Omgt Midterm Reviewer
Omgt Midterm Reviewer
WEEK 7: QUALITY CUSTOMER SERVICE – Consumers are often directly involved in the service
delivery. A therapist is a good example of this. The
MONITORING AND COMMUNICATIONS
consumer is the center of the service, and thus each
instance of the service is unique based on the
individual involved.
SERVICE OPERATIONS
MANAGING SERVICE OPERATIONS
Services operations often encounter different
opportunities and challenges than tangible goods, and Without a tangible good to ship, handle and produce,
thus require unique operational considerations operational managers are instead focused on the
execution of an activity to fill a consumer need. This
Service operations are simply the application of
management of an instance is rather different than
operations management to an intangible good (i.e. a
the management of a product.
service). To understand how service operations
function CORE OPERATIONAL DECISIONS
Service operations are the operational strategies and
tactics which go into delivering an intangible good to Location
prospective consumers.
How to lay out the facility, what size is appropriate,
Understanding this field of work requires an
and overall how efficiently a given space can be used
understanding of what a service constitutes. One
relative to the cost are key considerations.
useful perspective in differentiating services from
other goods is the ‘5 I’s of services’ perspective. Scheduling
As services behave somewhat differently than
tangible products, operations managers must take into Maximizing output through planning properly can
account different considerations when optimizing minimize opportunity costs and maximize revenue,
their operational strategy. and plays an integral role in operational management
Improving overall quality through measuring of services.
consumer satisfaction, planning facilities for optimal
Quality
use of space, and effective scheduling are a few
examples of considerations service operators As the ‘5 I’s of Services’ indicate, most services tend
consider. to be completely unique.
Services cannot be stored for later use. They occur, Objectives of collecting and reviewing customer feedback
or they do not occur.
Identify the extent to which customers and others are
INSEPARABILITY satisfied with service delivery
Identify the areas in which there is satisfaction with
Services cannot be pulled into different parts or service delivery
separated (as many tangible goods can be—which Identify the precise areas within areas where there is
makes operations management quite different for dissatisfaction.
products). Identify the precise nature of any dissatisfaction.
Identify the staff involved in both superior and
INCONSISTENCY inferior levels of service.
Identify if there is a certain time of the day/week
Services tend to be unique. A teacher may teach you when service levels are reduced or at their best
a topic, and another teacher may teach you the same Discover what can be done to improve a less than
topic in another course. Each teacher will deliver this optimum situation
topic somewhat differently. This is a good example
of service inconsistency.
Identify what needs to be done to maintain the PART 2: SERVICE DISCOVERY, DELIVERY
present satisfactory level of service delivery. AND RECOVERY
The review should be as wide-ranging as possible, meaning
DEVELOP STANDARDS AND PLANS TO
it should involve:
ADDRESS SERVICE ISSUES
Regular customers
Management needs to consider:
New customers
Customers who are one-off customers Different ‘areas’ for which standards and plans may
Corporate customers be created
Staff Development process for plans and standards
Management. Identifying several approaches towards quality
management for staff and customers.
Types of feedback
The development process:
Positive
Establish a ‘customer service’ team of interested,
Customers give compliments about aspects of experienced and dedicated
service. Look at what other venues are providing in terms of
Neutral service
Identify the ‘areas’ in the venue about which you
Customers say they ‘enjoyed’ their experience, not believe there needs to be a customer service standard
provide any further comment. and a plan.
Determine the standards to apply to the identified
Negative
areas with reference to:
Customers have a complaint regarding an aspect of Your image, reputation and advertising
their ‘experience’. Value-for-money for the customer
What the opposition is doing
COMPARE INFORMATION TO IDENTIFY Identified customer expectations.
CHANGES IN CUSTOMER SATISFACTION
Incorporate the standards into a formal plan. This
Budgets plan should identify:
Sales budgets Dates for implementation
Dates for review
Labour budgets
Resources available to support the introduction of the
Material budgets
standards
Inventory budget
Responsibilities related to the initiative
Overhead budgets.
Key Performance Indicators to be used to evaluate
SEEKING AGREEMENT ON ACTION service delivery at the designated review dates.
Courses of action to overcome service problems Possible ‘areas’ for service standards and plans
How individuals are able to perform in relation to the Normally professional development is performed when:
desired standards
Customer service deficiencies exist which need to be
If the team as a whole is operating in a successful
addressed
manner.
New staff require training
Teams in a hospitality setting often refer to either people: New techniques to existing products or services are
made
Within a department New products or services are introduced
Working together in the same shift Retraining is required.
Working closely with another department.
Each team will comprise individuals with their own SUPPORTING TEAM MEMBERS
specific characteristics, strengths and weaknesses
A manager or supervisor must provide active support to team
As a manger it is important to ensure that staff are
members in helping them meet their given outcomes.
able to work together to achieve the collective
objectives of the organization Support that can be given to workplace teams may entail:
The primary objective being to ensure each customer
has an enjoyable experience Giving moral and verbal support when times are
A team is only as strong as its weakest link. tough and the going gets tough
Providing relevant training and coaching
Characteristics of effective teams Obtaining more physical resources to enable the job
to be done better or quicker
Clear goals
Getting approval for more time (overtime payments,
Relevant skills
extra hours) for staff.
Mutual trust
Advocating to management on behalf of the staff
Unified commitment
Supporting staff when an unfounded or unfair
Good communication
allegation is made about them
Negotiating skills
Soliciting and listening to their feedback
Appropriate leadership
Thanking them for hard work, effort and when they
Internal and external support
go the extra yard or two
Recognition and reward
Celebrating any successes
Monitoring team performance
COACHING TEAM MEMBERS
Some suitable methods to monitoring team performance
Coaching of staff to help enhance the delivery of quality
include:
customer service is a much under-used tool in the effort to
Observations provide better levels of service.
Meetings Workplace coaching is an excellent tool to use because:
Customer feedback
Staff feedback It is extremely cost-efficient
Financial and operational reports It relates specifically to individual workplace
Performance appraisals. requirements
It targets individual staff need.
PROFESSIONAL DEVELOPMENT
Basics of coaching
Types of professional development can include:
When considering using coaching it is best to:
Qualifications and certified training programs
provided by external educational or professional Target coaching to actual, identified need for specific
providers individuals
Internal programs Obtain agreement form the staff member that
Meetings coaching is needed and will benefit them
On the job learning Prepare for the coaching session
Buddy system Explain the coaching to be delivered.
Research activities Focus on the person to be coached
Use the two primary delivery strategies of actually provided. Do some research to deeply
‘explanation’ and ‘demonstration’ understand your customers and what services they
Follow the rhyme: “I do it normal, I do it slow. You expect along the experience pathway, so you can
do it with me, then off you go.” anticipate their demands before you make a mistake.
Make sure underpinning skills and knowledge are
3. MAKING AMENDS
covered
Allow for appropriate practice Making amends is a means for righting a wrong. It
Follow up with the staff member as required to see if can be as simple as a sincere apology, sending a
extra coaching or assistance is needed. follow-up letter, or may include a small gift or token
of appreciation. The knee jerk reaction to a service
Ways to deliver coaching
breakdown is more often than not either waiving of a
Role plays bill or giving something complimentary to the
Discussion groups customer. Whilst these strategies do work – but only
to an extent. The customer is more often than not,
Case studies
looking to be treated fairly.
Mentoring
Training videos 4. EMPOWERMENT & OWNERSHIP
A critical friend
Build mechanisms in place that encourage frontline
PART 3: QUALITY CUSTOMER SERVICE staff and management to take ownership of the
situation. “I will solve this problem for you”. When
THE 5 STEPS OF A CUSTOMER SERVICE things do go wrong, a customer wants someone who
will take charge of the situation, rather than pass the
Why is customer service?
responsibility around or blame others for the service
Failures in customer service are inevitable. Whether breakdown. The breakdown in itself could have
you’re just starting out as a business or a well-oiled happened owing to a host of reasons or people for
machine, you’re bound to slip up and disappoint a that matter. However, when it comes to recovering
customer at some point; your reservations desk the situation, the buck stops at the person carrying
forgets to accommodate a special request, your out the recovery, so owning the situation and
airline has to cancel a flight to a popular holiday inspiring trust and confidence in the customer that
destination, or a waiter in your restaurant is having a you will solve the problem for them becomes a
bad day and is impatient with an elderly couple. We critical component.
are a part of an industry which is high touch and 5. RESPOND IN A TIMELY MANNER & FOLLOW-UP
driven by human interaction, 100% error free service
is almost impossible, which is why how an When it comes to service recovery, timing is key. Be
organization recovers from those service breakdowns prompt and efficient in responding and resolving
is what sets them apart from the rest issues, to make sure that frustrations don’t fester for
too long. The quicker you respond, the more likely
HOW TO BUILD A SUCCESSFUL CUSTOMER you’ll be to resolve the issue before it turns sour, and
SERVICE? turn a disgruntled customer into an loyal brand
ambassador.
1. APOLOGIZE TO THE CUSTOMER.
6. KEEP AN OPEN LINE OF COMMUNICATION
The first step to service recovery is offering a sincere
and heartfelt apology to the customer. It must not feel Encourage your customers to provide feedback by
mechanical and you must ensure that the customer sending questionnaires and providing an direct line of
feels like you mean it. communication for where they can share their
Show that you appreciate and regret what the feedback, experiences and concerns. Research shows
customer has gone through in the situation. Think that for every customer complaint, there are 26 other
about what the customer wants to hear from an unhappy customers who have remained silent. So go
apology and offer it to them. What is driving their in search of those customers who might be too
frustration? How are they feeling at the moment? reserved to share their experiences, as you’ll find it’s
Take a moment to step into their shoes. often the silent ones who can do the most damage.
2. ANTICIPATE & UNDERSTAND THE NEEDS OF PART 4: SERVICE MANAGEMENT
THE CUSTOMER
SERVICE
Most problems result from a misalignment between
customer expectations and the products or services
A service is an action of doing something to someone Production and consumption and from the provider.
which is essentially (purely) intangible. Services cannot be separated from the services
“Service is an act or performance offered by one provided (we cannot separate the service from the
party to another that is essentially intangible and does product) in fact the product delivers consumption of a
not result in the ownership of anything.” service.
Is a total system approach to managing the entire Service quality depends on who provides and under
flow of information, materials, and services from raw what condition.
-materials suppliers through factories warehouses to Services of highly variable. It is almost impossible to
the end customer. have the same service from the same seller the
A supply chain is the system of organizations, second time.
people, activities, information and resources involved
PERISHABILITY
in moving a product or service from supplier to
customer. Cannot be stored, for resale or later use.
Supply chain activities transform raw materials and
components into a finished product that is delivered CUSTOMER PARTICIPATION
to the end customer.
Service product is not a one side activity customer
are core product of services. The product quality of
services greatly depends upon the ability, skills and
performance of the employees as well as the activity
and performance of the customer.
NO OWNERSHIP
CHARACTERISTICS OF SERVICES
INTANGIBILITY
INSEPARABILITY
SKILL LEVEL OF SERVICE PROVIDER:
Teacher
Doctor
Engineer
Accountant
POSSESION PROCESSING:
INFORMATION PROCESSING:
EXTERNAL MARKETING: “Setting the Promise: Direct communication from customer to staff
Observations
Marketing to END-USERS Customer comment cards
Involves pricing strategy, promotional activities, and Online feedback
all communication with customers. Meetings.
Performed to capture the attention of the market, and
interest in the service. DOCUMENTING CUSTOMER FEEDBACK
INTERACTIVE MARKETING: “Moment of Truth, Once customer feedback is collected, it must:
Service Encounter”
Be documented accurately
This refers to the decisive moment of interaction Identify further opportunities for workplace
between the front-office employees and customers. improvement
This step is utmost importance, because if the Used as the framework for customer service
employee falters at this level, all prior efforts made improvement strategies.
towards establishing a relationship with the customer,
would be wasted. COMPARE INFORMATION TO IDENTIFY
CHANGES IN CUSTOMER SATISFACTION
INTERNAL MARKETING: “Enabling the Promise”
Once information has been collected, it should be
Marketing to EMPLOYEES. compared against benchmarks to determine if the
Involves training, motivational, and teamwork changes are positive or negative
programs, and all communication with employees. So what is current information compared against?
Performed to enable employees to perform the
service effectively, and keep up the promise made to Budgets
the customer.
Sales budgets
Labour budgets
Material budgets Description of ideal service standard.
Inventory budget
Reporting Findings
Overhead budgets.
Capital Expenditure budgets Once you have prepared your report it is important
Budgeted Financial Performance Statement that it is given to the right people for feedback,
Cash budgets agreement and implementation or action.
Budgeted Statement of Financial Position
The groups and individuals to whom such a report may be
Operational Reports forwarded could include:
Reaching Agreement to Changes in Service What’s the difference between user experience, customer
experience and service design?
As a group, you must put a plan in place, based on
some of the suggestions mentioned above, and reach TERMS ARE CONFUSING
a mutual agreement There is often a debate between practitioners and
Only with the consensus of all parties involved, can a studios on how to define different parts of experience
sense of ownership take place and people will be design
more acceptable of the changes and the plan to User Experience (UX), Customer Experience (CX)
implement them. and Service Design?
COMMUNICATING CHANGES IN SERVICE Clients and design students repeatedly find this
confusing.
Communicating New Approaches to Service Delivery
USER EXPERIENCE
Once all parties have reached agreement, any new
approaches to customer service decided upon must be User Experience (UX) primarily focuses on the
communicated to all those involved within design and implementation of a single customer
appropriate timeframes. touchpoint. The aim is to make the touchpoint easier
and more enjoyable to use.
Your approach should follow these guidelines:
WHAT IS A TOUCHPOINT?
Hold a formal staff meeting to inform staff of the
changes Today, touchpoints typically mean website, mobile
Explain why change is necessary app and in-store experiences, but they can also appear
Give staff a hard copy of the new service approaches in form of paper invoice, kiosk or interactive voice
Give staff demonstrations of the new service delivery response system experiences.
protocols
TOUCHPOINT ≠ CHANNEL
Tell staff about the dates for introducing the new
service Touchpoints often get conflated with channels
Reassure staff they are not required to implement the (website, in-store etc.), although touchpoint is only a
changes ‘tomorrow’ single point of interaction.
Inform staff of the training In the touchpoint, an organisation seeks to fulfil
Encourage questions from staff about the changes customer’s needs with products or services.
Make yourself available outside this meeting for staff
to talk to CHANGING BEHAVIOURS
Post new checklists relating to the changes in A well designed touchpoint allow customers to fulfil
appropriate parts of the venue their needs and complete desired tasks with ease and
Include new policies, procedures in operational joy in a specific time and space.
manuals, induction programs and in-house training Some experiences can even change behaviours, like
Schedule staff training an online hotel booking.
Introduce the changes and monitor their
implementation BROAD SKILL SET
Provide feedback and additional training
To create great User Experiences, you or your team
CONTINUOUS MONITORING OF SERVICE need to have different competences.
COMPETENCES OF UX
User Research and Analytics: WHAT IS SERVICE DESIGN? LOOKING
THROUGH TWO LENSES
Understanding users through observations and data.
Like Customer Experience, Service Design is a
Information Architecture:
holistic approach to improve existing and to innovate
Organising information in a product or website in a new service experiences.
usable way. This multidisciplinary approach combines customer
experience, operational model design and design
Interaction Design: thinking methodologies and tools. It considers the
end to end service journey across all channels and
Designing interactive behaviours that allow users to
touch points not only from a customer, but also from
complete their goals and tasks.
organisational perspective.
Content Strategy:
BACKSTAGE PASS
Planning for the creation, delivery and governance of
usable content. This perspective enables organisations to enhance
their strategies, business models and operations
Visual Design: breaking through silos. It aims to improve behind-
the-scenes activities and processes that enable
Designing the interface’s visual qualities in an organisations to deliver great services and
aesthetically pleasing way. experiences.
Front-End Developer: WHO ARE SERVICE DESIGNERS?
Responsible for creating a functional implementation
Service Design connects various fields of research,
of a product's interface.
strategy and design, and sometimes even engineering,
architecture or human resources etc.
Experience focuses on the design and implementation Understanding the users and their needs through
of all touchpoints across the entire customer journey observations, contextual inquiries and other research
and channels. methods.
As customers don’t see the difference between Designing the visual elements that support customers
channels and touchpoints, they tend to jump from one emotionally, and makes complex and abstract
touchpoint to another and expect the seamless content accessible in a simpler way.
experience everywhere. Operations Management:
Thus, it is important to understand how customer
interacts in different touchpoints; what is done in Improving processes through which an organisation’s
each touchpoint and when. products and services are delivered.
Omni-channel experiences allow customers to
Strategic Management:
communicate through their preferred medium.
Omni-Channel has evolved from multi-channel and Responsible for dealing with the decisions how
means that the customer experience is seamless organisations can improve and differentiate their
through all channels. service and product offerings, and business models.
CONSISTENCY IS KEY Product and Industrial Design:
Customer Experience aims to deliver good Through rapid prototyping designers can create
experiences consistently on every channel that are artefacts and concepts cheaply and quickly which
aligned with the brand perception. Single ‘WOW’ improves later phases of product development.
moments and misleading communication or
advertising can be destructive if they set the bar too + Industry experts:
high for further interactions.
As a multidisciplinary approach, service design
benefits from project specific industry experts, who
bring knowledge and experience from their One step ahead to assess what your customer’s next
respective industries. demand or query might be is always an added
advantage.
4 KEY TAKEAWAYS
THE TWO COMMANDMENTS
1. USER EXPERIENCE
1. Do unto your internal customers as you would have
Focuses on the design of a single customer them do unto your external customers. In other
touchpoint. words, take care of your employees … be concerned
2. CUSTOMER EXPERIENCE for their wellbeing, and invest in them
2. Always treat customers as though they will remain
Focuses on orchestrating all touchpoints through all customers, “never as though this is the last time
channels. you’ll see them.
Employee qualities
Organisational qualities CONSIDERATIONS
External sources
Before counselling an employee for poor performance or
conducting the performance appraisal, management need to
consider:
Process
Technology
Environment
Legal
Material
Identifying risk: Financial
Make a commitment, as an organisation, to risk How do staff access their organisation’s Risk
management Management and Contingency Plans?
Identify all possible threats and risks Does a business make it easy for staff to understand
Assess the level of each risk what is required of them in the Risk Management and
Decide to accept, treat or transfer each risk Contingency Process?
Determine treatment options for all unacceptable Procedures for staff to notify of risk:
risks
Formalise your Risk Management Plan Verbal reports to supervisors
Implement your treatment options Completion of a report form
Communicate information to everyone affected Raising the issue at staff meetings
Review your Risk Management Plan after 6 months
Identify any new risks and update your plan 3.2 CONDUCT STAFF TRAINING IN RISK
MANAGEMENT
Operational Risk Management Plans need to include:
Ways to train staff in risk:
Description of the risks to be managed
Allocation of resources and responsibilities Emergency drills
Action to take should risk be realised Case studies
Preventative action to be taken Role plays
Simulations of risk events
Steps to eliminate unacceptable operational risks
Risks that cannot be eliminated Workplace application
Getting feedback from customers to assist with identifying Making changes to the strategy
risk changes
What are its advantages and disadvantages in its
Direct approach to canvass their opinion current form?
Put yourself in their shoes Based on this what changes should be implemented?
Questionnaires and surveys How will changes in the risk environment influence
Make sure feedback is formally recorded this?
Changes to risk can also be detected through inspections 5.5 REVISE EXISTING PLANS AND
of: STRATEGIES
Processes – Has the way work is done changed? Changes to the plan will require:
Equipment – What is new and being used
differently? The involvement of stakeholders
Facilities – Have they been altered? Rewriting the plan based on criteria covered in 5.4
Business environment – What is different in the Communicating changes to staff
wider environment now? Providing training to support any revisions
A strong initial staff orientation designed to A prescriptive model of decision making that
familiarise the staff with the operation of your venue assumes the decision maker can identify and evaluate
can help instil proper procedures and measures, is a all possible alternatives and their consequences and
necessary first step in setting the standards for all rationally choose the most appropriate course of
employees action
The degree of probability that the possible outcomes What are the advantages and disadvantages of each
of a particular course of action will occur alternative?
Managers should specify criteria, then evaluate.
Uncertainty
Ambiguous Information
Satisficing
Production blocking