Part 4 DELIVERING AND PERFORMING SERVICE McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Provider GAP 3 CUSTOMER Service Delivery COMPANY GAP 3 Customer-Driven Service Designs and Standards Part 4 Opener McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Chapter 11 Employees’ Roles in Service Delivery • The Critical Importance of Service Employees • Boundary Spanning Roles • Strategies for Closing Gap 3 • Service Culture McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Objectives for Chapter 11: Employees’ Roles in Service Delivery • Illustrate the critical importance of service employees in creating customer satisfaction and service quality • Demonstrate the challenges inherent in boundaryspanning roles • Provide examples of strategies for creating customer-oriented service delivery • Show how the strategies can support a service culture where providing excellent service is a way of life McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Figure 11.2 The Services Marketing Triangle Company (Management) Internal Marketing External Marketing enabling promises Employees setting promises Interactive Marketing Customers keeping promises Source: Adapted from Mary Jo Bitner, Christian Gronroos, and Philip Kotler McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Services Marketing Triangle Applications Exercise • Focus on a service organization. In the context you are focusing on, who occupies each of the three points of the triangle? • How is each type of marketing being carried out currently? • Are the three sides of the triangle well aligned? • Are there specific challenges or barriers in any of the three areas? McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Ways to Use the Services Marketing Triangle • Overall Strategic Assessment – How is the service organization doing on all three sides of the triangle? – Where are the weaknesses? – What are the strengths? McGraw-Hill/Irwin • Specific Service Implementation – What is being promoted and by whom? – How will it be delivered and by whom? – Are the supporting systems in place to deliver the promised service? ©2003. The McGraw-Hill Companies. All Rights Reserved Figure 11.3 The Service Profit Chain Source: An exhibit from J. L. Heskett, T. O. Jones, W. E. Sasser, Jr., and L. A. Schlesinger, “Putting the Service-Profit Chain to Work,” Harvard Business Review, March-April 1994, p. 166. McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Service Employees • • • • • They are the service. They are the organization in the customer’s eyes. They are the brand. They are marketers. Their importance is evident in: – The Services Marketing Mix (People) – The Service-Profit Chain – The Services Triangle McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Service Employees • Who are they? – “boundary spanners” • What are these jobs like? – emotional labor – many sources of potential conflict • • • • person/role organization/client interclient quality/productivity McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Figure 11.4 Boundary Spanners Interact with Both Internal and External Constituents External Environment Internal Environment McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Figure 11.5 Sources of Conflict for Boundary-Spanning Workers • Person vs. Role • Organization vs. Client • Client vs. Client • Quality vs. Productivity McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Figure 11.6 Human Resource Strategies for Closing GAP 3 McGraw-Hill/Irwin Develop People to Deliver Service Quality P Te rom am ot wo e rk Me as Re ure a w Str ard nd o S n P e er vi g rfo ce rm ers Treat Employees as Customers e lud s in Inc ee y plo e s Em th any’ mp n Co Visio De S e vel o or rvic p i e Int ente Pr ern d oc es al se s CustomerOriented Service Delivery Provide Needed Support Systems Provide Supportive Technology and Equipment Empower Employees Retain the Best People Hire the Right People B Pr e t Em efe he p l r r ed oy er r fo and ain l Tr nica tive ch r ac Te Inte kills S r fo e t t p e es m B le Co the op Pe Hire for Service Competencies and Service Inclination re su al a Me tern e In rvic y Se alit Qu ©2003. The McGraw-Hill Companies. All Rights Reserved Empowerment • Benefits: – quicker responses – employees feel more responsible – employees tend to interact with warmth/enthusiasm – empowered employees are a great source of ideas – positive word-of-mouth from customers McGraw-Hill/Irwin • Drawbacks: – greater investments in selection and training – higher labor costs – slower and/or inconsistent delivery – may violate customer perceptions of fair play – “giving away the store” (making bad decisions) ©2003. The McGraw-Hill Companies. All Rights Reserved Service Culture “A culture where an appreciation for good service exists, and where giving good service to internal as well as ultimate, external customers, is considered a natural way of life and one of the most important norms by everyone in the organization.” McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved