McGraw-Hill © 2000 The McGraw-Hill Companies

1

SMSM

McGraw-Hill © 2000 The McGraw-Hill Companies

Part 3

ALIGNING STRATEGY, SERVICE DESIGN

AND STANDARDS

McGraw-Hill © 2000 The McGraw-Hill Companies

2

SM

CUSTOMER

COMPANY

GAP 2

Customer-Driven Service Designs and

Standards

Company Perceptions of

Consumer Expectations

Provider GAP 2Provider GAP 2

Part 3 Opener

McGraw-Hill © 2000 The McGraw-Hill Companies

3

SMSM

McGraw-Hill © 2000 The McGraw-Hill Companies

Chapter 8

SERVICE DEVELOPMENT AND DESIGN

McGraw-Hill © 2000 The McGraw-Hill Companies

4

SMObjectives for Chapter 8:Objectives for Chapter 8:Service Development and Service Development and

DesignDesign

• Describe the challenges inherent in service design• Present steps in the new service development

process• Show the value of service blueprinting and quality

function deployment (QFD) in new service design and service improvement

• Present lessons learned in choosing and implementing high-performance service innovations

McGraw-Hill © 2000 The McGraw-Hill Companies

5

SM

Figure 8-1Figure 8-1

Risks of Relying on Words Risks of Relying on Words Alone to Alone to

Describe ServicesDescribe Services

Oversimplification Incompleteness Subjectivity Biased Interpretation

McGraw-Hill © 2000 The McGraw-Hill Companies

6

SM

Figure 8-2 Figure 8-2

New Service Development ProcessNew Service Development Process

Source: 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

McGraw-Hill © 2000 The McGraw-Hill Companies

7

SM

Figure 8-3Figure 8-3

New Service Strategy Matrix New Service Strategy Matrix for Identifying Growth for Identifying Growth

OpportunitiesOpportunities

Markets

Offerings

ExistingServices

NewServices

Current Customers New Customers

SHARE BUILDING

DIVERSIFICATION

MARKETDEVELOPMENT

SERVICEDEVELOPMENT

Figure 8-4Figure 8-4

Service Mapping/BlueprintingService 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.

ServiceMapping

Process

Points of Contact

Evidence

McGraw-Hill © 2000 The McGraw-Hill Companies

McGraw-Hill © 2000 The McGraw-Hill Companies

9

SM Service Blueprint ComponentsService Blueprint Components

CUSTOMER ACTIONS

line of interaction

“ONSTAGE” CONTACT EMPLOYEE ACTIONS

line of visibility

“BACKSTAGE” CONTACT EMPLOYEE ACTIONS

line of internal interaction

SUPPORT PROCESSES

McGraw-Hill © 2000 The McGraw-Hill Companies

10

SM

DriverPicksUp Pkg.

DispatchDriver

AirportReceives& Loads

SortPackages

Load onAirplane

Fly toDestinati

on

Unload&

Sort

LoadOn

Truck

Express Mail Delivery ServiceExpress Mail Delivery ServiceSU

PPO

RT

PR

OC

ESS

CO

NTA

CT

PER

SO

N(B

ack

Sta

ge)(O

n S

tage)C

USTO

ME

RPH

YSIC

AL

EV

IDEN

CE

CustomerCalls

CustomerGives

Package

TruckPackagingFormsHand-held ComputerUniform

ReceivePackage

TruckPackagingFormsHand-held ComputerUniform

DeliverPackage

CustomerServiceOrder

Fly toSort

Center

McGraw-Hill © 2000 The McGraw-Hill Companies

11

SMOvernight Hotel StayOvernight Hotel Stay

SU

PPO

RT P

RO

CESS

CO

NTA

CT P

ER

SO

N

(Back

Sta

ge)(

On S

tage)

CU

STO

MER

HotelExteriorParking

Cart for Bags

DeskRegistrationPapersLobbyKey

ElevatorsHallwaysRoom

Cart for Bags

RoomAmenitiesBath

Menu DeliveryTrayFoodAppearance

Food

BillDeskLobbyHotelExteriorParking

Arriveat

Hotel

Give Bagsto

BellpersonCheck in Go to

RoomReceive

BagsSleep

Shower

CallRoom

Service

ReceiveFood

EatCheck out

andLeave

Greet andTakeBags

ProcessRegistration

DeliverBags

DeliverFood

ProcessCheck Out

Take Bagsto Room

TakeFoodOrder

RegistrationSystem

PrepareFood

RegistrationSystem

PH

YSIC

AL

EV

IDEN

CE

McGraw-Hill © 2000 The McGraw-Hill Companies

12

SM Figure 8-8Figure 8-8

Building a Service BlueprintBuilding a Service Blueprint

Step 1

Identify the process to be blue-printed.

Step 1

Identify the process to be blue-printed.

Step 2

Identify the customer or customer segment.

Step 2

Identify the customer or customer segment.

Step 3

Map the process from the customer’s point of view.

Step 3

Map the process from the customer’s point of view.

Step 4

Map contact employee actions, onstage and back-stage.

Step 4

Map contact employee actions, onstage and back-stage.

Step 5

Link customerand contact person activities to needed support functions.

Step 5

Link customerand contact person activities to needed support functions.

Step 6

Add evidence of service at each customer action step.

Step 6

Add evidence of service at each customer action step.

McGraw-Hill © 2000 The McGraw-Hill Companies

13

SMApplication of Service Application of Service

BlueprintsBlueprints

• 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

McGraw-Hill © 2000 The McGraw-Hill Companies

14

SMBlueprints Can Be Used By: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– empowering the human element

• job descriptions• selection criteria• appraisal systems

• System Technology– providing necessary tools:

• system specifications• personal preference databases