Chapter 5: Service vision, service design and service interaction

Question 1

I. Service Vision

Service vision role

Answer 1

Vision: A firm’s overall orientation and position that explains what the organization stands for and what it is the goal to offer

Strategy: A distinctive formula for delivering the vision -an action plan

Process: A series of acts or performances that will fulfill the vision. Actual delivery of the service. It is how is done.

System: A collection management systems, dpts., structures and technologies that help to coordinate the service processes

Question 2

Service Vision

Answer 2

Definition: A service vision is a holistic philosophy of service orientation of a company.
It represents all that the organization stands for, focus on service promises, and what it is the goal to offer.
It is the core.

Properties:

• Idea about what the company wants to achieve in the future
• Must be realistic, achievable and strategically possible
• Vision statements are future-oriented
• Must be maintained internally, advertised and “sold” to all employees until it is firmly rooted in the culture and thinking of the company
• Gives employees a clear understanding of what and why the company wants to offer to customers
• Defined what will be produce to the customer

Question 3

Service Strategy

Answer 3

Definition:
A service strategy is a formula by which the service vision is to be implemented;
It describes the action plan that gives the organization and defines what the term “service” means to the business

Properties:

• Integrated compilation of plans to build and maintain a sustainable competitive advantage
• Focus on what is done (and what is not done), what you want to become, and how to get there
• Stimulus for the entire organization and each employee to contribute their performance to the holistic action plan
• Determine every aspect of the service offering (including development, distribution and communication). Communication to all the people in the firm.

Question 4

Service Process

Answer 4

Definition:
A service process describes, step by step, the actual delivery of the service (a set of different services that together make up the overall service);
It is not about what is done, but primarily how it is done (instruments, technology, staff)

Properties:

• Necessary set of services delivered in a logical sequence to ensure a positive customer experience
• Three keys to understanding service processes:
  (1) what needs to be done,
  (2) what it is done,
  (3) how the customer responds
• Processes form the “essence” of services

Question 5

Service System

Answer 5

Definition:
A service system consists of management systems, departments, information, organizational structures, and technologies

Properties:

• Helps to coordination various service processes for consistency (the result can be achieved consistently)
• By controlling the process quality (exceeding the customer expectations), the quality of the result (fulfillment of customer expectations) can also be controlled. i.e. in a restaurant, people expect good food. A good process could control the quality.
• Management and service providers (front-line) must analyze, coordinate ,and integrate all processes of the offer to achieve high quality of service
• Components of a well service system:
  (1) simple and uncomplicated service,
  (2) customer-friendly service,
  (3) value creation for the customer

Question 6

Alignment of service vision, strategy, process and system

Answer 6

Service vision (concept), strategy, process, and system.

• Successful integration of all components strengthens the company both internally (employees and corporate culture) and externally (corporate image and customer perception).
• They must be clearly communicated inside and outside the organization. Misalignments creates confusion

Question 7

II. Service Design

Service Design

Answer 7

Definition:
Service design describes the planning and organization of staff, infrastructure, communication and physical components of a service to improve service quality and interaction between service providers and customers

Properties:

• Operational implementation of the service vision
• Systematic design (developed over the time, how could make the process more efficient; think about when design a system)
• Interactive and dynamic
• Key elements in the design of a service:
  (1) offer (customer target),
  (2) financing,
  (3) employee management,
  (4) customer management

Question 8

Identification of design errors

Answer 8

Errors in service design can bring recurring service quality issues

Most errors typically have a few causes (Pareto principle) that need to be identified and eliminated. 80% of income are generated by the 20% of people

Question 9

Examples: Successful implementation of service

Answer 9

Economy segment: Mc Donalds (be the favorite place to eat and drink), The Pod Hotels (affordable hotels designed with attention to details)
Mid-Market segment: Holiday Inn (comfort level close to home for business and family travelers)
Luxury segment: Ritz – Carlton (genuine hospitality and finest service provided in warn and relaxed ambience)

Question 10

III. Service interaction / encounter

Service Interaction/Encounter

Answer 10

Definition:

• The service interaction describes the dyadic encounter between the customer and the service provider.
• The time or moments when the company and the customer contact each other

Properties:

• No limitation on interactions between humans, also interactions between humans and technology are more relevant
• When the customer experiences the service personally, take place the moments of truth.
• Customers as co-creators of value

Question 11

Management the service interaction:

Stress factors and solutions

Answer 11

Challenges and stress factors:

• Employee stress (conflict between employees, lack of clarity)
• Emotional labor (showing emotions that are not feeling)
• Customer variability (different needs, cultures)
• Other customers
• Customer and employee sabotage
• Balance between service quality and financial performance

Actions and solutions:

• Understand the principles of services and hospitality
• Smile and impression management
• HR management practices (having right people in the right job)
• Optimism (recognition, training)
• Listening skills
• Creating a Service Scripting (ensure consistent process)

Question 12

Moments of Truth

Answer 12

Definition:
The moments of truth are critical, individual interactions that have the potential to determine the customer’s attitude to the overall service

Properties:

• Customer concludes from such moments the true value of the service experience (“make or break”)
• Systematic identification, analysis, and management required to ensure a positive customer experience
• Decisive role of the employees
• Cascade of the moments of truth (positive or negative). First impression is very important.

Question 13

Service Blueprinting

Answer 13

Definition:
A Service Blueprinting is a detailed planning and diagnostics document that visualizes the interaction of the various service components and processes as a flowchart

Properties:

• Provides a snapshot of a dynamic process (not frozen in time)
• Structured, schematic representation of various processes that form the entire service and the links between these individual processes
• Identification of moments of truth (encounter points) and potential sources of error (fail points)
• Instrument for the prevention and elimination of problems
• Holistic view of the service, pretest of service on paper
• Flexible level of detail (Blueprints within Blueprints)

Question 14

Example Blueprinting

Answer 14

see graphic

Question 15

Summary of Service vision, service design and service interaction

Answer 15

The service vision forms the core of a service company, resulting in the service strategy, the service process and the service system

Successful integration of all components strengthens the company both internally (employees and corporate culture) and externally (corporate image and customer perception)

Service vision is operationally implemented through service design, describing the planning and organization of employees, infrastructure, communication and physical components of a service to improve service quality and interaction between service providers and customers

The service interaction describes the dyadic encounter between the customer and the service provider or the time frame or moments when the company and the customer interact with each other, where the moments of truth (Moments-of-Truth) take place

Service Blueprinting is a detailed planning and diagnostics document that visualizes the interaction of the various service components and processes as a flowchart