1. Managing People for service advantage
The old adage “people are your most important asset” is wrong. The right people are your most important assets.

2. Front line is core part of the product
Front line staff represents the service firm
Front line staff or service is the core part of the brand
They are marketers

3. The service triangle company Internal marketing External marketing
(enabling promises)
External marketing
(making promises)
providers
customers
Interactive marketing
(keeping Promises)

4. Importance of Providers
Communicability
Transaction
Consistency
Providers have a role that spans boundary

5. Roles of employees and their influences on customers.
Contactor
Modifiers
Influencers
Isolated
Frequency of periodic
customer contact
Infrequent or no
customer contact
Involved with conventional
marketing mix
Not directly involved
with marketing mix

6. The service profit chain
Satisfaction, retention and productivity
Service value
Customer satisfaction and loyalty
Revenue growth & profitability

7. The cycle of failure-Employee cycle
Emphasis on rules
rather than service
Employee cant
respond to
customer problems

8. The cycle of failure-Customer cycle

9. Discovering the soul of service
Treat customer like family
Listen first
Anticipate customers wants
Simple thing makes the difference
Work smart
Keep learning
Success is where you find it
All for one and one for all
Take pride in your work
source: Leonard L. Berry- the nine drivers of sustainable business success

10. Frontline work is difficult and stressful
Boundary Spanning
Sources of conflict-Person/Role conflict, Organization/Client conflict, Interclient conflict
Emotional labor

11. Human resource Strategies for closing gap 3
Hire the right people-compete for the best people
Hire for service competencies and service inclination
Be the preferred employer

12. Identify the best candidate
Observe behavior
Conduct personality test
Conduct multiple structured interviews
Give applicant a realistic preview of job
Train service employee actively
The organization culture, purpose and strategy
Interpersonal and technical skills
Product service knowledge

13. Empower the frontline Empowerment at Nordstorm
Rule#1: Use your good judgment in all situations.
there will be no additional rules.
Is empowerment always appropriate?

14. Is empowerment always appropriate?
The firms business strategy is based on competitive differentiation and on offering personalized, customized service
The approach to customers is based on extended relationship rather than on short term transaction
The organization use technology that are complex and non routine.
The business environment is unpredictable
Employees have a strong need to grow

15. The power of teamwork
Team- “A small number of people with complementary skills who are committed to a common purpose, set of performance goals, and approach for which they hold themselves mutually accountable”.

16. Creating successful service delivery team
Each team has an “owner": a person who owns the team problems
Each team has a leader who monitors team progress
Each team has a quality facilitator

17. Motivate and energize your people
Use the full range of rewards
Pay
Bonus
Job content
Feedback and recognition
Goal accomplishment

18. Develop people to deliver service quality
Train for technical and interactive skill
Empower employee
Promote teamwork

19. Provide needed support systems
Measure internal service quality
A cautionary notes
Provide supportive technology and equipment
Develop service oriented internal process

20. Retain the best people Include Employees in the Company's Vision
Treat employees as customers
Measure and reward strong service performance

21. Service leadership
A charismatic leadership also called transformational leadership, fundamentally changes the values, goals, and aspiration of the front line to be consistent with the firms.
Value driven leadership inspires and guides service provider

22. Service Culture
Corporate culture-The pattern of shared values and beliefs that give the member of an organization some meaning and provides them with the rule for the behavior in the organization.
Service Culture- “A culture where an appreciation for good service exist and where giving good service to internal as well as ultimate, external customers is considered a natural way of life and one of the most important norms by everyone”.

23. Shared perception of what is important in an organization
Shared values and belief about why those things are important

24. In a strong service culture the entire organization focuses on front line and understands that they are the life line of the business.

25. Level of customer participation across different services
Low: consumer presence required during service delivery
Moderate: consumer input required for service creation
High: customer co creates the service product
Products are standardized
Client inputs customize a standard service
Active client participation guides the customized service
Service is provided regardless of any individual purchase
Provision of service require customer purchase
service cannot be created apart from customer purchase and active participation
Payment may be the only required customer input
customer inputs information material) are necessary for an adequate outcome, but the service firm provides the service
Customer inputs are mandatory and cocreate the outcome
End consumer example
Airline travel
Motel stay
Fast food restaurant
Haircut
Annual physical exam
Full-service restaurant
Marriage counseling
Personal training
Weight reduction program
Major illness or surgery
B2B customer example
Uniform cleaning service
Pest control I
Agency-created advertising
Campaign
Payroll service
Freight transportation
Management consulting
Executive management seminar i