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SERVICE
DESIGN
HANDBOOK
a book about how to do stuff
A (in)complete guide from BBH Stockholm.
doing something for someone
solving problems to delight humans & grow brands
Turning empathy into business success
Why Service Design?
1.1	 It’s all about the experience
1.2 	 Start with your customers
1.3	 A product or a service
1.4 	 Experience is the brand
1.5 	 Tools for an empathic mindset
Finding new opportunities
2.1 	 What are customer experiences
	 made of?
2.2 	 Why, why, why?
2.3	 Mapping the customer journey
2.4 	 Scale and scope
2.5 	 Pains into opportunities
2.5 	 Disrupting structures
Ingredients of business success
3.1 	 Is there a business case?
3.2 	 Show me the money
3.3	 Is it doable?
3.4 	 Evaluation of ideas
3.5 	 Go or No go?
3.6 	 Minimum lovable service
3.7 	 Building a roadmap
Recipe for success
4.1 	 Karma chameleon
4.2 	 Start with a purpose
4.3	 Organise around experience
4.4 	 Create a trusting environment
Famous last words
Glossary
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Designing business breakthroughs.
BBH
STOCK-
HOLM
5
We’re a strategic design firm tailored for the
age of mobility. We work in the intersection of
business, cultural insights & digital innovation
and are fuelled by an obsession for true value
creation. We operate in tight, cross-disciplinary
teams and work side-by-side with our clients
to develop experiences that tie corporate
objectives with human needs and desires.
We design systems of services and digital
products that grow brands and delight humans.
We’re part of BBH - one of the world’s most
creative companies - and collaborate with
our sister agencies across the globe to serve
a number of the world’s most loved brands
such as: Absolut, Audi, Barclays, IKEA, Nike,
Playstation, Ray-Ban, Tesco, Uber & Volvo.
6
Turning empathy into business success
We are stellar when it comes to designing
digital products and services. But actually, the
interface is just the tip of the iceberg and a lot
happens under the surface before any sketch is
drawn or line of code is written.
This handbook guides you to the tools and
methods of improving customer experiences
and leveraging brand value with seamless
customer journeys. It shows how we can use
customer journey understanding as a tool to
empathise and find new opportunities to delight
customers. We reveal our recipe for success for
creating products and services that are not only
desirable, but also make business sense and
are feasible from an organisational and technical
perspective.
We also go above and beyond the hard facts
and take into account the ecosystem in which
these services are built — the organisation.
Design thinking, in other words creative problem
solving through empathy and experimentation,
requires a supportive organisational structure,
agile leadership and a culture that encourages
entrepreneurship and initiative.
We hope you enjoy reading our handbook as
much as we enjoyed compiling it!
7
We try not to sound smart and use difficult
words just for the sake of it, but when we do,
have a look at the glossary at the end of this
book.
Pro tip
8
1.1 	 It’s all about the experience
1.2 	 Start with your customers
1.3	 A product or a service
1.4 	 You don’t own your brand
1.5 	 Tools for a empathic mindset
1.1 	 It’s all about the experience
1.2 	 Start with your customers
1.3	 A product or a service
1.4 	 Experience is the brand
1.5 	 Tools for a empathic mindset
10
It’s all about the experience
Have you ever struggled when booking that flight ticket, finding the right
bank person to talk to about mortgage or getting through to a customer
support line? Frustrating, right?
In an age where businesses offer similar services and products, the
differentiating factor has become the experience. That’s why businesses
are looking for new ways to improve the overall customer experience in
order to distinguish themselves from the competition.
This is where service design comes in. It provides you with the tools to
make your offering more usable, efficient and desirable.
It’s a human-centered and holistic approach for innovation, which by
nature starts with people. In other words; what is important to your
customers is important to your business.
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Start with your customers
Service design provides you with a set of tools and methods to implement and
apply design thinking in your organisation.
Through a constant dialogue with your customers, service design gives you
invaluable insights to improve the quality of your service. Whereas UX and
interaction design methods traditionally look into the usability of a product,
service design takes into account the entire customer journey, including all touch
points that congregate the service experience.
Yet central to service design, desirability is only a starting point in the creation
of new services and it needs to be combined with tools that consider feasibility
and viability as well. At BBH, we see it as the only way to build long term value
for customers and businesses. This, to us, is service design.
15
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A product or a service?
So what is the difference between a service and a product? The old school way to make
this distinction is to say that products are tangible, whereas services are intangible. So
basically, a product is something you can drop on your foot. But in which category do
digital products, such as websites and applications fall? The answer is both.
Thanks to servitisation, one can state that neither products, nor services in their purest
form exist anymore. Many companies’ offerings actually consist of combinations of
intertwined products (goods) and services. Websites and applications are a part of
these product service systems, and should therefore be designed from a holistic
perspective.
The bottom line is that our customers do not care what terminology is used, as long
as interactions between different touch points work seamlessly. Therefore, in this
handbook we will also use these terms interchangeably. (Unless we wish to make a
point.)
17
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Experience is the brand
Your brand is the customers’ collected view of you and your business.
It’s not enough to say what you do for your customers, it’s what you
actually do that matters. That’s why you need to think about the whole
customer experience and innovate through both, compelling storytelling
and actually living and breathing the story in each touchpoint. As we
experience brands more and more through digital touchpoints, in many
cases the digital user experience becomes the primary mediator of brand
value.
If you can make customers feel a stronger connection with you, it will have
a positive effect on the bottom line. Your brand is not anymore what you
say you do, it’s how you make your customers feel.
19Source: Magids, Zorfas & Leemon, Harvard Business Review, 2015
20
QUOTE
21
“BBH’s digital experience heritage is a true
asset as it enables genuine understanding
of how communication and digital services
play a key role for our business and our
customers all the way from strategy to
delivery.”
Magnus Larsson, CEO, Rebtel
22
Tools for an empathic mindset
Service design is, by nature, human-centered.
All the methods and tools that are used in the design process take the
perspective of someone who will actually come to use the service – be it
customers, employees, patients, suppliers or someone else. In order to create
a positive impact for them, you need to understand what they are trying to
accomplish and why.
Having an empathic mindset that permeates your organisation is key to
designing solutions that people actually want to use. In our experience, this is
one of the hardest things to accomplish. The good news is that the methods,
tools, templates and other artefacts that are used in the service design process
can help break down the silos and create an organisation that places customer
needs first. In this handbook, we’ll show you a few ways to get there.
23
If you are a manager, think about how new
ideas and customer needs are identified and
presented within you company.
Are you actively trying to find potential issues?
Can employers openly, safely and systematically
discuss ideas on how to improve?
If you are an employee, how do you feel the
organisation understands the user needs?
Do you know who to turn to when you have an
idea and do you feel listened to?
Pro tip
24
TAKE
AWAYS
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Service design...
»» Helps your organisation become more customer centered and find the
right problems to solve
»» Improves the quality of your services and customer experience
»» Ensures desirability, feasibility and viability of new opportunities
»» Strengthens your brand
»» Provides you with practical tools and methods for human centric
business innovation
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2.1 	 What are customer experiences
	 made of?
2.2 	 Why, why, why?
2.3	 Mapping the customer journey
2.4 	 Scale and scope
2.5 	 Pains into opportunities
2.5 	 Disrupting structures
28
When we talk about customer experiences, what do we actually mean? We believe
that outstanding customer experiences arise as the sum total of seamless interactions
with organisation’s products and services. The line between digital and physical touch
points is non-existent, and unfortunately, the weakest link in the entire experience
sets a tone for the relationship with your customer. Your brand value is thus affected
by the entire experience and emotional relationship you build with your customer.
That’s why we need to look at services from a holistic point of view and focus on the
entire process our customers go through. What happens before and what happens
after? In which context and state of mind do our customers find themselves in
when interacting with the touch points and messaging and how does this affect the
experience?
Remember, your brand is only as strong as the weakest link in the entire
customer journey.
What are customer experiences made of?
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Why, why, why?
In order to create services that are desirable, you need to find out what
your customers really need. Be emphatic, walk a day in their boots. Only
by diving deep, and understanding the core needs of your customer, you
can really call yourself empathic.
For example, as a car dealer, is it mobility, status or the feeling of freedom
you are selling? And can this core customer need vary during different
stages of the buying process? To find out what your customers really
need, the trick is to ask “Why?” enough times to find the underlying need.
Finding the so called “real problem” is often referred to as reasoning
from first principle. It usually comes from deep understanding of your
customers, and is the result of asking “why?” a lot. Solve those “real”
problems, and you may just have disrupted an entire business.
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Owning a car.
We all know it’s a hassle, but also expensive to
own a car - servicing, insurances, taxes, parking
fees, you name it. But why do people still own
cars? To get from A to B. Ok, why not take a taxi?
Because owning a car provides the car owner
with a feeling of freedom and independency,
even status. Everything we consume and
own becomes an extension of our identity.
Why? Because we need to belong to a socio-
economical group. Why? Because that is our
core need, to belong.
So let’s build a new brand around that!
Example
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Mapping the customer journey
What are our customers doing, thinking and needing in different stages of the
journey? Are we truly giving them what they need? Could we be doing even
more to help them accomplish their goals?
A user’s experience of a service can be mapped in a customer journey, which
lays a foundation for a service blueprint. It can fill many purposes depending
on how it is used; for an existing service, it helps everyone understand how a
service works, finding pain points and identifying opportunities on how or where
to improve. As a tool for ideation, it could help visualise a new opportunity or idea
for how a service could work.
Both the use and the process of creating a customer journey map can differ a
lot from service to service. The human-centered nature of journey maps helps
organisations experience the service through the eyes of their customers, which
is an effective way to gain an understanding and empathy for everyone involved.
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Scale and scope
In order for a customer journey map to be useful, deciding on a scale and scope
is essential. Sometimes you may explore a service over several years, and
sometimes you’re looking at something customers experience in a minute.
The scope, on the other hand, is needed in order to decide what to include or
exclude. For example, when building a new service that doesn’t yet exist, it is
crucial to understand what happens “behind the scenes” - the so called enablers
for the service to work. However, when identifying the pain points in the current
journey, such level of detail might not be needed.
That’s why we work with two different kinds of customer journeys maps.
One concentrates on the existing customer journey and aims to identify its pain
points. The other one focuses on new journeys that often stem from improving
the pain points of the existing journeys.
35
Understanding how a bank customer
experiences a loan might be something that
needs to be explored over several years. On
the other hand, booking a meeting with a bank
representative is most likely something you
can do in a few minutes. Both examples can be
visualised on a Customer Journey Map, with an
appropriate level of details for each.
Similarly, identifying the pain points in today’s
experience of booking a meeting with a bank
representative may not need mapping out all
the enablers in the existing experience. But
when ideating new journeys and better ways
to satisfy the core needs of our customers, we
need to ensure that we have all the technical
and organisational enablers in place, such as
booking systems and a healthy, smiling bank
representative.
Example
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Pains into opportunities
When trying to improve the existing customer experience of your service, we
recommend starting by mapping out the holistic customer journey that entails
the entire life cycle of your customer relationship.
Customer journey
Start describing all stages in your customers
journey.
Touchpoints
Map out which touchpoints are involved in
today’s customer journey.
Todays experience
Evaluate how your users experience the
different stages of the journey and establish an
experience curve to visualise the pain points of
today.
Core user needs
Map the basic needs of the customer during
their journey to answer the question: what do
our customers really need? Always better to ask
your users than guess.
Opportunities
By comparing today’s customer experience
and the core user needs in different steps you
are able to identify new opportunities to better
serve your customers.
37
Start with focusing on the pain points in today’s
experience. According to our experience it is
these pain points that are also your biggest
opportunities to shine, the moments of truth that
can pivot your customer experience to a whole
new level.
Pro tip
38
39
books.bbhstockholm.se/servicedesign
A service blueprint is a process
map that illustrates the entire
service delivery process from the
customer’s perspective.
40
Disrupting structures
So you’ve done your homework, you’ve found the weak links in your customers’
journey and identified new opportunities. But could you be doing even more for
your customer?
Have you considered what happens before your customer gets in touch with
your services? Or what happens after your job is done? Could you extend the
customer journey and aggregate services?
Again, focus on finding the core needs of your customers and think beyond the
box - the box being your service - when finding solutions to your customers
problems.
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QUOTE
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“BBH Stockholm has not only successfully
helped us transform the way customers
purchase cars, they are also future
proofing vital parts of our business.”
Markus Lundström, Digital Director, Volvo Car Sweden
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TAKE
AWAYS
45
»» Ask “Why?” a lot to find the right problems to solve
»» Start by mapping out the existing customer journey in its entirety
»» Identify pain points in today’s customer experience and turn them into
opportunities
»» Define core user needs in each step of the journey and innovate new
ways to satisfy them
»» Go beyond your product to serve your customers even better
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3.1 	 Is there a business case?
3.2 	 Show me the money
3.3	 Is it doable?
3.4 	 Evaluation of ideas
3.5 	 Go or No go?
3.6 	 Minimum lovable service
3.7 	 Building a roadmap
48
Is there a business case?
When choosing ideas and opportunities to take forward, the formula is rather
simple: The ideas need to add value for both your customers and your business.
But the million dollar question is, where to start? We find ourselves in a classic
chicken-or-egg situation here. And the sneaky answer is, start with identifying
a market opportunity. This, in turn, can be based on an unsatisfied customer
need or a trend analysis, but should always be completed with competitive
benchmarking. Unless there’s a good product-market-fit, even the best ideas
won’t fly.
Desirable solutions that are also viable create a solid base for you business.
But in order to stand out, you need to be unique - or at least do things better
than your competition. Think different!
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Show me the money
Your ideas could be plenty, but knowing how to focus your investment can have a
massive impact on both cost, ROI and how much you can actually cope with. The
starting point should always be your key business objectives - what are the key
priorities right now? A great place to start is to understand what customer touch
point(s) to optimise in order to best impact your income statement.
You do this by sketching out the high level interaction points in your new customer
journey and the desired interactions for your desired target audience.
By mapping out these interactions you will see which touch points your customers
(or employees) need to convert from in order to reach the desired objectives you
are designing for – this is true whether you want people to subscribe, make a
purchase or apply for a job. Make sure you include the whole journey.
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Now it’s time to fireup a spreadsheet and turn these interaction points into
column labels. They become the base of your conversion funnel in your
business case. Do you know your average purchase order or the value of
one customer relationship, the customer lifetime value? Great! Can you see
where you’re bleeding or identify room for improvement?
Behold, you now see where you could optimise conversion and where to
focus your service design efforts!
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Is it doable?
Have you identified a new opportunity that ticks all the desirability boxes and
gives bang for your buck? Congratulations! Unfortunately ideas aren’t worth
anything without the possibility to execute them. For this reason you need to
make sure that your organisation is able to deliver the new experience.
We suggest looking at your organisational capabilities from three different
perspectives:
People
Which stakeholders/skills
are needed to deliver the
journey?
Process
Which processes are needed
to deliver service excellence
in each touch point?
Technology
Which technical architecture
do we need to have in place to
ensure a seamless customer
experience?
55
After you’ve identified the building blocks needed to deliver
the new experience, acknowledge the gaps in your current
organisation and make a plan. Remember to be realistic
- should the gaps be too big, consider starting a new
business, or at least acknowledge the fact that change
takes time. So concentrate on ideas that build on
your company’s strengths, your
story and your people.
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Turning identified
opportunities into a
new service blueprint.
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QUOTE
59
“We can do a lot in simplifying the everyday lives of our
employees and customers thanks to our new digital
products. We needed to bring in competencies that we
lacked, and with the right people in the team we could
quickly increase the customer flow on the web. It was not
long ago new customers used the phone to call in, but
nowadays everything is run in a much smoother process
through the website.”
David Leeb, CMO, Hemfrid
60
Evaluation of ideas
So, we got some ideas, great! But how do we know which ones to go for?
Often your intuition can help, but we prefer to make more well-informed
decisions. We call it informed intuition. Understanding what KPIs each idea
impacts can help you evaluate, prioritise and build a case for your ideas.
To make it easier to work with we will combine viability and desirability into one
category: Value. You now have two main categories: Feasibility in delivering
the service and the value that it will create.
All relevant KPIs should be taken into consideration, but make sure you add
multipliers to the most important ones.
Desirability
NPS, brand image
Viability
Profit, cost efficiencies
Feasibility
Cost, time, (mental) focus
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Go or No go
Now that we have scored the ideas, we need to decide what we do with them.
By plotting them on an axis against the value they provide and the feasibility of
realising that value you will be able to see what ideas to focus on.
It won’t give you a waterproof business case, but it is a rapid way of picking out
the cherries and decide what to do with them.
High feasibility/high value: make sure you put
these ideas in the express lane and get them to
market ASAP.
Low feasibility/high value: test these and build
a business case to see if they are worth the
investment.
High feasibility/low value: discuss whether it is
worth it to deliver cost efficiently?
Low feasibility/low value: these ideas go
straight to the bin as they will be a distraction.
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Minimum lovable service
When new opportunities arise, so do a bunch of questions. When can this be
launched? What does it cost? How can we be sure if this is something our
clients want? To be able to answer these question, you usually need to do some
homework to come up with a solution that has a quick time-to-market, with as
low cost as possible, and that is something your customers love. Not so easy
peasy. But, yet totally doable.
So what is the easiest way to test the proposition of your idea? Firstly, we
recommend to use reasoning from first principle, in order to find the core
problem to solve. Then go ahead and build your first release around solving that
problem. Make sure that you build your minimum lovable service in a way that
adds value to your customers from the start. After launch, iterate based on the
feedback you receive from your customers.
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Building a roadmap
After you have ensured all three, desirability, feasibility and viability of the new
idea, it’s important to create a common understanding in the company of where
you want to head in the future. A simple tool to make this goal concrete is to
build a roadmap. Even if this isn’t where you’ll end up, it gives your organisation a
purpose and a reference point to pivot against.
In its simplicity a roadmap is a visual representation of a plan. A well-crafted
roadmap briefly conveys how a team will get where they’re going — including
which resources are required and when important deliverables are due.
In order to be able to respond to the changing market landscape, your roadmap
needs to be built on releases that cater for iterative learning and customer
feedback.
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TAKE
AWAYS
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»» Ensure there is a market for your ideas
»» Illustrate the money making mechanisms in the new journey
»» Make sure your organisation is equipped to deliver against the new
opportunity
»» Evaluate different ideas based on their impact and added value
»» Start small and ensure lovability of a new service
»» Build a roadmap that enables iterative learning to achieve desirability,
feasibility and viability
70
4.1 	 Karma chameleon
4.2 	 Start with a purpose
4.3	 Organise around experience
4.4 	 Create a trusting environment
72
Karma chameleon
After hundreds of projects within innovation and digital disruption, we consider leadership and
culture as critical success factors. When designing services and remodelling businesses to
deliver those services, people are always core. Services are designed for people by people.
Leadership and culture are the enablers of success.
As the pace of change has become so fast, organisations are faced with a need to be able to
respond to change, instead of following a plan. The focus has shifted from optimising current
processes to responding to new needs and opportunities. Thus, we are moving away from
lengthy waterfall methods towards flat, lean and agile approaches with the aim to harness
organisations’ collective knowledge.
So where to start if your organisation needs to become more agile? Start by changing the mindset
of your management. The shift from a command-and-control approach to agile leadership is
crucial for your business to succeed. Managers and leaders need to adopt a new kind of role and
shift their focus from making money for stakeholders to delighting the customers.
73
“Through narrative, we can let go the urge to
control, and the fear that goes with it, learning
that the world has the capacity to organise itself,
recognising that managing includes catalysing
this capacity.”
– Steve Denning
Word of wisdom
74
75
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Start with a purpose
It’s rather common that organisations have defined in detail what they do; the
offering, services and products of the company. Likewise, companies most often
have a definition for how they do things, in order to add some differentiation
to the game. But what often is forgotten is to communicate why. Why are we
working so hard for this? What is the reason for our existence?
It’s actually a proven fact that so called purposeful organisations outperform
those who do not inspire and engage employees and customers with their
purpose. These organisations start with the why, instead of what and how. So
having a purpose beyond profit in fact drives profits. A smart thing is to do define
a purpose together with your employees, as they need to stand behind the why.
77
The why hits the emotional center of the brain, from
where most of us still make most decisions in life.*
*The father of the idea Start with why is Simon Sinek and his model Golden Circle.
78
Is your company structured neatly based on competence areas? When dealing
with and designing for the constantly increasing complexity we live in, there’s a
need to harness all different competence areas in co-operative problem solving.
This co-operation should be aided with a supportive structure that builds on
cross organisational teams, that each have a clear purpose and customer-centric
problem to solve.
The end game here is to build an agile organisation, which is adjusting to the
changes in the markets and adapts a customer-value-first philosophy. Making
money and maximising shareholder value becomes the result, not the goal of the
organisation.
Restructure if needed to be able to break the silos and focus on solving
customers’ problems, not the organisational ones.
Organise around the customer experience
79
Spotify is a model
example of having
introduced an agile
structure with fully
autonomous feature
teams, called squads,
that together constitute
different business areas
called tribes.
80
Create a trusting environment
This one goes especially to all CEOs out there. For the organisation to be able to
act at the speed of opportunity (which is the only way you are going to win the
competition), employees need to trust not only you, but also other members in
the team. The key here is to create a culture where it’s okay to fail and where the
individuals have a clear understanding of the purpose - why we are doing this.
It’s also important that they understand their own role and contribution to the
greater whole and are acknowledged for their efforts continuously.
But shouldn’t they instead be rewarded for the results, might someone ask?
The answer is no, as sometimes even the most genius initiatives fail due to
reasons outside our sphere of influence. Also, rewarding results paralyses
people as it leads to fear of making mistakes. Instead, by enforcing a culture of
experimentation that considers failure as a natural part of the learning process,
you create the premises for innovation to prosper in your organisation.
81
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TAKE
AWAYS
83
»» Embrace change instead of following a rigid plan
»» Define your organisation’s purpose - the why
»» Lead co-operation and build a customer-centric organisational
structure
»» Move away from command-and-control leadership towards trust and
empowerment
»» Reward efforts instead of results
84
LAST
WORDS
85
It is already proven that companies that are
committed to the customer experience are
outperforming their peers*. Start with identifying
opportunities to delight your customers. After
this make sure that you’ve done the business
math and that your organisation can deliver the
new experience.
This handbook has given you a snapshot of all
the important factors that need to be considered
in order to take service design thinking to a new
level in your organisation. You are now one step
closer in making your customers’ experience the
North Star of you organisation.
We at BBH Stockholm are glad to help you on
your journey.
* Forrester
86
GLOSSARY
is a set of values and principles that give you a foundation that creative
teams can use to make decisions that result in better software
development. Agile methods contributes to better decision making by
valuing individuals and interactions, instead of processes and tools,
working software rather than comprehensive documentation, customer
collaboration instead of contract negotiation and, most importantly,
responding to change instead of following a plan.*
is a process for creative problem solving. “Design thinking is a human-
centered approach to innovation that draws from the designer’s toolkit
to integrate the needs of people, the possibilities of technology, and the
requirements for business success.”
— Tim Brown, CEO of IDEO
Agile
Design thinking
87
Service design
Interaction design
UX design
Touchpoint
“is a human-centered, collaborative, interdisciplinary, iterative approach
which uses research, prototyping, and a set of easily understood
activities and visualization tools to create and orchestrate experiences
that meet the needs of the business, the user and other stakeholders.”
– This Is Service Design Doing
is the design of the interaction between users and artefacts. 
is the process of enhancing user satisfaction with a product by improving
the usability, accessibility, and pleasure provided in the interaction with
the product.
can be defined as any way a consumer can interact with a business,
whether it be person-to-person, through a website, an app or any form of
communication. 
(Stein, A.; Ramaseshan, B. (2016). “Towards the identification of
customer experience touch point elements”. Journal of Retailing and
Consumer Services.)
88
is highly significant or dramatic invention or improvement in
performance, achieved through consistent, focused, and synergic
efforts.
is a fictitious character that takes the role of the user in order to help
solve design questions.
is a process map that illustrates the entire service delivery process from
the customer’s perspective.
measures the strengths of your current operational capabilities. This
refers to organisational structure, technology, capabilities, customer
service and so on.
evaluates your service from your customers’ perspective and
determines the lovability of your service.
Business breakthrough
Persona
Service Blueprint
Feasibility
Desirability
89
focuses on if your solution has a sustainable business model, making
sure you also make money in the long run.
is your standard sheep. The one who follows the current and drifts
along.
is a unique sheep. It always goes against the stream and finds its own
way. When the white sheep zig the black sheep zag.
means delivering your brand story in each touchpoint
is an early sample, model, or release of a product that’s usually built to
test a concept or process.
Viability
White Sheep
Black Sheep
Story doing
Prototyping
Author
Lilli Pulkkinen
Contributors
Alexander Cook
Christian Lindman
David Prentell
John Vikström
Illustrations
John Vikström
Layout
Andreas Lindén
Jacob Säwensten
Publisher
Mattias Guilotte
Print
TelloGruppen © 2018 BBH Stockholm
Would you like
to know more?
hello@bbh-stockholm.se
+ 46 8 40 02 04 64

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The Service Design Handbook | BBH Stockholm

  • 1. SERVICE DESIGN HANDBOOK a book about how to do stuff A (in)complete guide from BBH Stockholm. doing something for someone solving problems to delight humans & grow brands
  • 2.
  • 3. Turning empathy into business success Why Service Design? 1.1 It’s all about the experience 1.2 Start with your customers 1.3 A product or a service 1.4 Experience is the brand 1.5 Tools for an empathic mindset Finding new opportunities 2.1 What are customer experiences made of? 2.2 Why, why, why? 2.3 Mapping the customer journey 2.4 Scale and scope 2.5 Pains into opportunities 2.5 Disrupting structures Ingredients of business success 3.1 Is there a business case? 3.2 Show me the money 3.3 Is it doable? 3.4 Evaluation of ideas 3.5 Go or No go? 3.6 Minimum lovable service 3.7 Building a roadmap Recipe for success 4.1 Karma chameleon 4.2 Start with a purpose 4.3 Organise around experience 4.4 Create a trusting environment Famous last words Glossary 6 10 14 16 18 22 28 30 32 34 36 40 48 50 54 60 62 64 66 72 76 78 80 84 86
  • 5. 5 We’re a strategic design firm tailored for the age of mobility. We work in the intersection of business, cultural insights & digital innovation and are fuelled by an obsession for true value creation. We operate in tight, cross-disciplinary teams and work side-by-side with our clients to develop experiences that tie corporate objectives with human needs and desires. We design systems of services and digital products that grow brands and delight humans. We’re part of BBH - one of the world’s most creative companies - and collaborate with our sister agencies across the globe to serve a number of the world’s most loved brands such as: Absolut, Audi, Barclays, IKEA, Nike, Playstation, Ray-Ban, Tesco, Uber & Volvo.
  • 6. 6 Turning empathy into business success We are stellar when it comes to designing digital products and services. But actually, the interface is just the tip of the iceberg and a lot happens under the surface before any sketch is drawn or line of code is written. This handbook guides you to the tools and methods of improving customer experiences and leveraging brand value with seamless customer journeys. It shows how we can use customer journey understanding as a tool to empathise and find new opportunities to delight customers. We reveal our recipe for success for creating products and services that are not only desirable, but also make business sense and are feasible from an organisational and technical perspective. We also go above and beyond the hard facts and take into account the ecosystem in which these services are built — the organisation. Design thinking, in other words creative problem solving through empathy and experimentation, requires a supportive organisational structure, agile leadership and a culture that encourages entrepreneurship and initiative. We hope you enjoy reading our handbook as much as we enjoyed compiling it!
  • 7. 7 We try not to sound smart and use difficult words just for the sake of it, but when we do, have a look at the glossary at the end of this book. Pro tip
  • 8. 8
  • 9. 1.1 It’s all about the experience 1.2 Start with your customers 1.3 A product or a service 1.4 You don’t own your brand 1.5 Tools for a empathic mindset 1.1 It’s all about the experience 1.2 Start with your customers 1.3 A product or a service 1.4 Experience is the brand 1.5 Tools for a empathic mindset
  • 10. 10 It’s all about the experience Have you ever struggled when booking that flight ticket, finding the right bank person to talk to about mortgage or getting through to a customer support line? Frustrating, right? In an age where businesses offer similar services and products, the differentiating factor has become the experience. That’s why businesses are looking for new ways to improve the overall customer experience in order to distinguish themselves from the competition. This is where service design comes in. It provides you with the tools to make your offering more usable, efficient and desirable. It’s a human-centered and holistic approach for innovation, which by nature starts with people. In other words; what is important to your customers is important to your business.
  • 11. 11
  • 12. 12
  • 13. 13
  • 14. 14 Start with your customers Service design provides you with a set of tools and methods to implement and apply design thinking in your organisation. Through a constant dialogue with your customers, service design gives you invaluable insights to improve the quality of your service. Whereas UX and interaction design methods traditionally look into the usability of a product, service design takes into account the entire customer journey, including all touch points that congregate the service experience. Yet central to service design, desirability is only a starting point in the creation of new services and it needs to be combined with tools that consider feasibility and viability as well. At BBH, we see it as the only way to build long term value for customers and businesses. This, to us, is service design.
  • 15. 15
  • 16. 16 A product or a service? So what is the difference between a service and a product? The old school way to make this distinction is to say that products are tangible, whereas services are intangible. So basically, a product is something you can drop on your foot. But in which category do digital products, such as websites and applications fall? The answer is both. Thanks to servitisation, one can state that neither products, nor services in their purest form exist anymore. Many companies’ offerings actually consist of combinations of intertwined products (goods) and services. Websites and applications are a part of these product service systems, and should therefore be designed from a holistic perspective. The bottom line is that our customers do not care what terminology is used, as long as interactions between different touch points work seamlessly. Therefore, in this handbook we will also use these terms interchangeably. (Unless we wish to make a point.)
  • 17. 17
  • 18. 18 Experience is the brand Your brand is the customers’ collected view of you and your business. It’s not enough to say what you do for your customers, it’s what you actually do that matters. That’s why you need to think about the whole customer experience and innovate through both, compelling storytelling and actually living and breathing the story in each touchpoint. As we experience brands more and more through digital touchpoints, in many cases the digital user experience becomes the primary mediator of brand value. If you can make customers feel a stronger connection with you, it will have a positive effect on the bottom line. Your brand is not anymore what you say you do, it’s how you make your customers feel.
  • 19. 19Source: Magids, Zorfas & Leemon, Harvard Business Review, 2015
  • 21. 21 “BBH’s digital experience heritage is a true asset as it enables genuine understanding of how communication and digital services play a key role for our business and our customers all the way from strategy to delivery.” Magnus Larsson, CEO, Rebtel
  • 22. 22 Tools for an empathic mindset Service design is, by nature, human-centered. All the methods and tools that are used in the design process take the perspective of someone who will actually come to use the service – be it customers, employees, patients, suppliers or someone else. In order to create a positive impact for them, you need to understand what they are trying to accomplish and why. Having an empathic mindset that permeates your organisation is key to designing solutions that people actually want to use. In our experience, this is one of the hardest things to accomplish. The good news is that the methods, tools, templates and other artefacts that are used in the service design process can help break down the silos and create an organisation that places customer needs first. In this handbook, we’ll show you a few ways to get there.
  • 23. 23 If you are a manager, think about how new ideas and customer needs are identified and presented within you company. Are you actively trying to find potential issues? Can employers openly, safely and systematically discuss ideas on how to improve? If you are an employee, how do you feel the organisation understands the user needs? Do you know who to turn to when you have an idea and do you feel listened to? Pro tip
  • 25. 25 Service design... »» Helps your organisation become more customer centered and find the right problems to solve »» Improves the quality of your services and customer experience »» Ensures desirability, feasibility and viability of new opportunities »» Strengthens your brand »» Provides you with practical tools and methods for human centric business innovation
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  • 27. 2.1 What are customer experiences made of? 2.2 Why, why, why? 2.3 Mapping the customer journey 2.4 Scale and scope 2.5 Pains into opportunities 2.5 Disrupting structures
  • 28. 28 When we talk about customer experiences, what do we actually mean? We believe that outstanding customer experiences arise as the sum total of seamless interactions with organisation’s products and services. The line between digital and physical touch points is non-existent, and unfortunately, the weakest link in the entire experience sets a tone for the relationship with your customer. Your brand value is thus affected by the entire experience and emotional relationship you build with your customer. That’s why we need to look at services from a holistic point of view and focus on the entire process our customers go through. What happens before and what happens after? In which context and state of mind do our customers find themselves in when interacting with the touch points and messaging and how does this affect the experience? Remember, your brand is only as strong as the weakest link in the entire customer journey. What are customer experiences made of?
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  • 30. 30 Why, why, why? In order to create services that are desirable, you need to find out what your customers really need. Be emphatic, walk a day in their boots. Only by diving deep, and understanding the core needs of your customer, you can really call yourself empathic. For example, as a car dealer, is it mobility, status or the feeling of freedom you are selling? And can this core customer need vary during different stages of the buying process? To find out what your customers really need, the trick is to ask “Why?” enough times to find the underlying need. Finding the so called “real problem” is often referred to as reasoning from first principle. It usually comes from deep understanding of your customers, and is the result of asking “why?” a lot. Solve those “real” problems, and you may just have disrupted an entire business.
  • 31. 31 Owning a car. We all know it’s a hassle, but also expensive to own a car - servicing, insurances, taxes, parking fees, you name it. But why do people still own cars? To get from A to B. Ok, why not take a taxi? Because owning a car provides the car owner with a feeling of freedom and independency, even status. Everything we consume and own becomes an extension of our identity. Why? Because we need to belong to a socio- economical group. Why? Because that is our core need, to belong. So let’s build a new brand around that! Example
  • 32. 32 Mapping the customer journey What are our customers doing, thinking and needing in different stages of the journey? Are we truly giving them what they need? Could we be doing even more to help them accomplish their goals? A user’s experience of a service can be mapped in a customer journey, which lays a foundation for a service blueprint. It can fill many purposes depending on how it is used; for an existing service, it helps everyone understand how a service works, finding pain points and identifying opportunities on how or where to improve. As a tool for ideation, it could help visualise a new opportunity or idea for how a service could work. Both the use and the process of creating a customer journey map can differ a lot from service to service. The human-centered nature of journey maps helps organisations experience the service through the eyes of their customers, which is an effective way to gain an understanding and empathy for everyone involved.
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  • 34. 34 Scale and scope In order for a customer journey map to be useful, deciding on a scale and scope is essential. Sometimes you may explore a service over several years, and sometimes you’re looking at something customers experience in a minute. The scope, on the other hand, is needed in order to decide what to include or exclude. For example, when building a new service that doesn’t yet exist, it is crucial to understand what happens “behind the scenes” - the so called enablers for the service to work. However, when identifying the pain points in the current journey, such level of detail might not be needed. That’s why we work with two different kinds of customer journeys maps. One concentrates on the existing customer journey and aims to identify its pain points. The other one focuses on new journeys that often stem from improving the pain points of the existing journeys.
  • 35. 35 Understanding how a bank customer experiences a loan might be something that needs to be explored over several years. On the other hand, booking a meeting with a bank representative is most likely something you can do in a few minutes. Both examples can be visualised on a Customer Journey Map, with an appropriate level of details for each. Similarly, identifying the pain points in today’s experience of booking a meeting with a bank representative may not need mapping out all the enablers in the existing experience. But when ideating new journeys and better ways to satisfy the core needs of our customers, we need to ensure that we have all the technical and organisational enablers in place, such as booking systems and a healthy, smiling bank representative. Example
  • 36. 36 Pains into opportunities When trying to improve the existing customer experience of your service, we recommend starting by mapping out the holistic customer journey that entails the entire life cycle of your customer relationship. Customer journey Start describing all stages in your customers journey. Touchpoints Map out which touchpoints are involved in today’s customer journey. Todays experience Evaluate how your users experience the different stages of the journey and establish an experience curve to visualise the pain points of today. Core user needs Map the basic needs of the customer during their journey to answer the question: what do our customers really need? Always better to ask your users than guess. Opportunities By comparing today’s customer experience and the core user needs in different steps you are able to identify new opportunities to better serve your customers.
  • 37. 37 Start with focusing on the pain points in today’s experience. According to our experience it is these pain points that are also your biggest opportunities to shine, the moments of truth that can pivot your customer experience to a whole new level. Pro tip
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  • 39. 39 books.bbhstockholm.se/servicedesign A service blueprint is a process map that illustrates the entire service delivery process from the customer’s perspective.
  • 40. 40 Disrupting structures So you’ve done your homework, you’ve found the weak links in your customers’ journey and identified new opportunities. But could you be doing even more for your customer? Have you considered what happens before your customer gets in touch with your services? Or what happens after your job is done? Could you extend the customer journey and aggregate services? Again, focus on finding the core needs of your customers and think beyond the box - the box being your service - when finding solutions to your customers problems.
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  • 43. 43 “BBH Stockholm has not only successfully helped us transform the way customers purchase cars, they are also future proofing vital parts of our business.” Markus Lundström, Digital Director, Volvo Car Sweden
  • 45. 45 »» Ask “Why?” a lot to find the right problems to solve »» Start by mapping out the existing customer journey in its entirety »» Identify pain points in today’s customer experience and turn them into opportunities »» Define core user needs in each step of the journey and innovate new ways to satisfy them »» Go beyond your product to serve your customers even better
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  • 47. 3.1 Is there a business case? 3.2 Show me the money 3.3 Is it doable? 3.4 Evaluation of ideas 3.5 Go or No go? 3.6 Minimum lovable service 3.7 Building a roadmap
  • 48. 48 Is there a business case? When choosing ideas and opportunities to take forward, the formula is rather simple: The ideas need to add value for both your customers and your business. But the million dollar question is, where to start? We find ourselves in a classic chicken-or-egg situation here. And the sneaky answer is, start with identifying a market opportunity. This, in turn, can be based on an unsatisfied customer need or a trend analysis, but should always be completed with competitive benchmarking. Unless there’s a good product-market-fit, even the best ideas won’t fly. Desirable solutions that are also viable create a solid base for you business. But in order to stand out, you need to be unique - or at least do things better than your competition. Think different!
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  • 50. 50 Show me the money Your ideas could be plenty, but knowing how to focus your investment can have a massive impact on both cost, ROI and how much you can actually cope with. The starting point should always be your key business objectives - what are the key priorities right now? A great place to start is to understand what customer touch point(s) to optimise in order to best impact your income statement. You do this by sketching out the high level interaction points in your new customer journey and the desired interactions for your desired target audience. By mapping out these interactions you will see which touch points your customers (or employees) need to convert from in order to reach the desired objectives you are designing for – this is true whether you want people to subscribe, make a purchase or apply for a job. Make sure you include the whole journey.
  • 51. 51 Now it’s time to fireup a spreadsheet and turn these interaction points into column labels. They become the base of your conversion funnel in your business case. Do you know your average purchase order or the value of one customer relationship, the customer lifetime value? Great! Can you see where you’re bleeding or identify room for improvement? Behold, you now see where you could optimise conversion and where to focus your service design efforts!
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  • 54. 54 Is it doable? Have you identified a new opportunity that ticks all the desirability boxes and gives bang for your buck? Congratulations! Unfortunately ideas aren’t worth anything without the possibility to execute them. For this reason you need to make sure that your organisation is able to deliver the new experience. We suggest looking at your organisational capabilities from three different perspectives: People Which stakeholders/skills are needed to deliver the journey? Process Which processes are needed to deliver service excellence in each touch point? Technology Which technical architecture do we need to have in place to ensure a seamless customer experience?
  • 55. 55 After you’ve identified the building blocks needed to deliver the new experience, acknowledge the gaps in your current organisation and make a plan. Remember to be realistic - should the gaps be too big, consider starting a new business, or at least acknowledge the fact that change takes time. So concentrate on ideas that build on your company’s strengths, your story and your people.
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  • 57. 57 Turning identified opportunities into a new service blueprint.
  • 59. 59 “We can do a lot in simplifying the everyday lives of our employees and customers thanks to our new digital products. We needed to bring in competencies that we lacked, and with the right people in the team we could quickly increase the customer flow on the web. It was not long ago new customers used the phone to call in, but nowadays everything is run in a much smoother process through the website.” David Leeb, CMO, Hemfrid
  • 60. 60 Evaluation of ideas So, we got some ideas, great! But how do we know which ones to go for? Often your intuition can help, but we prefer to make more well-informed decisions. We call it informed intuition. Understanding what KPIs each idea impacts can help you evaluate, prioritise and build a case for your ideas. To make it easier to work with we will combine viability and desirability into one category: Value. You now have two main categories: Feasibility in delivering the service and the value that it will create. All relevant KPIs should be taken into consideration, but make sure you add multipliers to the most important ones. Desirability NPS, brand image Viability Profit, cost efficiencies Feasibility Cost, time, (mental) focus
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  • 62. 62 Go or No go Now that we have scored the ideas, we need to decide what we do with them. By plotting them on an axis against the value they provide and the feasibility of realising that value you will be able to see what ideas to focus on. It won’t give you a waterproof business case, but it is a rapid way of picking out the cherries and decide what to do with them. High feasibility/high value: make sure you put these ideas in the express lane and get them to market ASAP. Low feasibility/high value: test these and build a business case to see if they are worth the investment. High feasibility/low value: discuss whether it is worth it to deliver cost efficiently? Low feasibility/low value: these ideas go straight to the bin as they will be a distraction.
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  • 64. 64 Minimum lovable service When new opportunities arise, so do a bunch of questions. When can this be launched? What does it cost? How can we be sure if this is something our clients want? To be able to answer these question, you usually need to do some homework to come up with a solution that has a quick time-to-market, with as low cost as possible, and that is something your customers love. Not so easy peasy. But, yet totally doable. So what is the easiest way to test the proposition of your idea? Firstly, we recommend to use reasoning from first principle, in order to find the core problem to solve. Then go ahead and build your first release around solving that problem. Make sure that you build your minimum lovable service in a way that adds value to your customers from the start. After launch, iterate based on the feedback you receive from your customers.
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  • 66. 66 Building a roadmap After you have ensured all three, desirability, feasibility and viability of the new idea, it’s important to create a common understanding in the company of where you want to head in the future. A simple tool to make this goal concrete is to build a roadmap. Even if this isn’t where you’ll end up, it gives your organisation a purpose and a reference point to pivot against. In its simplicity a roadmap is a visual representation of a plan. A well-crafted roadmap briefly conveys how a team will get where they’re going — including which resources are required and when important deliverables are due. In order to be able to respond to the changing market landscape, your roadmap needs to be built on releases that cater for iterative learning and customer feedback.
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  • 69. 69 »» Ensure there is a market for your ideas »» Illustrate the money making mechanisms in the new journey »» Make sure your organisation is equipped to deliver against the new opportunity »» Evaluate different ideas based on their impact and added value »» Start small and ensure lovability of a new service »» Build a roadmap that enables iterative learning to achieve desirability, feasibility and viability
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  • 71. 4.1 Karma chameleon 4.2 Start with a purpose 4.3 Organise around experience 4.4 Create a trusting environment
  • 72. 72 Karma chameleon After hundreds of projects within innovation and digital disruption, we consider leadership and culture as critical success factors. When designing services and remodelling businesses to deliver those services, people are always core. Services are designed for people by people. Leadership and culture are the enablers of success. As the pace of change has become so fast, organisations are faced with a need to be able to respond to change, instead of following a plan. The focus has shifted from optimising current processes to responding to new needs and opportunities. Thus, we are moving away from lengthy waterfall methods towards flat, lean and agile approaches with the aim to harness organisations’ collective knowledge. So where to start if your organisation needs to become more agile? Start by changing the mindset of your management. The shift from a command-and-control approach to agile leadership is crucial for your business to succeed. Managers and leaders need to adopt a new kind of role and shift their focus from making money for stakeholders to delighting the customers.
  • 73. 73 “Through narrative, we can let go the urge to control, and the fear that goes with it, learning that the world has the capacity to organise itself, recognising that managing includes catalysing this capacity.” – Steve Denning Word of wisdom
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  • 76. 76 Start with a purpose It’s rather common that organisations have defined in detail what they do; the offering, services and products of the company. Likewise, companies most often have a definition for how they do things, in order to add some differentiation to the game. But what often is forgotten is to communicate why. Why are we working so hard for this? What is the reason for our existence? It’s actually a proven fact that so called purposeful organisations outperform those who do not inspire and engage employees and customers with their purpose. These organisations start with the why, instead of what and how. So having a purpose beyond profit in fact drives profits. A smart thing is to do define a purpose together with your employees, as they need to stand behind the why.
  • 77. 77 The why hits the emotional center of the brain, from where most of us still make most decisions in life.* *The father of the idea Start with why is Simon Sinek and his model Golden Circle.
  • 78. 78 Is your company structured neatly based on competence areas? When dealing with and designing for the constantly increasing complexity we live in, there’s a need to harness all different competence areas in co-operative problem solving. This co-operation should be aided with a supportive structure that builds on cross organisational teams, that each have a clear purpose and customer-centric problem to solve. The end game here is to build an agile organisation, which is adjusting to the changes in the markets and adapts a customer-value-first philosophy. Making money and maximising shareholder value becomes the result, not the goal of the organisation. Restructure if needed to be able to break the silos and focus on solving customers’ problems, not the organisational ones. Organise around the customer experience
  • 79. 79 Spotify is a model example of having introduced an agile structure with fully autonomous feature teams, called squads, that together constitute different business areas called tribes.
  • 80. 80 Create a trusting environment This one goes especially to all CEOs out there. For the organisation to be able to act at the speed of opportunity (which is the only way you are going to win the competition), employees need to trust not only you, but also other members in the team. The key here is to create a culture where it’s okay to fail and where the individuals have a clear understanding of the purpose - why we are doing this. It’s also important that they understand their own role and contribution to the greater whole and are acknowledged for their efforts continuously. But shouldn’t they instead be rewarded for the results, might someone ask? The answer is no, as sometimes even the most genius initiatives fail due to reasons outside our sphere of influence. Also, rewarding results paralyses people as it leads to fear of making mistakes. Instead, by enforcing a culture of experimentation that considers failure as a natural part of the learning process, you create the premises for innovation to prosper in your organisation.
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  • 83. 83 »» Embrace change instead of following a rigid plan »» Define your organisation’s purpose - the why »» Lead co-operation and build a customer-centric organisational structure »» Move away from command-and-control leadership towards trust and empowerment »» Reward efforts instead of results
  • 85. 85 It is already proven that companies that are committed to the customer experience are outperforming their peers*. Start with identifying opportunities to delight your customers. After this make sure that you’ve done the business math and that your organisation can deliver the new experience. This handbook has given you a snapshot of all the important factors that need to be considered in order to take service design thinking to a new level in your organisation. You are now one step closer in making your customers’ experience the North Star of you organisation. We at BBH Stockholm are glad to help you on your journey. * Forrester
  • 86. 86 GLOSSARY is a set of values and principles that give you a foundation that creative teams can use to make decisions that result in better software development. Agile methods contributes to better decision making by valuing individuals and interactions, instead of processes and tools, working software rather than comprehensive documentation, customer collaboration instead of contract negotiation and, most importantly, responding to change instead of following a plan.* is a process for creative problem solving. “Design thinking is a human- centered approach to innovation that draws from the designer’s toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.” — Tim Brown, CEO of IDEO Agile Design thinking
  • 87. 87 Service design Interaction design UX design Touchpoint “is a human-centered, collaborative, interdisciplinary, iterative approach which uses research, prototyping, and a set of easily understood activities and visualization tools to create and orchestrate experiences that meet the needs of the business, the user and other stakeholders.” – This Is Service Design Doing is the design of the interaction between users and artefacts.  is the process of enhancing user satisfaction with a product by improving the usability, accessibility, and pleasure provided in the interaction with the product. can be defined as any way a consumer can interact with a business, whether it be person-to-person, through a website, an app or any form of communication.  (Stein, A.; Ramaseshan, B. (2016). “Towards the identification of customer experience touch point elements”. Journal of Retailing and Consumer Services.)
  • 88. 88 is highly significant or dramatic invention or improvement in performance, achieved through consistent, focused, and synergic efforts. is a fictitious character that takes the role of the user in order to help solve design questions. is a process map that illustrates the entire service delivery process from the customer’s perspective. measures the strengths of your current operational capabilities. This refers to organisational structure, technology, capabilities, customer service and so on. evaluates your service from your customers’ perspective and determines the lovability of your service. Business breakthrough Persona Service Blueprint Feasibility Desirability
  • 89. 89 focuses on if your solution has a sustainable business model, making sure you also make money in the long run. is your standard sheep. The one who follows the current and drifts along. is a unique sheep. It always goes against the stream and finds its own way. When the white sheep zig the black sheep zag. means delivering your brand story in each touchpoint is an early sample, model, or release of a product that’s usually built to test a concept or process. Viability White Sheep Black Sheep Story doing Prototyping
  • 90. Author Lilli Pulkkinen Contributors Alexander Cook Christian Lindman David Prentell John Vikström Illustrations John Vikström Layout Andreas Lindén Jacob Säwensten Publisher Mattias Guilotte Print TelloGruppen © 2018 BBH Stockholm
  • 91. Would you like to know more? hello@bbh-stockholm.se + 46 8 40 02 04 64