Hospitality Operations Analysis Ch 02: The System Side of Procedural Elements Dr. Edward A. Merritt The Collins Endowed Chair of Management California State University (Cal Poly Pomona)

Objective Service Elements Procedural Personal

What Have You Done For Me Lately? Mable & Angus Fricket

Adopting a Customer Service Perspective “The customer is king.” “The customer is the reason we exist.” “Our customers pay our salaries.” “Without our customers we have nothing.” “We are not providing quality service unless our customers believe that we are.”

Customers Service Providers Managers GM Effective leaders turn the traditional hierarchy upside down…

The System Side 7 Procedural Elements Objective System Define State a benchmark (Service Standard) Observe the actual and summarize relative to benchmark Two individual strengths (benchmark) Two individual weaknesses (benchmark

7 Procedural Elements The Lucky Seven Timeliness Incremental flow Anticipation Communication Member feedback Accommodation Supervision and organization The Lucky Seven

The System Side Providing a procedural touch Organized ways of doing things

1. Timeliness Definition: The time that it takes the product or service to get to each customer Benchmark (What): Customers receive entrée within 20 minutes of ordering Actual (How): Usually customers received entrees within 15 minutes 2 Strengths (individual instances) 2 Weaknesses (individual instances)

Timeliness is Relative What is the service concept of the organization? How are steps of service used? What is the meal period?

Four Moments of Truth When the guest arrives The wait before service contact The time of providing service Post service time

2. Incremental Flow Definition: Requires that service will occur in regular increments to ensure a steady flow of service to the guest Benchmark: Entrée arrives within five minutes of clearing salad plates Actual: When servers placed salad and entrée orders at the same time, and both came out together

Maintaining Incremental Flow Flow affects timeliness Consider the flow and system interdependency Break service into discrete increments The service provider should control the flow based on customer wants

Managing Flow Prebookings, reservations Seating, room assignment patterns Express check in and out ability Adjustment for large groups Waiting procedures and areas Queue formations Multiple service stations and steps Staffing

3. Anticipation Definition: Service should always be provided before the customer has to ask for them Benchmark: Soft drinks are refilled one time without customers having to ask Actual: Servers disregard the one unasked refill per person rule. Instead, they anticipate the guests’ drinking needs or ask

Anticipation Know what customers want Know when customers want Think one step ahead Have back ups Staffing for ebb and flow

4. Communication Definition: Messages must be exchanged accurately, thoroughly, clearly, concisely, and in a timely manner Benchmark: Customers receive the item(s) they order Actual: Servers did not read back orders to customers which caused do overs

Communicate Miscommunication = Misunderstanding Misunderstanding = Service failure Miscommunication is easy Effective communication is difficult

Sender Receiver Message Feedback

5. Customer Feedback Definition: The service system must continually assess whether the service and products have met the guests’ needs and expectations Benchmark: The server makes inquiry at the table after two minutes or two bites Actual: Servers did not check back

Customer Feedback Four questions How? Who? Where? When?

Obtaining Feedback Two minutes/two bites Be specific Comment cards Web site Toll free numbers Secret shoppers

Listening Stop talking Avoid distraction Concentrate Look beyond the words Provide feedback to the guest

6. Accommodation Definition: Procedures should be designed around customers’ needs for efficient service rather than what’s easiest for the operation Benchmark: Menu items can be substituted or combined upon request. Separate checks are provided to groups upon request. Actual: Guests were told “my pleasure” when requesting modifiers or separate checks

Accommodation Flexible systems which favor the customer Grant special requests Try to say yes

7. Supervision/Organization Definition: Smooth-running service systems must be coordinated and observed by management Benchmark: A supervisor is visible on the dining room floor at all times Actual: No supervisors were ever observed on the floor during service

Organization Are things running smoothly? Do service providers know what they are doing? Does a supervisor interact with workers and customers? Is supervisor involved in service delivery?

Procedural Elements End Chapter 2