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Ida Farida
Antonio Nalau
Gina Octaviana


Had 2008 revenues of 68,829 million DKK. Making it the

seventh largest outsourcing company in the world.

In 2009 defined itself as being in facility service.

ISS was in the process of transitioning itself and its clients

to what it called Integrated Facilities Management

ISS grown through a combination of acquisition and organic

growth. The business model was highly decentralized, each
country acting like separate principality, with financial
reporting administered from headquarters in Copenhagen

Despite it size, ISS was a niche player in the leaning world.

ISS ICELAND : before

The Iceland operation was acquired by ISS in 2000. at
the time it was approximately twice as large as it
nearest competitor. Gudmundur Gudmundsson, CEO
ISS commented :
Before the acquisition we were a traditional command

and control organization

We also had a detailed process for dealing with

complaints, but it wasnt focused on either costumer or

employee satisfaction.

The system was based on control and inspection; it

was complex and the result were insufficient

ISS Adopted a New Value

First is that of the classic outsourcer, enabling

our customers to focus on what they do

best, leaving non-core tasks, for example
cleaning, to us.
The Second has to do with defining what

business are we in? or rather, what is the

feeling we want to create in our
customers? we express it by saying, we
creating wellbeing for our customers.

New Value Proposition

This posed a problem for us. We knew that too
often our employees didnt feel good about
their jobs, and we knew that if you dont feel
about your job, its hard to feel good about
yourself. As a result, we had to ask, can
employees who arent feeling good about
themselves, or their job, create wellbeing in
customers? the answer had to be no, at least on a
long-term basis.

New Value Proposition

two other related issues: first, I believe that people
who dont feel good about themselves are not as
productive or quality-minded. Second, given the
transition the company was making from night work
management, where more and more of our
employees work alongside our customers in the day,
how employees appear---which reflects how they
feel about their jobs---matters. We concluded from
all of these issues that we had to do
something about employee wellbeing

Enhancing Employee
Wellbeing to Increase
Customer Satisfaction

Before 2000, sources of complaints were not tracked. In 2000,

Gudmundsson began to track the reason behind complaints, and learned
that 50 percent were due to lack of information among users.

In 2000, communication was centered on what was wrong,

specifically the 5 percent of work that wasnt in-compliance.

Communication also focused costumers on the negative.

Managing workers differently started with creating a customized value

proposition for each other employee

Managing differently included giving responsibility to employees.

Gudmundsson recognized that these changes would not be successful

unless he could change the basis of communication between both (a)
the customers and the company, and (b) the supervisors and
workers. At the time, that basis was complaints, and was thus
overwhelmingly negative

Giving and Getting A Praise

a praise was the expression used to refer to
the first question on ISS Icelands customer
satisfaction survey

it created the opportunity for a more constructive

and professional dialogue with customers, placing
the interaction in a positive context--_this changed
the mindset of the customers, leaving them with
the feeling that most of what we did was good. As
customers became accustomed to providing praise,
they began to do so without being asked

Giving and Getting A Praise

It was the supervisors duty to bring a praise earned

by an employee to him or her, and, importantly, to use

it as a learning process to enable the employee to do
even better in the future

Role of the Supervisor

The supervisors role change from prevent

complaintr to enable praises

This meant that their visits to employees changes

from inspection to support.

Supervisors hours became totally flexible and work

efficiency as opposed to hours worked

Service Profit Chain


Complaints had declined dramatically since 2000

Customer satisfaction data was unavailable due to

the fact that ISS Icelands database provider
bankrupt in 2008

Employee turnover declined steadily from high of

131 % in 1999 to 69 % in 2007

Revenue growth averaged 17,6 % during the 20002007

By 2009 ISS Iceland was six times larger than its

largest competitor
Executives noted that the changes they had

initiated had improved employee and customer