation. </li></ul></ul>ServQual
    31. 31. L & J: Nine Service Design Principles <ul><li>6. examine existing procedures and systems </li></ul><ul><li>&quot;re-design&quot; to support front-end providers. </li></ul><ul><li>service the servers via back-room procedures & support </li></ul><ul><li>7. develop standard procedures to control </li></ul><ul><li>bankers (routinise), semi-controllables & unpredictables </li></ul><ul><ul><li>routines may not fit random events </li></ul></ul><ul><ul><li>if safety critical - allocate resources </li></ul></ul><ul><ul><li>emphasise training for the unexpected, communicate & empower </li></ul></ul><ul><li>8. systems must support the good service objectives. </li></ul><ul><li>treat customer service staff as internal customers. </li></ul><ul><li>9. implement standards & performance monitoring </li></ul><ul><ul><li>Or drift, loose energy & deteriorate. </li></ul></ul><ul><ul><li>inspection activities are essential </li></ul></ul><ul><ul><li>action to restore and revitalise where needed. </li></ul></ul><ul><ul><li>Inspection/feedback: SPC, surveys, panels, &quot;mystery&quot; shoppers </li></ul></ul>