Professional Documents
Culture Documents
systems
Chapter’s main questions
• What’s the nature of effective service
management systems?
• How can they be managed?
2
Case 3 ‐ McKesson
• Your success is our success: broadening the
strategy, based on economies of scale + scope
• Enabling elements
• Bundling or unbundling
• Mass‐produced individualization
• In essence: marketing knowledge
• Co‐production (strengthening links) & loyalty
• Keeping customers is the highest priority
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Case 4 – Maison Troigros
• Skilfully designed systems
• Within the company
• In its relations with customers AND suppliers
• Relevance of social dimension
4
Product, production, production
systems
• By success histories, the service seems simple!
• How did they do?
• Service # process to produce it # delivery (at
least conceptually)
• But they are the same, to the customer’s eyes
(e.g. at Troisgros)
• A) thinking in term of wholes
• B) integrating structure and process
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Service systems = innovative linkages
between human capacities
• Service companies engender new social
relationships. Some of these linkages are
totally new or unconventional
• They organise people not employed by them
• They exploit unused sources and capacities
• The boundaries are crossed: companies are
not always prepared to this
• Nothing must go wrong …
6
Client management and client
participation
• Clients are active participants in the service
system, they are linked to employees
• The customer is not just an onlooker. If the
interrelation is positive, the employee gets
reinforced : virtuous circles (and impact on
quality control)
• Importance of harmony, mutual support between
components of service delivery system: staff,
client, physical setting
• Each service requires a service delivery system
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Management, structure and culture
• Service companies are very sensitive to the
quality of their management: this must
identify critical factors and control them
• This leads to a strong control on details
• But social processes require individual
motivation and freedom, also at local level
• How to match these 2 contradictory needs?
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Management, structure and culture
(contd.)
• A first answer goes with values, culture, ethos
(involving the customers, too)
• Every employee possesses the appropriate
skills + is guided by the appropriate ethos
• A behaviour‐oriented culture
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Effective service systems may be
reproduced
• A service system can be reproduced:
• ‐ if its absolutely essential elements are
identified
• ‐ if effective ways of controlling and recreating
those elements are designed
• An example: McDonald and its franchising
agreement
• Complex or unclear service systems
10
Service management systems
• A framework with 5 main components:
• Market segment
• Service concept
• Service delivery system
• Image
• Culture and philosophy
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Normann’s service management
system
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Market segment
• To which groups and types of client is the
service targeted?
13
Service concept
• What benefits are offered to the client?
• Physical vs psychological
• Measurable vs not measurable
• The core service, the peripherals
14
Service delivery system
• The service company’s “production” system
• Three main components:
• ‐ personnel
• ‐ clients
• ‐ physical supports
15
Image
• Through image, the management can
influence staff, clients as well other parties
• In the long run the image depends mainly on
what the company actually provides
• but in the short run it can be used to create a
new reality
16
Culture and philosophy
• This concerns the overall principles
• No other component is more crucial to the
long‐term efficiency and effectiveness
17
Service management systems (final)
• Eiglier and Langeard built a concurrent
framework nearly at the same time
• This model may be perceived as static
• But working with it is a cultural process: it
concerns something creating by human beings
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