PowerPoint Presentation

Presented by

Varun Nigam

UncommonServiceAuthors

Frances FreiAnne MorrissUncommon ServiceSome facts about Service Industry in IndiaContributes to about 60% of GDP

35% of employment

A quarter of the total trade

And over half of the foreign investment inflowsUncommon ServiceSome facts about Service Industry in IndiaOne of the largest and fastest growing sectors in the global market

Received FDI equity inflows worth 179,150.49 crores in the period April 2000 August 2013Uncommon ServiceWhat do we need a service for?To get help with the problems we face while using a product

To make a product meaningful

Uncommon ServiceHelping is in Human Nature and yet good services are still rareIt is not that employees and owners want to deliver bad serviceIt is not that we need a bad serviceWe still get a bad serviceWhats going wrong?Uncommon Service

Channel human impulse to serve into

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Heres what the authors have learntUncommon Service is not born from attitude and effortBut from Design Choices made in the very blueprints of a business modelUncommon Service

It easy to say that we provide servicesIt is hard to Design a Service model that allows average employees, not just the exceptional ones to produce service excellence as an everyday routineUncommon Service

Outstanding Service Organizations createUncommon ServiceOfferingsFundingStrategiesSystemsCultures

How to deliver Uncommon Service by DesignUncommon Service

The Four Service TruthsYou cant be good at everythingSomeone has to pay for itIts not your employees faultYou must manage your customersUncommon Service

Principles of Service ExcellenceUncommon ServiceService OfferingFunding mechanismEmployee management systemCustomer Management SystemWhich specificAttributes ofService are youCompeting on?How is theExcellencePaid for?Are employeesSet up forSuccess?How areCustomersManaged andTrained?You cant be good at everythingExcellence requires sacrificeYou must underperform on dimensions your customers value lessYou cannot depend on the faith that your employees will perform heroically. Excellence must be normalizedUncommon Service

Example: Commerce BankOffers the worst interest rates in the industryBut open from 7:30 am to 8:00 pm from Monday to FridayFull banking services would be available on Saturdays and SundaysUncommon Service

Where to be Good and where to be Bad?

Find what your customers value mostService is more about best in class customer interactionsEmployees best-of-the-best in both Attitude and Aptitude are expensive

Uncommon ServiceWhere to be Good and where to be Bad?

People with good attitude are desired in service industrySimplify your products to deal with any problem arising from less aptitude of the employeesUncommon ServiceThe Attribute MapUncommon ServiceRelative performanceof the firmConvenienceCustomerinteractionsProductRange- - -PriceMostImportantTo targetmarketLeastImportantTo targetmarketPutting it into practiceCreate an internal attribute mapCreate an external attribute mapAnalyze your performanceReactUncommon Service

Attribute map for analyzing performanceRelative performanceof the firmYour companyCompetitorQuality ofinstallationLow priceResponsivenessCourteous andprofessionalProactiveFollow-up- - -- - -MostimportantTo targetmarketLeastimportantTo targetmarketUncommon ServiceNeed aWedgeWasted WedgeRelative performanceof the firmYour companyCompetitorQuality ofinstallationLow priceResponsivenessCourteous andprofessionalProactiveFollow-up- - -- - -MostimportantTo targetmarketLeastimportantTo targetmarketUncommon ServiceWastedWedgeWasted ProfitRelative performanceof the firmYour companyCompetitorQuality ofinstallationLow priceResponsivenessCourteous andprofessionalProactiveFollow-up- - -- - -MostimportantTo targetmarketLeastimportantTo targetmarketUncommon ServiceWastedProfit

Someone has to pay for itThe most successful service models incorporate a mechanism for reliably funding an exceptional experience4 funding mechanisms which can be used to sustain your premium offering.Uncommon Service

4 ways to pay for excellenceCharge customers extra for it in a palatable wayMake cost reductions that also improve serviceMake service improvements that also reduce costsGet customers to do the work for youUncommon Service

ExamplesCommerce Bank did not charge customers for better service but offered lower interest rates on depositsLoyalty programs, if designed correctly, are a great way to get paid for your premium serviceUncommon Service

ExamplesClassrooms reduced costs and offered more benefits than private tutorsIntuit asked its product development team to take customer calls for supportBig Bazaar uses the customers serve themselves modelUncommon Service

Its not your Employees faultIt may not be that you have hired an entire company of people who just dont get itYou might have built a service model for phantom employees which you wish you had, but you actually dontUncommon Service

The successful Employee Management SystemUncommon ServiceSelectionTrainingJob DesignPerformance ManagementSelection Cost of hiring StarsUncommon ServiceLowHighLowHighAptitudeAttitudeThe competence-complexity gapUncommon ServiceLevelTimeOperationalComplexityEmployeeSophisticationGapExperiencedBy front lineStart attacking system-wide complexityLowHighLowHighDirect value-add to customersOperationalcomplexityStart hereDont start hereUncommon Service

You must Manage your CustomersCustomers play a special role in service encounters. This phenomenon is called customer-operatorCustomers dont just consume service, they also participate in creating it

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You must Manage your CustomersCustomers can increase the cost and reduce the quality of your serviceSometimes they can help on both fronts, but that is too rareHow do you get your customer-operators to behave?Uncommon ServiceManaging the Chaos of CustomersUncommon ServiceArrivalRequestCapabilityEffortPreference

Variability of customers can take the followingdifferent formsWill come at any timeAsk for anything they wantDifference in knowledgeDifferent definitions of qualityEffort levels will varySuccessful Customer Management SystemUncommon ServiceCustomer SelectionCustomer TrainingCustomer Job DesignManaging customer performanceThe Values LeverService only to selectedcustomersCustomers need training toPerform their rolesGive your customers lessworkCustomers shouldnt beLeft entirely on their ownGive a great value to yourCustomersWeve Designed. Now Multiply it by CultureUncommon ServiceService Excellence = Design x Culture

What after you develop your Culture?Uncommon ServiceGet BiggerUncommon Service

An Uncommon