1. Service Operations Management: The total experience SECOND EDITION
Chapter Two
Developing a Service Operations Strategy

2. Strategic Alignment
Steps to take and to successfully build the organization around its key processes include:-
Defining and process mapping what are core activities.
Assigning an owner to each process.
Making process teams the main building blocks of the organization (with the teams comprising of the key players involved in the process).
Permanently knocking down functional/departmental boundaries
Flattening the hierarchy
Cutting the number of activities within each process to a minimum (i.e. by reducing the number of transactions the potential for errors is lessened).
Making customer satisfaction the primary driving force for change.
Rewarding team results, not just individual performance.

3. Fig. 2.1. Value-stream mapping – line of sight along the value chain

4. Fig. 2.2. Determining a service operations strategy

5. Fig. 2.3. Achieving excellence through enabled teams

6. Fig 2.4 Market intelligence gathering

7. corporate ‘personality’
Customer-value based corporate culture
Role of Leadership
Customer Links
Organizational Team-Work
Cultural Support Systems
Collecting the information

8. Alignment of service strategy to corporate objectives
Positioning
Sources of competitive advantage
Differentiation
Critical success factors
Segmentation
Opportunity development
Resolving Strategic Options
Establishing an Analytical Planning Process

9. Fig 2.5 Influential factors on customers’ perceptions

10. Fig 2.6 Systematic and analytical strategic planning

11. Developing a Strategy to Reflect Lifetime Customer Values
The Implications of Only Getting it Right First Time
Setting the right direction
The Strategic Intent
The Staff
The Information and Support Systems
Customer-value segmentation
Managing for outcomes

12. Fig 2.7 Elements to customer loyalty

13. Fig 2.8 Ease of contact and willingness to complain

14. Fig 2.9 Customers’ values at the centre of strategy development

15. Customer Retention and Recovery Strategy
Retain, Invest and Prevent Defection
Feedback Learning Curve
Strategic focus: new or existing customers?
Establishing Customer Listening Posts.
Eliminating blame management in service recovery.
Empowering everyone to own the customer's problem.
Managing service improvement by getting the facts through quantitative analysis.
Encouraging partnering between operational and service development areas.
Measuring the success of improvement efforts through the customer retention index

16. Fig 2.10 Feedback learning curve

17. Execution of the operations service strategy
Four principles of great operational service
Reliability means consistent, dependable service every time the customer engages with the organization
Surprise delivers something extra, more than the customer expects to receive
Recovery restores the customer's confidence when a service performance falls short of the expected quality.
Fairness involves treating customers with respect and integrity

18. Dynamic factors
Emotional considerations
Empowered Employees Enliven Strategy
Strategic listening
Disseminate information far and wide
Creating a dynamic service operations scorecard

19. Fig.2.11 Dynamic scorecard