1. 9-1 Part 4 ALIGNING SERVICE DESIGN AND STANDARDS

2. 9-2 Provider Gap 2

3. 9-3 Key Factors Leading to Provider Gap 2

4. 9-4 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 Chapter9 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

5. 9-5 Objectives for Chapter 9: Service Innovation and Design  Describe the challenges inherent in service innovation and design.  Present the stages and unique elements of the service innovation and development process.  Demonstrate the value of service blueprinting and how to develop and read service blueprints.  Present lessons learned in choosing and implementing high-performance service innovations.

6. 9-6 Risks of Relying on Words Alone to Describe Services  Oversimplification  Incompleteness  Subjectivity  Biased Interpretation

7. 9-7 Describing the Complexity of a Service Offering:

8. 9-8 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

9. 9-9 New Service Development Process

10. 9-10 New Service Strategy Matrix for Identifying Growth Opportunities

11. 9-11 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.

12. 9-12 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

13. 9-13 Service Blueprint Components

14. 9-14 Blueprint for Express Mail Delivery Service

15. 9-15 Blueprint for Overnight Hotel Stay Service

16. 9-16 Building a Service Blueprint

17. 9-17 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

18. 9-18 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

19. 9-19 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.

20. 9-20 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

21. 9-21 SUPPORT PROCESS CONTACT PERSON (Invisible) (Visible) CUSTOMER Parking Exterior Building Waiting Area Outdoor Seating Interior Design Hostess Stand Appearance of Staff Drink Station Appearance of Bar and Bartenders Cleanliness of Table Silverware Napkins Sauces Centerpiece Menu Plates Glasses Presentation Food Drinks “Buzz” Customer Arrive at Restaurant Approach Hostess Stand Wait/Order Drinks at Bar Consume Drinks Be Seated at Table Order Drinks/ Appetizers Specify “Spiciness” of Sauce Receive Drinks/ Appetizers Deliver Drinks/ Appetizers Greet and Give Buzzer Greet and Take Drink Order Deliver Drinks Prepare Sauce at Table Process Seating Requests Take Drink/ Appetizer Order Computerized Seating System Prepare Drinks/ Appetizers PHYSICAL EVIDENCE Prepare Drinks Escort to Table Input Order at Bar/ Kitchen Receive Order Entree Next Slide Check Accuracy of Order Menu

22. 9-22 SUPPORT PROCESS CONTACT PERSON (Invisible) (Visible) CUSTOMER Refill Drinks, Extra Sauce Order Entree Receive Entree Eat Food Consume Refills, Extra Sauce Finish Meal Ask for Doggie Bag Order Dessert Enter Dessert Order Into Computer Take Order Deliver Order Offer Refills, Extra Sauce Show Dessert Menu Bring Boxes to Customer Prepare Food PHYSICAL EVIDENCE Pick-up Empty Plates/ Clean off Table Take Plates to Kitchen Pack up Food Take Entree Order Menu Enter Order into Computer Receive Food Order Plates Food Presentation Receive Order/ Prepare Dessert Deliver Dessert Eat Dessert Ask for Bill Total Bill at Computer Print Bill Deliver Bill and Fortune Cookies Pay Bill Doggie Bags Menu New Silverware Plates Food Presentation Portfolio with Check Enclosed Fortune Cookies Deliver Drinks, Extra Sauce Wash Dishes

23. 9-23 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

24. 9-24 Possibility of Standardization  Hostess Greeting  Pre-Prepared Sauces (Mild, Medium and Hot)  Time Standards  Food and Drink Quality Standards  Bill Standards

25. 9-25 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