#TFT12 Ian clayton

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Next generation service management thinking for the ‘age of the customer’ Ian clayton

description

Next Generation Service Management Thinking for the Age of the Customer. "What business are we in?", "Who do we serve?", "How can we help our customers succeed?"

Transcript of #TFT12 Ian clayton

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Next generation service management thinking for the ‘age of the customer’

Ian clayton

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Universal  Service  Management    Body  of  Knowledge  (USMBOK)  

Next  Genera>on  Service  Management  Thinking  For  the  ‘Age  of  the  Customer’  

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Your  Guide  Ian  M.  Clayton  

•  38  years  in  IT  •  Author  of  the  Universal  Service  Management    

Body  of  Knowledge  (USMBOK™)  

•  Pioneer  of  outside-in  thinking  for  service  provider  organiza>ons  

•  “I  rescue  ITSM  projects  and  help  service  provider  organiza9ons  ensure  the  customer  and  service  experience  is  managed”.  

Ian Clayton Principal

Service Management 101

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How  to  Contact  Me  

•  Email:  [email protected]  

•  Support:  support.usmbok.com  

•  Blog,  discussions  and  public  Q&A    www.servicemanagement101.com  

•  Twi[er:  www.twi[er.com/ianclayton    

•  Skype:  ianmclayton  

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Topics  

•  The  service  society  and  ‘age  of  the  customer’  

•  Why  tradi>onal  IT  Service  Management  (ITSM)  ‘projects’  fail  

•  The  o_en  forgo[en  heritage  of  service  management  thinking  

•  The  elements  of  ‘next  genera>on  service  management’  

•  A  customer  centric  approach  and  how  to  start  your  true  service  management  journey,  from  the  ‘outside-­‐in’.  

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“The  loss  of  focus  on  the  customer  as  a  human  being  is  probably  the  single  most  important  fact  about  the  state  of  service  and  service  

management  in  the  Western  world  today”  

Karl  Albrecht,  c1992    ‘The  Only  Thing  That  Ma[ers’  

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The  Service  Society  

•  We  live  in  a  service  society  and    ‘age  of  the  customer’  dominated  by  outcomes  and  the  ‘service  experience’  

•  Experiences  using  products  and  interac>ng  with  these  and  their  providers  shapes  our  percep>on  of  value  

•  Our  level  of  sa>sfac>on  is  formed  from  whether  we  achieved  our  desired  outcomes,  with  what  experience,  and  at  what  cost  

•  This  “feeling”  acts  as  the  basis  for  loyalty  and  advocacy,  and  forms  our  general  percep>on  about  the  quality  of  a  service,  and  the  capabili>es  of  its  provider  or  service  business.  

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Today’s  Influences...  

•  Working  from  home/remotely  –  telecommu>ng  

•  Decentralized  infrastructure  -­‐  cloud  compu>ng  and  virtualiza>on  

•  Mobility  -­‐  A3  (anywhere,  anyhow,  any>me)  

•  Bring  Your  Own  Device  -­‐  BYOD  •  Touch  (Hap>c)    -­‐  4S,  “swipe,  swipe,  select,  submit”  

•  Voice  Direc>on,  Instruc>on    “Open  the  pod  bay  doors  Hal”  

  “In  500  yards  take  the  next  le_”  

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The  New  IT  

•  Focus  change  from  technology  farmer  and  innovator  to  technology  exploiter,  business  growth  enabler  

•  Operate  and  be  performance  managed  as  an  informa>on  service  provider  

•  Provide  a  customer  (service)  experience  on  par  with  non-­‐IT  service  businesses  

•  Deliberately  and  con>nuously  engage  the  customer  

•  Successful  IT?    Become  ‘invisible  technology’.  

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IT  Management  Impera>ves  

•  A  more  agile  and  responsive  IT  investment  decision-­‐making  process  

•  Complete  alignment  of  IT  opera>ons,  programs  and  ini>a>ves  with  business  goals  

•  Cost effective  use  of  all  types  of  technology  and  IT  resources  •  PAYGO  -­‐  utility  styled  informa>on  services  access  and  cost  

model.  

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IT’s  Tradi>onal  Response  

•  Reengineer  prac>ces  •  Improve  processes  

•  Mature  capability  of  processes  versus  a  framework  

•  Conform  to  a  standard  –  such  as  ISO/IEC  20000-­‐1    

•  Encapsulated  in  the  term  ‘IT  Service  Management’  -­‐  ITSM.  

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Tradi>onal  ITSM  is  failing  the  Customer  

and  its  management  sponsors.  

Why?

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How  many  of  these  ques>ons  can  you  answer?  

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“What  business  are  you  in?”  

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“Who  are  your  customers?”  

(Pick  one...)  

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“What  ac>vi>es  do  your  customers  perform  in  pursuit  of  success?”  

(Pick  one...)  

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“How  do  you  help  your  customers  perform  these  ac>vi>es?”  

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“What  do  your  customers  experience  when  they  use  your  services  or  interact  with  your  

organiza>on?”  

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“How  sa>sfied  are  your  customers  with  the  help  you  provide?”  

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Tradi>onal  ITSM  thinking  can  result  in  you  producing    

a  human  ‘car  wash’.  

A  place  that  processes  people  and  their  requests  through  the  facility  rather  than  ensuring  a  desired  outcome  and  crea>ng  a  total  

experience  and  ‘feeling’  of  value.  

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Tradi>onal  ITSM  is  ‘inside-­‐out’  and  not  how  successful  service  

businesses  manage  service  delivery  and  support.  

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‘inside-­‐out’  indicator  #1  “The  view  of  our  customers,  what  they  care  

about,  and  how  we  serve  them,  differs  significantly  across  the  organiza>on”  

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‘inside-­‐out’  indicator  #2  “Key  service  staff  are  unable  to  state  easily,  clearly  and  briefly  who  our  customers  are,  what  we  do  for  them,  and  the  basis  for  

measuring  customer  sa>sfac>on”  

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‘inside-­‐out’  indicator  #3  “When  compared,  more  >me  is  spent  on  

internal  issues,  processes  and  conflicts  than  on  discussing  the  customer  needs,  

expecta>ons,  and  service  experience”  

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‘inside-­‐out’  indicator  #4  “Few  of  our  decisions  are  explicitly  driven  

by  customer  needs”    

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‘inside-­‐out’  indicator  #5  “We  have  trouble  adap>ng  to  normal  

varia>ons  in  the  customer  opera>ons  and  get  blindsided  by  changes  in  strategy  and  

behavior”  

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‘inside-­‐out’  indicator  #6  “We  are  trying  to  apply  one  rigid  prac>ce  or  process  framework  to  all  customer  situa>ons  (consumer  scenarios)”    

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‘inside-­‐out’  indicator  #7  “We  do  not  know  how  our  efforts  relate  to  the  interests  and  success  of  our  customers”      

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Its  >me  to  press  RESET  and  REWIND    

on  the  ‘Service  Management’  bu[on.  

Why?

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IT<SM:  “Service  management  

concepts  and  methods  applied  to  the  challenges  of  an  IT  

organiza>on  being  performance  managed  as  a  

service  provider”  

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Fi_y  Years  of  Service  Management  

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Father  of  ‘Customer  Centricity’  Theodore  Levi[  

•  Levi[  was  a  provoca>ve  writer,  epitomized  by  his  descrip>on  of  the  Harvard  Business  Review,  “a  magazine  wri?en  by  people  who  can’t  write  for  people  who  won’t  read”  

•  Levi[  was  a  pioneer  in  product  and  service  marke>ng,    posed  the  simple  ques>on  in  his  inaugural  ar>cle    ‘Marke>ng  Myopia’  published  in  the  Harvard  Business    Review  July-­‐August  1960:    “What  business  are  you  in?”  

•  It  was  not  so  much  an  ar>cle  as  a  manifesto.  

•  Levi[  wove  a  powerful  argument  that  companies  should  stop  defining  themselves  by  what  they  produced  and  instead  reorient  themselves  toward  customer  needs  and  sa>sfac>on.    

1925-­‐2006  

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Father  of  Service  Management  Richard  A.  Normann  

•  Authored  the  first  book  on  the  topic  of  ‘service  management  in  1984’,  (Service  Management:  Strategy  and  Leadership  in  Service  Businesses)  

•  The  book  discussed  the  role  of  services  in  society,  technology  in  services,  and  the  need  for  a  streamlined  service  management  system.      

•  Other  key  concepts  discussed  included:    Moments  of  truth,  Self-­‐service  

  Service  delivery  system  

  Service  concept  and  the  service  ‘package’  

  Service  management  system  components.  

1943-­‐2003  

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Service  Management  

Is  about  managing  “a  service”    

and    managing  “service”  as  an  experience    

from  the  outside-­‐in.  

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The  Language  of  Service  Management  

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Outside-­‐In  Thinking  Guaranteed  customer  centricity  

•  Outside-­‐In  thinking  is  a  philosophy  and  management  approach  that  ensures  you  place  the  interests  of  your  customers  ahead  of  your  capabili>es  

•  An  explicit  customer  reason  is  embedded  in  every  decision  made  by  the  service  business  or  service  provider  

•  Organiza>ons  applying  outside-­‐in  focus  on  sa>sfying  their  customers  by  delivering  a  powerful  combina>on  of  a  ‘successful  customer  outcome’  and  a  superior  service  experience  

•  Outside-­‐in  also  helps  you  measure  your  success  and  target  improvement  from  the  customer  perspec>ve.  

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Steve  Towers  –  “Mr.  Outside-­‐In”  

•  Steve  is  one  of  industry's  noted  experts  in  Business  Process  Management  (BPM),  performance  transforma>on  and  Customer  Experience  Management  and  co-­‐founder  of  the  BP  Group  

•  Through  research  and  ‘hands-­‐on’  exposure  to  the  world’s  leading  companies  he  has  pioneered  the  evolu>on  of  BPM  and  'Outside  In  ’  thinking    

•  In  2011  Steve  was  entered  into  the  Architecture  &  IT  World  Hall  of  Fame  

•  h[p://www.stevetowers.com.  

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The  Outside-­‐In,  Inside-­‐Out  (OI-­‐IO)  Con>nuum™  

•  Posi>ons  key  concepts  and  terms  based  upon  inside-­‐out,  or  outside-­‐in  bias  

•  Represents  the  span  of  centricity  and  transforma>on  journey  of  a  prospec>ve  service  organiza>on  

•  Provides  context  for  a  transforma>on  journey  driven  by  a  con>nuous  improvement  program  

Custom

er  

Centricity   Infrastructure  

Centricity  

Value  

Rela=onship  

Customer  Experience  

Complaint  

Sa=sfac=on  

Loyalty  

Advocacy  

Scenarios  

Access  Points  

Touchpoints  

Successful  Outcomes  

Emo=ons  

Service  Experience  

Contact  Center  

Channels  

Service  Request  

Pathway  

Service  Encounter  

Interac=ons  

Moments  of  Truth  

On-­‐Stage  

Alignment  

Service  

Product  

Brand  

Expecta=on  

Back-­‐Stage  

Problem  

Defect  

Workflow  

Standard  Work  

Best  Prac=ce  

Process  

Incident  

Capability  

Maturity  

Support  Processes  

Infrastructure  

Item  

Asset  

Resource  

Event  

Alert  

Ar=fact  

Procedure  

Func=on  

The  Service  Management  System  

The  Outside-­‐In  (OI)  Inside-­‐Out  (IO)  Con=nuum™  

Source  USMBOK™,  ©  2009  Ian  Clayton  

Commodi=es  Goods  Service  Experience  

Tradi=onal  ITSM  

Frameworks  

Reac>ve  

INSIDE  

Proac>ve  

OUTSIDE  

USMBOK  

USMBOK  P94  

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Customer  Sa>sfac>on  Designed,  measured  and  managed  from  

moments  of  truth  within  a    service  encounter.  

Sa>sfac>on-­‐>Loyalty-­‐>Advocacy.  

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Service  Encounter  

•  Every  day  each  of  one  of  has  many  ‘service  encounters’  

•  “An  episode  where  a  customer  comes  into  contact  with  any  aspect  of  a  product,  or  service  organiza>on  and  gets  an  impression  of  its  quality  

•  An  encounter  is  prompted  by  a  service  request  

•  Within  each  are  consumer  (customer)  and  provider  ac>ons,  interac>ons,  moments  of  need,  and  moments  of  truth.  

•  At  its  core  is  a  ‘consumer  scenario’  and  ‘user  stories’.  

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The  Service  Encounter  Rules  

•  Knowing  when  and  where  service  encounters  occur  is  a  mandatory  ac>vity  for  a  service  organiza>on  

•  Service  encounters  and  the  support  ac>vi>es  they  ini>ate  are  pre-­‐designed  into  product  and  service  offerings  

•  Service  encounters  span  third-­‐party  involvement  

•  Where  an  encounter  starts  and  ends  is  ‘nego>able’  

•  Service  encounters  play  a  vital  role  in  customer  sa>sfac>on  and  thus,  to  the  provider’s  overall  success,  and  are  represented  in  the  service  management  system  by  a  ‘service  request  pathway’.  

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Moment  of  Truth  

•  A  vital  interac>on  between  the  consumer  and  the  provider,  represen>ng  an  instance  where  the  customer  has  an  opportunity  to  form  (or  change)  a  percep>on  about  any  aspect  of  the  service  experience,  service  organiza>on,  and  its  products  and  services  

•  The  percep>on  can  include  the  quality  of  the  service  and  the  capability  of  the  service  business  or  service  provider  organiza>on  

•  Moments  of  Truth  act  as  key  indicators  in  determining  and  measuring  the  level  of  ‘customer  sa9sfac9on’  

•  Every  service  encounter  has  at  least  three  moments  of  truth  represented  by  the  ‘greet’,  the  ‘use’,  and  the  ‘thank  you’  or  ‘exit’  interac>ons.    

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The  Magic  Number  -­‐  “42”  

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“Next  Genera>on”  Architecture  4  key  elements  –  engage,  request,  support,  improve  

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Pillars  of  Service  Support  Break-­‐fix,  helping-­‐hand,  service  recovery,  complaint  

handling  

CUSTOMER    SATISFACTION  

COMPLAINT  &  

COMPLIM

ENT  

BREA

K-­‐FIX  

HELPING  HAND  

SERV

ICE  RE

COVE

RY  

(CUSTOMER)  SERVICE  SUPPORT  

INTERACTIONS  

PROBLEM  MANAGEMENT  

Moments  of  Need  

Moments  of  Truth  

Feedback  

IMPACT  MANAGEMENT  

OPPORTUNITY  MANAGEMENT  

SERV

ICE  

PLANNING  

CONTINUOUS  

IMPR

OVE

MEN

T  CU

STOMER

 RE

LATIONS   CUSTOMER  ENGAGEMENT  STRATEGY  

Expecta=on  

Experience  

Sa=sfac=on  level  

Encounter  

Emo=ons  

SERVICE  MARKETIN

G  

4Es  

Source:  USMBOK  

USMBOK  P170,  433  

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Outside-­‐In  and  Inside-­‐Out  

delivery channel!

interaction!front stage action!

consumer action!moment

oftruth!

back stage action!

momentof

need!

level of satisfaction!support processes! IO!

consumer scenario!

OI!

service request!“42”!

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Outside-­‐in  Con>nuous  Improvement  

Approach: Map, inspect and improve, one service

encounter (request) at a time as part of an ongoing continuous improvement program.

Problem  Opportunity  Hypothesis  

Consumer  Scenario  

and  Story  

Workshop  Problem  Queue  

Improvement  Queue  

Change  Schedule  

30-­‐60-­‐90  Cycle  

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How  o_en  do  you  go  on  a  service  safari  to  observe  your  customers  in  their  natural  

habitat?  

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Are  you  asking  what  process  to  implement  first,  or  what  services  to  

catalog,  instead  of  what    consumer  scenario  to  capture    and  what  service  encounter    

to  inspect?  

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Summary  

•  We  are  in  the  service  society  and  ‘age  of  the  customer’  

•  Tradi>onal  ITSM  ‘projects’  are  inside-­‐out  and  failing  the  customer  

•  We  need  a  ‘next  genera>on  service  management’  approach  that  is  outside-­‐in  and  true  to  origins  of  service  management  

•  The  journey  can  start  today  with  an  approach  that  engages  the  customer,  understands  and  improves  the  service  experience,  through  a  program  of  con>nuous  improvement.  

•  The  path  to  opera>onal  and  service  excellence  is  through  recognizing  our  heritage,  and  thinking  and  ac>ng  outside-­‐in.  

Page 51: #TFT12 Ian clayton

Copyright © 2012 VKSII, All Rights reserved

Universal  Service  Management  Educa>on  

•  h[p://www.usmbok.com  

•  h[p://support.usmbok.com  

•  h[p://www.twi[er.com/usmbok  

•  h[p://www.udemy.com/courses/search?q=usmbok  

•  [email protected].  

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Copyright © 2012 VKSII, All Rights reserved

Universal  Service  Management    Body  of  Knowledge  (USMBOK)  

Ques>on  and  Answers  www.servicemanagement101.com  (‘Q&A’)  

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Copyright © 2012 VKSII, All Rights reserved

The  USMBOK  Series  

‘Rose[a  Stone’  for    service  management  

Universally  applicable  to  any  service  business  or  anyone  performance  managed  as  a  service  provider  organiza>on  

Framework,  system,  organiza>on  

Companion  prac>>oner  guides  

Lexicon  of    Terms  (1200+)  

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WITH THANKS TO OUR SPONSOR bmc remedyforce

#TFT returns june 2013