Blueprint Lecture NC University

8/2/2019 Blueprint Lecture NC University

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Services

Management5 October 2006

FALL 2006

ALIGNING

SERVICE DESIGN

AND STANDARDS


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CUSTOMER

COMPANY

Service Design and

Standards Gap

Customer-DrivenService Designs and

Standards

Company Perceptionsof ConsumerExpectations

Provider Gap 2

Service Development and Design

Challenges of Service Design

New Service Development

Types of New Services

Stages in New Service Development

Service Blueprinting

Quality Function Deployment

High-Performance Service Innovations


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Service Development and Design

Describe the challenges inherent in service design.

Present the stages and unique elements of the new-

service development process.

Demonstrate the value of service blueprinting andhow to develop and read service blueprints.

Present lessons learned in choosing andimplementing high-performance service innovations.

Risks of Relying on Words Alone toDescribe Services

Oversimplification

Incompleteness

Subjectivity

Biased Interpretation


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Types of New Services

major or radical innovations

start-up businesses

new services for the currently served market

service line extensions

service improvements

style changes

New Service Development Process

Sources: Booz-Allen & Hamilton, 1982;

Bowers, 1985; Cooper, 1993; Khurana &

Rosenthal 1997.

Business strategy development or review

New service strategy development

Idea generation

Concept development and evaluation

Business analysis

Service development and testing

Postintroduction evaluation

Commercialization

Market testing

Screen ideas against new service strategy

Test concept with customers and employees

Test for profitability and feasibility

Conduct service prototype test

Test service and other marketing-mix elements

Front-end

Planning

Implementation


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New Service Strategy Matrix for

Identifying Growth Opportunities

Markets

Offerings

Existing

Services

New

Services

Current Customers New Customers

Share

building

Diversification

Market

development

Service

development

Service Blueprinting

A tool for simultaneously depicting the service

process, the points of customer contact, and

the evidence of service from the customers

point of view.

Service

Blueprint

Process

Points of contact

Evidence


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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

Service Blueprint Components


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Blueprint for Express Mail Delivery Service

Driver

Picks Up

Package

Dispatch

Driver

Airport

Receives

& Loads

Sort

Packages

Load on

Airplane

Fly to

Destination

Unload

&

Sort

Load

On

Truck

SUPPORTPROCESS

CONTACT

PERSON

(BackStage)

(OnStage)

CUSTOMER

PHYSICAL

EVIDENCE

Customer

Calls

Customer

Gives

Package

Truck

Packaging

Forms

Hand-held Computer

Uniform

Receive

Package

Truck

Packaging

Forms

Hand-held Computer

Uniform

Deliver

Package

Customer

Service

Order

Fly to

Sort

Center

Line of interaction

Line of visibility

Line of internal interaction

Blueprint for Overnight Hotel Stay Service

SUPPORTPROCESS

CON

TACTPERSON

(Back

Stage)

(OnStage)

CUSTOMER

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 Bill

Desk

Lobby

Hotel Exterior

Parking

Arrive

at

Hotel

Give Bags

to

BellpersonCheck in

Go to

Room

Receive

Bags

Sleep

Shower

Call

Room

Service

Receive

FoodEat

Check out

and

Leave

Greet and

Take

Bags

Process

Registration

Deliver

Bags

Deliver

FoodProcess

Check Out

Take Bagsto Room

Take

FoodOrder

Registration

System

Prepare

Food

PHYSICAL

EVIDENCE

Line of Interaction

Line of Visibility

Line of Internal Interaction

Registration

System


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Step 1

Identify the

process to

be blue-

printed

Step 2

Identify the

customer

or

customer

segment

Step 3

Map theprocess

from the

customers

point of

view

Step 4

Map contact

employee

actions,onstage andback-stage,

and/ortechnology

actions

Step 5

Link contact

activities to

needed

support

functions

Step 6

Add

evidence of

service at

each

customer

action step

Building a Service Blueprint

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


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Blueprints Can Be Used By:

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

Management

empowering the human element:

job descriptions

selection criteria

appraisal systems

System Technology

providing necessary tools:

system specifications

personal preference databases

Customer-Defined Service Standards Distinguish between company-defined and customer-defined service

standards.

Differentiate among one-time service fixes and hard and softcustomer-defined standards.

Explain the critical role of the service encounter sequence indeveloping customer-defined standards.

Illustrate how to translate customer expectations into behaviors andactions that are definable, repeatable, and actionable.

Explain the process of developing customer-defined servicestandards.

Emphasize the importance of service performance indexes inimplementing strategy for service delivery.


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Customer-Defined Service Standards

Factors Necessary for Appropriate Service

Standards

Types of Customer-Defined Service Standards

Development of Customer-Defined Service

Standards

Examples of Hard Customer-

Defined Standards


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Examples of Soft Customer-

Defined Standards

AT&Ts Process Map for

Measurements

Source: R. E. Kordupleski, R. T. Rust, and A. J. Zaharik, Why Improving Quality Doesnt Improve Quality (or Whatever Happened to Marketing?),

California Management Review35, no. 3 (Spring 1993).


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Satisfaction

Relationship

Reliability Empathy

Assurance Tangibles

Responsiveness Price

Delivers on time

Returns calls quickly

Knows my industry

Delivers by WednesdayReturns calls in two hours

Knows strengths of my competitors

Requirements:

Abstract

Concrete

Dig

deeper

Dig

deeper

Digdeeper

Diagnosticity:

Low

High

General

concepts

Dimensions

Behaviorsand actions

Attributes

What Customers Expect:

Getting to Actionable Steps

Value

Solution Provider

1. Identify existing or desired service encounter sequence

2. Translate customer expectations into

behaviors/actionsbehaviors/actions

4. Set hard or soft standards

5. Develop feedback mechanismsmechanisms

Measure by

audits or

operating

data

Hard Soft

Measure by

transaction-

based surveys

3. Select behaviors/actions for standards

6. Establish measures and target levels

Process for Setting Customer-

Defined Standards

7. Track measures against standards

8. Provide feedback about performance to employees

9. Update target levels and measures


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Importance/Performance Matrix

2 4 6 8 12 16 20 24

WORKING HOURS

Large Customers

Small Customers

10

9

8

7

6

5

4

3

2

1

0

SATISFACTION

Linkage between Soft Measures and Hard

Measures for Speed of Complaint Handling

Blueprint Lecture NC University

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