Chapter 8: Designing and Managing Service Processes

Service Blueprinting Service Blueprint A tool for simultaneously depicting the service process, the points of customer contact, and the evidence of service from the customer’s point of view. Process Service Blueprint Points of contact Evidence

Service Blueprinting A picture map that visually portrays the service system – Process of delivery Role of customers & employees, Visible elements of the service Breaks down a service into logical components & easily definable tasks & steps 3 3

Components of Service Blueprints Customer Actions Onstage/Visible Contact employee Actions Backstage/Invisible Contact employee Actions Support Processes and Physical Evidence

Service blueprint components- Physical evidence Customer actions Line of interaction Onstage contact Employee action Line of visibility Back stage contact Employee actions Line of internal interaction Support processes 5 5

Blueprint for Express Mail Delivery Service Truck Packaging Forms Hand-held Computer Uniform Truck Packaging Forms Hand-held Computer Uniform PHYSICAL EVIDENCE Customer Calls Customer Gives Package Receive Package CUSTOMER Line of interaction (On Stage) Driver Picks Up Package Deliver Package CONTACT PERSON Line of visibility (Back Stage) Customer Service Order Line of internal interaction Airport Receives & Loads Fly to Sort Center Dispatch Driver Unload & Sort Load On Truck Fly to Destination SUPPORT PROCESS Load on Airplane Sort Packages

Blueprint for Overnight Hotel Stay Service Hotel Exterior Parking Cart for Bags Desk Registration Papers Lobby Key Elevators Hallways Room Cart for Bags Room Amenities Bath Menu Delivery Tray Food Appearance Food PHYSICAL EVIDENCE Bill Desk Lobby Hotel Exterior Parking Arrive at Hotel Give Bags to Bellperson Call Room Service Check out and Leave Go to Room Receive Bags Sleep Shower CUSTOMER Receive Food Check in Eat Line of Interaction Greet and Take Bags (On Stage) Process Registration Deliver Bags Deliver Food Process Check Out CONTACT PERSON Line of Visibility (Back Stage) Take Food Order Take Bags to Room Line of Internal Interaction Registration System Prepare Food Registration System SUPPORT PROCESS Fail points

Setting Service Standards Service providers should design standards for each step sufficiently high to satisfy and even delight customers Standards may include time parameters, script for a technically correct performance, and prescriptions for appropriate style and demeanor Must be expressed in ways that permit objective measurement First impression is important as it affects customer’s evaluations of quality during later stages of service delivery Research by Marriott Hotels indicates that four of five top factors contributing to customer loyalty come into play during the first 10 minutes of service delivery

Improving Reliability of Processes by Failure Proofing Analysis of reasons for failure often reveals opportunities for failure proofing to reduce/eliminate future risk of errors Need fail-safe methods for both employees and customers Errors include: Treatment errors—human failures during contact with customer e.g., lack of courteous or professional behavior, failure to acknowledge, listen to, or react appropriately to the customer

Improving Reliability of Processes by Failure Proofing Tangible errors—failures in physical elements of service e.g., noise pollution, improper standards for cleaning of facilities and uniforms, equipment breakdown Goal of fail-safe procedures is to prevent errors such as: Performing tasks incorrectly, in the wrong order, too slowly Doing work that wasn’t requested in the first place

Why Redesign? Revitalizes process that has become outdated Changes in external environment make existing practices obsolete and require redesign of underlying processes Creation of brand-new processes to stay relevant Rusting occurs internally Natural deterioration of internal processes; creeping bureaucracy; evolution of spurious, unofficial standards Symptoms: Extensive information exchange Data redundancy High ratio of checking or control activities to value-adding activities, increased exception processing Customer complaints about inconvenient and unnecessary procedures

Process Redesign: Approaches and Potential Benefits Eliminating non-value-adding steps Streamline front-end and back-end processes of services with goal of focusing on benefit-producing part of service encounter Eliminate non-value-adding steps Improve efficiency More customized service Differentiate company Delivering direct service Bring service to customers instead of bringing customers to provider Improve convenience for customers Productivity can be improved if companies can eliminate expensive locations Increase customer base

Process Redesign: Approaches and Potential Benefits Shifting to self-service Increase in productivity and service quality Lower costs and perhaps prices Enhance technology reputation Greater convenience Bundling services Involves grouping multiple services into one offer, focusing on a well-defined customer group Often has a better fit to the needs of target segment Increase productivity Add value for customers through lower transaction costs Customize service Increase per capita service use

Process Redesign: Approaches and Potential Benefits Redesigning physical aspects of service processes Focus on tangible elements of service process; include changes to facilities and equipment to improve service experience Increase convenience Enhance the satisfaction and productivity of front-line staff Cultivate interest in customers Differentiate company

Customer as Co-producer Levels of customer participation Low participation level Moderate participation level High participation level Self-Service Technologies ultimate form of customer involvement in service production Customer’s time and effort replace those of employees For many firms, often the challenge is not managing the technology but rather getting customers to try the technology