Strategy&Leadership Feature at a glance: all the key elements Mind the gap Service heritage Key questions All too often there is a gap between the claims an organisation makes on the importance to it of providing good quality service and the quality of service provided Service heritage is the outward sign of the accumulation of service-related decisions. Service levels being offered to customers will be a consequence of the organisation’s service heritage How do we justify investment in service? What is our current strategy for service? How do we develop a better strategy for service? How do we take people with us? Look back to move forward Executives responsible for service need to be drivers of strategy, not just deliverers. The way forward is to start by asking some searching questions, particularly about the organisation’s historical priorities, and then talk the language decision makers understand say Dr. Bob Lillis and Steve Macaulay All too often there is a gap between the claims an organisation makes on the importance to it of providing good quality service and the quality of service that it then actually provides. Why is this so? Is it because the organisation doesn’t really want to walk the talk or because it doesn’t know how to walk the talk? Well, the answer may lie in a combination of both; within the organisation’s resource allocation routines and in particular its ‘service heritage’. Competency in the provision of service, as with all competencies, develops in the organisation over time and in a particular way. Service competence will be embedded in the culture and be the result of how things have historically been ‘done around here’. Service heritage is the outward sign of the accumulation of service-related decisions. Whether high, indifferent or even poor levels of service are being offered to customers will be a consequence of the organisation’s service heritage. This historic route by which competency or incompetency in service has arisen makes it difficult to discern and especially difficult to change. As a consequence, the organisation that believes itself committed to improving the service it offers may well mean what it says but be unable to deliver the goods, however well-intentioned. It may even devote resources and designate customer service delivery executives, 10 and charge them with pushing the service agenda forward. However, these executives can frequently get frustrated and lose heart because they are up against the firm’s service heritage. They may be faced with an uphill task and lack a true understanding of what is holding the organisation back. Whilst they themselves are service enthusiasts committed to improving service performance in their organisation, they could be confronted by fence If service performance improvement projects commonly get turned down in favour of others such as ideas advocating development into new markets or financial cost saving proposals then the overall strategy for the organisation will begin to be formed around the latter sitters, or worse, maybe executives sceptical about the real value to be gained from even making ‘service’ tomorrow’s nice to do objective. The result? Little more than a paper service charter and disappointed customers, as well as frustrated service delivery managers. Service managers, with whom we’ve spoken, have asked us to be more specific on how to break out of this trap. In response, we’ve put together the ‘Service Performance Workshop: Developing a Compelling Case for Service,’ which hones in on some telling questions. Cracking the heritage code Service delivery executives who really wish to push the service agenda forward and develop a compelling case for service provision in their organisation need to consider how they would answer these key questions: l How do we justify investment in service? l What is our current strategy for service? l How do we develop a better strategy for service? l How do we take people with us? l What do I need to make this happen? To improve competency in service provision, and to make the improvements made last, the service delivery manager should begin by examining the ‘service heritage’ of their organisation. This forms part of consideration of how the firm justifies investment in service. This is achieved by tracking and then reflecting on those key decisions relating to ‘service’ that have taken place in their organisation in the past three to five years. These decisions when viewed cumulatively will have informed the development of service competence or incompetence in the firm. Techniques that use questionnaires, interviews, mapping and timeline exercises can be used to capture valuable information to reveal the service heritage. Knowing this, and figuring out a way to work with this heritage, an appropriate improvement plan can then be devised that best utilises the resource allocation routines in the organisation. Walking the service talk All firms have within them such routines for undertaking day-today business. Strategy including service strategy develops as a consequence of the outcomes of these resource allocation routines; in effect, walking the talk. After all, what the organisation truly values will be where it allocates its scarce resources. So, for example, the service delivery manager may wish to pursue a service improvement project and puts forward a proposal. Perhaps the project forms part of CustomerStrategy p10-11 Compelling Service.indd 10 11/7/08 10:40:27 Building a case for service An action-based, diagnostic approach to service improvement is far more effective, and will pay dividends, through the creation of a stronger case for service: l By clueing into the company history of priorities and understanding how decisions are made, service improvement can be effectively driven by service executives. l Understanding an organisation’s service heritage and the strengths and weaknesses of its current strategy will help put a far more suitable and compelling case together. l Given that understanding the company is so critical to success, there is no universal template that can be carried from one service improvement initiative to another. l Above all, be candid, be analytical, and address realities – but present your arguments in a way that is compelling. the advocacy of a more compelling case for service provision. The case would be argued and financial data and metrics included. The manager would in reality be competing against other projects for available resources. Top management will have established context and guidelines for acceptance and rejection of proposals. Yet, decisions on which proposals go forward and which do not usually take place at middle levels and even lower. Again it’s the cumulative effects of outcomes of the decisions that shape service strategy and the development of service competency. Getting others on board Another element to successfully building a compelling case for service provision will require the service delivery manager to push for organisational attention to be paid to it to support the project proposals. The manager will need to influence other managers and develop coalitions around the issue. Only when a lobby or critical mass of supporters has evolved that recognise and are willing to support the development of improved service competency will it become an element of the organisation’s strategic agenda. Clearly this agenda building is an informal process and much will depend on the personality of the service delivery manager, the context in which managers may interrelate and the sheer allocation of allowable time to it, given all other issues requiring managerial attention. But reflection on ‘how to take other people with me’ in advocacy of improvements to service competency and answers to ‘what I need to make it happen’ is vital. Managers should revisit their thinking to delve deeper into how well their service strategy has been devised, and the effects of the heavy footprints of history that their service heritage gives them. It involves a measure of honesty about the true state of the provision of service that is being offered by their organisation and just how well they have been able to build a compelling case for service in their firm. Service managers need to find their voice in driving strategy and not just delivering it. ABOUT THE AUTHORS Dr. Bob Lillis is a Lecturer in Service Operations Management and Steve Macaulay is a Learning Development Executive at Cranfield School of Management. They may be contacted by telephone on ++44 (0) 1234 751122 or email bob.lillis@cranfield.ac.uk, or s.macaulay@cranfield.ac.uk CustomerStrategy p10-11 Compelling Service.indd 11 11 11/7/08 10:40:32