McGraw-Hill

1. S M Part 3 ALIGNING STRATEGY, SERVICE DESIGN AND STANDARDS © 2000 The McGraw-Hill Companies McGraw-Hill

2. Provider GAP 2 CUSTOMER Customer-Driven Service Designs and Standards COMPANY GAP 2 Company Perceptions of Consumer Expectations Part 3 Opener

3. S M Chapter 8 SERVICE DEVELOPMENT AND DESIGN © 2000 The McGraw-Hill Companies McGraw-Hill

4. Figure 8-1Risks of Relying on Words Alone to Describe Services • Oversimplification • Incompleteness • Subjectivity • Biased Interpretation

5. Figure 8-2 New Service Development Process • Business Strategy Development or Review • New Service Strategy Development Front End Planning • Idea Generation Screen ideas against new service strategy • Concept Development and Evaluation Test concept with customers and employees • Business Analysis Test for profitability and feasibility • Service Development and Testing Conduct service prototype test • Market Testing Implementation Test service and other marketing-mix elements • Commercialization • Postintroduction Evaluation Source: Booz-Allen & Hamilton, 1982; Bowers, 1985; Cooper, 1993; Khurana & Rosenthal 1997.

6. Figure 8-3New Service Strategy Matrix for Identifying Growth Opportunities Markets Offerings Current Customers New Customers Existing Services SHARE BUILDING MARKETDEVELOPMENT New Services SERVICEDEVELOPMENT DIVERSIFICATION

7. The Structure of Service Production • Interactive Part • customer contact with • contact personnel • systems • physical components --------------------LINE OF VISIBILITY---------------------------- • Support • Management Support • Support Functions • Technological/Knowledge Support

8. Figure 8-4Service Mapping/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. Process Service Mapping Points of Contact Evidence McGraw-Hill © 2000 The McGraw-Hill Companies

9. Blueprinting • Looks at the basic systems of your organization ---- “a process” • Answers the questions: Who does what, to whom, how often, and under what conditions?

10. Service Blueprint Components CUSTOMER ACTIONS line of interaction “ONSTAGE” CONTACT EMPLOYEE ACTIONS line of visibility “BACKSTAGE” CONTACT EMPLOYEE ACTIONS line of internal interaction SUPPORT PROCESSES

11. Symbols Used In Blueprinting • Rectangles --- process symbol • Flow of lines --- how often • Boxes with fans --- a range of potential actions which can occur • Circles with fans --- a range of potential events that may occur • Line of Visibility --- onstage from backstage

12. Express Mail Delivery Service Truck Packaging Forms Hand-held Computer Uniform Truck Packaging Forms Hand-held Computer Uniform PHYSICAL EVIDENCE Customer Calls Customer Gives Package Receive Package CUSTOMER Driver Picks Up Pkg. (On Stage) Deliver Package CONTACT PERSON (Back Stage) Customer Service Order Airport Receives & Loads Fly to Sort Center Load On Truck Dispatch Driver Unload & Sort Fly to Destination SUPPORT PROCESS Load on Airplane Sort Packages

13. Overnight Hotel Stay Bill Desk Lobby Hotel Exterior Parking Hotel Exterior Parking Cart for Bags Desk Registration Papers Lobby Key Elevators Hallways Room Cart for Bags Room Amenities Bath Menu Delivery Tray Food Appearance Food PHYSICAL EVIDENCE Arrive at Hotel Give Bags to Bellperson Call Room Service Check out and Leave CUSTOMER Receive Bags Sleep Shower Go to Room Receive Food Eat Check in Greet and Take Bags Deliver Bags Deliver Food Process Registration Process Check Out (On Stage) CONTACT PERSON Take Food Order (Back Stage) Take Bags to Room Registration System Registration System Prepare Food SUPPORT PROCESS

14. Blue Print for the Corner Shoeshine Stand

15. Flowchart of a Discount Brokerage

16. Blueprint of a General Practitioner Services

17. An Auto Dealer’s Service Department

18. Figure 8-8 Building a Service Blueprint Step 6 Add evidence of service at each customer action step. Step 4 Map contact employee actions, onstage and back-stage. Step 3 Map the process from the customer’s point of view. Step 1 Identify the process to be blue-printed. Step 2 Identify the customer or customer segment. Step 5 Link customer and contact person activities to needed support functions.

19. 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

20. 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 empowering the human element job descriptions selection criteria appraisal systems System Technology providing necessary tools: system specifications personal preference databases Blueprints Can Be Used By:

21. Differences Between Manufacturing and Services • Intangibility • Perishability • Inseparability • Variability

22. Benefits of Blueprinting • Clarifies elements of the service. • Shows the sequence of delivery. • Separates onstage from backstage • customer contact from support component. • Identifies likely fail points. • Identifies capacity bottlenecks. • Allows management of the whole rather than the pieces.

23. Using Blueprints • For Service Design • For internal communication • For measurement design