1. ALIGNING SERVICE DESIGN AND STANDARDS
Part 4
ALIGNING SERVICE DESIGN AND STANDARDS

2. Your Work Glacier Bear Lodge 1 Pager Upward Communication
Listening Instrument
Research Proposal
[ If they are not in VC by Sunday – you will get zero score for all of these]

3. Provider Gap 2

4. Key Factors Leading to Provider Gap 2

5. Customer-Defined Service Standards
Factors Necessary for Appropriate Service Standards
Types of Customer-Defined Service Standards
Development of Customer-Defined Service Standards

6. FedEx Service Quality Indicator (SQI)

7. Service Standards Customer-Defined Standards Company-Defined Standards
Standards are based on the most important customer
expectations and reflect the customer’s view of these expectations.
Customer-Defined Standards
SOURCES
Customer Expectations
Customer Process Blueprint
Customer Experience Observations
SOURCES
Productivity Implications
Cost Implications
Company Process Blueprint
Company View of Quality
Company-Defined Standards

8. Customer Service Report Card for Puget Sound Energy

9. Counting…
“Not everything that counts can be counted...and not everything that can be counted, counts.”
Albert Einstein

10. Standards… HARD STANDARDS AND MEASURES SOFT STANDARDS AND MEASURES
Things that can be counted, timed,
or observed through audits (time,
numbers of events)
SOFT STANDARDS AND MEASURES
Opinion-based measures that cannot
be observed and must be collected by
talking to customers (perceptions, beliefs)

11. Examples of Hard Customer-Defined Standards

12. Examples of Soft Customer-Defined Standards

13. Exercise for Creating Customer-Defined Service Standards
Form a group of four people
Use your school’s undergraduate or graduate program, or an approved alternative
Complete the customer-driven service standards importance chart
Establish standards for the most important and lowest-performed behaviors and actions
Be prepared to present your findings to the class

14. Customer-Driven Standards and Measurements Exercise
Service Encounter
Customer Requirements
Measurements
Service
Quality

15. What Customers Expect: Getting to Actionable Steps

16. Process for Setting Customer-Defined Standards

17. Importance/Performance Matrix

18. Linkage between Soft Measures and Hard Measures for Speed of Complaint Handling

19. Example of Customer-Defined Service Standards at Circuit City
Initial Sales Contact with Circuit City in Store
act in a professional and courteous manner
ask customer what he or she is looking for
offer to be available when needed if customer not ready
ask customer several questions about specific needs or wants
educate the customer about products in category
explain the differences between products (such as TVs) that customer is considering
be honest about options and price
Adapted from: John R. DiJulius III (2005), Secret Service, Hidden Systems That Deliver Unforgettable Customer Service.

20. Example of Customer-Defined Service Standards at Circuit City
Checkout at Circuit City in Store
act in a professional and courteous manner
probe customer to assure that product meets needs and reduce any anxiety and uncertainty that the customer might feel
explain the warranty service that accompanies the product
using what is known about the customer, explain the Circuit City customer service agreements that extend the warranty
explain the differences between CSA options, being sure to relate them to what the customer needs
encourage purchase, and fully explain how to implement CSA
Adapted from: John R. DiJulius III (2005), Secret Service, Hidden Systems That Deliver Unforgettable Customer Service.

21. Example of Customer-Defined Service Standards at Circuit City
Post-sale Follow Up
telephone customer within next 7 days to ask how TV is operating
ask if client is ready to schedule first service
if client is ready, establish date for first service
send out postcard one week in advance of first service call to remind customer and explain what needs to be done
Adapted from: John R. DiJulius III (2005), Secret Service, Hidden Systems That Deliver Unforgettable Customer Service.

22. Example of Customer-Defined Service Standards at Circuit City
Annual Follow Up
send customers reminder cards that they have either used the service or are due for a service call
two weeks after mailing card, call customers who have used service and assure that they are satisfied both with product and service
call each customer who has not used the service and schedule a “maintenance check-up” where service provider goes to home and checks and tunes television
Adapted from: John R. DiJulius III (2005), Secret Service, Hidden Systems That Deliver Unforgettable Customer Service.

23. Soft Standards at Toyota in Japan
Standards for salespeople patterned after samurai behaviors:
assume the samurai warrior’s “waiting position” by leaning five to ten degrees forward when a customer is looking at a car
stand with left hand over right, fingers together and thumbs interlocked, as the samurais did to show they were not about to draw their swords
display the “Lexus Face,” a closed-mouth smile intended to put customers at ease
Samurai warrior
“waiting position”

24. More Soft Standards at Toyota in Japan
Standards for salespeople patterned after samurai behaviors:
when serving coffee or tea, kneel on the floor with both feet together and both knees on the ground
bow more deeply to a customer who has purchased a car than a casual window shopper 
stand about two arms’ lengths from customers when they are looking at a car and come in closer when closing a deal
point with all five fingers to a car door’s handle, right hand followed by left, then gracefully open the door with both hands 

25. Hard and Soft Service Standards at Ford
Appointment available within one day of customer’s requested service day
Write-up begins within four minutes
Service needs are courteously identified, accurately recorded on repair order and verified with customer
Service status provided within one minute of inquiry
Vehicle serviced right on first visit
Vehicle ready at agreed-upon time
Thorough explanation given of work done, coverage and charges

26. Standards at Four Seasons
Seven Service Culture Standards
Core Worldwide Service Operating Standards
Smile
Eye
Recognition
Voice
Informed
Clean
Everyone
Reservations
Hotel Arrival
Messages and Paging
Guest Room Evening Service
Breakfast
Room
Exceptions are permitted if
they make local sense

27. Ritz-Carlton’s SQI Index
SQI Defects
Points
1. Missing Guest Preferences 10
2. Unresolved Difficulties 50
3. Inadequate Guestroom Housekeeping 1
4. Abandoned Reservation Calls 5
5. Guestroom Changes
6. Inoperable Guestroom Equipment
7. Unready Guestroom
8. Inappropriate Hotel Appearance
9. Meeting Event Difficulties
10. Inadequate Food/Beverage
11. Missing/Damaged Guest Property/Accidents
12. Invoice Adjustment 3

28. Reflection – customer driven servie standards!

29. Service Innovation and Design
Challenges of Service Innovation and Design
New Service Development Processes
Types of Service Innovations
Stages in Service Innovation and Development
Service Blueprinting
High-Performance Service Innovations

30. Risks of Relying on Words Alone to Describe Services
Oversimplification
Incompleteness
Subjectivity
Biased Interpretation

31. Describing the Complexity of a Service Offering:

32. Types of Service Innovations
major or radical innovations
start-up businesses
new services for the currently served market
service line extensions
service improvements
style changes

33. New Service Development Process

34. New Service Strategy Matrix for Identifying Growth Opportunities

35. Service Blueprinting
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.

36. Service Blueprint Components
Customer Actions
line of interaction
Visible Contact Employee Actions
line of visibility
Invisible Contact Employee Actions
line of internal interaction
Support Processes

37. Service Blueprint Components

38. Blueprint for Express Mail Delivery Service

39. Blueprint for Overnight Hotel Stay Service

40. Building a Service Blueprint

41. Application of Service Blueprints
New Service Development
concept development
market testing
Supporting a “Zero Defects” Culture
managing reliability
identifying empowerment issues
Service Recovery Strategies
identifying service problems
conducting root cause analysis
modifying processes

42. Blueprints Can Be Used By:
Service Marketers
creating realistic customer expectations:
service system design
promotion
Operations Management
rendering the service as promised:
managing fail points
training systems
quality control
Human Resources Management
empowering the human element:
job descriptions
selection criteria
appraisal systems
System Technology
providing necessary tools:
system specifications
personal preference databases

43. Benefits of Service Blueprinting
Provides a platform for innovation.
Recognizes roles and interdependencies among functions, people, and organizations.
Facilitates both strategic and tactical innovations.
Transfers and stores innovation and service knowledge.
Designs moments of truth from the customer’s point of view.
Suggests critical points for measurement and feedback in the service process.
Clarifies competitive positioning.
Provides understanding of the ideal customer experience.

44. Common Issues in Blueprinting
Clearly defining the process to be blueprinted
Clearly defining the customer or customer segment that is the focus of the blueprint
Who should “draw” the blueprint?
Should the actual or desired service process be blueprinted?
Should exceptions/recovery processes be incorporated?
What is the appropriate level of detail?
Symbology
Whether to include time on the blueprint
NOTES:

45. Input Order at Bar/ Kitchen
Parking
Exterior Building
Waiting Area Outdoor Seating
Interior
Design
Hostess
Stand
Appearance of Staff
Cleanliness
of Table
Silverware
Napkins
Sauces
Centerpiece
Drink
Station
Appearance
of Bar and
Bartenders
Plates
Glasses
Presentation
Food
Drinks
PHYSICAL
EVIDENCE
Menu
Menu
Approach
Hostess
Stand
Wait/Order
Drinks
at Bar
Order
Drinks/ Appetizers
Specify
“Spiciness”
of Sauce
Receive
Drinks/
Appetizers
CUSTOMER
Arrive at
Restaurant
Consume
Drinks
Be Seated
at Table
Order
Entree
Next Slide
Greet and
Take
Drink Order
Take Drink/ Appetizer
Order
Prepare
Sauce
at Table
Deliver
Drinks/
Appetizers
Greet and
Give Buzzer
Deliver
Drinks
Escort
to Table
(Visible)
CONTACT PERSON
Prepare
Drinks
Process
Seating
Requests
Input Order at Bar/ Kitchen
Check
Accuracy
of Order
“Buzz”
Customer
(Invisible)
SUPPORT
PROCESS
Computerized
Seating
System
Prepare
Drinks/
Appetizers
Receive
Order

46. PHYSICAL EVIDENCE CUSTOMER CONTACT PERSON SUPPORT PROCESS (Visible)
New
Silverware
Plates
Food
Presentation
Portfolio
with Check
Enclosed
Fortune Cookies
PHYSICAL
EVIDENCE
Plates
Food
Presentation
Doggie
Bags
Menu
Menu
Consume
Refills,
Extra Sauce
Ask for
Doggie
Bag
CUSTOMER
Order
Entree
Receive
Entree
Eat
Food
Finish Meal
Order
Dessert
Eat
Dessert
Ask for
Bill
Pay
Bill
Take
Entree
Order
Offer
Refills,
Extra Sauce
Deliver
Drinks,
Extra Sauce
Pick-up
Empty
Plates/ Clean off
Table
Bring
Boxes to
Customer
Show
Dessert
Menu
Deliver
Order
Deliver
Dessert
Deliver
Bill and
Fortune
Cookies
(Visible)
CONTACT PERSON
Pack up
Food
Take
Order
Enter Order
into
Computer
Refill
Drinks,
Extra Sauce
Enter
Dessert Order
Into Computer
Total Bill at
Computer
Take Plates
to Kitchen
(Invisible)
SUPPORT
PROCESS
Receive Order/
Prepare
Dessert
Receive
Food Order
Prepare
Food
Wash Dishes
Print
Bill

47. Tangible Cues or Indicators of Quality
Exterior and Interior Design
Presentation of Food/Drinks
Appearance of Staff
Cleanliness of Tables, Utensils
Cleanliness of Restrooms
Location of Restaurant
Appearance of Surrounding Customers

48. Possibility of Standardization
Hostess Greeting
Pre-Prepared Sauces (Mild, Medium and Hot)
Time Standards
Food and Drink Quality Standards
Bill Standards

49. Potential Fail Points and Fixability
Bar
train to make drinks; create ample seating space for wait area overflow
Food
revise food presentation; create quality control checks to ensure order is correct before delivering to customer
Staff
training; set number of times to check-in on customers; behavioral and attitude guidelines; dress code
Billing
standards for when to bring bill, how to deliver, when to pick-up, how quickly to process transaction; ensure one fortune cookie per customer
Cleanliness
standards for amount of time it takes to clear and clean tables; regular restroom checks

50. Physical Evidence and the Servicescape
Types of Servicescapes
Strategic Roles of the Servicescape
Framework for Understanding Servicescape Effects on Behavior
Guidelines for Physical Evidence Strategy

51. Elements of Physical Evidence

52. Examples of Physical Evidence from the Customer’s Point of View

53. Typology of Service Organizations Based on Form and Use of the Servicescape

54. Roles of the Servicescape
Package
conveys expectations
influences perceptions
Facilitator
facilitates the flow of the service delivery process
provides information (how am I to act?)
facilitates the ordering process (how does this work?)
facilitates service delivery
Socializer
facilitates interaction between:
customers and employees
customers and fellow customers
Differentiator
sets provider apart from competition in the mind of the consumer
Dental laser “drill”

55. A Framework for Understanding Environment-User Relationships in Service Organizations

56. Guidelines for Physical Evidence Strategy
Recognize the strategic impact of physical evidence.
Blueprint the physical evidence of service.
Clarify strategic roles of the servicescape.
Assess and identify physical evidence opportunities.
Be prepared to update and modernize the evidence.

57. Speedi-Lube Spells Out the Service Offering

58. Cheers: The Third Place

59. Some Tangible Cues and/or Facilitating Goods at Buffalo Wild Wings Restaurant
NTN system trivia game pad where customers can compete with fellow restaurant patrons and others playing it all around the country.
Special Promotions…
Cup with BW3 logo…
The pager to let you know
when your food is ready…
The menu…

60. Thank you!