Designing and Managing Service Processes

Why Designing & Managing the Process

As Delivered in real time with customers present in the service factory Service delivered should highly satisfy customers and operationally efficient. Thus High need to avail marketers and operational specialists and even a human resource expert in high-contact services to design the service process

Key Tool

Identify key activities in creating and delivering the service Distinguish between front stage and back stage Chart activities in sequence Show how interactions between customers and employees are supported by backstage activities and systems Establish service standards for each step Identify potential fail points Focus initially on “big picture” (later, can drill down for more detail in specific areas)


Blueprinting is the key tool in service designing

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Blueprinting a Hotel Visit
Physical Evidence

Hotel exterior, lobby, employees, key Make Customer reservation Actions Employee Actions Face-to-face Phone Contact Rep. records, confirms Parks Car Enter data Register guest data Arrive, parking Doorman greets, Customer takes car Check-in at reception Receptionist verifies, gives key to room

Elevator, corridor, room, bellhop Go to room

Line of Visibility


Line of Interaction


Make up Room

Improving Reliability of Processes by Failure Proofing

Analysis of reasons for failure often reveals opportunities for failure proofing to reduce/eliminate risk of errors Errors include:
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treatment errors — human failures during contact with customers tangible errors — failures in physical elements of service

Fail-safe procedures include measures to prevent omission of tasks or performance of tasks
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incorrectly in wrong order too slowly

Need for fail-safe methods for both employees and customers

Process Redesign: Approaches
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Eliminating non-value-adding steps Shifting to self-service Delivering direct service Bundling services Redesigning physical aspects of service processes

Self Service Technologies (SSTs)

Self-service is ultimate form of customer involvement in service production Customer directly uses the system and facilities available and avail the services thereby Internet based services are also the part of self-service to divert customers from direct contact of the customers

Who is a “Jaycustomer”?

customer who behaves in a thoughtless or abusive fashion, causing problems for the firm itself, employees, or other customers”.
Why do Jaycustomer matter?
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Can disrupt processes. Affect service quality. May spoil experience of other customers.


The Thief – seeks to avoid paying for service/ manipulates Remedies: Finding out various ways how people can steal – then prosecuting them But in severe check should not overlook the genuine ones The Rule breaker – ignores rules of social behavior and/or procedures for safe, efficient use of service Remedies: Depends upon which type of rule has been If legally supported one then can be punished If health and safety related then needs to be If social, then needs to be guided and warned broken educated

The Belligerent – angrily abuses service personnel (and sometimes other customers) physically and/or emotionally Remedies:
Move away such customer from public Bring a third party in between Break for reflection (telephone-conversation)

The Family Feuders – sub-category of belligerents who get in to arguments with other customers mostly their own family members and spoil the scene around Remedies:
Employee intervention may either spoil the situation or even solve so should give a trial error based effort Detailed analysis of the situation needs to be taken & managers need to take a quick respond Finally if no other option then warn your customer

The Vandal – consciously damages physical facilities, furnishings, and equipment Remedies: Improved Security Security deposits Sign an agreement warnings about fragile objects The Deadbeat – fails to pay bills on time Remedies: Ask for Pre-payments Present customer immediately with the bill If sending the bill then send it sooner when the service is still fresh in the minds of customers