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#TFT12 Ian clayton

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Next Generation Service Management Thinking for the Age of the Customer. "What business are we in?", "Who do we serve?", "How can we help our customers succeed?"

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#TFT12 Ian clayton

  1. 1. Next generation servicemanagement thinking forthe ‘age of the customer’ Ian clayton
  2. 2. Universal  Service  Management     Body  of  Knowledge  (USMBOK)  Next  Genera>on  Service  Management  Thinking   For  the  ‘Age  of  the  Customer’   Copyright © 2012 VKSII, All Rights reserved
  3. 3. Your  Guide   Ian  M.  Clayton  •  38  years  in  IT   Ian Clayton•  Author  of  the  Universal  Service  Management     Principal Service Management 101 Body  of  Knowledge  (USMBOK™)  •  Pioneer  of  outside-in  thinking  for  service  provider   organiza>ons  •  “I  rescue  ITSM  projects  and  help  service  provider   organiza9ons  ensure  the  customer  and  service   experience  is  managed”.   Copyright © 2012 VKSII, All Rights reserved
  4. 4. How  to  Contact  Me  •  Email:  ian@servicemanagement101.com  •  Support:  support.usmbok.com  •  Blog,  discussions  and  public  Q&A     www.servicemanagement101.com  •  Twi[er:  www.twi[er.com/ianclayton    •  Skype:  ianmclayton   Copyright © 2012 VKSII, All Rights reserved
  5. 5. Topics  •  The  service  society  and  ‘age  of  the  customer’  •  Why  tradi>onal  IT  Service  Management  (ITSM)  ‘projects’  fail  •  The  o_en  forgo[en  heritage  of  service  management  thinking  •  The  elements  of  ‘next  genera>on  service  management’  •  A  customer  centric  approach  and  how  to  start  your  true  service   management  journey,  from  the  ‘outside-­‐in’.   Copyright © 2012 VKSII, All Rights reserved
  6. 6. “The  loss  of  focus  on  the  customer   as  a  human  being  is  probably  the   single  most  important  fact  about   the  state  of  service  and  service  management  in  the  Western  world   today”   Karl  Albrecht,  c1992     ‘The  Only  Thing  That  Ma[ers’   Copyright © 2012 VKSII, All Rights reserved
  7. 7. The  Service  Society  •  We  live  in  a  service  society  and    ‘age  of  the  customer’   dominated  by  outcomes  and  the  ‘service  experience’  •  Experiences  using  products  and  interac>ng  with  these  and   their  providers  shapes  our  percep>on  of  value  •  Our  level  of  sa>sfac>on  is  formed  from  whether  we  achieved   our  desired  outcomes,  with  what  experience,  and  at  what   cost  •  This  “feeling”  acts  as  the  basis  for  loyalty  and  advocacy,  and   forms  our  general  percep>on  about  the  quality  of  a  service,   and  the  capabili>es  of  its  provider  or  service  business.   Copyright © 2012 VKSII, All Rights reserved
  8. 8. Today’s  Influences...  •  Working  from  home/remotely  –  telecommu>ng  •  Decentralized  infrastructure  -­‐  cloud  compu>ng  and   virtualiza>on  •  Mobility  -­‐  A3  (anywhere,  anyhow,  any>me)  •  Bring  Your  Own  Device  -­‐  BYOD  •  Touch  (Hap>c)    -­‐  4S,  “swipe,  swipe,  select,  submit”  •  Voice  Direc>on,  Instruc>on     “Open  the  pod  bay  doors  Hal”     “In  500  yards  take  the  next  le_”   Copyright © 2012 VKSII, All Rights reserved
  9. 9. The  New  IT  •  Focus  change  from  technology  farmer  and  innovator  to   technology  exploiter,  business  growth  enabler  •  Operate  and  be  performance  managed  as  an  informa>on   service  provider  •  Provide  a  customer  (service)  experience  on  par  with  non-­‐IT   service  businesses  •  Deliberately  and  con>nuously  engage  the  customer  •  Successful  IT?    Become  ‘invisible  technology’.   Copyright © 2012 VKSII, All Rights reserved
  10. 10. IT  Management  Impera>ves  •  A  more  agile  and  responsive  IT  investment  decision-­‐making   process  •  Complete  alignment  of  IT  opera>ons,  programs  and   ini>a>ves  with  business  goals  •  Cost effective  use  of  all  types  of  technology  and  IT  resources  •  PAYGO  -­‐  utility  styled  informa>on  services  access  and  cost   model.   Copyright © 2012 VKSII, All Rights reserved
  11. 11. IT’s  Tradi>onal  Response  •  Reengineer  prac>ces  •  Improve  processes  •  Mature  capability  of  processes  versus  a  framework  •  Conform  to  a  standard  –  such  as  ISO/IEC  20000-­‐1    •  Encapsulated  in  the  term  ‘IT  Service  Management’  -­‐  ITSM.   Copyright © 2012 VKSII, All Rights reserved
  12. 12. Tradi>onal  ITSM   is  failing  the  Customer  and  its  management  sponsors.   Why? Copyright © 2012 VKSII, All Rights reserved
  13. 13. How  many  of  these  ques>ons  can   you  answer?   Copyright © 2012 VKSII, All Rights reserved
  14. 14. “What  business  are  you  in?”   Copyright © 2012 VKSII, All Rights reserved
  15. 15. “Who  are  your  customers?”   (Pick  one...)   Copyright © 2012 VKSII, All Rights reserved
  16. 16. “What  ac>vi>es  do  your  customers   perform  in  pursuit  of  success?”   (Pick  one...)   Copyright © 2012 VKSII, All Rights reserved
  17. 17. “How  do  you  help  your  customers  perform   these  ac>vi>es?”   Copyright © 2012 VKSII, All Rights reserved
  18. 18. “What  do  your  customers  experience  when  they  use  your  services  or  interact  with  your   organiza>on?”   Copyright © 2012 VKSII, All Rights reserved
  19. 19. “How  sa>sfied  are  your  customers  with  the   help  you  provide?”   Copyright © 2012 VKSII, All Rights reserved
  20. 20. Tradi>onal  ITSM  thinking  can  result   in  you  producing     a  human  ‘car  wash’.   A  place  that  processes  people  and   their  requests  through  the  facility   rather  than  ensuring  a  desired   outcome  and  crea>ng  a  total   experience  and  ‘feeling’  of  value.   Copyright © 2012 VKSII, All Rights reserved
  21. 21. Tradi>onal  ITSM  is  ‘inside-­‐out’  and   not  how  successful  service  businesses  manage  service  delivery   and  support.   Copyright © 2012 VKSII, All Rights reserved
  22. 22. ‘inside-­‐out’  indicator  #1  “The  view  of  our  customers,  what  they  care   about,  and  how  we  serve  them,  differs   significantly  across  the  organiza>on”   Copyright © 2012 VKSII, All Rights reserved
  23. 23. ‘inside-­‐out’  indicator  #2  “Key  service  staff  are  unable  to  state  easily,   clearly  and  briefly  who  our  customers  are,   what  we  do  for  them,  and  the  basis  for   measuring  customer  sa>sfac>on”   Copyright © 2012 VKSII, All Rights reserved
  24. 24. ‘inside-­‐out’  indicator  #3   “When  compared,  more  >me  is  spent  on  internal  issues,  processes  and  conflicts  than   on  discussing  the  customer  needs,   expecta>ons,  and  service  experience”   Copyright © 2012 VKSII, All Rights reserved
  25. 25. ‘inside-­‐out’  indicator  #4  “Few  of  our  decisions  are  explicitly  driven   by  customer  needs”     Copyright © 2012 VKSII, All Rights reserved
  26. 26. ‘inside-­‐out’  indicator  #5   “We  have  trouble  adap>ng  to  normal  varia>ons  in  the  customer  opera>ons  and  get  blindsided  by  changes  in  strategy  and   behavior”   Copyright © 2012 VKSII, All Rights reserved
  27. 27. ‘inside-­‐out’  indicator  #6  “We  are  trying  to  apply  one  rigid  prac>ce   or  process  framework  to  all  customer   situa>ons  (consumer  scenarios)”     Copyright © 2012 VKSII, All Rights reserved
  28. 28. ‘inside-­‐out’  indicator  #7  “We  do  not  know  how  our  efforts  relate  to  the  interests  and  success  of  our  customers”       Copyright © 2012 VKSII, All Rights reserved
  29. 29. Its  >me  to  press   RESET  and  REWIND    on  the  ‘Service  Management’   bu[on.   Why? Copyright © 2012 VKSII, All Rights reserved
  30. 30. IT<SM:   “Service  management  concepts  and  methods  applied   to  the  challenges  of  an  IT   organiza>on  being   performance  managed  as  a   service  provider”   Copyright © 2012 VKSII, All Rights reserved
  31. 31. Fi_y  Years  of  Service  Management   Copyright © 2012 VKSII, All Rights reserved
  32. 32. Father  of  ‘Customer  Centricity’   Theodore  Levi[  •  Levi[  was  a  provoca>ve  writer,  epitomized  by  his  descrip>on  of   the  Harvard  Business  Review,  “a  magazine  wri?en  by  people   who  can’t  write  for  people  who  won’t  read”   1925-­‐2006  •  Levi[  was  a  pioneer  in  product  and  service  marke>ng,     posed  the  simple  ques>on  in  his  inaugural  ar>cle     ‘Marke>ng  Myopia’  published  in  the  Harvard  Business     Review  July-­‐August  1960:    “What  business  are  you  in?”  •  It  was  not  so  much  an  ar>cle  as  a  manifesto.  •  Levi[  wove  a  powerful  argument  that  companies  should  stop   defining  themselves  by  what  they  produced  and  instead  reorient   themselves  toward  customer  needs  and  sa>sfac>on.     Copyright © 2012 VKSII, All Rights reserved
  33. 33. Father  of  Service  Management   Richard  A.  Normann  •  Authored  the  first  book  on  the  topic  of  ‘service   management  in  1984’,  (Service  Management:  Strategy   and  Leadership  in  Service  Businesses)  •  The  book  discussed  the  role  of  services  in  society,   technology  in  services,  and  the  need  for  a  streamlined   service  management  system.      •  Other  key  concepts  discussed  included:     Moments  of  truth,  Self-­‐service   1943-­‐2003     Service  delivery  system     Service  concept  and  the  service  ‘package’     Service  management  system  components.   Copyright © 2012 VKSII, All Rights reserved
  34. 34. Service  Management   Is  about  managing   “a  service”     and    managing  “service”  as  an  experience     from  the  outside-­‐in.   Copyright © 2012 VKSII, All Rights reserved
  35. 35. The  Language  of  Service   Management   Copyright © 2012 VKSII, All Rights reserved
  36. 36. Outside-­‐In  Thinking   Guaranteed  customer  centricity  •  Outside-­‐In  thinking  is  a  philosophy  and  management  approach   that  ensures  you  place  the  interests  of  your  customers  ahead  of   your  capabili>es  •  An  explicit  customer  reason  is  embedded  in  every  decision  made   by  the  service  business  or  service  provider  •  Organiza>ons  applying  outside-­‐in  focus  on  sa>sfying  their   customers  by  delivering  a  powerful  combina>on  of  a  ‘successful   customer  outcome’  and  a  superior  service  experience  •  Outside-­‐in  also  helps  you  measure  your  success  and  target   improvement  from  the  customer  perspec>ve.   Copyright © 2012 VKSII, All Rights reserved
  37. 37. Steve  Towers  –  “Mr.  Outside-­‐In”  •  Steve  is  one  of  industrys  noted  experts  in  Business   Process  Management  (BPM),  performance   transforma>on  and  Customer  Experience   Management  and  co-­‐founder  of  the  BP  Group  •  Through  research  and  ‘hands-­‐on’  exposure  to  the   world’s  leading  companies  he  has  pioneered  the   evolu>on  of  BPM  and  Outside  In  ’  thinking    •  In  2011  Steve  was  entered  into  the  Architecture  &   IT  World  Hall  of  Fame  •  h[p://www.stevetowers.com.   Copyright © 2012 VKSII, All Rights reserved
  38. 38. The  Outside-­‐In,  Inside-­‐Out  (OI-­‐IO)   Con>nuum™   The  Outside-­‐In  (OI)  Inside-­‐Out  (IO)  Con=nuum™   Scenarios   Channels   Workflow   Infrastructure   Tradi=onal  USMBOK   Value   Access  Points   Service   Alignment   Standard   Item   ITSM   Rela=onship   Request   Service   Work   Touchpoints   Product   Best  Prac=ce   Asset   Frameworks   Customer   Pathway   Infrastructure   Customer   Centricity   Successful   Resource   Centricity   Experience   Outcomes   Service   Brand   Process   Event   Complaint   Encounter   Expecta=on   Incident   Emo=ons   Alert   Sa=sfac=on   Interac=ons   Back-­‐Stage   Capability   Service   Ar=fact   Loyalty   Experience   Moments  of   Problem   Maturity   Truth   Procedure   Advocacy   Contact   Defect   Support   Center   On-­‐Stage   Processes   Func=on  OUTSIDE   The  Service  Management  System   Source  USMBOK™,  ©  2009  Ian  Clayton   INSIDE   Proac>ve   Experience   Service   Goods   Commodi=es   Reac>ve   •  Posi>ons  key  concepts  and  terms  based  upon  inside-­‐out,  or  outside-­‐in  bias   •  Represents  the  span  of  centricity  and  transforma>on  journey  of  a   prospec>ve  service  organiza>on   •  Provides  context  for  a  transforma>on  journey  driven  by  a  con>nuous   improvement  program   USMBOK  P94   Copyright © 2012 VKSII, All Rights reserved
  39. 39. Customer  Sa>sfac>on  Designed,  measured  and  managed  from   moments  of  truth  within  a     service  encounter.   Sa>sfac>on-­‐>Loyalty-­‐>Advocacy.   Copyright © 2012 VKSII, All Rights reserved
  40. 40. Service  Encounter  •  Every  day  each  of  one  of  has  many  ‘service  encounters’  •  “An  episode  where  a  customer  comes  into  contact  with  any   aspect  of  a  product,  or  service  organiza>on  and  gets  an   impression  of  its  quality  •  An  encounter  is  prompted  by  a  service  request  •  Within  each  are  consumer  (customer)  and  provider  ac>ons,   interac>ons,  moments  of  need,  and  moments  of  truth.  •  At  its  core  is  a  ‘consumer  scenario’  and  ‘user  stories’.   Copyright © 2012 VKSII, All Rights reserved
  41. 41. The  Service  Encounter  Rules  •  Knowing  when  and  where  service  encounters  occur  is  a   mandatory  ac>vity  for  a  service  organiza>on  •  Service  encounters  and  the  support  ac>vi>es  they  ini>ate  are   pre-­‐designed  into  product  and  service  offerings  •  Service  encounters  span  third-­‐party  involvement  •  Where  an  encounter  starts  and  ends  is  ‘nego>able’  •  Service  encounters  play  a  vital  role  in  customer  sa>sfac>on  and   thus,  to  the  provider’s  overall  success,  and  are  represented  in   the  service  management  system  by  a  ‘service  request  pathway’.   Copyright © 2012 VKSII, All Rights reserved
  42. 42. Moment  of  Truth  •  A  vital  interac>on  between  the  consumer  and  the  provider,   represen>ng  an  instance  where  the  customer  has  an  opportunity   to  form  (or  change)  a  percep>on  about  any  aspect  of  the  service   experience,  service  organiza>on,  and  its  products  and  services  •  The  percep>on  can  include  the  quality  of  the  service  and  the   capability  of  the  service  business  or  service  provider   organiza>on  •  Moments  of  Truth  act  as  key  indicators  in  determining  and   measuring  the  level  of  ‘customer  sa9sfac9on’  •  Every  service  encounter  has  at  least  three  moments  of  truth   represented  by  the  ‘greet’,  the  ‘use’,  and  the  ‘thank  you’  or  ‘exit’   interac>ons.     Copyright © 2012 VKSII, All Rights reserved
  43. 43. The  Magic  Number  -­‐  “42”   Copyright © 2012 VKSII, All Rights reserved
  44. 44. “Next  Genera>on”  Architecture  4  key  elements  –  engage,  request,  support,  improve   Copyright © 2012 VKSII, All Rights reserved
  45. 45. Pillars  of  Service  Support   Break-­‐fix,  helping-­‐hand,  service  recovery,  complaint   handling   CUSTOMER     SATISFACTION   CUSTOMER  ENGAGEMENT  STRATEGY   CUSTOMER   RELATIONS   INTERACTIONS   Feedback   SERVICE  RECOVERY   Encounter   HELPING  HAND   COMPLAINT  &   COMPLIMENT   BREAK-­‐FIX   IMPROVEMENT   Emo=ons   CONTINUOUS   MARKETING   SERVICE   4Es   Expecta=on   Moments  of  Truth   Moments  of  Need   Source:  USMBOK   Experience   PLANNING   SERVICE   Sa=sfac=on  level   (CUSTOMER)  SERVICE  SUPPORT   OPPORTUNITY   IMPACT   PROBLEM   MANAGEMENT   MANAGEMENT   MANAGEMENT  USMBOK  P170,  433   Copyright © 2012 VKSII, All Rights reserved
  46. 46. Outside-­‐In  and  Inside-­‐Out   service
 delivery channel! request! consumer action! “42”! moment
 moment
 interaction! of
 of
consumer truth! need! scenario! front stage action! back stage action! support processes! IO! OI! level of satisfaction! CopyrightCopyright © 2012 VKSII, All Rights reserved reserved © 2012 Service Management 101, All Rights
  47. 47. Outside-­‐in   Con>nuous  Improvement   Approach: Map, inspect and improve, one service encounter (request) at a time as part of anongoing continuous improvement program.Consumer   Problem  Scenario   Problem   Improvement   Change   Opportunity   Workshop   and   Hypothesis   Queue   Queue   Schedule   Story   30-­‐60-­‐90  Cycle   Copyright © 2012 VKSII, All Rights reserved
  48. 48. How  o_en  do  you  go  on  a  service  safari  to   observe  your  customers  in  their  natural   habitat?   Copyright © 2012 VKSII, All Rights reserved
  49. 49. Are  you  asking  what  process  to  implement  first,  or  what  services  to   catalog,  instead  of  what     consumer  scenario  to  capture     and  what  service  encounter     to  inspect?   Copyright © 2012 VKSII, All Rights reserved
  50. 50. Summary  •  We  are  in  the  service  society  and  ‘age  of  the  customer’  •  Tradi>onal  ITSM  ‘projects’  are  inside-­‐out  and  failing  the   customer  •  We  need  a  ‘next  genera>on  service  management’  approach  that   is  outside-­‐in  and  true  to  origins  of  service  management  •  The  journey  can  start  today  with  an  approach  that  engages  the   customer,  understands  and  improves  the  service  experience,   through  a  program  of  con>nuous  improvement.  •  The  path  to  opera>onal  and  service  excellence  is  through   recognizing  our  heritage,  and  thinking  and  ac>ng  outside-­‐in.   Copyright © 2012 VKSII, All Rights reserved
  51. 51. Universal  Service  Management   Educa>on  •  h[p://www.usmbok.com  •  h[p://support.usmbok.com  •  h[p://www.twi[er.com/usmbok  •  h[p://www.udemy.com/courses/search?q=usmbok  •  ian@servicemanagement101.com.   Copyright © 2012 VKSII, All Rights reserved
  52. 52. Universal  Service  Management     Body  of  Knowledge  (USMBOK)   Ques>on  and  Answers  www.servicemanagement101.com  (‘Q&A’)   Copyright © 2012 VKSII, All Rights reserved
  53. 53. The  USMBOK  Series   ‘Rose[a  Stone’  for     service  management   Framework,  system,  organiza>on   Universally  applicable  to  any  service  business  or  anyone   performance  managed  as  a  service  provider  organiza>on  Companion  prac>>oner  guides   Lexicon  of    Terms  (1200+)   Copyright © 2012 VKSII, All Rights reserved
  54. 54. WITH THANKS TO OUR SPONSOR bmc remedyforce #TFT returns june 2013

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