1. Education in Service Management Alastair Nicholson London Business School AIM 2007 Conference

2. How does service come to mind?  Relationships: supplier-receiver  Shops  Answering machines  On-time delivery  Queues  Quality  Standards  Consistency with promises made  Cultural characteristics: USA, UK...  Regulation

3. Positioning service in education  Business/management education  Graduate/undergraduate  Service courses  Retailing courses  Extension of logistics

4. A natural extension of manufacturing operations management?  Technical learning and tooling  Operational organisation - assembly  Work specification  Worker empowerment  Logistics and sales chains  Quality studies  Product life cycle values  Service experience management

5. Critical differences from engineering education  Difficult to define boundaries  Less measurable - attributes, impressions  Continuous management of interactions  Much less specifiable  Frameworks for analysis and consideration - not formulæ for application

6. Parallels with concurrent engineering Concurrent engineering Design Manufacture Customer encounter MakeSupport Service management

7. Scope and interaction of service experience Regulatory influence Provider’s operations Architecture of content Employee behaviour Profitability requirements Marketing activities Impressions /expectations Culture experience Other customers Customer

8. Essential assumptions for service providers  Service is an extension of ‘product’  Need service concept to link marketing and product technology  Customers’ views are private  Difficulties/disappointments not redeemed by reference to specification  Management is spontaneous  Requirements are continuously variable  Commercial value of service unknown

9. Approach to analysis  Two parallel streams  Need to attract customers into service delivery system  Need service delivery system to be fashioned to reflect customers characteristics i.e. ‘overlaps’ of impressions and realities critical Customer experience ExpectationSatisfaction System design Service delivery system Cost effectiveness

10. Concept of the Gap Model

11. Elements of value experienced in service encounters ‘Stated’ ‘For you’ ‘In brochure’ Delivered, noticed or ‘free’ Unstated, expected in this context Taken as ‘recommendation’ TangibleIntangible Explicit Implicit Sell on these‘Winners’ ‘Qualifiers’Retain on these

12. Factors available for organising the service delivery system  Participants  Information  Channelling  Technology  Architecture  Employee training  Décor  Points of contact  Lines of visibility

13. The context in which service delivery systems operate  The service system works within two trade-offs Customer service Barrier of structure Productivity Scope for change Barrier of operations Economies of “standardisation” Operational trade-offStructural trade-off

14. Trade-offs illustrated in McDonalds  Approach to productivity  Validation of service concept QSCV  Achievement of profitability by the focus on throughput, not margin

15. Trade-offs illustrated in McDonalds