A PRESENTATION ON SERVICE OPERATION MANAGEMENTTOPIC- Service Culture and managing service delivery BY- Afreen Jameer (Roll No.-4) Hussain Mustafa Azad(Roll No.- 29) Rahul Rajkumar(Roll No.- 59)
Service CultureDEFINING SERVICE:• Corporate culture of an organization is the pattern of shared values, beliefs, and rules or patterns of common behavior in the organization.• A service culture implies type of organizational culture that promotes kinds of behavior in its employees that leads to high concern for serving its customers.
• Zeithaml and Bitner (2003) define service culture as: “Culture where an appreciation for goodservice exists, and where giving good service to internal as well as ultimate, externalcustomers is considered a natural way of life and one of the most important norms by everyone.”
•Service culture can be built in an organization only by a sustained andconsistent effort over and extended period.•It cannot be introduced by top management diktats only. Culture also encompasses the products and services, and the physical appearance of the organization’s facility, equipment, or any other aspect of the organization with which the customer comes into contact.
Building of service culture requires sustained attention to:Developing the people to deliver service Hiring right people quality Service culture Providing needed Retaining the best support system to people people
Organizational view of service culture•Service cultures differ from organization toorganization•Culture includes values, beliefs, norms, rituals, etc.•Any policy, procedure, action or inaction on thepart of an organization and its employees contributeto service culture.•Employees can play key roles in communicating acompanys culture to its customers.•Examples include: employee dress code,interactions with customers, service providersknowledge, skill, and attitude.
Successful organizationsare customer- centeredor customer-centric andfocus on individualneeds.• An organization’s service culture is made up of many facets, each of which affects the customer and helps determine the success or failure of customer service initiatives.
• A service culture implies type of organizational culture that promotes kinds of behavior in its employees that leads to high concern for serving its customers.• Companies develop vastly different service cultures depending on their industry, product, size, business model, etc. The culture is usually set and communicated by top executives.
Service philosophy or mission Employee Training roles and expectations Elements Motivators of a Products andand rewards Service services Culture Management Policies and support procedures Delivery systems
• Service philosophy or mission : The direction or vision of an organization that supports day-to-day interactions with the customer.• Employee roles and expectations: The specific communications or measures that indicate what is expected of employees in customer interactions and that define how employee service performance will be evaluated.• Delivery systems: The way an organization delivers its products and services.• Policies and procedures: The guidelines that establish how various situations or transactions will be handled.
• Products and services: The materials, products, and services that are state of the art, competitively priced, and meet the needs of customers.• Management support: The availability of management to answer questions and assist front-line employees in customer interactions when necessary. Also, the level of management involvement and enthusiasm in coaching and mentoring professional development.• Motivators and rewards: Monetary rewards, material items, or feedback that prompts employees to continue to deliver service and perform at a high level of effectiveness and efficiency.• Training: Instruction or information provided through a variety of techniques that knowledge or skills, or attempt to influence employee attitude toward excellent service delivery
Customer Service D-E-L-I-V-E-R-Y D E L I V E R Y “Your” Empowere Experience RepresentDedicated Linked Informed Valued responsibil d d ative ity
S CUSTOMER Customer needs &E expectationsR Knowledge Gap (1)V Management definitionI Of these needsC Standard Gap (2)E Translation into design/ Delivery specs InternalG Delivery Gap (3) Communication Gap (4)A Execution of (4) Advertising & salesP design/delivery specs promises Perception Gap (5) Interpretation Gap (6)M Customer perceptions of Customer interpretation ofO product execution communicationDE Service Gap (7) Customer experienceL relative to expectations
GAPS IN SERVICE DELIVERY AND DESIGN• GAP 1 : difference between management perceptions of what customers expect and what customers really do expect.• GAP 2 : difference between management perceptions and service quality specifications - the standards gap.• GAP 3 : difference between specific delivery standards and the service provider’s actual performance on the standards.
• GAP 4 : The difference between service delivery and what is communicated externally - are promises made consistently fulfilled.• GAP 5: The difference between what customers expect of a service and what they actually receive – expectations are made up of past experience, word- of-mouth and needs/wants of customers – measurement is on the basis of two sets of statements in groups according to the five key service dimensions
• GAP 6 : The difference between what a service provider’s communication efforts promise and what a customer think was promised by these communication.• GAP 7 : The difference between what customers expect to receive and their perception of the service that is delivered.
Strategies for closing the gapZeithaml Prasuraman and Berry propose a seriesof generic steps for closing gap 1 to 4..GAP 1: (the Knowledge Gap)• Learn what customers expect.• Increase direct interactions between managers and customers to improve understanding.
GAP 2 (the Standard Gap)• Establish right service quality standards.• Set, communicate, and reinforced customer- oriented service standards for all work units.• Establish clear service quality goals that are challenging , realistic and explicitly designed to meet customer expectations.
GAP 3(the Delivery gap)• Ensure that service performance meets standards. Clarify employee roles.• Ensure that all employees understand how their jobs contribute to customer satisfaction.• Match employees to job by selecting for the abilities and skills provide employees with the technical training needed to perform their assigned task effectively.
Gap 4(the internal communication gap)• Ensure that communication promise are realistic.• Seek inputs from operations personnel when new advertising programs are being created• Get sales staff to involve operations staff in face to face meetings with customers.• Develop internal educational,motivational,and advertising campaigns to strengthen links among marketing,operations and human resource department.
GAP 3 :• Clarify employee roles• Ensure that all employees understand how their jobs contribute to customer satisfaction. GAP 4 :• Ensure that communication promises are realistic.• Develop internal educational, motivational, and advertising campaigns to strengthen links among marketing, operations and human resource department.
GATI – Ahead In Reach • Among the top 5 players in the country. • Best domestic logistics company award. • Network reaches up to 580 districts out of 590 districts. • International operations.
S CUSTOMERE Customer needs & expectationsR Knowledge Gap (1)V Management definitionI Of these needsC Standard Gap (2)E Translation into design/ Delivery specs InternalG Delivery Gap (3) Communication Gap (4)A Execution of (4) Advertising & salesP design/delivery specs promises Perception Gap (5) Interpretation Gap (6)MO Customer perceptions of product execution Customer interpretation of communicationDE Service Gap (7)L Customer experience relative to expectations
Key Factors Leading to Customer needs & Expectations Improper field level Information. KNOWLEDGE Business Intelligence not available for decision GAP making at all levels. Least attention paid to small customers. Management definition of these needsGATI’S SOLUTION: Customer’s information is collected through feedback forms. Appointment of executives to cater all types of customers.
Key Factors Leading to Standard Gap Management definition of these needs No proper service design for customers. STANDARD Fluctuation in fuel prices. GAP No Insurance for goods. Improper allocation of funds. Translation into DesignGATI’S SOLUTION: Sharing the burden of increasing fuel prices. Insurance for goods.
Key Factors Leading to Delivery Gap Translation into Design Poor employee-technology job fit. DELIVERY Delay in delivering the service. GAP Over pricing to match demand. Execution of DesignGATI’S SOLUTION: Employees are properly trained. Promptness in delivery.
Key Factors Leading to Communication Gap Execution of Design Improper horizontal communication. COMMUNICATION Customer enquiry constraints. GAP Absence of strong internal marketing. Lack of adequate education for customer. Advertising And Sales PromisesGATI’S SOLUTION: Toll Free Number available to provide information to the customers. Gati.net.
Key Factors Leading to Perception Gap Execution of Design Indifferent attitude towards customers. PERCEPTION GAP Improper design leading to negative perception. Improper information transparency to their supply chain partners to maintain competitiveness. Customer Perceptions of product executionGATI’S SOLUTION: Should have a positive attitude towards the customer. Proper market research to change design accordingly.
Key Factors Leading to Interpretation Gap Advertising And Sales Promises Overpromise, under delivery. INTERPRETATION Main customers - Corporate customers. Hence GAP interpretation of a local customer varies differently. Customer interpretation of communicationGATI’S SOLUTION: Should focus on B to C advertising apart from B to B advertising. Provide services as promised .
Key Factors Leading to Service Gap Customer perceptions Customer Interpretation Of product execution of communications Value added services. SERVICE Ware housing facility. GAP Reverse logistics. Customer experience Relative to expectationsGATI’S SOLUTION: Started giving value added services in some areas.