McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Part 4 DELIVERING AND PERFORMING SERVICE

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved CUSTOMER COMPANY Service Delivery GAP 3 Customer-Driven Service Designs and Standards Part 4 Opener Provider GAP 3

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Chapter 11 Employees’ Roles in Service Delivery The Critical Importance of Service Employees Boundary Spanning Roles Strategies for Closing Gap 3 Service Culture

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Objectives for Chapter 11: Employees’ Roles in Service Delivery Illustrate the critical importance of service employees in creating customer satisfaction and service quality Demonstrate the challenges inherent in boundary- spanning roles Provide examples of strategies for creating customer-oriented service delivery Show how the strategies can support a service culture where providing excellent service is a way of life

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Figure 11.2 The Services Marketing Triangle Internal Marketing Interactive Marketing External Marketing Company (Management) CustomersEmployees enabling promises keeping promises setting promises Source: Adapted from Mary Jo Bitner, Christian Gronroos, and Philip Kotler

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Services Marketing Triangle Applications Exercise Focus on a service organization. In the context you are focusing on, who occupies each of the three points of the triangle? How is each type of marketing being carried out currently? Are the three sides of the triangle well aligned? Are there specific challenges or barriers in any of the three areas?

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Ways to Use the Services Marketing Triangle Overall Strategic Assessment –How is the service organization doing on all three sides of the triangle? –Where are the weaknesses? –What are the strengths? Specific Service Implementation –What is being promoted and by whom? –How will it be delivered and by whom? –Are the supporting systems in place to deliver the promised service?

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Figure 11.3 The Service Profit Chain Source: An exhibit from J. L. Heskett, T. O. Jones, W. E. Sasser, Jr., and L. A. Schlesinger, “Putting the Service-Profit Chain to Work,” Harvard Business Review, March-April 1994, p. 166.

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Service Employees They are the service. They are the organization in the customer’s eyes. They are the brand. They are marketers. Their importance is evident in: –The Services Marketing Mix (People) –The Service-Profit Chain –The Services Triangle

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Service Employees Who are they? –“boundary spanners” What are these jobs like? –emotional labor –many sources of potential conflict person/role organization/client interclient quality/productivity

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Figure 11.4 Boundary Spanners Interact with Both Internal and External Constituents Internal Environment External Environment

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Figure 11.5 Sources of Conflict for Boundary-Spanning Workers Person vs. Role Organization vs. Client Client vs. Client Quality vs. Productivity

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Customer- Oriented Service Delivery Hire the Right People Provide Needed Support Systems Retain the Best People Develop People to Deliver Service Quality Compete for the Best People Hire for Service Competencies and Service Inclination Provide Supportive Technology and Equipment Treat Employees as Customers Empower Employees Be the Preferred Employer Train for Technical and Interactive Skills Promote Teamwork Measure Internal Service Quality Develop Service- oriented Internal Processes Measure and Reward Strong Service Performers Include Employees in the Company’s Vision Figure 11.6 Human Resource Strategies for Closing GAP 3

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Empowerment Benefits: –quicker responses –employees feel more responsible –employees tend to interact with warmth/enthusiasm –empowered employees are a great source of ideas –positive word-of-mouth from customers Drawbacks: –greater investments in selection and training –higher labor costs –slower and/or inconsistent delivery –may violate customer perceptions of fair play –“giving away the store” (making bad decisions)

McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Service Culture “A culture where an appreciation for good service exists, 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 in the organization.”