Organizing for service leadership


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Organizing for service leadership

  1. 1.
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  3. 3. <ul><li>Do we have a coherent vision for the future? </li></ul><ul><li>Is this vision defined and driven by a strong, effective leader (or leadership team)? </li></ul><ul><li>Do our marketing strategies enable us to beat the competition and create profits? </li></ul><ul><li>Are our services recognized for superior value and quality? </li></ul><ul><li>Are we known for superior operations and innovative use of technology? </li></ul><ul><li>Are our employees loyal, productive, proactive, and customer oriented? </li></ul><ul><li>Do we have a reputation as an outstanding place to work? </li></ul><ul><li>Are we viewed as an ethical organization? </li></ul>
  4. 4.
  5. 5. <ul><li>1. Customer loyalty drives profitability and growth </li></ul><ul><li>2. Customer satisfaction drives customer loyalty </li></ul><ul><li>3. Value drives customer satisfaction </li></ul><ul><li>4. Employee productivity drives value </li></ul><ul><li>5. Employee loyalty drives productivity </li></ul><ul><li>6. Employee satisfaction drives loyalty </li></ul><ul><li>7. Internal quality drives employee satisfaction </li></ul><ul><li>8. Top management leadership underlies chain’s success </li></ul>Source: Heskett et al
  6. 6. Customers The Marketing Imperative Human Resources Imperative The Operations Imperative
  7. 7. Defining Three Functional Imperatives <ul><ul><li>Marketing imperative </li></ul></ul><ul><ul><li>Target “right” customers and build relationships </li></ul></ul><ul><ul><li>Offer solutions that meet their needs </li></ul></ul><ul><ul><li>Define quality package with competitive advantage </li></ul></ul><ul><ul><li>Operations imperative </li></ul></ul><ul><ul><li>Create, deliver specified service to target customers </li></ul></ul><ul><ul><li>Adhere to consistent quality standards </li></ul></ul><ul><ul><li>Achieve high productivity to ensure acceptable costs </li></ul></ul><ul><ul><li>Human resource imperative </li></ul></ul><ul><ul><li>Recruit and retain the best employees for each job </li></ul></ul><ul><ul><li>Train, motivate them to work well together </li></ul></ul><ul><ul><li>Achieve both productivity and customer satisfaction </li></ul></ul>
  8. 8. <ul><li>Transfers and cross training </li></ul><ul><li>Cross functional taskforces </li></ul><ul><li>New tasks and new people </li></ul><ul><li>Process management teams </li></ul><ul><li>Gain-sharing programs </li></ul>
  9. 9. <ul><li>Service Losers </li></ul><ul><ul><li>Only survive because of lack of viable alternatives in marketplace </li></ul></ul><ul><ul><li>Delivering service seen as necessary evil </li></ul></ul><ul><li>Service Nonentities </li></ul><ul><ul><li>Traditional operations mindset--achieve cost savings by standardization </li></ul></ul><ul><ul><li>Rudimentary marketing, often emphasizing price discounts </li></ul></ul><ul><ul><li>Philosophy of “If it isn’t broken, don’t fix it” </li></ul></ul>
  10. 10. <ul><li>Service Professionals </li></ul><ul><ul><li>Clear positioning strategy, pricing based on value </li></ul></ul><ul><ul><li>Operations driven by customer satisfaction, competitive orientation </li></ul></ul><ul><ul><li>Employees are close to customers </li></ul></ul><ul><li>SERVICE LEADERS </li></ul><ul><ul><li>Crème de la crème of their industries </li></ul></ul><ul><ul><li>Names synonymous with providing outstanding service, creating customer delight </li></ul></ul><ul><ul><li>Innovative in each functional area of management </li></ul></ul>
  11. 11. <ul><li>Create sense of urgency to develop impetus for change </li></ul><ul><li>Put together strong team to direct process </li></ul><ul><li>Create appropriate vision of where organization must go </li></ul><ul><li>Communicate new vision broadly </li></ul><ul><li>Empower employees to act on vision </li></ul><ul><li>Produce sufficient short term results to create credibility </li></ul><ul><li>Build momentum to tackle tougher problems </li></ul><ul><li>Anchor new behaviors in the organizational culture </li></ul>Source: John Kotter
  12. 12. <ul><li>Vision, charisma, persistence, high expectations, expertise, empathy, persuasiveness, integrity </li></ul><ul><li>Ability to visualize quality of service as foundation for competing </li></ul><ul><li>Believe in people who work for the firm, make good communications a priority </li></ul><ul><li>Possess a natural enthusiasm for the business, teach it to others, pass on nuances/secrets/crafts of operating </li></ul><ul><li>Cultivate leadership qualities of others in organization </li></ul><ul><li>Use values to navigate through difficult times </li></ul>
  13. 13. <ul><li>Shared perceptions or themes regarding what is important </li></ul><ul><li>Shared values about what is right and wrong </li></ul><ul><li>Shared understanding about what works and what doesn’t </li></ul><ul><li>Shared styles of working and relating to others </li></ul><ul><li>Shared assumptions and beliefs about why these things are important </li></ul>
  14. 14. <ul><li>Climate: Tangible working environment atop underlying culture </li></ul><ul><li>Influential factors for employees include: </li></ul><ul><ul><li>flexibility: feeling of freedom to innovate, </li></ul></ul><ul><ul><li>sense of responsibility </li></ul></ul><ul><ul><li>level of standards that people set </li></ul></ul><ul><ul><li>perceived aptness of rewards </li></ul></ul><ul><ul><li>clarity about mission and values </li></ul></ul><ul><ul><li>level of commitment to a common purpose </li></ul></ul><ul><li>Climate for service: shared perceptions concerning practices, procedures, types of behaviors that: </li></ul><ul><ul><li>are expected concerning customer service, service quality </li></ul></ul><ul><ul><li>bring rewards for those who perform them well </li></ul></ul>
  15. 15. <ul><li>Ineffective </li></ul><ul><li>Coercive leaders (“Do what I tell you”) </li></ul><ul><li>Pacesetting leaders (“Do as I do, now”) </li></ul><ul><ul><li>(unless team is highly motivated and competent) </li></ul></ul><ul><li>Effective </li></ul><ul><li>Authoritative leaders (“Come with me”) </li></ul><ul><li>Affiliative leaders (“People come first”) </li></ul><ul><li>Democratic leaders (“What do you think?”) </li></ul><ul><li>Coaching leaders (“Try this”) </li></ul>Source: Daniel Goleman