managing people for service advantage the old adage “people are your most important asset” is...
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Managing People for service advantage
The old adage “people are your most important asset” is wrong. The right
people are your most important assets.
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• Front line is core part of the product
• Front line staff represents the service firm
• Front line staff or service is the core part of the brand
• They are marketers
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The service triangle
Internal marketing(enabling promises)
External marketing(making promises)
Interactive marketing(keeping Promises)
company
providers customers
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Importance of Providers
• Communicability
• Transaction
• Consistency
• Providers have a role that spans boundary
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Roles of employees and their influences on customers.
Contactor Modifiers
Influencers Isolated
Frequency of periodic customer contact
Infrequent or no
customer contact
Involved with conventional
marketing mix
Not directly involved
with marketing mix
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The service profit chain
• Satisfaction, retention and productivity
• Service value
• Customer satisfaction and loyalty
• Revenue growth & profitability
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The cycle of failure-Employee cycle
Narrow designs
of jobto
accommodate low skill level
Employee dissatisfaction; poor
service attitude
High employee Turnover
poor service quality
Use of technology to control quality
Payment of low wages
Minimization of selection Effort and
training
Employee become bored
Low profit margin
Emphasis on rules rather than service
Employee cant respond to customer problems
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The cycle of failure-Customer cycle
Repeat emphasis on attracting
new customer
No continuity in relationship
with customer
Failure to develop customer ;loyalty
Customer dissatisfaction
High customer turnover
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Discovering the soul of service
1. Treat customer like family2. Listen first3. Anticipate customers wants4. Simple thing makes the difference5. Work smart6. Keep learning7. Success is where you find it8. All for one and one for all9. Take pride in your work
source: Leonard L. Berry- the nine drivers of sustainable business success
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Frontline work is difficult and stressful
• Boundary Spanning
• Sources of conflict-Person/Role conflict, Organization/Client conflict, Interclient conflict
• Emotional labor
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Human resource Strategies for closing gap 3
• Hire the right people-compete for the best people
• Hire for service competencies and service inclination
• Be the preferred employer
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Identify the best candidate
• Observe behavior• Conduct personality test• Conduct multiple structured interviews• Give applicant a realistic preview of job• Train service employee actively
The organization culture, purpose and strategy
Interpersonal and technical skills
Product service knowledge
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Empower the frontline
• Empowerment at Nordstorm
• Rule#1: Use your good judgment in all situations.
there will be no additional rules.
Is empowerment always appropriate?
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Is empowerment always appropriate?
• The firms business strategy is based on competitive differentiation and on offering personalized, customized service
• The approach to customers is based on extended relationship rather than on short term transaction
• The organization use technology that are complex and non routine.
• The business environment is unpredictable• Employees have a strong need to grow
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The power of teamwork
• Team- “A small number of people with complementary skills who are committed to a common purpose, set of performance goals, and approach for which they hold themselves mutually accountable”.
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Creating successful service delivery team
• Each team has an “owner": a person who owns the team problems
• Each team has a leader who monitors team progress
• Each team has a quality facilitator
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Motivate and energize your people
• Use the full range of rewards
1. Pay
2. Bonus
3. Job content
4. Feedback and recognition
5. Goal accomplishment
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• Develop people to deliver service quality
• Train for technical and interactive skill
• Empower employee
• Promote teamwork
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• Provide needed support systems
• Measure internal service quality
• A cautionary notes
• Provide supportive technology and equipment
• Develop service oriented internal process
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Retain the best people
• Include Employees in the Company's Vision
• Treat employees as customers
• Measure and reward strong service performance
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Service leadership
• A charismatic leadership also called transformational leadership, fundamentally changes the values, goals, and aspiration of the front line to be consistent with the firms.
• Value driven leadership inspires and guides service provider
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Service Culture
• Corporate culture-The pattern of shared values and beliefs that give the member of an organization some meaning and provides them with the rule for the behavior in the organization.
• Service Culture- “A culture where an appreciation for good service exist and where giving good service to internal as well as ultimate, external customers is considered a natural way of life and one of the most important norms by everyone”.
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• Shared perception of what is important in an organization
• Shared values and belief about why those things are important
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• In a strong service culture the entire organization focuses on front line and understands that they are the life line of the business.
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Level of customer participation across different services
Low: consumer presence required during service delivery
Moderate: consumer input required for service creation
High: customer co creates the service product
Products are standardized Client inputs customize a standard service
Active client participation guides the customized service
Service is provided regardless of any individual purchase
Provision of service require customer purchase
service cannot be created apart from customer purchase and active participation
Payment may be the only required customer input
customer inputs information material) are necessary for an adequate outcome, but the service firm provides the service
Customer inputs are mandatory and cocreate the outcome
End consumer example
Airline travel
Motel stay
Fast food restaurant
Haircut
Annual physical exam
Full-service restaurant
Marriage counseling
Personal training
Weight reduction program
Major illness or surgery
B2B customer example
Uniform cleaning service
Pest control
I
Agency-created advertising
Campaign
Payroll service
Freight transportation
Management consulting
Executive management seminar
i